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By DeVerle P. Harris

Risk for most mineral investments is greater than that of average business ventures, because the physical and economic characteristics of the mineral deposit are never known with certainty. Inasmuch as the merits of a potential mineral investment cannot be fully appraised without consideration of the impact to the investor of the possible unfavorable events associated with the adoption of the project, methods of risk analysis are important in project evaluation and investment selection. The conceptual framework for risk analysis and the means by which some of the recommended practices might be implemented are examined. In addition to the normal business risk due to market forces, the physical and economic characteristics of the mineral deposit are never known with certainty, for only partial or indirect information is available, such as data from drill cores or surface and underground workings. Consequently, risk for most mineral investments is greater than that of average business ventures. Inasmuch as the merits of a potential mineral investment cannot be fully appraised without consideration of the impact to the investor of the possible unfavorable events associated with adoption of the project, methods of risk analysis are important in project evaluation and investment selection. This paper examines the conceptual framework for risk analysis and means by which might be implemented some of the recommended procedures. Utility Theory A discourse on risk and its impact upon investment selection quite often leads the reader into the concept of utility theory, for utility theory is a device constructed by economists to measure the satisfaction an individuai receives from a good; in the case of investment analysis, that good is the outcome of an investment. It briefly is reviewed here to describe the reaction of the individual to risk and as a stepping stone to other techniques more suited to risk analysis at the level of the firm. Utility theory proposes that an investor possess a utility map (curve), such as indicated in Fig. 1, which indicates the value in utiles of potential monetary rewards to an individual with some specific endowment of resources. Points on this map are obtained from the following relationship:

Jan 1, 1971

By C. G. Grant, Wm. B. Price

This investigation of low copper-nickel silvers was untiertaken to check the work of Lèon Guillet on special brasses and to determine, more accurately, the effect of the addition of nickel on the mierostructure of the binary alloys of copper arid zinc. It was hoped that the results could be successfully applied to the practical production of low copper-nickel silvers. To explain the results of his investigations on special brasses, Lèon Guillet evolved his conception of "fictitious compositions." He states,' in his general conclusions, that on the introduction of a small amount of a third metal to a copper-zinc alloy, it enters into solid solution with the normal constituents up to saturation, but by so doing it brings the ternary alloy into a state microscopically equivalent to a binary copper-zinc alloy of fictitious composition, and physically more nearly like the latter than the brass containing copper-zinc in the ratio actually present. The physical properties of the ternary alloy, when compared to the same properties of an actual brass of the fictitious composition, are modified by the natural properties of the third element. Beyond the point of saturation, a special constituent appears and the above generalization no longer holds. For example, if a 60:40 brass has 4 per cent. of tin substituted for 4 per cent. of zinc, the actual composition would analyze 60:36:4. Assuming that 1 per cent. of tin plays the same part as 2 per cent. of zinc, the proportions of copper and equivalent zinc may be stated as 60 parts of copper and 44 parts of zinc, which, figured to 100 per cent., gives an analysis of 57.7 per cent. of copper and 42.3 per cent. of zinc, the fictitious composition for a 60:36:4 tin brass. The relation between ternary alloys containing copper and zinc together with a third metal, and the microscopically equivalent binary alloy of copper and zinc, may be expressed mathematically.

Jan 1, 1924

By L. Hartsell Cash

INTRODUCTION Created in 1944 to help rebuild those economies, principally in Europe, which were seriously damaged or destroyed during the Second World War, the World Bank--or to use its correct name, the International Bank for Reconstruction and Development-began its operational phase by making a loan to the Government of France to accomplish two tasks: (i) to import coal for space heating purposes; and (ii) to buy new machinery and equipment to help rehabilitate its coal mines. Once the thrust of reconstruction in postwar Europe was largely accomplished, the World Bank Group (for today the World Bank has three separate lending windows) turned to mobilizing funds to improve living standards in developing countries, which remains its primary goal today. Over this period of time, the World Bank Group has continued to assist the world mining industry in various ways and, since 1955 the World Bank Group has financed mining or mineral processing projects with loans/credits totalling $1.5 billion. The World Bank Group consists of two institutions--the World Bank itself and the International Finance Corporation (IFC), which was founded as a separate institution in 1956 and three separate lending windows--the World Bank, the International Development Association (IDA), and IFC. The World Bank loans are provided at commercially-related interest rates but have grace periods usually of up to 3 to 5 years and repayment periods ranging from around 15 to 20 years. Since the World Bank raises its operating funds on the international capital markets in varying currencies and in varying interest rates, it relends a basket of currencies at floating interest rates which are fixed every six months to reflect the Bank's own borrowing cost. At the present time, the interest rate is just below 10% per year and in addition, a one-time front-end fee of 1/4 of 1% is charged. Also, a commitment fee of 3/4% per year is charged on the undisbursed amount of the loan itself. For loans to industrial and mining projects, it is normal to charge an additional guarantee fee of 1 to 1.5% in addition to the annual interest rate. This guarantee fee is payable to the government of the country in which the project is carried out since, by its charter, the World Bank is required to have the guarantee of the host government for each loan made in a specific country. By far the greatest source of lending funds within the World Bank Group is that of the World Bank itself and for the fiscal year ending June 30, 1984, the World Bank approved loans totalling $12 billion. The second lending window within the World Bank Group is IDA which performs the same functions as the Bank itself and has the same staff. Nevertheless, its loans (called credits) are made on much softer terms and are made to the poorest nations only. IDA funds are subscribed by the wealthier countries, usually as grants, and these are relent as credits to those countries with the lowest per capita income. IDA credits are made for 50 year periods, including 10 years of grace, to the government itself. The credits are interest free, but there is a service charge of 3/4% per year on the amount withdrawn and outstanding to defray the administrative costs of IDA. Credits approved during fiscal 1984 totalled $3.5 billion. The third lending window is IFC. While IFC is a separate corporation and operates quite separately from the World Bank and has its own staff and regulations, it works very closely with the World Bank on its overall approach to the mining sector and to a particular country. IFC's mission is essentially to supply venture capital and to stimulate development of the local private sector in capital markets as well as to promote the international flow of private capital to developing countries. Unlike the World Bank and IDA, the IFC does not lend directly to governments

Jan 1, 1985

By M. C. Young

The Ozark Lead Company operating facilities are located in Reynolds County at the south end of the "New Lead Belt" of southeast Missouri. Development of this wholly owned subsidiary of Kennecott Copper Corporation started in May 1964, with a six foot diameter by 1250 foot deep steel lined shaft. A 20-foot diameter, 1480 foot deep, concrete lined production shaft was collared in March 1968. Production from the facilities began that month and has reached a present average of approximately 6000 tons per day. This paper describes the fully automatic system used to hoist the lead-zinc ore from a depth of 1420 feet to the surface crushing and concentrating facilities, as well as the man and materials hoisting system which allows the lowering of large equipment into the mine. MINING Galena, sphalerite and some copper minerals are found in several mineralized zones of the relatively flat lying dolomite of the "Bonneterre formation". The mineable ore zones vary from 10 feet to 110 feet thick, from 200 feet to 1200 feet wide, and several thousands of feet on strike. Two-boom diesel-hydraulic jumbos equipped with rotary percussion drills are used for both development and production. The jumbos are used principally to open the room and pillar stopes, and a track mounted down hole drill is used to bench in areas where the ore thickness warrants. Explosives used are ANFO, dynamite, and water-jell which are detonated by electric blasting caps. Broken ore (and waste) is hauled by rubber tired transports to chuted transfer raises. Approximately every 500 feet, these raises connect the orebody to the 15 foot by 28 foot train haulage level below. Two twenty ton diesel-hydraulic locomotives haul 160 tons per trip to storage pockets which have a total storage of 1500 tons of material. From these pockets the material is fed over a 6 foot by 20 foot mechanical vibrating feeder which includes one 4 foot by 6 foot grizzly section to a 48 inch by 60 inch jaw crusher. The grizzly and crusher products are transferred horizontally 45 feet on a 48 inch conveyor belt, to one of two 750 ton storage pockets. The material can flow unimpeded into one pocket or be deflected into the second pocket by a movable rock filled hopper. LOADING POCKET The material in each storage pocket is controlled by six lengths of ship anchor chain. The upper end of the 20 foot chain is anchored behind a brow in the pocket, while the lower ends are joined by a header. The lower ends of the chains are raised by two electric powered marine barge winches using 3/4 inch cables. The crusher operator controls the raising and lowering of these chains from a console in the crusher station. The upper and lower travel of the chains is controlled by cams and limit switches on the winch drive. The winches are located within 5 feet of the shaft, and shaft water continually causes problems with the electric components. A malfunction in the upper travel switch will cause the winch to pull the chains into the cable sheave (breaking the cable or sheave), while the lower switch causes the winch to unwind too much rope. Serious consideration is being given to changing the electric motors to pneumatic, since pneumatic motors will eliminate the need of any electrics at the winches. The winches can be "bottomed out" against the sheave without damage to the cable or sheave when raising the chains, and can be allowed to "free wheel" to lower the chains. A surge pocket below the two storage pockets feeds material to two

Jan 1, 1975

Abdul-Ahad. A., Student, Montana School of Mines, Residence Hall Butte, Mont. '39 Abramovits, Charles, Student, Case School of Applied Science Cleveland, Ohio. '37 Abreu, Ovidio M., Student, Univ. of Nevada Reno, Nev. '38 Acker, Voscoe, Student, Agricultural & Mech. College of Texas College Station, Tex. '39 Adams, Albert, Student, New Mexico School of Mines Socorro. N. M. '38 Adams, Charles W., Student, Michigan College of Min. & Tech Houghton, Mich. '39 Adams, Hugh T., Jr., Student, Univ, of Oklahoma Norman, Okla. '39 Adams, Jack L., Student, Univ. of Oklahoma Norman, Okla. '39 Adams, Jack M., Student, Univ of Alaska College, Alaska. '39 Adams, Lewis J., Student, Agricultural & Mech. College of Texas, Box 2514, College Station, Tex. '39 Adams, Robert E., Research Engr., Battelle Memorial Inst Columbus, Ohio. '38 Adamson, George M., Jr.. Student, Univ. of Utah Salt Lake City, Utah. '39 Adkisson, J. F., Jr., Student, Agricultural & Mech. College of Texas, Box 1003, College Station. Tex. '38

Jan 1, 1939

By Persifor Frazer

The subject of Egypt, to use the words of perhaps the second of modern writers on the subject [Deodat. de Dolomieu, in Observations sur la Physique, etc., January, 1793, vol. xlii., pp. 41+, 108+; Abbe Rozier, J. A. Mongez, and J. C. Delametherie, Paris], is one which strongly excites our interest, and everything relating to it demands our respect. "Thus," he continues, "the Greeks appeared to the Romans," ..." thus Egypt appeared to the Greeks, and thus all three appear to us." This writer, in the three parts of the memoire given above, speaks of Norden as the modern pioneer of Egypt, and does not seem to have made original observations himself; nevertheless he seems to have rendered the same service to his authority that Playfair not very long afterward rendered Hutton. The limitations of a paper will permit little else than citations, but these are so numerous that, unless much compressed, they would supply a chapter of moderate size. A great deal of the very interesting memoire of Dolomieu is taken up with Quixotic tilts

Jan 1, 1883

By Edward Wisser

THE Pachuca silver district, situated about 100 kilometers northeast of Mexico City (Fig. 1), covers roughly the southeastern half of the Sierra de Pachuca. The latter is a mountain range with northwest trend, and forms a part of the northeastern rim of the topographic basin known FIG. 1.-LOCATION OF PACHUCA DISTRICT AND OTHER MINING CAMPS. as the Valley of Mexico. The length of the Sierra proper is about 50 km., its greatest width about 9 km., and it rises to a maximum of 600 meters above the general level of the basin floor. The Pachuca district consists of two contiguous subdistricts, the Pachuca area and the Real del Monte area. The center of the Real del

Jan 1, 1936

By MARCELS CHLUMBER

BY the term making an "electrical log" the authors designate an operation conceived for the purpose of determining electrically the characters of formations traversed in drilling, the determination being carried out by means of measuring the electrical resistivities of the rocks along the uncased portions of drill-holes. As in the case of an ordinary core record, this process connotes a geological studs of the strata, and for that reason it is given a similar designation. The paper is divided into three parts, of which the first deals with the resistivities of rocks in general, since it is through this electrical parameter that they are to be characterized. The second deals with the technique, and the third with the description of practical applications of the electrical logs.

Jan 1, 1929

THE subcommittee on Coal Mining, since its appointment, has been engaged in collecting data about subsidences in coal mines in this country, and it now feels that almost all of the available data about occurrences of this sort in bituminous mines has been collected. As most of the bituminous seams are nearly level, the records obtained give the problem in its simplest form, without complications due to the pitch of the seam. Similar data is being compiled for the anthracite regions and it is hoped that this will be ready for the 1927 meeting. Copies of the questionnaire, Appendix A, were mailed to all of the coal operators' associations, to most of the large operating companies and to many engineers, with the request that any data on the subject be returned to the committee, or that advice of any subsidences known be given. The replies to most of the questionnaires were general only, although some specific cases were given. Many of the companies were unable to reply to all questions, as they lacked the necessary data, but in nearly every case where accurate data was available, it was cheerfully furnished, and any additional information requested was secured. All specific cases of subsidence were followed up by correspondence, and in several cases by personal inspection. Figs. 1 to 31 were made from the information furnished. Table 1 gives measurements of elevations taken in one case at intervals from October, 1913, to May, 1918. With one exception, where the evidence cannot yet be released on account of a lawsuit, it is believed that the cases submitted with this report include practically all that have happened in bituminous coal mining in this country of which actual measurements were secured. Some of these have already been published in the excellent report by Young and Stoek,1 and some instances have been secured from other publications. In collecting these data, the subcommittee had the Engineering Societies Library extend the bibliography given in the bulletin mentioned above to date. This list is given in Appendix B.

Jan 2, 1926

By H. C. Goodrich

At the Utah Copper mine, steam shovels were first used, in 1906, for the removal of overburden, and in June, 1907, for the mining of ore. Prior to 1907, the ore came from underground development work and from stoping. The use of the steam shovel gradually increased until 1914; since then all material, both overburden and ore, has been loaded by power shovels operating on the various benches of the mine. During these 19 years, there has been a great improvement in open-pit mining, largely in the use of equipment having greater capacity and dependability. The history of the development of mechanical shovels and related equipment, as affecting the Utah Copper Co., would be interesting and would justify considerable space; but of greater interest at this time is the operation of the equipment now in use. The Utah Copper mine is in a great deposit of copper-bearing monzo-nite, which occurs as a prominent headland of the Oquirrh range of

Jan 1, 1925

By H. W. McCue

In 1945 the number of oil wells drilled was less than in 1944 but the number of gas wells was greater. The oil wells numbered 176, completed for an initial production of 25,214 bbl., an average of 143 bbl. per well as against a total in 1944 of 245 drilled for 32,886 bbl., or 134 bbl. per well. All of these wells were in proven areas and no new discoveries

Jan 1, 1946

By Douglas W. Fuerstenau, Kalanadh V. S. Sastry

A mathematical model is developed for flotation in a countercur-rent column where continuously generated air bubbles rise through a downward flowing pulp. The model is based on the assumption of axially dispressed plug flow of both the liquid and air-bubble phases. An appropriate flotation-rate expression, which takes into account the changing concentration of solid particles on the bubble surface, is formulated and applied to the column flotation process. Although a complete solution of the resulting equations is not possible for the general case, solutions for specific limiting cases have been obtained. From these, it is possible to predict theoretically the dependence of the column performance on certain variables. Specifically, concentration profiles as a function of height in the column have been calculated for various values of the characteristic dimensionless parameters. The effect of axial dispersion on the perforance of the equipment is pointed out. In recent years, there has been considerable progress in delineating the fundamental physicochemical principles underlying the unit operation of flotation and in advancing methods for kinetic analysis and process modeling of flotation.' In general, nearly all such process research has been concerned with the analysis of conventional flotation equipment and circuits. From these investigations, the possibility of developing and designing flotation apparatus for more efficient separation appears limited with conventional equipment. How- ever, recently there has been an attempt to apply coun-tercurrent flow techniques to flotation in the context of a flotation column.- some of the results from pilot-plant studies2 indicate possibilities for success of this process at least in obtaining higher-grade concentrates though not higher recoveries. A flotation column operates on countercurrent principle in which bubbles continuously generated at the bottom of the column rise through the downward flowing slurry. A schematic diagram of the flotation column is shown in Fig. 1. The physicochemical principles of bubble-mineral attachment, using this flotation column, are essentially the same as those which prevail in conventional equipment, the only differences being in the flow patterns of the various phases. The salient operating feature of the column as compared to those of a conventional cell is that neither mechanical nor turbulent pneumatic agitation is employed. The column is

Jan 1, 1971

By James Aston

A proper consideration of this subject is not confined to the technical channels of production and metallurgy. It concerns an industry, and should cover economic aspects which are of material importance in any program of development. The discussion may logically be treated under three subdivisions, as follows: (1) manufacture, (2) characteristics related to quality of material; (3) adaptability and exploitation of product. Manufacture of Wrought Iron The manufacture of wrought iron is the most ancient art of the ferrous metal industry. The eighty years or less of existence of processes identified with our modern "Age of Steel" is a relatively brief interval compared with the several thousand years associated with the production of wrought iron by man. From the primitive early methods of production, manufacture for many centuries followed the line of direct reduction. There were developments as experience was gained through the years; but man's needs for a strong, ductile, forgeable product were met by reducing the ore to metallic iron in a single-stage operation. Following the development several centuries ago of what has become our modern blast-furnace operation, manufacture of wrought iron was gradually transformed into a two-stage method of first producing cast iron and then refining this to the desired degree of forgeability; the forerunner in principle of today's scheme of manufacture of steel. The product retained the essential characteristics of highly refined base metal with iron-silicate slag incorporation, which were associated with the material resulting from direct reduction methods. Cort's invention of the puddling process in 1784 is a landmark in wrought-iron manufacture. It consisted essentially in adapting a coal-fired reverberatory furnace to the refining operation; thus lifting the industry out of the slough of

Jan 1, 1935

By P.V. Roundy, G.R. Mansfield

Public lands in Florida were first withdrawn from entry by President Taft on July 2, 1910, as a conservation measure because of their possible phosphate content. The reserve thus established was subsequently modified by further withdrawals and by restorations, so that on Jan. 1, 1934, it contained 66,796 acres, of which only a small part had been definitely classified. The reserved land was in scattered parcels, ranging from less than 40 acres to 320 or more, distributed in many counties. For administrative purposes and for final disposal of any of the numerous parcels, mineral classification of the land is legally necessary. In 1934 and 1935 the United States Geological Survey, under two successive grants from the Public Works Administration, prospected some 83 tracts of these lands in Polk County, comprising in all about 3300 acres, and six tracts comprising 240 acres in Citrus and Marion Counties. The tracts in Polk County were all in the so-called land-pebble field and the others in the hard-rock field. The Survey field party was under the direction of P. V. Roundy, from whose unpublished report the material in this paper is largely taken. The foreman of the prospecting crew was J. H. Wingate of Zephyrhills, Fla. The individual tracts were identified through the cooperation of the General Land Office, by transitman Hugh B. Crawford. This prospecting work fitted well the classification adopted for Public Works projects in general: it could not be done on any considerable scale under the Survey's usual appropriations; it gave employment to unemployed labor; and it may be expected ultimately to repay the Government in royalties more than the cost of the exploration. Commercial, Prospecting Methods Commercial methods of prospeeting for phosphate in Florida have been briefly described by Mansfield.' In the hard-rock field, where the floor of the phosphate deposit is extremely irregular, it is customary to drill a.:

Jan 1, 1938

By P. V. Roundy, G. R. Mansfield

Public lands in Florida were first withdrawn from entry by President Taft on July 2, 1910, as a conservation measure because of their possible phosphate content. The reserve thus established was subsequently modified by further withdrawals and by restorations, so that on Jan. 1, 1934, it contained 66,796 acres, of which only a small part had been definitely classified. The reserved land was in scattered parcels, ranging from less than 40 acres to 320 or more, distributed in many counties. For administrative purposes and for final disposal of any of the numerous parcels, mineral classification of the land is legally necessary. In 1934 and 1935 the United States Geological Survey, under two successive grants from the Public Works Administration, prospected some 83 tracts of these lands in Polk County, comprising in all about 3300 acres, and six tracts comprising 240 acres in Citrus and Marion Counties. The tracts in Polk County were all in the so-called land-pebble field and the others in the hard-rock field. The Survey field party was under the direction of P. V. Roundy, from whose unpublished report the material in this paper is largely taken. The foreman of the prospecting crew was J. H. Wingate of Zephyrhills, Fla. The individual tracts were identified through the cooperation of the General Land Office, by transitman Hugh B. Crawford. This prospecting work fitted well the classification adopted for Public Works projects in general: it could not be done on any considerable scale under the Survey's usual appropriations; it gave employment to unemployed labor; and it may be expected ultimately to repay the Government in royalties more than the cost of the exploration. Commercial, Prospecting Methods Commercial methods of prospeeting for phosphate in Florida have been briefly described by Mansfield.' In the hard-rock field, where the floor of the phosphate deposit is extremely irregular, it is customary to drill a.:

Jan 1, 1938

By F. W. Jessen, James N. Howell

INTRODUCTION The determination of cloud points has to date been limited to rather transparent oils, visual observation of the formation of a solid phase being the criterion for the standard ASTM D 97-47 method. The need for a quiclc and simple method for determining cloud points under dynamic conditions for opaque crude oils became necessary in a study of fundamental aspects of paraffin deposition from crude oils. PREVIOUS WORK The determination of cloud points in opaque oils by viscosity temperature curves is fairly new, Young' described a method employing the capillary tube principle. No information exists relative to the determination of cloud points of crude or refined oils under dynamic conditions. Shock' noticed that deposition of paraffin from crude oils took place at temperatures at or below the temperature at which a sharp inflection point occurred in the viscosity-temperature curve. This observation indicates a possible correlation between this temperature and the cloud point of the crude oil. Reistle and Vietti1 have reported that when crude oils containing small amounts of asphaltic materials were heated to temperatures sufficiently high to solubilize these materials and immediately cooled the pour point of the crude oil was lowered as much as 70°F. Sachanen\ asribes this effect to the action of colloidal asphaltenes in preventing the formation of the crystalline structure necessary to maintain the oil in a rigid state. At high temperatures, asphaltenes are peptized, and the paraffin crystals formed at these temperatures adsorb the colloidal asphaltenes on their surface thereby hindering further growth of the crystals. Reistle" found, however, that such heating and cooling of crude oils had no effect upon the cloud points. This latter work dealt with a crude oil of fixed composition, and the question immediately arises as to the effect of varying the concentration of asphaltic materials on the cloud point. APPARATUS AND PROCEDURE All viscosity measurements were made with a Bendix Ultra-Viscoson. The Bendix Ultra-Viscoson, which consists of a vibrating probe and an electronic computer. measures viscosity by exciting a thin alloy steel blade on the end of a probe by short electrical pulses in damped oscillation at 28 kilocycles. The blade vibrates longitudinally with an amplilude of less than 55 micron or 20 millionths of an inch. Energy to protlucc this excitation is generated in he computer and transferred to the probe through the connecting cable. The oscillating blade is magnetostric-tive, i.e., it is capable of transforming electrical energy to mechanical energy in the ultrasonic range. Ultrasonic waves are produced in the material surrounding the blade by the oscillating motion of the blade causing layers of the material to slip back and forth over one another at a known frequency. The electronic computer calculates the energy required to produce the sliding motion which is in turn proportional to the viscosity of the material. Actual values of viscosity times density (centi-poise X grams/cc) are indicated on the computer and a continuous D-C signal is provided which is fed into a type 153 Electronic Recorder (manufactured by Brown Instruments Div. of Minneapolis-Honeywell Regulator Co.) The liquid sample container was fabricated from a Lucite cylinder and jacketed by a Luicite water bath. Early experiments using glass and steel sample containers were not satisfactory. since the Ultra-Viscoson was apparently affected by the alterzltion of the magnetic fields surrounding the probe by stresses set LIP in the glass and steel as it cooled. The procedure for determining viscosity-temperature curves was relatively simple. The temperature ot the sample was raised sufficiently high to solubilize all paraffin and asphalts present. After heating, the oil sample was immediately transferred

Jan 1, 1957

By C. C. Miller, A. B. Dyes

The cost of finding and developing new reserves is continually rising. We must meet these rising costs with more economical operations. This can he accomplished if we revise our ideas of proper well spacing and well allowable to consider the concept of optimum well spacing. According to this concept, the optimum spacing is the one which leads to the maximum present worth for a reservoir when ail factors affecting total cost and total revenue are considered and when the wells are produced in the most eficient manner. Application of this principle efficiently utilizes available well potential and properly considers the recovery eficiency in addition to fixing the spacing on the basis of the amount and value of the oil to he recovered. This Study presents an analysis of one producing zone containing low gravity crude to illustrate the effect of these factors on the present worth and on the optimum economic spacing under two production drives—-evolved gas and water drive. The maximum present worth occurs when the optimum number of wells for open-flow operation is employed. Frequently, this optimum development cal1s for very wide spacing and the ideal field rates are not unreasonable. Under other circumstance. where proration is necessary, an optimum combination of well spacing and well allowable exists which permits production at relatively high rates. The optimum well density in a field depends on the recovery efficiency and the valule of the oil. In solution gas-driven reservoirs this optimum spacing for operation at high producing rates can vary from extremely wide spacing to handle viscous low gravity oil in thin formations to relatively close spacing in thick sands where good recoveries are expected. Because of the better recovery from water-driven fields, the optimum spacing in these fields is closer than in solution gas-driven fields. Also, the water encroachment pattern is dependent upon the well spacing, and an adequate numher of wells is needed to assure a good sweep eficiency. The economic optimum well density in a water-driven field is high enough for this purpose. INTRODUCTION From year to year domestic oil becomes more difficult to find. The fields we do locate are frequently smaller and deeper than older fields and the costs for men, material and equipment are continually rising. To replenish our reserves we must continue to search for and develop new fields, but experience has shown we cannot expect prices to rise in proportion to costs. Consequently, we must meet increasing costs by more economical operations. A vigorous effort is being made within the industry to improve exploration methods, to cope with the problems of deeper drilling, and to obtain a secondary yield from older fields. Many significant contributions have resulted from these efforts. The economic operation of new fields can be further improved by developing these fields on optimum spacing and producing the wells at higher rates. This would avoid the drilling of unnecessary wells and provide additional capital for seeking new oil. While the benefits of these practices are obvious, the problem of defining the optimum development of a field for natural depletion can become very complex. A study of the effect of well spacing and several reservoir variables on economic worth of a specific field is reported here to illustrate the problem and to show the magnitude of the benefits to be realized. This study is necessarily limited to the field conditions selected and is not intended as a general solution of the well spacing problem. It does, however, indicate factors to be considered, the trends to be expected, and the direction in which we should proceed in developing new fields. NO consideration is given to land and legal considerations which might arise. METHOD OF ANALYSIS The optimum method of developing and producing a field is to use the combination of spacing and prora-tion which gives the maximum return. In addition, we do not want to lose recovery. These considerations of maximum return and maximum recovery present no serious conflict. The value of each method of operation is conveniently expressed in terms of its present worth. According to the present worth method of evaluation,' an acceptable annual percentage return is assigned to the operation, and all incomes, capital costs, and expenses are discounted at this rate to the start of the operation. This net value is the present worth. If we apply the same discount rate to several alternate methods of operation, the one yielding the greatest present worth is the best method. If we express net income in terms of price per barrel of oil produced, drilling and equipment costs on a well basis, and expenses as cost per well year, this evalu-

By Joel Watkins

THE terms kaolin, china clay, ball clay, and paper clay are more or less loosely and interchangeably applied to a large class of white-burning clays. These clays are made up chiefly of hydrous amorphous (colloidal) aluminum silicates with variable amounts of free silica and other impurities in small quantities. Occasionally also the term kaolinite is wrongly applied to a white-burning clay, for kaolinite, is a mineral of definite chemical composition and definite crystalline form which occurs but sparingly in nature. It is not the purpose of this paper, however, to define or classify clays, or to enter into a discussion of the chemistry of clays. It is rather a general description of the occurrence and methods of mining of a kindred group of clays, and a discussion of their future economic aspect. In the Southern Appalachian States, the mining of white-burning clays has in recent years become an important industry. Although these clays are of several distinct types, which occur in as many localities under different geologic conditions, they are for the most part. primarily of the same origin. They are essentially the same in elementary constituents, and are largely consumed in the same industrial arts. From the standpoint of a mining engineer, therefore, and for convenience in comparison and correlation, it should be interesting to discuss them under one heading.

Jan 2, 1915

By Arthur F. Taggart

The major portion of the work described in this paper was performed by R. W. Young, † a graduate student in the department of Mining and Metallurgy, Sheffield Scientific School, Yale University, working under a cooperative agreement between the Hardinge Conical Mill Co., the Sheffield Scientific School, and himself. Since this cooperative scheme is at present in effect in the case of a considerable number of other students in the department and since it is the hope of the school that the privilege thus extended may be utilized even more freely in the future by mining and manufacturing companies, it may not be amiss at this point to give a summary of the general plan. Briefly it is as follows: A graduate student, whose undergraduate work in this or other universities shows promise of ability to handle research work, is chosen by conference between the company and instructor involved. The aim of the company in the agreement then entered into is to obtain the solution of one or more of the technical problems with which it may be confronted, or, at the end of 1 or 2 years, to obtain as an employee a man especially trained in its work. As a means to accomplish one or both of these ends, the company furnishes the machine, apparatus, or material to be tested and pays the student during his graduate work a small salary, usually just sufficient to cover his living expenses, tuition and fees. The aim of the student is special training along a line in which he is particularly interested, the attainment of his advanced degree, and the chance to show to his future employer ability to handle such problems as may be presented to him. In return for the financial aid which he receives he agrees to devote at least half of his working time to the special problem submitted by his company. The other half is devoted to study of the collateral subjects required by the department for the granting of the degree which the student seeks. The student further agrees to enter the employ of the company in question at a wage not greater than that paid in like positions to recent graduates not specially trained and to remain with his employer at such wage for at east 1 year. If the student is to obtain a degree, the special work forming the basis of his investigation must be such as will involve real research and not mere routine manipulation. The subject is chosen by conference between the three parties to the agreement. The work is carried on under the direct supervision of the instructor involved. The school furnishes the general laboratory and library equipment essential to the pursuit of any extended investigation. In

Jan 1, 1918

By P. W. George

This paper presents geological data regarding deposits of over 7,500,000 tons of fine-grained sulphide ore in barite gangue. A series of pyroclastics and arkoses was intruded by sills of quartz porphyry in connection with batholithic intrusions of granite 3 miles from Buchans. Gentle folding, with fracturing acid shearing of tuff beds and intruded quartz porphyry, accompanied and followed the intrusion of granite and porphyry. The sulphide-barite mineralization is localized primarily in fractured and sheared tuff beds, but also in the sheared quartz porphyry. Two structures have proved particularly favorable for mineralization-one, the center of an anticline; the other, a series of weak, incompetent tuff beds intruded by thin sills of quartz porphyry and located between strong beds of arkose. During the folding the weak tuff with intruded quartz porphyry was intensely sheared and contorted and subse-quently mineralized by sulphides and barite.

Jan 1, 1937