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By W. M. Myers

MINERAL Economics is the most recent profession to be recognized as a separate division of the mineral industries. It has originated from the increasing awareness of the importance of the economic aspects of industries concerned with discovery, extraction, and utilization of minerals. It is concerned with the interrelated fields of economics and technology. The individual trained in economics alone cannot qualify. The curriculum in the School of Mineral Industries at The Pennsylvania State College was approved in May 1946, and enrollment begun in September of that year. Due to the transfer of advanced students from other courses, particularly metallurgy and electrical engineering, it was possible to graduate the first seniors in June 1947. The next class was graduated in February 1948. From experience derived from placing these graduates in industry, and from information supplied by prospective employers, valuable data have been obtained in the organization and operation of the course of study.

Jan 1, 1948

By E. B. Burwell, R. H. Nesbitt

Designed by army engineers, the NX borehole camera provides the most economical method of subsurface exploration so far devised. Continuous cylindrical color photographs now reveal minor flaws in foundation bedrock not always disclosed by borehole samples. A unique projector transforms the photographs into true-to-scale images of three dimensions. ANEW milestone in the progress of photography and subsurface exploration was reached when the Chief of Army Engineers announced the development of the NX borehole camera. In obtaining continuous undistorted cylindrical color pictures of dry or water-filled borings the device surpasses all other cameras designed for photographing interior surfaces of pipes, wells, and conduits. The usefulness of the camera and the unique projector that comes with it are at once apparent. To the geological, mining, and civil engineer alike it signifies the end of guesswork with respect to underground conditions that have eluded identification by conventional core-drilling methods. To the medical profession it may well signal new progress in photo optics which could result in cylindrical color photographs supplementing the X-ray and existing photographic methods used in exploratory surgery. The pilot model of the camera has more than paid for itself as a result of its success in bringing to the surface at two dams information previously obtainable only by costly drilling of mansized boreholes for subsurface on-the-spot examination. Such bores cost as much as $200 per lineal foot as against $10 per ft for the conventional 3-in. or NX exploratory core borings from which the present invention derives its name. The NX camera can now photograph completely the interior surface of these borings. Research and development for the first camera and projection equipment were conducted by Engineering Research Associates, Division of Remington Rand, Inc., under the technical supervision of the Geology and Geophysics Branch, Office of the Chief of Army Engineers in Washington, in accordance with plans and specifications furnished by this branch. Subsequent modifications of the camera-lowering device, transporting equipment, and special field tools were made in the Corps of Engineers' Ohio River Division Laboratories in Cincinnati. The background of this development is interesting. Among the more difficult foundation problems involved in construction of concrete dams are those resulting from bedrock imperfections that escape disclosure by conventional exploration methods. Often these imperfections are of sufficient magnitude to introduce costly changes, especially when their presence is discovered only after foundation excavation is well in progress. Bedrock flaws most frequently camouflaged may be ruptures resulting from the enormous stresses to which rocks have been subjected, or they may be planes or zones of weakness related to chemical alteration and underground erosion. Obviously, detailed information on their location, dimensions, and structure is important, as these factors can affect the stability of a dam and the security of life and property downstream. Their discovery and appraisal entail extensive subsurface exploration. At present the most economical exploratory tool available to geologists and engineers is the small-diameter diamond core drill by means of which cores of the foundation bedrock are recovered for examination and testing. All too often, however, these samples fail to disclose minor foundation flaws that may be of major importance before a structure is completed. As a result, the small-diameter drillings are supplemented generally by more reliable but much more costly shafts, tunnels, or large-diameter calyx drill holes that permit the investigator to examine the foundation rocks in place. It was to reduce the number and cost of these expensive and time-consuming investigations, as well as to obtain more complete information on rock structure from the smaller borings, that the NX borehole camera was developed. That it has been eminently satisfactory in accomplishing that purpose is demonstrated by its success most recently at the Folsom dam, under construction on the American River, 23

Jan 1, 1955

By Ira N. Holli

A meeting of Engineering Council was held on Thursday, Jan. 22, 1918, at the Engineering Societies Building, New York. Present: Chairman Ira N. Hollis (A. S. M. E.); Dr. Charles Warren Hunt, Alex. C. Humphreys and F. H. Newell (A. S. C. E.); B. B. Lawrence and .J. Parke Charming (A. I. M. E.); Charles Whiting Baker, D. S. Jacobus, and George, J. Foran (A. S. M. E.) ; H. W. Buck, E. W. Rice, Jr., N. A. Carle, C. E. Skinner and Comfort A. Adams (A. I. E. E.) ; Clemens Herschel and Calvert Townley (United Engineering Society); also, by invitation, D. W. Brunton, Chairman, War Committee of Technical Societies of Engineering Council. Of the several actions taken at this meeting, the following are selected as being of most general interest. Chairman-Baker-presented a resolution on the conduct of the war, to which objections were made. It was referred to a special-committee; Charles Whiting Baker, Charles Warren Hunt, and Calvert Townley, for re-drafting and presentation later in the meeting. The revised resolution submitted by this committee led to further discussion and as no agreement could he reached, the matter was laid on the table.

Jan 3, 1918

By E. L. Estabrook

Oil companies operating in foreign countries have made increased use during 1930 of cooperative agreements in prospecting unproven territory and in developing proven territory. A considerable proportion of the existing foreign fields are held under single ownership and have been developed as units. The operating companies seek to maintain this condition by acquiring land in large blocks or by merging smaller concessions under unit operating agreements. Your committee has secured a number of reports on foreign non-competitive operations and a valuable formal paper which deals with the Golden Lane of Mexico.l 0. B. Knight has drawn some valuable comparisons concerning costs of development and ultimate production between a certain competitive area and another noncompetitive area along that strip of rich producing territory. After discussing details of production, numbers of wells and cost of drilling and production, he concludes that the 93,700,000 bbl. of competitive oil will have cost $0.193 per barrel as compared to 85,700,000 bbl. of noncompetitive oil at $0.059 per barrel. The saving of $0.134 per barrel amounts in round figures to $11,500,000, which is 21/2 times the total cost of developing the non-competitive block. The cost for drilling and development of the two areas of 3550 acres which Mr. Knight compares was $18,150,000 under competitive and $4,760,000 under noncompetitive conditions. The estimated ultimate production of the competitive 3550 acres is expected to reach 93,700,000 bbl., or 8,000,000 bbl. above the noncompetitive block. Under ordinary production methods it is to be expected that a noncompetitive area will yield less oil per unit area than will a similar competitive area, because of closer spacing and more rapid extraction in the latter case. The advantage of noncompetitive conditions, in this regard, is that the undivided ownership makes it possible to apply repressuring as a production method fairly early in the life of the field and thus, in the end, to vastly increase the yield. In the particular region described by Mr. Knight, repressuring is not thought to be a factor of

Jan 1, 1931

By Howard Scott

The great advances made in mechanical engineering during recent years through the use of alloy steels, as illustrated by the development of the airplane and automobile, may be ascribed primarily to the application of nickel as an alloying element. The ternary system iron-carbon-nickel has a wide industrial application and forms, further, thefundamental basis of the even greater class of the widely used quarternary steels such as nickel-chromium, nickel-silicon, and nickel-vanadium. As is not uncommon with such cases of virile growth in an industry, the application of the alloy steel in a largely empirical manner has outstripped its scientific development so that a fertile field for metallographic research still remains. In this field, the basic nickel steels require first consideration and are the subject of the present investigation, which is offered as a preliminary to the study of the more complex alloys of industrial importance Of the principal tools of metallography—microscopic examination, determination of mechanical properties, and thermal analysis—the last has developed much more slowly in its application to industrial needs so that the situation often exists that heat treatment operations are based on empirically determined temperatures; that is, temperatures deterrnincd without regard to the actual transformation characteristics of the alloy. This situation is undesirable as there is no uniform standard for comparison of results. It is due, outside the usual difficulties involved in temperature measurements, to the pioneer character of much of the published work; to the lack of definiteness of the Ac, transformation,1 particularly in low-carbon steels; to the failure to define operating conditions completely; and to the paucity of information correlating thermal characteristics with results of heat treatment.

Jan 1, 1922

By Howard Scott

The great advances made in mechanical engineering during recent years through the use of alloy steels, as illustrated by the development of the airplane and automobile, may be ascribed primarily to the application of nickel as an alloying element. The ternary system iron-carbon-nickel has a wide industrial application and forms, further, thefundamental basis of the even greater class of the widely used quarternary steels such as nickel-chromium, nickel-silicon, and nickel-vanadium. As is not uncommon with such cases of virile growth in an industry, the application of the alloy steel in a largely empirical manner has outstripped its scientific development so that a fertile field for metallographic research still remains. In this field, the basic nickel steels require first consideration and are the subject of the present investigation, which is offered as a preliminary to the study of the more complex alloys of industrial importance Of the principal tools of metallography—microscopic examination, determination of mechanical properties, and thermal analysis—the last has developed much more slowly in its application to industrial needs so that the situation often exists that heat treatment operations are based on empirically determined temperatures; that is, temperatures deterrnincd without regard to the actual transformation characteristics of the alloy. This situation is undesirable as there is no uniform standard for comparison of results. It is due, outside the usual difficulties involved in temperature measurements, to the pioneer character of much of the published work; to the lack of definiteness of the Ac, transformation,1 particularly in low-carbon steels; to the failure to define operating conditions completely; and to the paucity of information correlating thermal characteristics with results of heat treatment.

Jan 1, 1922

By Canada Ernst & Whinney

INTRODUCTION The principal objective of this chapter is to provide guidance in understanding and making effective use of published financial statements of mining companies. Although financial statements only represent a gathering together of information relevant to an enterprise's financial position and results of operations, they increasingly reflect the complexities of the modern day business environment. In the mining industry, a wide variety of accounting practices have evolved to deal with the unique aspects of the business in the absence of authoritative accounting pronouncements from standard-setting bodies. Given such complexities and divergent practices, financial statements of mining companies are not easily understood and cannot be used effectively as a tool in decision-making without a basic knowledge of fundamental accounting concepts, generally accepted accounting principles and their application in the mining industry. As such, this chapter is not restricted to a discussion of the accounting for the unique aspects of the mining industry. These aspects are dealt with at length but the text also includes a discussion of general accounting concepts and practices which have wide application in the mining industry. Frequent references are made in the text to international practices and to specific rules and requirements of individual countries. In this respect, the scope is restricted to four major mining environments, Canada, the UK, the US and Australia, all of which have made significant contributions to the development of generally accepted accounting principles. Acknowledgements This chapter was prepared under the direction of Ian Murray of Ernst & Whinney in Toronto, Canada. Contributions were received from Graham Butt, Mark O'Sullivan and Dominic Robinson, all from Ernst & Whinney in Toronto and Bill Duvall and Tom Schoenbaechler from Ernst & Whinney in Louisville, Kentucky, US. The authors would also like to acknowledge the assistance received from David Ferguson, Don MacLean, David Taylor and Susan Zoutman from Ernst & Whinney, Toronto, from the UK and Australian practices of Ernst & Whinney and from Ernst & Whinney International. FINANCIAL STATEMENTS - ELEMENTS AND CONCEPTS Financial statements were originally a stewardship report to owners to satisfy them that management had given a proper account of the resources with which it had been entrusted. Today, the number of users of financial statements has expanded to include the following groups: - shareholders, present and prospective; - lenders, present and prospective; - financial analysts; - regulatory authorities; - taxing authorities; - labour unions and employees; and - creditors and customers. The expectations of these user groups differ. For example, investors and lenders require information that will indicate the adequacy of their security and the profitability of the enterprise; taxing authorities will be concerned with the concept of income; labour unions and employees will focus on the profitability of the enterprise. Ground Rules for Preparing Financial Statements Responsibility for Financial Statements Financial statements are the representations of management. This may strike the reader as a rather obvious statement. It is important to remember, however, the role of judgment in accounting. Notwithstanding the promulgation of accounting standards in the developed countries, considerable flexibility remains in the selection of accounting practices and methods and in their presentation. Arguably, there is more flexibility in the mining industry as few countries have developed standards to deal with its unique aspects. Accordingly, financial statements are as much a product of management's perspective and philosophy as they are a compliance document.

Jan 1, 1985

By R. V. Smith, M. H. Cullender

Rigorous equations for calculating subsurface pres.tures in flowing and static gas wells, and pressures along horizontal pipelines are presented in this paper. These general equations, based on the mechanical encrgy balance, contain no assumptions regarding temperature and can be used with either straight-line or curved temperature gradients. The friction factors recommended in this report are based on an absolute roughness of 0.0006 in. Flow is always considered to he turbulent. Although these general flow equations are solved by numerical means, the methods are as convenient as many of those used today to calculate pressures in gas wells and pipelines. These numerical methods are illustrated for flowing and static columns of gas in wells and for flow in pipelines. The authors believe that the use of these methods will result in more accurately calculated pressures in gas wells and pipelines and that [he methods are more flexible than any in use at the present time. Also, the methods are easily adaptable to automatic computers. INTRODUCTION The problem of calculating subsurface pressures in gas wells and along flowing pipelines has been studied by many investigators with the results that two widely-used methods have been presented in technical literature. One approximates conditions in a gas well or pipeline by assuming that temperature and compressi- bility are constants tor the entire gas column. The other method assumes that temperature is constant at some average value but permits compressibility to vary with pressure at the constant temperature. While these approximations may be justified for relatively shallow and low-pressure wells, they become more and more unrealistic as the calculations are applied to the deeper high-pressure wells. In wells or pipelines where there is an appreciable change in temperature between the inlet and outlet ends of the flow string, it is equally as important to consider the change in compressibility with temperature as it is to consider the change with pressure. Consequently, the methods presented in this paper were developed to provide a workable procedure for calculating pressures in gas wells and pipelines which makes no assumptions regarding either temperature or compressibility. The friction factors recommended for use with the equations were the result of study of published literature and extensive experimental work with gas wells. The F,. values in Appendix IV which contain the friction factor are equivalent to an absolute roughness of 0.0006 in. as calculated by the Nikuradse equation. The absolute roughness of 0.0006 in. was previously published by Cullender and Binckley2 for gas wells; it is in agreement with 0.00065 in. of Smith, Dewees, and Williams1 for gas wells and 0.00065 in. of Baker and Swerdloff4 for pipelines; it is in reasonable agreement with 0.0007 in. reported by the Bureau of Mines and the American Gas Assn.5 for large transmission lines. However, any type of friction factors may be used in the equations by a change in the F, values in Appendix [V].

Jan 1, 1957

By Chase Palmer, Edson S. Bastin

While the reducing action of organic matter, of ferrous sulphate, and of hydrogen sulphide has frequently been invoked to account for the deposition of native gold and silver from ore-forming solutions, the high efficiency in this respect of certain of the metallic minerals which form the ore itself has not been suffciently recognized. If a little finely powdered chalcocite is placed in a test-tube arid 2 or 3 cc. of a dilute solution of gold chloride are poured over it, two or three shakes of the tube suffice to remove all the gold from the solution. The color of the solution changes from yellow to pale green, showing that copper is dissolved simultaneously with the precipitation of metallic gold. If a piece of chalcocite is hung in a dilute aqueous solution of silver sulphate (1/40 normal), a coating of silver begins immediately to form on the mineral, and within a few moments a beautiful silver tree has developed, similar to that formed when metallic zinc is immersed in a similar solution. When similar experiments are conducted with other sulphides and with certain arsenides and sulph-arsenides, especially those known to be commonly associated with native silver in ore deposits, it is found that these minerals differ greatly in their efficiency as precipitants, especially in their effect on silver solutions. The tests made with most of the minerals were qualitatipe only, but the reactions of a silver sulphate solution on chalcocite and niccolite were submitted to quantitative study to determine the nature of the reactions involved. Quantitative studies of the reactions with other minerals are now in progress

Jan 1, 1914

By Donald E. Garrett

The processing of brines from Searles Lake, California, yields one of the world's largest supplies of borax and boron chemicals, second probably only to the massive deposit at Boron, California. Two companies produce from this deposit, the American Potash & Chemical Corp. and the West End Chemical Co., a division of the Stauffer Chemical Co. Two processes are employed in recovering borax from the brines; one is used by both companies and consists of carbonating the brine to form sodium bicarbonate, removing this, and then cooling the liquor to crystallize a crop of borax. Only American Potash uses the second process, evaporating the brine to concentrate it and remove (crystallize) much of its NaCl, Na2CO3, Na2SO4, and NaLi2PO4 content, quick cooling the remaining liquor to remove KCI, and then seeding the filtrate to remove borax. Both methods will be briefly described. Searles Lake is a large evaporite body formed during the most recent two Sierra Nevada ice stages, the Tahoe and the Tioga. Runoff waters from the Sierra Nevada Mountains collected in the large Owens Valley drainage basin and from there overflowed into the Indian Wells basin and then into Searles Lake. In each Lake, evaporation took place. To a large extent the Owens and Indian Wells lakes acted as settling basins, for much of the mud, and insoluble calcium and magnesium precipitates were deposited there. Recent volcanic activity in the mountains to the north and east of Owens Lake had scattered considerable mineral-rich volcanic ash and debris throughout the drainage area, and several hot springs were formed that contained boron and other salts. The present flow rate and concentration of several springs, and the known age of at least the Tioga zone, can fairly well account for all of the boron present in Owens and Searles Lakes.1 The tungsten content can be accounted for in a similar manner.2 Most of the salts thus originally present in the fresh water runoff-from ice, snow, and rain-accompanying these two ice stages were ultimately deposited in Searles Lake. During the Tahoe period, from 25 to 40 ft of massive, mixed salts were deposited, along with six interspersed layers of mud (four inches to two feet thick) representing comparatively brief interglacial periods. Before the final desiccation of the lake, from 10 to 14 ft of new mud was deposited, representing the Tioga stage. The crystals subsequently deposited were from 70 to 90 ft thick, and form the present lake surface. The extent of the salt body is about 34 square miles, of which 12 square miles are exposed salt; the remaining area is covered by recent alluvial deposits (chiefly mud). The present lake is generally dry on the surface but floods to a shallow depth following heavy rains. The crystal body of both zones consists of continuous clusters of salts, and the voids between crystals (about 45 pct of the total volume) are occupied by brine. The level of this brine never recedes more than several inches below the salt surface. The brine pumped to the plants for processing is generally saturated with all of the solid phases present in that area, and thus is a complex mixture containing about 35 pct solids (see Table 3). The brine composition varies somewhat at different areas of the lake and from upper to lower structures, so wells are drilled in the areas and to the depths desired. A casing is cemented in the hole to within a short distance from the bottom, and pumps with about 14-ft suctions are mounted on the casing to pump the brine into the plants. The evaporation process of the American Potash & Chemical Corp. treats upper structure brine, evaporating all of the water from

Jan 1, 1960

By B. R. Berger

The Getchell area in the northern Osgood Range, Humboldt County, Nevada, was first prospected in the late 1800s for silver, copper, and gold; the first recorded mention of mining activity concerned a silver discovery. The September 17, 1874 edition of the Winnemucca Silver State notes that the Crystal Mining District was newly organized in the Fremont Range (as the Osgood Range was then called) to include discoveries of silver, lead, and antimony made on the Louisa claim. The name Crystal was derived from the plentiful quartz crystals found in-cavities near the prospects. This same area, occurring on the northwestern margin of the Osgood granodiorite stock, was later mined as the Richmond tungsten property, and crystals may still be found there in cavities in a massive garnet tactite. By 1878, how-ever, the name Crystal had been abandoned in favor of Potosi. The next flurry of activity in the Osgood Range was reported in 1899 when a copper strike on Granite Creek in the southern portion of the range received attention. The copper occukences were in a granite contact zone on the southeastern edge of the Osgood stock and, in 1916, the first tungsten in the district was discovered in the same deposit. During the last part of the nineteenth century, cattle and sheep were brought into the Kelly Creek Valley east of the Osgood Mountains by various ranchers. Alphonso and Adrian Bernard were among these ranchers, and in the first decade of the twentieth century, one of them recognized the altered rock where the Getchell Center it is now located. A 3-m (10-ft) deep prospect pit was dug on the outcrop, but the highest assay ran about $11/t ($10 per st). No further work was done on the gold-bearing rock. In 1934, Emmet Chase of Battle Mountain and Ed Knight of Golconda prospected in the area of the Bernard prospect pit and located several lode claims. At this time, Noble H. Getchell, a state senator, was looking for new mining opportunities to develop. He held interests in the Gold Circle Consolidated at Midas, which was becoming a losing venture. Chase and Knight brought their discovery to his attention, and he grubstaked them to prospect further in the area. In need of financial backing, Getchell solicited the help of George Wingfield, Sr., who held a minor interest in the Gold Circle. Wingfield was a successful banker and mine operator during the heyday of Tonopah and Goldfield, and he had become good friends with Henry C. Frick and Bernard Baruch. Wingfield let Baruch in on several very successful mining ventures in Goldfield, and Baruch returned the favor by underwriting the financing of the Getchell mine. Eleanor Roosevelt and Jack Dempsey were early stockholders in the Getchell operation. George Wingfield brought his brother-in-law, Roy A. Hardy, a consulting engineer who had constructed the American Flat mill near Virginia City, to look at the property. Upon inspecting the Chase-Knight claims, Hardy declared the whole area to be mineralized. A crosscut was driven to check the extent of the ore, and the results were better than anticipated. The locators were reportedly given $50,000 for the claims. The Getchell Mine, Inc., was organized on November 5, 1936. A small railroad that ran from Battle Mountain to Austin was purchased, and the ties and rails were moved to Getchell to be used in underground exploration. Enough reserves were found in the Center and South pit areas to construct a 40 t/d (44 stpd) mill. The financial and engineering help for the mill was provided by the Newmont Mining Co. for a 17 1/2% interest in the corporation. Newmont set about trying to solve the metallurgical problems with the sulfide ore, and also directed the early development work. Newmont wanted to grind the sulfide ore underground and oxidize it in the atmosphere by spreading salt on it. Detrital Flat in Arizona was purchased to provide salt for

Jan 1, 1985

Prospecting methods used in Tennessee have gradually improved with the years, as required by depletion of the easily accessible and shallow deposits and the universal trend toward mechanization, and as necessitated by exploring deeper beds, often occurring under limestone and flinty overburden. In the early days it was a very simple matter to dig pits by hand, using a plentiful supply of local farm labor to expose relatively shallow deposits of "brown rock" under shallow clayey overburden that would stand up without timbering. Visual inspection of the exposed phosphate and expert judgment of the "grade" analysis, aided by a "biting" test to reveal presence of unwanted silica, furnished most of the information required. All this might be helped by a few samples sent to the local chemist† who supplemented his income by judicious trading or tanning a few bear skins. The extra curricula activities did not affect the accuracy of the analysis which hold up even under present day standards. Some shot and core drilling was done in Hickman County, mostly for the limestone-like blue Phosphate deposits. The next step was the use of a 4-in. posthole auger, hand operated as described by Guenther, followed by a completely mechanized rig, as described by Pickard. Both these methods are practically adapted to the prospecting of the relatively soft brown rock deposits at moderate depths of clay overburden. For prospecting in areas of deeper overburden, such as are often found in Hickman County, up to 150 or even 200-ft depths, a modified core-drilling method is described by Guenther. Johnston describes a special diamond-drilling technique, developed by TVA, to penetrate flint horizons, which was adopted by the International Minerals in chemical corporation to prospect in Hickman County where deposits had previously been prospected at considerable expense and with difficulty, by small, temporary, hand-dug shafts.

Jan 1, 1948

Prospecting methods used in Tennessee have gradually improved with the years, as required by depletion of the easily accessible and shallow deposits and the universal trend toward mechanization, and as necessitated by exploring deeper beds, often occurring under limestone and flinty overburden. In the early days it was a very simple matter to dig pits by hand, using a plentiful supply of local farm labor to expose relatively shallow deposits of "brown rock" under shallow clayey overburden that would stand up without timbering. Visual inspection of the exposed phosphate and expert judgment of the "grade" analysis, aided by a "biting" test to reveal presence of unwanted silica, furnished most of the information required. All this might be helped by a few samples sent to the local chemist† who supplemented his income by judicious trading or tanning a few bear skins. The extra curricula activities did not affect the accuracy of the analysis which hold up even under present day standards. Some shot and core drilling was done in Hickman County, mostly for the limestone-like blue Phosphate deposits. The next step was the use of a 4-in. posthole auger, hand operated as described by Guenther, followed by a completely mechanized rig, as described by Pickard. Both these methods are practically adapted to the prospecting of the relatively soft brown rock deposits at moderate depths of clay overburden. For prospecting in areas of deeper overburden, such as are often found in Hickman County, up to 150 or even 200-ft depths, a modified core-drilling method is described by Guenther. Johnston describes a special diamond-drilling technique, developed by TVA, to penetrate flint horizons, which was adopted by the International Minerals in chemical corporation to prospect in Hickman County where deposits had previously been prospected at considerable expense and with difficulty, by small, temporary, hand-dug shafts.

Jan 1, 1948

By C. F. Tolman

Discussion of the paper of C. F. TOLMAN, JR., presented at the New York meeting, February, 1916, and printed in Bulletin No. 110, February, 1916, pp. 401 to 433. Louis C. GRATON, Cambridge, Mass.-Of particular interest at this time is any paper that deals with chalcocite, the characteristic product of secondary enrichment and the copper mineral of greatest commercial importance, and that seeks to aid in the distinction between primary and secondary chalcocite-a distinction of much scientific and practical importance but one which thus far it has proved difficult to draw. The present paper on this subject by Professor Tolman, like the ,many preceding it which he and his colleagues at Stanford have published in the last couple of years, contains much of interest and suggestiveness. Without endeavoring at this time to review or comment upon Professor Tolman's conclusions in detail, I may say that many of them are in accord with the findings that my associates and I have been accumulating in the course of studying secondary enrichment in many of the copper deposits of the country. On the other hand, it goes without saying that in this comparatively new field of research or, at least, a field in which

Jan 5, 1916

By Stewart Murray, Philip Klapwijk

INTRODUCTION Forecasting commodity markets is like predicting winners in a horse race: to get the answers right, one needs both luck and judgement. Commodity analysts bear some resemblance to racing tipsters as they try to convince interested parties that they have an inside track on which metal is going to win the great minerals race of the 1990s. Commodity analysts share some features with the gentlemen of the turf: • They influence other people in how to spend risk capital, • They don't put their own money at risk, and • If their tips consistently fail to deliver, then they end up looking elsewhere for employment. In order to find winners we need to know about the kind of race we are in and the strengths and weaknesses of all the runners. Miners are not interested in a five furlong sprint: their race is a long distance affair -- after all, the lead-times between discovery and start-up generally approach a decade for mines that will provide the staying power which leaders require in this industry. We need to look at the environment in which our commodities will be competing: in racing parlance, the going. Our equivalent is the economic background: just as some horses are at a relative advantage when the going is soft, so some commodities will do better than others if economic growth is sluggish. If we are going to pick the winners for the late 1990s, and as an industry, make the right investment decisions, nothing is more important than being able to forecast (with at least a semblance of accuracy) how and where the world's economy is going to develop in the next decade. In addressing the question of whether minerals are going to be leaders in the 1990s, this paper considers the idea that it will increasingly be the world outside the industrialised OECD that will provide the incremental growth in demand for mineral products. Economic growth in the Developing World is fundamentally different from that in the OECD, and the pattern of demand for materials in relation to economic output is much more favourable than in the OECD. If we are to forecast the future, we need to be able to understand the past, both in the boom times of the so called Golden Sixties and in the lean years that followed them. This should help us to decide whether the future is going to be like one or other of these extremes or, on the other hand, a return to normality. Having forecast the going, we can look at individual competitors. • Which are best placed to take advantage of the economic, social and industrial trends that we can now dimly foresee? • Which can resist the continued onslaught of the new materials and technologies? • Which of them will best weather the economic storms (assuming that recessions have not yet been abolished)? If we can provide answers to these questions, we will be well on our way to picking winners, i.e., the metals and minerals that will reward their owners with growing demand, steady (and high) prices leading to profits beyond the dreams of avarice.

Jan 1, 1990

By R. C. Mahon

THE Homer iron-ore mine is at Iron River, Mich. Because it covers a large area, 400 acres, and because there was a considerable depth of water in the glacial drift above most of the ore bodies, this mine has presented a number of unusual and often difficult operational problems. The purpose of this paper is to discuss a few of the most important problems encountered. SURFACE WATER Mining on this property was started on one 40-acre tract. The ledge in this area was the highest on the property and, although it was a real problem, water could be handled by underground pumping. During the first period of mining, drifts were driven just under the ledge and holes were drilled through to the surface material. In later years these drifts have been extended wherever possible. Although these drifts assisted in the drainage problem, it was evident they would not be sufficient alone. Before mining on a large scale could be started on this property, the water problem had to be solved. A number of test holes were put down to the ledge, and showed that there was an average 150 ft. of water-saturated glacial drift above the ledge over the rest of the mine. The upper 70 ft. was gravel and sand and the lower 80 ft. clay and hard pan, with some narrow seams of sand and gravel. It was evident that the water above the clay seam could not be drained off through openings in the ledge and for that reason it was decided to install surface drainage wells. This method of drainage was entirely new at that time and was pioneered at the Homer mine. The sinking of the first well was started in June 1929. Immediately following the first well a number of wells were sunk, but only to the top of the clay seam. This was done with the idea that a greater capacity could be obtained in a shorter time from gravel seams where the water flowed more freely and that the cost of pumping the water above the clay seam would be considerably less than if the wells had all been sunk to the ledge at once. Before the drainage of surface water was started, 1200 gal. per min. against a head of 800 ft. was being pumped from the mine. By March of 1932, with five surface wells in operation, the mine pumping had been reduced to 150 gal. per min. At this time we were pumping 5000 gal. per min., under an average head of 110 ft. from the surface wells. The total pumping costs were 30 per cent less than in 1929 because the greater capacity was being pumped at a much lower head. From 1932 to 1936 the mine was idle and all surface pumping was stopped. Since 1936, 10 new wells have been added with a total pumping capacity of 8000 gal. per min. at the present time. The water level has been lowered 70 ft. since surface pumping was started in 1929, and it is now approximately at the top of the clay. To remove the water below the clay seam, 11 of the 15 wells were sunk to the ledge.

Jan 1, 1945

By Robin P. Gardner

A radioisotope tracer method combined with a suitable back-calculation method is proposed and evaluated for the determination of model simulation parameters in open-circuit continuous ball mills. The method essentially consists of using impulse and/or step injections of short-lived radioisotopes of the naturally occurring trace elements manganese and sodium. It is evaluated here on the basis of the minimum standard deviations of the product weight-size distributions. These minimum standard deviations are taken as those predicted by a Poisson distribution of the number of particles present in size fractions of the samples taken for analysis. Previously developed tanks-in-series lumped parameter models are used in the evaluation. The results indicate that the method is very promising.

Jan 1, 1976

By H. J. Polta, R. W. Michelson

Discounted cash flow analysis is commonly used to evaluate the profit making potential of a business venture. The same method can be used to analyze the effects of varying physical and economic conditions upon the real cost of supplying a mineral commodity. If a fixed rate of return on a capital investment is specified, and the flow of cash, discounted at that rate, is just adequate to repay the investment over the life of the venture, the net present value of the venture is zero. At this condition it is possible to evaluate the unit cost of producing the mineral. It will be exactly equal to the selling price required to calculate a zero present value. Increasing a particular cost factor will not always increase the cost of supply by the same amount. For example, in iron production from magnetic taconite, an increased cost per ton associated with beneficiation would be integrated into the discounted cash flow model along with local, State, and Federal taxes, depletion and depreciation allowances, resultant increased unit recoveries, and all of the other related component cost factors. Rather than adding to the cost, the factor may have a positive, instead of a negative, effect on the discounted cash flow and cause a decreased cost of supply. This value can be determined by a computer model which iterates the necessary selling price until the net present value is essentially zero. The discounted cash flow evaluation model lends itself particularly well to an application of the Monte Carlo simulation method for calculating a probability distribution of iron unit cost resulting from the probability distributions of the component cost factors.

Jan 1, 1969

By Michael A. Gustafson, Fernando B. Sotelino

INTRODUCTION The degree of success of any new project will ultimately depend on two factors: (i) the underlying economic strength of the project; and (ii) how successfully the parties involved can coordinate their interests to establish a financing structure which indeed capitalizes on the project's inherent economic attractiveness. A project's underlying economic attractiveness is determined by its inherent comparative advantage in accessing the factors of production, combining these factors of production to create a product and marketing this product. Initially, the decision regarding whether to go ahead with the project - the go/no go decision - has to be based on its total ability to generate cash flow returns to project participants to compensate them for resources committed and risks undertaken. The extent to which project sponsors will actually benefit from the project's inherent economic attractiveness is fundamentally dependent on their ability to establish the long-term financing arrangement which best meets the objectives and constraints of each project participant and sources the most advantageous funding. The decision regarding the financing of the project, the "how-to-go" decision, is then an attempt to find the capital structure, consistent with market terms and conditions and sound financial management policies which will best: (i) match planned outflows with cash inflows; and (ii) maximize the return for project sponsors. This article makes use of a case study to illustrate the analytical process involved in dealing with the go/no go and the how-to-go decisions on a project. Though most commonly applied to project finance situations, the guideline described herein is equally applicable to other financing situations, such as leveraged buyouts and debt restructurings, where timely repayment of debt depends largely on the future cash flows to be generated by the entity being financed. Our case study is of a hypothetical expansion of an existing copper mining operation in Latin America. The company, Latin American Copper (LAC) currently has 147 million metric tons of proven sulphide ore reserves. The existing mine complex consists of an open pit mining operation and a conventional flotation plant with a processing capacity of 20,000 metric tons of ore per day. LAC sells copper concentrates primarily to Japanese custom smelters. The mine has been in operation for 5 years, fine copper production last year was 108,240 metric tons, and LAC currently has assets of $175 million and net worth of $135 million. Due to a recent increase in proven reserves, LAC is considering doubling the treatment capacity of its flotation plant to 40,000 tons per day, and expanding its mining capacity to meet the additional concentrator capacity (the "Project"). Project capital expenditures and incremental working capital have been estimated at approximately $210 million. The construction period is expected to cover one year, including a three-month start-up phase. The Project is to be funded by a combination of equity, senior debt, including both supplier credits and/or commercial bank term loans, and subordinated debt. LAC's shareholders are willing to commit a maximum of $50 million to the Project. A government development agency, which is also a minority shareholder, might be willing to lend approximately $40 million to LAC in the form of subordinated notes, depending on the ability of the Project to generate foreign exchange reserves. Commercial banks cannot be expected to offer loans with maturities longer than ten years. The Project is expected to increase the value of the firm because: (i) It will solidify the Company's position as a low-cost copper producer by taking advantage of economies of scale. As a result of the expansion, cash production costs are expected to decrease 7.0[c]/lb. and all-in costs 11.0[c]/lb; (ii) The potential earnings stream from the sulphide ore reserves will be realized

Jan 1, 1985

Jan 1, 1920