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By Daniel T. Brian, O&apos

Exploration targets and results in the mining industry are commonly summarized in terms of tonnage and grade. Business appraisals require, as additional information, the expected profit or loss implied by the physical summay. The early incorporation of knowledge gained through financial analysis computations can provide a means for economically resolving many common exploration and development problems. Examples of such applications from the activities of exploration planning, reconnaissance, land acquisition, and development planning are presented. While prospecting for mineral deposits, geologists are frequently asked what they hope to find or have found. The response is usually descriptive, such as "50 million tons of 1% copper," and the economic implications are deferred until a capital investment decision is required. At that time, a financial analysis integrating the four analysis components is completed. These components are: 1) Tonnage and Average grade above cutoff grade 2) Capital and operating costs 3) Product value 4) Appropriate profit or loss accounting Close examination of these components reveals that there is no intrinsic reason for avoiding financial analyses at earlier stages in exploration, as long as the uncertainty of the estimate is realized. Tonnage and average grades are commonly estimated at early stages in exploration. For this component, the appropriate cutoff is the major uncertainty. Capital and operating costs are difficult to estimate before detailed quantitative information is available, but estimates useful for the types of applications pertinent to earlier exploration stages are possible. Product value estimates may or may not be difficult, depending on the pricing structure of the particular commodity. A simplified accounting procedure usually may be adopted without introducing any significant loss of validity. This paper describe some of the financial analysis applications which are pertinent during mineral exploration and deposit development. These applications lend additional insight during exploration planning, land acquisition, physical exploration, and development. The examples are oriented toward a hypothetical management investment policy which is based on a single criterion, a minimum 15% discounted cash flow rate of return. In reality, managements use multiple criteria. This simplification is convenient for purposes of presentation and does not invalidate the examples. Computers are useful, but not a requirement, for the applications described. The use of computers provides the results on a more timely basis at costs lower than equivalent manual computations. UNDERLYING PRINCIPLES AND ANALYSIS METHODS Data estimates are subject to uncertainty. The analyst may choose to assess this uncertainty by using one of two principles. Each principle has some advantages. The principle most commonly employed is "assumed certainty." Each financial analysis is based on one set of selected data, which may represent the average estimates, minimum expected conditions, etc. The critical data is identified by making successive calculations, varying the values used. Such studies, called sensitivity analyses, isolate the economic effect of various uncertainties, and guide the allocation of future efforts toward improving the overall accuracy of the analysis. A second principle, "assumed risk," examines the interactive effect of the current uncertainties by qualitatively assigning probability distributions to each data element. These probability distributions indicate the currently appraised chance that a given numerical value will prove to be true. The corresponding procedure, risk analysis, consists of processing many individual financial analyses, each analysis being based on randomly selected numerical values from the probabilistic distributions. The result is a numerical presentation of the uncertainty, but care must be exercised in the interpretation of results. The advantage of this procedure is the direct measurement of economic uncertainty caused by the interaction of uncertain estimates. Kennecott Copper Corp. has developed computer systems for accomplishing sensitivity and risk analyses.

Jan 1, 1970

By F. Weinberg, L. MacAulay

DAVIS,' in an investigation of solute redistribution along molten rods of dilute silver in tin, concluded that at horizontal temperature gradients below approximately 5°C per cm very little convective mixing takes place. Cole and winegard2 observed temperature oscillations in horizontal melts of tin, with temperature gradients of several deg per cm. They associated the temperature oscillations with the presence of convective flow in the melt. At temperature gradients less than 1°C per cm they did not detect convective flow. In the present work, direct measurements of con-vective flow in liquid tin have been made using a radioactive tracer technique. The results indicate that extensive convective flow occurs at temperature gradients below those previously reported. The apparatus used to determine the extent of con-vective flow is shown in Fig. 1. The graphite boat Fig. l(a), has two rectangular channels both of which contain molten tin. Radioactive Ag110 in the form of Sn-0.2 pct Ag alloy was introduced at the end of one channel, by rotating the cylinder shown. A series of fixed thermocouples were positioned along the center of the second channel to determine the temperature gradient. It was assumed that the two channels had identical temperature distributions. The graphite boat was inserted into a vycor tube which was surrounded by a multiple winding tube furnace as shown in Fig. l(b). The tin was melted in an argon atmosphere. The distribution of Ag110, as a function of position along the boat at a given time after introduction of the ~g"', was determined with the

Jan 1, 1970

By S. Akhtar

Interstitial compounds of iron, cobalt, and nickel, and their binary and ternary mixtures with silver, gold, palladium, and platinum were prepared and tested as fuel cell catalysts. The first step in the preparation of the interstitial compounds consisted of preparing finely divided metals. This was done either by the Raney method or by reduction of precipitated hydroxides of the metals. The finely divided reduced metals were then treated with carbon-and/or nitrogen-containing gases to prepare their carbides, nitrides, and nitrocarbides. The materials were tested for cathodic activity towards O2 and for anodic activity towards H2, C3H8, NH3, CO, and N2H4 in acid and alkaline electrolytes at 25° to 90° C in half-cell assemblies. Samples of carbided and nitrocarbided INi-lAg-1Au were about one fifth as active as Pt-black in the reduction of O2 in 35 percent KOH solution, whereas the activities of several interstitial preparations exceeded the activity of Pt-black in the reduction of O2 in 12M KOH containing N2H4. Nitrocarbides of x-Fe2C, 3Ni-1Au, and 1Ni-3Au were effective catalysts for oxidizing N2H4 in liquid NH3 containing NH4SCN. Corrosion of the catalysts by electrolytes was severe in many cases.

Jan 1, 1970

By D. S. Newton

Introduction Historically the production of zinc dust has been based upon residual and secondary zinc. Using horizontal retorts filled with diecasting scrap, galvanizers drosses and sweater billets, dust has been produced by condensation into static condensers on a 24 hour cycle. Although fairly flexible as regards input materials the process is not amenable to close control of the product, is labour intensive and unless carefully run can cause fume problems. With a steadily increasing demand for zinc dust of consistent properties and higher quality there is a demand for an improved method of manufacture in which dust can be produced continuously and which is capable of close control thus ensuring a minimum amount of oversize or unsaleable material. The Process in use in the works of Imperial Smelting Corporation (Alloys) Ltd. in England, and in Canada and Holland, satisfies the criteria stated above, and has proved to be easy to control with a minimum labour demand.

Jan 1, 1970

By Victor R. Spironello

Applications of three experimental design techniques to smelting operations are explained. The report describes a factorial design using three variables at two levels, a fractional factorial design which investigates seven variables, and response-surface methodology for optimization of electric- furnace smelting processes. These methods may be applied with a minimum of trials and at little expense. Further, the writer knows of no reasons why the same methods could not be applied to other operations as well, such as steelmaking.

Jan 1, 1970

By R. S. Montgomery

Laboratory experiments simulating rock drilling were conducted on a number of commercial grades of tungsten carbide in order to determine their wear rates when they are used as inserts in percussive rock drill bits. The test rock was Barre granite and tests were made at conditions similar to those of the carbide buttons near the periphery of a large, down-hole, button bit. In addition, some wear rate measurements were made at a low blow energy. Wear rates of these carbide buttons were an extremely sensitive function of their cobalt contents and hardnesses and were proportional to e-°.57Hup to a hardness of about 91 RA. The point of minimum wear rate, which occurs at about 92 RA, corresponds to the point of maximum compressive strength. Modern percussive rock drill bits have inserts of cemented tungsten carbide on their wear faces. These inserts have drastically reduced bit wear in comparison to that of earlier all steel bits. The most common cemented carbide grade used in percussive rock drill bits contains about ten weight percent cobalt, although grades containing more or less cobalt are also used. Contrary to the case with carbide in metal-cutting tools, alloying materials are rarely used in mining grades. There are a number of designs of rock bits in current use. The most common form is an X bit which has four chisel-form radial wings. The button bit is another important design and one which has been recently developed. This design uses a flat steel face studded with relatively small hemispherically tipped carbide buttons. These types are illustrated in Fig. 1. Studies have been made of the sliding wear of cemented tungsten carbide on rock 1-4 and multiple-impact fracture', 5-6, b~t there has been comparatively little published on the percussive wear of this material although the wear of the impact face is the most important. There is some available data on the rate of dulling of rock bit inserts in actual drilling 7 but no laboratory studies. Sliding wear studies are useful for understanding the wear of coal and mineral cutting tools and gauge wear of percussive drill bits. but the

Jan 1, 1970

Most types of nuclear power reactors use uranium dioxide fuel. Power reactors using natural uranium dioxide fuel are of special interest to countries such as Australia that have their own uranium supplies. A wide range of uranium dioxide powders can be fabricated and the ideal one flows readily, presses without the need for binders or lubricants, sinters to the required density and gives low reject rates at all fabrication stages. Sinterable uranium dioxide is usually produced via the ammonium diuranate route.The Australian Atomic Energy Commission is aiming to demonstrate production of nuclear grade uranium dioxide from Australian concentrates, improving technology where possible. Details are given of the dissolution, solvent extraction, precipitation, filtration, drying, and· calcination-reduction steps. Solvent extraction from sulphate media is also under study with a view to developing a process to produce a nuclear grade product at the mine treatment plant site.

Jan 1, 1970

By John R. Zelonka

Models made by encasing strain-gage networks in epoxy are described and evaluated. With this technique relatively complex models can be constructed in which any number of gages can be located and alined precisely. Although the gages are an integral part of the model matrix, they create no important mechanical or thermal stresses. Model construction techniques and experimental data proved reproducible and reliable. In addition, the sGlution obtained with these models to the problem of the state of stress around a circular hole in a plate subject to a plane stress condition was in agreement with theoretical, photoelastic, and finite-element solutions.

Jan 1, 1970

By Nilsson C

Man has always been and will always be part of his environment, in ,a good, bad or indifferent manner. Until quite recently, this environment has been the atmospheric boundary layer above the land masses, and to a limited extent the air-sea interface of the oceans. Since the days when he lived in caves, he has built up a wealth of observations on these two environments,-with ever-increasing scientific precision which unfortunately until quite recently was completely insufficient for modern capabilities of data analysis. Consequently, in a sense, he has left in his wake thousands of years of missed, opportunities for making exact observations and increasing his understanding. The data of the past are lost and he has to be satisfied with what he can assemble from now on when his environ- ment, largely as a result of his actions, is exhibiting more and more rapid variations in time; in other words, time series of observations of phenomena are required, the length of which is critical for most purposes of analysis.

Jan 1, 1970

By Richard F. Zaffarano

The Bureau of Mines compiled information for the nonspecialist about natural gas liquids recovery from hydrocarbon streams in natural gas processing plants. Attention is directed to the impact of the technology of processing and the quality of gas processed in view of the increased availability of natural gas for processing. Significant changes in product and market trends within the natural gas processing industry are highlighted. Fixed capital-plant costs for grassroots, refrigerated-oil absorption and conventional adsorption schemes, adapted from published studies, are presented giving ranges of cost estimates for medium-sized plants. Marketed products of the natural gas processing industry are briefly discussed in relation to automotive air pollution problems and approaches to their control.

Jan 1, 1970

Jan 1, 1970

By Joseph L. Condon

Fifteen shots of three explosives with charge weights of 0.52, 1.1, 3.1, and 5.1 kilograms were fired in a pond to study the seismic effects of detonating explosives in water. Shock pressures and bubble periods were measured with pressure transducers in the water. Vibrations were measured on land in three orthogonal directions with particle velocity gages. Statistical tests indicated that a charge weight exponent of 0.43 best scaled the data. While shock pressures and bubble periods showed considerable differences in explosive performances, the amplitudes of ground vibrations showed less difference, and one prediction equation was therefore derived to estimate vibration amplitudes from all the explosives.

Jan 1, 1970

By John W. Sweeney

The southeastern phosphate industry is investigated to determine its role in supplying the United States and world phosphate demand. The report shows that the southeastern (Florida, Tennessee, and North Carolina) phosphate industry is the leading domestic and world producer of phosphate rock, The report emphasizes size and organization, production capacity, transportation, and marketing of the southeastern phosphate product, Factors affecting the supply- demand relationship of the southeastern phosphate industry and world phosphate production-consumption relationships are analyzed and related to the southeastern phosphate industry. Past trends are projected and the future role of the southeastern phosphate industry is analyzed to determine its ability to supply the United States and rest-of-the-world phosphate requirements in 1985 and 2000. The projections show that southeastern resources are ample to supply domestic and export requirements at the projected rates of consumption well beyond the year 2000.

Jan 1, 1970

By D. A. Keefe, O&apos

The electrowinning of beryllium from beryllium oxide (BeO) using a molten-salt electrolyte composed of 56 LiF-37 BeF2-7 BeO (mole-percent) was investigated. Anodes made of porous carbon were found to be superior in current-carrying capacity and gave a lower cell voltage than other types of anode material tested. When porous carbon anodes were used) the resultant increase in anode area prevented anode passivation. The cell voltage was 3.3 volts) and electrode current efficiencies of 50 to 70 percent were obtained. The electrodeposited beryllium was recovered as beryllium powder or was coalesced to metal beads by heating to 1,300° C.

Jan 1, 1970

By Basil Dimitriades

The roles of hydrocarbons and nitrogen oxides in smog formation were investigated by the Bureau of Mines. Samples of automobile exhaust with varying HC and NOx levels were irradiated in a smog chamber under conditions that resulted in smog levels similar to those observed in the atmosphere. Results were used to define the patterns that describe the dependence of a number of smog manifestations on HC and on NOx. Using these dependence data and some simplifying assumptions, estimates were made of the ranges within which HC and NOx must lie in order to obtain specified levels of air quality.

Jan 1, 1970

At the Orieco mine quartz veins carrying sulphides were localized in parts of an extensive fault zone in the Mathinna Beds during late Middle Palaeozoic mineralization.These deposits were subsequently exposed, and oxidation of the sulphides by percolating groundwaters resulted in the formation of gossans at the surface, and replacement close to the permanent water table of the more soluble sulphides by copper sulphides (chalcocite, coveIlite). A restricted zone containing copper oxides (cuprite, tenorite), copper carbonates (malachite, azurite), iron arsenates (scorodite, pharmacosiderite) and possibly rare copper sulphates occurred above the water table.The renewed oxidation of these deposits following mine development has been facilitated by the ready circulation of air and water combined with the formation of large free surfaces ideal for evaporation of aqueous solutions. Under these new conditions of high initial sulphate concentration, low pH, and relatively high Eh, the previously formed mineral assemblage is unstable and numerous Cu (Fe,Zn)-sulphates and Fe (Cu,Pb)-arsenates are presently forming in fractures in the fault zone and on the adit and stope surfaces for some considerable distance from the Sulphide-rich ore shoots. The observed spatial sequence of the major sulphates with respect to the sulphide-rich zones (Le. chalcanthite-antleritebrochantite and langite) is consistent with decreasing sulphate concentration and increasing pH away from the oxidizing sulphides.

Jan 1, 1970

By Frank G. Horino

This report presents a method of utilizing the Coulomb strength criteria for estimating the strength and stability of pillars and pit slopes containing planes of weakness. It is assumed that the Coulomb theory, as a special case of the Mohr envelope, is a satisfactory first approximation of failure in uniaxial compression or triaxial loading with low lateral loads. Accepting this assumption for brittle materials, an expression for the strength decrease of rock pillars containing a plane of weakness or fracture at any angle of orientation is derived. As few as six samples (three solid cores and three fractured cores at a failure-oriented angle) are required for testing uniaxially and triaxially to statistically determine the coefficients of friction and the shear strengths of both the solid rock and the fracture plane and the range of failure angles of the fracture plane. Interpretation of the data shows that the mean normal stress and maximum shear stress technique of analyzing the data is superior for solid core and that shear and normal stress values using angles of failure should be used for fractured specimens with failure-oriented angles. Plots of either the strength or strength ratios against fracture angles obtained from oriented drill core samples give a useful first approximation of strength decrease due to fracture. Using the same test conditions for both fractured and unfractured material increases the validity of the tests.

Jan 1, 1970

The commonly used Stopes-Heerlen coal petrographic classification and nomenclature has over the years been subject to variable interpretations. This paper discusses the problem with specific reference to the inertinite maceral group. The effect of various interpretations of the Stopes-Heerlen system on maceral analysis is discussed and illustrated by means of comparative analyses conducted by a number of laboratories in Australia.An attempt is made to define the reflectance thresholds used by the authors to subdivide the inertinite group; the genetic and technological significance of these thresholds are compared.The difficulties of distinguishing structured and nonstructured macerals of the inertinite group are discussed in terms of possible improvements to the present StopesHeerlen system by extending the classification to include transitional maceral types.

Jan 1, 1970

Lead isotope measurements indicate that lead from the A.B.H. Consols mine and two transgressive veins in Browne's shaft is "Thackaringa" type and not "Broken Hill" type.

Jan 1, 1970

Standard petrographic profiles for many Permian seams from New South Wales and Queensland have been drawn up. The standard profiles of seams of the same age and from one or more coalfields were used to compile an idealized or type seam sequence for those coals in which more than half the seam profiles were similar to one another. A marked similarity existed between at least 7 of the 10 type seam sequences formed.The configurations of the vitrite-plus-clarite contents of the plies of 95 per cent of the seams could be formed from different arrangements of 3 basic sequences. These were...

Jan 1, 1970