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By Howard N. Eavenson

The information contained in the following paper was collected at the request of the U. S. Coal Commission, and is published with the permission of that body and of the various companies furnishing the data. For obvious reasons, the names of the companies are not given. No data were obtained from states south of Virginia or west of the Mississippi River. The data about the amount of labor, in man-hours, required in producing a ton of bituminous coal have been collected with the idea of showing what is being done at some well-managed plants, and not to show the average amount required by all mines, which undoubtedly is considerably higher than the average of the figures shown.* Almost all of the figures were supplied by the various companies in reply to a questionnaire; when they were obtained from other sources the company was asked to verify them. On account of the amount of work required, the data were only requested for one or two months for each plant, and the figures represent in each case a month when the car supply was good and the work was practically steady. In the case of most of the West Virginia and Kentucky mines, these conditions were best met in May and June, 1922. The mines for which the figures are given are arranged by states and as to whether the mine operates under union or non-union or open-shop conditions. The union mines listed are generally considered to be as well-managed as are the non-union ones. The production per month in a few cases includes the amount of slate which is loaded and hauled out of the mine, as of course this requires nearly as much labor per ton as does the coal. These cases are noted. The number of days worked includes only the total time in which the tipple operated; not the number of days on which the mines operated. This makes the output per day appear slightly higher than it should be in

Jan 1, 1924

By Fred A. Anderson, George B. Wallace, Edward J. Slebir

As the reservoir rises behind an arch dam, it presses the arch into the canyon walls and valley floor. To compute the stresses, deflections, and arch reactions, it is necessary to know how much the rock deforms under the combined loads of gravity, temperature, and water. Under sustained loading for a period of time, the rock continues to deform or "creep" slightly, causing changes in the stresses and shape of the arch. Under reduced loading, the elastic arch tends to resume its unstrained position and it is important to know that the rock will follow it and maintain tight contact along the abutment. It is, therefore, important to know the "set" characteristic of the rock. Past attempts to define load-deformation properties of rock, including creep and set, have largely l been limited to laboratory test of intact cores and in-situ jacking test utilizing bearing plates 2 to 3 ft in diam. In both cases, a uniaxial load has been applied to a volume of rock too small to fully reflect the influence of cracks, joint systems, foliation, and other inherent weaknesses within the rock mass. This chapter describes a large radial jacking test which more nearly duplicates the action of an arch dam by penetrating the load deep into the rock mass, bringing into play more of the factors which contribute to prototype deformation. Results obtained from the large radial test are compared with those from smaller uniaxial test. DESCRIPTION OF RADIAL TEST The radial jacking test described in this chapter was performed in an adit off of an exploratory tunnel driven into a proposed dam abutment

Jan 1, 1972

By Andrew Torok, Thomas D. Thompson

Research efforts have not developed techniques for the complete desulfurization of coal that is needed to reduce air pollution caused by burning coal and to reduce the sulfur in metallurgical coke. Sulfur in coal occurs in three forms and of these, the pyritic sulfur occurs as discrete mineral particles and, at least theoretically, should be subject to physical rejection. Pyrite occurring in hard rock mining is concentrated by froth flotation; therefore, the possibility of removal of pyrite from coal by flotation does exist. With this possibility in mind, the flotation and adsorption characteristics of ore and coal-pyrite were compared while using potassium ethyl xanthate as the collector.

Jan 1, 1973

By AIME AIME

COUNCIL.* PRESIDENT OF THE COUNCIL. JAMES F. KEMP : NEW YORK, N. Y. (Term expires February, 1913.) VICE-PRESIDENTS OF THE COUNCIL. S. B. CHRISTY BERKELEY, CAL. W. A. LATHROP PHILADELPHIA, PA. GARDNER F. WILLIAMS WASHINGTON, D. C. (Term expires February, 1913.) KARL EILERS NEW YORK, N. Y. WALDEMAR LINDGREN WASHINGTON, D. C. BENJAMIN B. THAYER NEW YORK, N. Y. (Term expires February, 1914.)

Apr 1, 1912

By Charles F. Manness

In the great increase of product which has been accomplished in the American Bessemer plant, through improvements in machinery and refractories, and by more perfect skills in their manipulation

Jan 1, 1881

By AIME AIME

Council. * PRESIDENT OF THE COUNCIL. JAMES F. KEMP NEW YORK, N.Y. (Term expires February, 1913.) VICE-PRESIDENTS OF THE COUNCIL. S. B. CHRISTY BERKELEY, CAL. W. A. LATHROP PHILADELPHIA, PA. GARDNER F. WILLIAMS WASHINGTON, D. C. (Term expires February, 1913.) KARL EILERS NEW YORK, N. Y. WALDEMAR LINDGREN WASHINGTON, D. C. BENJAMIN B. THAYER NEW YORK, N. Y. (Term expires February, 1914.)

Mar 1, 1912

The Institute maintains for the use of members (and especially for the use of out-of-town members) a reading and writing room, where all usual office facilities are available, including telephone, telegraph, receipt, forwarding and care of mail and express packages, etc. A file of current magazines is also maintained in this room, and the Institute's staff will lend its best efforts to serving the members in connection therewith. The Institute also maintains for the use of its members free dressing rooms, library research department, etc. Attention is called to these facilities at the present time in the belief. that they may be especially useful to out-of-town members in connection with the Meeting.

Jan 5, 1918

By L. C. Aycock, J. Hunter, P. M. Lyons

In view of the unfavorable discovery trend that has set in during the past few years, it seems permissible to infer that the large, more easily found crude reserves in Louisiana are now known. Without doubt, many new producing areas will be located, but in the light of development during the past few years the majority of new areas probably will be found at greater depths and from relatively poorer sands. f Although sufficient reserves exist in Louisiana to last at the present rate of production for a considerable period, additional reserves must be found in more intensive development of the presently known structures. In order to ensure the greatest ultimate recovery from such structures, the most advanced technical methods must be employed in their exploitation. Wherever possible, cycling and repressuring plants should be installed. 'here are presently in Louisiana, especially in south Louisiana, a great many fields that contain gas-condensate reservoirs. These reservoirs cannot be produced for their liquid hydrocarbon content under present conditions without wasting an enormous quantity of gas and creating underground waste. Although some of these reservoirs are being produced, such production must be considered in the nature of a salvage operation rather than as a sound economic proposition. Such reservoirs, however, can become profitable ven- tures through the use of cycling and repressuring plants. Cycling operations now operating in Louisiana have increased the ultimate recovery from gas-condensate reservoirs anywhere from 10 to 30 per cent. Cycling operations will also provide a considerable reserve of gas, without which Louisiana cannot hope to develop any program of industrialization. During the past year, Louisiana attained the rank of third among the oil-producing states of this country. With a proper program of exploitation and development, and with emphasis on conservation, Louisiana can maintain this position for a great many years. Production On Dec. 31, 1943, oil and/or gas were being. produced in 52 parishes, or 81 per cent of all the parishes in the state. Thirty-three of the parishes produced oil and gas, 14 produced oil, and 5 produced solely gas. Tensas Parish in north Louisiana and Assumption Parish in south Louisiana formerly contained no producing fields but during 1943 joined the ranks of the producing parishes. Twenty-three new fields, including one rediscovery, were found during 1943-—a rate of discovery almost comparable to that of the preceding year. Eleven of these new discoveries were either gas or gas-condensate fields. Thus, the trend of development in finding new reserves was also comparable to that of 1942. Many reasons of considerable merit have been advanced to account for the discouraging lack of crude-oil reserves found during the past year. None are, however, completely satisfactory.

Jan 1, 1944

By J. Hunter, P. M. Lyons, L. C. Aycock

In view of the unfavorable discovery trend that has set in during the past few years, it seems permissible to infer that the large, more easily found crude reserves in Louisiana are now known. Without doubt, many new producing areas will be located, but in the light of development during the past few years the majority of new areas probably will be found at greater depths and from relatively poorer sands. f Although sufficient reserves exist in Louisiana to last at the present rate of production for a considerable period, additional reserves must be found in more intensive development of the presently known structures. In order to ensure the greatest ultimate recovery from such structures, the most advanced technical methods must be employed in their exploitation. Wherever possible, cycling and repressuring plants should be installed. 'here are presently in Louisiana, especially in south Louisiana, a great many fields that contain gas-condensate reservoirs. These reservoirs cannot be produced for their liquid hydrocarbon content under present conditions without wasting an enormous quantity of gas and creating underground waste. Although some of these reservoirs are being produced, such production must be considered in the nature of a salvage operation rather than as a sound economic proposition. Such reservoirs, however, can become profitable ven- tures through the use of cycling and repressuring plants. Cycling operations now operating in Louisiana have increased the ultimate recovery from gas-condensate reservoirs anywhere from 10 to 30 per cent. Cycling operations will also provide a considerable reserve of gas, without which Louisiana cannot hope to develop any program of industrialization. During the past year, Louisiana attained the rank of third among the oil-producing states of this country. With a proper program of exploitation and development, and with emphasis on conservation, Louisiana can maintain this position for a great many years. Production On Dec. 31, 1943, oil and/or gas were being. produced in 52 parishes, or 81 per cent of all the parishes in the state. Thirty-three of the parishes produced oil and gas, 14 produced oil, and 5 produced solely gas. Tensas Parish in north Louisiana and Assumption Parish in south Louisiana formerly contained no producing fields but during 1943 joined the ranks of the producing parishes. Twenty-three new fields, including one rediscovery, were found during 1943-—a rate of discovery almost comparable to that of the preceding year. Eleven of these new discoveries were either gas or gas-condensate fields. Thus, the trend of development in finding new reserves was also comparable to that of 1942. Many reasons of considerable merit have been advanced to account for the discouraging lack of crude-oil reserves found during the past year. None are, however, completely satisfactory.

Jan 1, 1944

By I. L. Box

IN planning retreatment of tailings, the material to be retreated should be thoroughly investigated, tak- ing into consideration the total tonnage, the blende content, the specific gravity of the different particles, and the grinding necessary to liberate the mineral. The tailing pile is surveyed by making a closed trav-erse around the outer edges, locating the stations at points from which a considerable portion of the pile is visible. From each of these points the pile is sur-veyed by stadia and a contour map made. The yardage is then calculated from the contour interval and the area inclosed by the contours obtained with a planim-eter. A party of three men can survey an average tailing pile in one and one-half, days. In calculating tonnage it is assumed that 22 cu. ft. of tailing in place equal one ton. Sampling is done by the use of an auger with casing to prevent the hole from caving. These holes may be bored 12 to 15 ft. deep by hand, but to penetrate the entire pile some kind of power is applied to drive the casing and raise or lower the auger. The latter method is more expensive but the increased cost is more than compensated for by the value of the information obtained.

Jan 7, 1928

By Samuel S. Wyer

Over 8,000,000 people in the United States depend on natural gas for their cooking, heating and lighting service. This service has been made possible only by the investment of large amounts of capital in transportation lines connecting the gas wells to the various communities, thus combining a hazardous mining operation with a public utility service. The effect that making these lines " common carriers" will have on the present and future service to these 8,000,000 or more people is of far reaching ethical and economic importance, and deserves careful consideration. As an introduction, it must be conceded that: 1. Natural gas, although a mineral and obtained by a mining operation—with more uncontrollable and uncertain features to cope with than exist in the mining of coal or other minerals—when served to the public becomes a public utility service. 2. The governmental power to regulate all public utilities in the interests of the public cannot be successfully disputed. 3. Mere suggestion of inconvenience to the utility is wholly irrelevant, as it cannot be considered or allowed to influence in making a defense against governmental regulation. Unfortunately it is not generally appreciated that:.. I . 1. Legislative enactments are not necessarily laws, and cannot abrogate economic laws or alter engineering facts. 2. There is a clear distinction between "common carrier7' and "public utility," although the terms are frequently confused. "A common carrier is one who undertakes for hire to transport persons or goods, or both, from place to place for all persons indifferently, the term implying indifference as to whom shall be served, and an equal readiness to serve all who apply, in the order of their application." On the other hand, property becomes a "public utility" only "when for a particular purpose the public have a right to resort to the premises and make use of them." It is, therefore, important to note that not all public utilities can be regarded as common carriers. The U. S. Supreme Court has already

Jan 1, 1915

The Committee on Papers and Publications has set June 1, 1919, as the closing date for the receipt of manuscripts intended for the Chicago meeting, which is to be held Sept. 22 to 27, 1919. Manuscripts must be received by the Secretary on or before this date. If they are sent through members of the technical committees, they must be sent to those committees long enough in advance to be forwarded and in the hands of the Secretary by the time specified.

Jan 5, 1919

By Gene Long

10.4-1. Load Design and Construction. Surface mine haulage roads are used for transporting raw products to the mine site, preparation plant, or loading facilities, and to provide personnel and equipment an access to the pits and mine area. All of the aspects of highway engineering, including minimum slope inclines, properly banked curves, and adequate drainage, must be followed to facilitate construction of safe and efficient haulage roads for fast and economical transportation of the mined product to its destination. By maintaining good haulage roads, both truck and equipment maintenance will be kept to a minimum, resulting in reduced mining costs and subsequently higher profits. [ ] There are several basic considerations in haulage road planning. Most important, one must follow all safety procedures in both design and construction of the roadway. A maximum effort should be made to follow current mining plans when laying out and planning haulage roads (aerial photographs can be extremely useful in planning and routing of roadways). Grades, road widths, and curves must be maintained within limits of present and/or planned haulage equipment specifications, since all these factors can limit speed, and hence production (Table 10.4-1). Grades in most mining operations are adverse (against the loaded haul), which increases haul cost per mile. Operators must balance these increased

Jan 1, 1968

By E. P. Jennings

The abundance and value of the tellurium minerals of Colorado is well known, but, as yet, few analyses have been made of them, and I offer these as a small contribution to the chemistry of these valuable ores. 1. Native Tellurium.—The specimens from which the analyses of this mineral were made are from the " John Jay" Mine, Boulder County, Colorado, where it occurs in quite large masses, though mixed with more or less silica and iron pyrites. It is usually a finegrained, tin-white mineral, but sometimes occurs in distorted, hexagonal prisms in cavities in the quartz. Before the blowpipe it gives the reactions for tellurium, sulphur and iron; by cupellation, it yields a small amount of gold. An analysis of a coarsely crystallized specilnen gave the following results : Specific gravity, 5.10.5. Tellurium,.........68.40 Gold, :.........1.36 Iron pyrites,........24 92 Ferric oxide,.....4.37 Silica and silicates,........11.54 Silver, lead, and mercury,... traces. 100.59 Deducting the pyrites, iron oxide and silica, we have for the con]position of the mineral: Tellurium,..........97.78 Gold,.......... 2.27 100.00 Or, considering the gold to be in combination with tellurium to form sylvanite, we have : Nativc tellurium,........96.50 Sylvanite (An, Te3,),........4.50 100.00

Jan 1, 1879

By Theron Wasson

The discovery of eight new oil fields, two of which may be of major importance, was the outstanding record in Michigan this year. These new fields have helped to support the declining production from old areas and place the total of 18,559,000 bbl. in line with the past six or seven years. Thus, it appears that Michigan is doing its part in maintaining the production of the country in the third year of the war. The new fields are in the central basin area where oil was first discovered in Michigan, thus tending to focus attention on the deeper part of the lower peninsula of the state. Through 1944 the state of Michigan has produced a total of 222,-641,580 bbl. of crude oil from 100 pools, many of which arc relatively small. Among the previous1y discovered fields Reed City is still the outstanding producer, with Fork, Headquarters, and Adams following in the order named. The Reed City pool produced a little over 5,000,00 bbl., which was more than one third of the state's total for the year. Almost two thirds of the year's total oil production came from fields discovered in the past five years. Maps A map of the oil and gas fields of Michigan in 1943, published in the A.I.M.E. report for 1944,* shows the main producing areas and should be referred to if information in regard to their location is desired. The producing zones are shown in the columnar section in the same publi- cation." The data in Tables I and 2 have been carefully ' checked and every effort has been made to show as complcte information as possible. New Discoveries and New Developments Eight new producing areas were discovered during 1944 which, in order of importance, are: Deep River Field.—The discovery well in the Deep River field was drilled by Don Rayburn and others, and should be listed as a chance discovery, as, from a geological standpoint, it was not considered favorable until oil was found at a depth of 2838 ft. in a dolomitic layer in the top of the Dundee limestone. The first well was completed in January 1944, with an initial production of 2500 bbl. By the end of the year 15 wells had been completed, proying an area 2 1/2 miles long and 1/2 mile wide. Coldttater Field.-The Coldwater field was discovered in August 1944, by the Sohio Oil Co. Production is from secondary dolomite at the top of the Dundee at a depth of 3703 ft. To the end of 1944 nine wells had been drilled on 40-acre spacing. Essexville Field.—Essexville field was discovered by United Drillers and Producers, Inc. Eight wells had been completed to the Dundee lime by the end of 1944, and prospects were good for further development during 1945. Hilliards Field.—Hilliards field was discovered by Cook and Fortney. Production is from the Traverse lime at an average depth of 1588 feet,

Jan 1, 1945

By James Harding

THE usual method of sampling mineral deposits is to drill holes and assay the sludge or core. Though the results thus obtained may not represent the true average value of the deposit, it is on these results that estimates of practically all large orebodies are made. In a large number of cases, the results of exploitation fall far short of the estimated value of the orebody. The standard method of making these estimates is to find the cubic contents of triangular prisms, in the apexes of which the drill holes are placed, .by multiplying the surface area by the average depth of the ore in the three drill holes and then multiplying the cubic contents by the specific gravity of the ore or rock to find the tonnage. The assay value is found by dividing the sum of the products of the depth of ore in each hole and the corresponding assay value by the sum of the depths of the ore in the three holes. As the latter part of this method is subject to many mathematical errors, it should not be depended on.. Some engineers, therefore, use a discount factor, but as this factor is either arbitrarily selected or is obtained by obscure methods, the results are no better than guesswork. The standard method is correct when the drill holes are so laid out that the triangular prisms are equilateral in cross-section. But as ore deposits cannot always be drilled into at regular intervals and because of the human factor, if many holes are drilled, triangular prisms of all degrees of angularity are produced. In such cases, it is necessary to assume that the influence of the different holes is not the same in all directions, which assumption of course is absurd.

Jan 1, 1921

By M. D. Banus, M. B. Bever, A. K. Jena

The heals of formation at 78", 195, and 273°K of the ternary compound h3SbTe2 based on the elements and based on the binary compounds In Sb and [inTe have been measured. The heats of formation at these temperatlcres of the binary compounds In Sb and In Te based on the elements have also been determined. Heal contents and free energies of the three compounds have been calculated from 0° lo 80I)°K. The free energies of joyrrzalion, heats of formations, and entropies of formation at 298°K have also been calculated. The results shown that the tertnary compound is metastable with vespecl to InSh and ln Te below 696 °K. bul is slable above that temperature. The weaker bonding of results in a positice entropy of formation which with incrensirzg temperature makes increasing negative conlvihtclions to the free energy and above 696°K renders the compound slable. THE ternary compound In3SbTez occurring in the quasi-binary system In Sb- In Te' forms on cooling at 829°K by a peritectic reaction.' Observations at 673" and 573 K have shown that this ternary compound decomposes slowly into the binary compounds InSb and1n~e.l'' It has not been possible to analyze the metastable behavior of the ternary compound because up to the present time data on its thermodynamic properties have been lacking. Some information on the binary compounds, however, is available. The heat of formation of InTe at 273°K and its free energy at 673°K are kn~wn.~'~ The heats of formation of InSb at 78", 273', 298", and 723°K have been measured5-' and its heat capacity between approximately 12" and 300"Kg9l0 is also known. In the investigation reported here the heats of formation at 78% 195% and 273°K of the ternary compound In3SbTez have been measured. The heats of formation of the binary compounds InSb and InTe at these temperatures have been obtained by combining new calorimetric results with previously published data. The heat contents and free energies of the three compounds at various temperatures from 0" to 800°K have been calculated. Against the background of this information, the metastability of the ternary compound will be discussed. 1) EXPERIMENTAL 1.l) Preparation of Specimens. The materials used consisted of the elements indium, antimony, and tellurium, the binary compounds InSb and InTe, and the ternary compound In3SbTez. The elements, obtained from American Smelting and Refining Co., had a nominal purity of 99.999+ pct. The compound InSb was Cominco semiconductor grade; the compound InTe was prepared from the elements by melting under a vacuum of 10-h m Hg followed by slow cooling. Three batches of specimens of the compound In3SbTez were used. One batch was prepared by melting appropriate amounts of the elements in an evacuated and sealed Vycor tube. The melt was held at approximately 100°K above the liquidus for about 8 hr, shaken repeatedly, and quenched into a mixture of ice and water. The specimen was annealed in vacuum at 760°K for 4 weeks. In preparing a second batch, a mixture of the component elements was melted and quenched in water. The resulting ingot was powdered. The powder was pressed into pellets, which were annealed in vacuum at 748" to 773°K for 4 weeks. A third batch was prepared in the same manner as the second, except that the starting materials were InSb and InTe rather than the elements. Metallographic examination of samples of the three batches and X-ray diffraction examination of a sample of the second batch did not reveal evidence of microsegregation or a second phase. The results obtained with the three batches showed no systematic differences. 1.2) Calorimetry. The calorimetric method has been described in detail." Samples of the compound In3SbTez, mechanical mixtures of InSb and InTe in the proportion of 1:2, and mechanical mixtures of indium, antimony, and tellurium in the proportion of 3:1:2 were added to a bismuth-rich bath at 623°K in a metal-solution calorimeter. These additions were made from 78°K (liquid nitrogen), 195°K (dry ice and acetone), and 273°K (ice and water). The heat effects of the additions were measured. The difference in the heat effects of the additions of a compound and the additions of the mixtures of its constituents, adjusted for differences in the concentration of the bath, is the heat of formation of the compound. In the concentration range not exceeding 1.5 at. pct solute, the heat effect of the additions was a linear function of concentration. The heat of formation refers to the temperature from which the additions were made, namely, 78", 195", or 273°K. Several calibrating additions were made in each calorimetric run. The calculated heat capacity of the calorimeter and hence the calculated heat effects of the additions of samples depend upon the values adopted for the heat contents of the calibrating substance. In this investigation bismuth at 273°K was used and a value of 4.96 kcal per g-atom was taken for (HGZ3"k . 2) RESULTS AND DISCUSSION 2.l) Heats of Formation. The heats of formation of the ternary compound In~SbTez from the component elements indium, antimony, and tellurium and from

Jan 1, 1968

By A. A. Gustafson

The Freeport Sulphur Co. built a portable crusher in 1944 that solved a problem that none of the crusher manufacturing companies contacted were able to do. Two of these crushers have now been in service for 6 years, giving satisfactory service in handling a million tons per year, and having a capacity of over 2000 long tons per 8-hr shift. These machines reduce ton size blocks of sulphur to 12 in. and also feed the conveyor system at the rate of 350 long tons per hr per machine.

Jan 10, 1950

By Charles E. Packard

Many coal producers have been faced recently with the problem of arranging their production facilities to accommodate recent trends in the transportation of their product. Each operator is normally faced with a different problem requiring a system to meet his specific needs. It may be that he would be required to load a seven or eight thousand ton integral train each day which would naturally call for a large storage pile, high loading rate, accomplished in a minimum of time On the other hand, it may be that he is faced with furnishing coal to make up one-half of a unit train that is to be assembled twice a week. Whether the problem is large or small, many considerations must be given to each specific problem to be certain that the proper scheme is applied. The operator actually has several choices as to what type of storage and loading facilities he may consider. The storage pile, for instance, may be open type, conical in shape, kidney-shaped, or long and wedge-shaped. It may also be enclosed by steel or concrete

Jan 8, 1964

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