Search Documents

By Charles W. Bloomquist

The profitability of miscible flooding in a hypothetical target oilfield is examined. The major costs, including Windfall Prof it Tax, are identified and their re1ative importance are discussed. The sensitivity of profit to important physical and economic variables is evaluated and discussed, including variance in oil recovery, oil price, injectant requirements, injectant cost, and capital requirements. Economic sensitivities to important development and operating decisions such as timing, Spacing, Slug size, and gas recycling are also analyzed. The Windfall Profit Tax (WPT) as it applies to gas miscible EOR projects is reviewed. The effect of WPT on each of the various project cases is analyzed and the effect of reduced WPT on remaining production from existing operations is evaluated. Tax implications are compared for integrated vs. "independent" controlled projects and the alternative of expensing vs. capitalizing tertiary injectants is also evaluated. The impact of the Net Income Limitation in reducing WPT. during early and late project life is determined and discussed.

Jan 1, 1982

By Larry Dale

An approach for predicting the development of mineral resources on public lands has been developed as an aid to resource agencies. It consists of new techniques for evaluating the economic potential of the resource, the uncertainty about mine cost estimates, and the uncertainty about the occurrance of mineral deposits. New mineral sup- plies from inferred and hypothetical resources can be predicted by using these techniques. A case study illustrates their application in predicting development of copper resources in western Montana.

Jan 1, 1982

By Forest Mintz

Many oil and gas producers find it advantageous to borrow against the value of their hydrocarbon re- serves. This paper considers the requirements for a reserve based loan and the calculations that a bank would perform to arrive at a loan amount. Three of the most common loan structures, i.e. a term loan, a production payment, and a revolving credit/term loan will be discussed. A typical outline for each type of loan is presented. Finally, a comparison of major considerations in the three financing techniques is shown.

Jan 1, 1982

By Norman C. Stines

Russia's mineral potential is a secret that has been effectively kept by the Iron Curtain. There is no conclusive data and because of its extreme importance to the Free World, the subject is greatly discussed. Opinions range from those presented by Paul Tyler in his article "Russia's Mineral Potential," June issue of MINING ENGINEERING to those of Norman C. Stines, presented herewith. Mr. Stines is a consulting mining engineer of Los Gatos, Calif. He was in Russia, China, and Manchuria from 1909 to 1918 as a mining executive. From 1917 to 1919 he served as assistant military attache Intelligence Branch U. S. Army in Petrograd, Russia.

Jan 11, 1951

By Thomas A. Simpson, Tunstall R. Gray

The Birmingham district first produced steel from Alabama hematite ores in 1899. Since then, the district generally produced more than 6.0 million gross tons of ore a year to the late 1950's. Production has declined since then to an annual rate of about 1.5 million gross tons. Reserves calculated for the district are sufficient to last many years. Mining in the district is now confined to Woodward Iron Company's Vance and Pyne mines. The rocks exposed consist of about 15,000 feet of consolidated Paleozoic sediments with a thin veneer of unconsolidated Cretaceous sediments in the Vance area. The district is characterized by a distinctively parallel and subparallel, slightly arcuate series of faults and joint systems. In view of available information, it seems reasonable to conclude that the Birmingham red ores are of sedimentary origin, modified to a small extent by diagenetic replacement after original deposition.

Jan 1, 1968

By Frank G. Snyder, Paul E. Gerdemann

The Southeast Missouri lead district, located about 70 miles south of St. Louis, embraces four important sub-districts and several minor ones. The important sub-districts, in order of discovery, are Mine La Motte, the Old Lead Belt, Indian Creek, and the Viburnum Lead Belt. Descriptions that follow are of geology and ore deposits of the Old Lead Belt. The ore deposits are stratiform in character and are localized in a narrow carbonate bar and algal reef environment on the flanks of exposed Precambrian of the St. Francois Mountains. Ore structures include a variety of primary depositional features such as pinchout zones, disconformities, ridge structures, reefs, and submarine gravity slides. Faulting, prior to and during ore deposition, "prepared" the host rock and strongly fractured areas are mineralized much more intensively and extensively than unfractured parts of the same sedimentary structures. The deposits are epigenetic in character. Mineralization is believed to have occurred at the time that post-lower Ordovician faulting took place. The mineralizing solutions are believed to be concentrated brines from adjacent basins that moved out of the basins during faulting, uplift, and erosion of the St. Francois positive area.

Jan 1, 1968

By Kirtley F. Mather

FROM almost every point of view, petroleum was "strategic mineral number one" during the World War that ended in 1945. Even the spectacular advent of the atomic bomb in the final days of the conflict did not displace it from its position of prime importance, although within a few years uranium will almost certainly be the "number one" material in the minds of military strategists, if it is not even now in that position. But both as fuel and as raw material for chemical industries, petroleum will hold the center of the stage for many years to come. Hardly any other substance illustrates so fully the manner in which science and technology may be combined to achieve the utmost success in contributing to human efficiency and comfort. Fundamental to any understanding of the problems implied by my topic

Jan 1, 1948

By Raymond F. Gray, Victor J. Hoffman, Richard J. Bagan, Harold L. McKinley

The first indication of tungsten in the Bishop area was the discovery of scheelite concentrations in a gold placer operation in the ( since named) Tungsten Hills in 1913. After early intermittent production, the deposits of the district were slowly discovered and developed. The Pine Creek mine, located in 1916 and under the direction of Union Carbide Corporation since 1935, became the principal producer in the district. By the end of 1965, the total production of the district had reached 3,450,932 units of WO3, 17,071,242 pounds of molybdenum, and 19,599,110 pounds of copper. The topography of the district is characterized by its extreme relief, ranging in elevation from 13,986 feet to about 4400 feet in the Mount Tom quadrangle. The present topography is the result of the uplift and erosion of the Sierra Nevada and the great subsidence of the Owens Valley with its related deposition and volcanism. The general structure of the pre-Tertiary rocks consists of a series of tightly-folded metasedimentary and metavolcanic rock remnants surrounded by exposed plutons ranging in composition from hornblende gabbro to alaskite. The metasedimentary rocks consist of low- to intermediate-grade metamorphic equivalents of fine-grained sediments deposited during the Paleozoic era in a miogeosynclinal environment. Later volcanics were deposited in a eugeosyncline. The ore bodies in the Bishop district consist of scheelite-bearing tactite formed by the pyrometasomatic replacement* of calcareous sediments along the contact with an acidic granitic intrusive. A number of the metasedimentary remnants have had tungsten deposited along their edges.

Jan 1, 1968

By AIME

IN the parlance of Hollywood, it was a super-colossal meeting. In the more restrained language of engineers, the Institute's 75th Anniversary Celebration attracted the largest crowd ever; was the longest Annual Meeting ever held, occupying a full week; had more important papers, more important people, more of an international flavor, and more glamour than ever before. And in the minds of those who came to the big city from the wide open spaces, one other record should be mentioned: for those not on an expense account, it was the most expensive affair ever staged by the Institute! To state the attendance down to the last digit for a meeting such as this is impossible. The total names registered on cards, plus those who attended the Annual Banquet but were not otherwise registered, came to 3149. But a few were registered twice, and probably a still larger few did not register at all, but just dropped in for a session or two in which they were interested. It would appear that 3200 would be about as close an estimate of attendance as could be made, and that is some 300 more than came to the biggest Annual Meeting of the past-in 1944. A considerable number of members brought their wives, but most were delegates at large.

Jan 1, 1947

By John H. Schilling

The Gabbs magnesite-brucite deposit is unique in size and is one of two magnesite deposits being exploited in the United States. It is near the town of Gabbs, which is one hundred miles southeast of Reno, in west-central Nevada. The brucite was discovered in 1927; the magnesite was found while exploring the brucite. During World War II, more than 80,000 tons of magnesium metal was produced from about 900,000 tons of magnesite ore mined from these deposits. An additional 5,000,000 tons of magnesite and 1,000,000 tons of brucite have been produced for use in making magnesia refractories and chemicals. Basic Inc., presently the only producer, mines 1.5 ± 0.25 million tons of ore and waste annually using high-selective open-pit rriethods; the ore is up-graded, calcined, and processed into a variety of products. Known reserves of highgrade (less than 5 per cent CaO) magnesite ore total more than 25,000,000 tons, and there are larger tonnages of lower-grade material; brucite reserves are small. The magnesite and brucite are in generally west-dipping dolomite of the upper member of the late Triassic Luning Formation, in the over-riding plate of the Paradise thrust fault. A great variety of dikes and a stock of Cretaceous granodiorite intrude the Luning Formation in the vicinity of the magnesite-brucite deposit. The magnesite bodies are scattered over an area of about a square mile around a prong of granodiorite which extends north from the stock. The brucite is mainly in two bodies in contact with the prong of granodiorite; at the surface and along deeper cracks the brucite has weathered to hydromagnesite and artinite. In the area of magnesite-brucite mineralization, much of the dark, fine-grained, schistose, regionally-metamorphosed dolomite of the Luning Formation has been marmorized to a lighter-colored, coarser-grained, massive dolomite that is intergrown in varying proportions with the magnesite. The magnesite and marmorized dolomite can not be distinguished visually. In addition to the two varieties of dolomite, the gangue in the magnesite and brucite bodies mainly is the various varieties of dike rock, serpentine and a variety of other "contact" minerals, and "post-ore" dolomite and calcite. The magnesite ( and recrystallized dolomite) is believed to have formed by the hydrothermal replacement of the regionally metamorphosed sedimentary dolomite; alternatively it has been suggested that the magnesite is sedimentarv and formed contemporaneously with the dolomite in an embayment of the Triassic sea. Because all the igneous rocks exposed in the immediate vicinity of the magnesite deposits appear to be younger than the magnesite, the ore-forming solutions are thought to be related to a somewhat older granite which crops out elsewhere in the area. The brucite is the result of contact-metasomatic replacement of magnesite during the emplacement of the granodiorite stock.

Jan 1, 1968

By Frank W. Dickson, George Tunell

Five hot spring areas of the western United States show evidences of present day deposition of HgS; two also show evidences of accompanying Sb2S3 deposition. Sulfide minerals are depositing at or near the surface from hot waters that differ for each spring ai:ea in amount and kinds of dissolved matter. All the springs contain dissolved substances that act as buffering agents and that cause increased alkalinity with increasing temperature. Transport of Sb2S3 is possible in H2O and in boron and sulfide solutions. Increasing alkalinity and temperature enhance stibnite solubility. Quantitatively important transport of HgS appears restricted to alkaline sulfide solutions that contain HgS2=. Elemental mercury probably forms in deep hot waters because HgS breaks down into mercury and sulfur above 200°C, and free S is removed by reaction with water. Elemental mercury should accompany HgS2= in solutions that were at 200°C or higher. Cinnabar deposits from saturated alkaline sulfide solutions because of combinations of temperature decrease, dilution, oxidation, and reactions with wall rock: Amedee Hot Springs, Boiling Springs, and Coso Hot Springs are areas in which HgS is the only sulfide deposited. Hot waters at Amedee and Boiling Springs are supersaturated with HgS or transport colloidal HgS. Steamboat Springs waters deposit mainly silica and stibnite, but they have deposited HgS recently. Sulphur Bank waters deposit mostly stibnite and some HgS. The hot-spring waters of all springs represent highly modified deep water. Field and laboratory studies support the concept of transport of HgS in moderately alkaline sulfide solutions as HgS2=. Fluctuating deposition of stibnite and cinnabar reflects availability of sulfide or variations in deep-source HgS and Sb,S,. Silica and HgS dissolve mutually in alkaline sulfide solutions, and cinnabar and quartz would be expected to deposit simultaneously. Free mercury given off by hot-spring waters would impregnate country rocks.

Jan 1, 1968

By L. C. Graton

At the Tenth International Geological Congress, Mexico, 1906, Waldemar Lindgren presented "The Relation of Ore Deposition to Physical Conditions." Retrospect ranks it as the outstanding offering at that Session and as the most fundamental contribution up to that date on the philosophy of ore deposition. Elaborating thereon in his text-book "Mineral Deposits," Lindgren analyzed ore-forming processes under conditions prevailing from great depth up to surface; explained the nature of deposition in each environment; and developed a comprehensive genetic ore classification, which brought wide acceptance and enriching contributions by many. Since Lindgren's latest edition (1933), have come wealths of material relevant to ore genesis, particularly through amazing renaissance and proliferation throughout science. Current publication regarding ores now emanates largely from a generation caught in pressures of the breathless modern tempo, which tempts scant reflection upon earlier truths. Consequently, today's thrilling output contains not a few offerings that need challenge because supplanting interrelationship and system by what seems, collectively, an assemblage of strange, ad hoc and often self-contradictory concepts. From these latter some merit may eventuate but at the probable cost of present confusion and delayed progress. The following pages, naming numerous post-Lindgren advances, record the conviction, held by many, that Lindgren's philosophy, progressively improved, remains the soundest approach to understanding ore genesis.

Jan 1, 1968

By John D. Ridge

Here are summarized 162 papers, published between 1933 and 1967, that deal with various aspects of ore genesis. Emphasis is placed on additions to, or modifications of, ore-formation theory, no matter what type of deposit is discussed. More space is given to papers on the formation of base-metal sulfides solely because more papers are written on this subject. The final conclusion is reached that a chemically and geologically sound theory for the genesis of ore deposits can be built around the concept of concentration of ore e’ements in a magmatically produced ore fluid and around such surface processes as may act to concentrate economically valuable materials from rocks of any origin exposed at the surface.

Jan 1, 1968

By J. R. Linney

A HISTORY of the ore-mining and iron-smelting industry of the Adirondacks comprises a century and a half of pioneering by rugged individualists, both men and women. By geographical location, the climate is most severe-long, cold winters with heavy snowfall, and short seasons of vegetation growth; this, together with its remote location from large centers of population, adds considerably to the difficulties of conducting mining operations in this area.

Jan 1, 1943

By C. L. Pillar

INTRODUCTION The location, size, character of the ore de- posit and its adjacent formations will deter- mine the mining system best used for its ex- traction. The mining system chosen will have to be engineered to suit the ore deposit and the people that will extract it. What can be done in the Philippines cannot always be accomplished in the upper Northwest Territory of Canada. Mining operations developed under a free enterprise system are planned to achieve a satisfactory return on the capital required to place them into production. Hence, the choices made in planning and developing the mining system must be dictated by sound economics. The mining system planned must favor: 1. Maximum ore extraction of the deposit with minimal grade dilution. 2. The amount of capital expenditure used to develop and equip the mine must be in harmony with the financial policy of the group yet be sufficient to provide a reliable mining system. Excessive frills and extras that are not required for efficient, safe production should not be provided. 3. Mine production costs are determined by the amount of men, material, equipment and energy used in the production process. These must be kept to minimal limits in order to insure dependable, low cost production. Extras that later are needed in the production operation can be added as required by the operator. Basically block caving is a mining system that is normally used to extract deep seated, massive, low grade deposits of copper, molybdenum and iron where stripping ratios for open cast mining are economically prohibited. The caving system is limited in its selectivity. It is a mass production type of underground ore extraction that under favorable conditions is one of the most efficient, low cost mining systems in the world today. Usually block cave mining systems are large. They are capable of producing ore at a rate of 10,000 to 100,000 tons/day from large deposits at costs that are comparable with many open cast mining systems burdened by high waste to ore ratios. Block cave mining systems differ basically in the plan of the area layout, the method of undercutting and the method of draw. The balance of the mining system is the mechanical transportation of the drawn ore to the surface, the mine supply, drainage and ventilation systems. This paper deals mainly with the methods of draw. The method of draw to be used in a block caving system dictates the development plan of the mining area, is highly influential in the method of undercutting to be employed and the supply and ventilation system to be used. There are three basic methods of draw commonly used in today's operations. They are: Gravity draw Slusher draw LHD draw The type of draw planned will have a major affect on: Capital expenditure and time required to bring a deposit into production. Productivity, efficiency and cost of the production operation. Percent recovery of the ore deposit in both tonnage and grade. Degree of production reliability Fundamentally the type-of draw used must be compatible with the physical characteristics of the deposit to be extracted and the financial position of the mining operation. The type of draw chosen must work to advantage with the size, configuration, depth, strength and fracture pattern of the deposit and its adjacent formations. It must favor the financial protection of the planned mining operation. A Gravity Method of Draw requires a finely fragmented, easy flowing product from the caving action of the deposit. To obtain the desired economic advantage the ore deposit must also have sufficient area and height of column to permit minimal development cost on a per ton basis. The gravity system re- quires the maximum amount of development openings and uses the minimum amount of mechanized equipment of all the caving systems. It is unskilled, labor-intensive and is highly sensitive to size of ore fragmen-

Jan 1, 1981

By P. BOURY

THIS account of a contrivance which has been found serviceable in practice may be of interest to engineers, and' especially to those engaged in hydraulic mining. In that process, one feature which seems at first sight to possess little significance, is highly important in its effects, namely, the regular supply of water to the " giants." The chief condition of this regularity is an even flow in the pipe-line from the penstock to the nozzle. This, of course, requires that the penstock be kept full. Any considerable surplus of water, overflowing at the penstock, is a simple waste, unless it be otherwise utilized in the sluices. At all events, it does not affect the delivery of the nozzles. But a deficiency at the penstock may admit air into the pipe; and this may produce hydraulic recoil, injuring the line by incessant vibrations, giving rise to leaks, and even to blow-outs, and (when a partial vacuum exists at the time of the fracture the collapse of the pipe. An accident of this sort in our main pipe-line, occasioned partly by a settling of the ground and partly by the presence of air in the pipe, led to the employment of the device here described. The line referred to is made of 30-in. pipe, successively reduced to 18 and 15 in. in diameter, for the supply of two giants. By reason of the causes above mentioned, the 30-in. pipe burst more than 1,400 ft. from the penstock, and, despite the air-valve, the 30-in. pipe was collapsed to such a degree that one length of it, next to the penstock, was squeezed together and positively swallowed by the main pipe, through which it traveled for 750 ft., piercing through a short elbow on the way. This remarkable result was undoubtedly the effect of the vacuum suddenly produced when the pipe burst.

Sep 1, 1906

By T. L. Joseph

A DEMAND for specialized knowledge has directed engineering curricula towards competency in some particular field or occupation. Preparation for life in a broad sense of completeness has received little consideration. Ways and means are needed for weaving some of the threads of liberal education into the fabric of engineering education. Any effort to develop a humanistic-social stem of engineering education will depend largely upon the content of the courses and the type of instruction offered. Many of the courses in college curricula are intended to lay a foundation for more advanced courses to be taken later by those. who specialize in some particular field. Students in other fields lack the background necessary to take the advanced courses and have too much detailed information, soon forgotten, forced upon them if they pursue the foundation courses. To develop a humanistic-social stem for engineering education existing catalogue courses selected should follow some general plan aimed towards broad educational objectives. Courses packed with detailed factual information are necessary for the stu-

Jan 1, 1947

By James P. Kimball

AMONG the curious results of the recent advance of prices in the iron trade of the United States, one of them at least is to be regarded as of great importance. I allude to the utilization of mill cinder as a cheap and almost costless substitute for high-priced iron ores in many blast furnaces, situated within easy reach of such raw material. It has been, with but few exceptions, the practice in this country, based upon tradition rather than upon authority or European precedents, to waste this material on 'account of its high proportion of silicic and phosphoric acids, although known to contain more iron than most ores, and although also known to be sometimes applied to the blast furnace in greater or less quantities without serious detriment to the iron for specific purposes. While in use to a limited extent in the Hocking Valley and Hanging Rock iron regions of Ohio for several years, its use in Western Pennsylvania has only become general of late, under the exigencies of high prices and a short supply of ore. Especially has mill cinder largely entered into the stock of furnaces attached to rolling mills in and about Pittsburgh. Under such circumstances the cinder pig has been paddled on the premises, and the malleable iron produced has been unexpectedly good. Cautiously as at first mill cinder has been applied, it is evident that the temptation to use it freely is a strong one whenever the commercial rates for high-class ores are out of proportion to the general conditions of the iron trade, as sometimes happens in this country, especially as the free use of it is apparently justified by the quality of the iron produced from this cheap and abundant material. Indeed the consumption of cinder pig has., not been wholly confined to mills using up the production of furnaces belonging to the same plant. One furnace at least on the Ohio, at Covington, for several' months has been making foundry pig from "all cinder." The iron has gone into the general trade. It is probable that malleable iron of good quality can he made from the poorest cinder pig, but with what degree of economy will

Jan 1, 1881

By John A. Baker

S EVERAL FACTORS have brought about a vastly greater interest in the gold-mining industry in the last two or three years. Outstanding is the fact that there is an open market at a fixed price for all that can be produced. a condition that holds for no other commodity. Costs of production have decreased greatly, owing to lower prices of supplies and equipment and lower wages. Improved metallurgical processes and equipment are also available. To big new gold district is being opened up but virgin ground is being prospected with some success in many of the more remote parts of the world and right here in the United States many old properties are being reopened 111 the light of present condition<, tailing dumps are being re- worked, and profitable leases taken on abandoned property. Many of the men who are becoming interested in gold are mining engineers whose experience has all been with base metals heretofore: some are engineers with no mining experience; some are not engineers at all but men who cannot find profitable employment in their usual field of activity and are attracted by the age-old lore of the yellow metal. Some are business men with a little money and an idea that under present conditions gold mining offers a safer investment for it than most other kinds of business. It is to those more or less inexperienced new- comers in the gold-mining industry that this article i4 ad dressed. Those who are connected with the large gold mines or who have had rears of experience with the small ones will find in the following pages little or nothing of interest but it is hoped that the newer generation of small mine operators, on whom the healthy growth of the industry depends so much, may find here some helpful hints.

Jan 1, 1932

By Howard Hughes

IN drilling for water and oil to reasonable depths through the generally soft yielding clay and sand formation of the Coastal Plain of Texas, . Louisiana, and Mississippi, the rotating method of drilling was adopted, principally on account of the easy and quick penetration, and the low cost of the drilling plant. In favorable ground, free of heavy gravel and rock strata, as much as 1,000 ft. has been drilled in less than 36 hr., although such performances were of course rare. Hydraulic rotary drilling, or, as it is now called, rotary drilling, was used in the above States as early as 1880. The plant consisted of an ordinary derrick, a 25-h.p. boiler, a small hoist, a steam pump, and a water swivel with hose attachment, and an ordinary flat diamond-pointed bit. The successful drilling in of a phenomenal oil well by this process on Spindletop, near Beaumont, Texas, on Jan. 10, 1901, and the ascertained impracticability of drilling subsequent wells in the same locality by other methods (owing principally to heavy quicksand under pressure from below), brought rotary drilling into great prominence, practically to the exclusion of any other process throughout the Coastal Plain, and later on elsewhere. The method, as its name implies, involves the rotation of a pipe by means of machinery placed on the derrick floor. A drill bit attached to the lower end cuts a clearance for the drill pipe, with much the same motion and effect as an auger. Water forced through the drill pipe by means of a pump, and escaping through the bit, removes the cuttings and returns to the surface outside the drill pipe. In this manner the hole is kept open, permitting the drill stem to rotate freely. The pressure of the column of muddy water holds up the walls of the hole until it has been cased. Practically all the wells of the Gulf coast region, numbering nearly 10,000, have been drilled with this system. During the last five years its use has been extended to many other States and countries.

Jan 3, 1915