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By T. L. Joseph

The extent to which hot metal from the blast furnace affects open-hearth practice and the quality of steel produced has been discussed widely. Open-hearth operators have attributed difficulties experienced in making satisfactory steel to characteristics of the pig iron not disclosed by ordinary analysis. The commonest criticism of the iron has been that it is "physically cold" or "dirty." Often when the blast furnaces are working irregularly the quality of the iron is questioned. A cold hearth, slipping and hanging, the use in the past of unsintered flue dust, and the use of ores difficult to smelt have been associated with the production of iron of poor quality. The difficulty of the situation is that we have no proven yardstick for quality aside from ordinary analysis. Uniformity in analysis is recognized as being important, but the difficulty of changing the open-hearth practice when the iron analysis varies widely may not always be fully appreciated. Although the problem of correlating the characteristics of steel with those of pig iron is admittedly obscure, the effort of producers of quality steel to investigate all factors that may have a bearing on the final product is justified. This report contains data on the oxides in several hundred casts of basic iron produced in a furnace during the course of normal operation on Lake ores. Incidental to the study of the oxides in the iron, it was desirable to follow closely the temperature of the iron. The effect of temperature of the iron upon the silicon and sulphur present is discussed. A general relation between the basicity of the slag and the sulphur in the metal was developed. The amount and composition of oxides in the hot metal and in the steel bath during various intervals between melt-down and tap are discussed. Heats of rimmed steel, killed steel, and semikilled steel were investigated. The hot metal on individual heats was either all taken from a mixer or consisted partly of direct metal and partly of metal from the mixer. Samples of the iron for oxide determinations were

Jan 1, 1937

THE decades immediately before and after the end of the nineteenth century (1890-1910) were a period of increased activity in mineral industry education. One reason for this, undoubtedly, was the rapid increase in mineral production in the decade 1880-1890; pig iron and copper production tripled; coal, lead, and zinc output more than doubled. Most of the other mineral substances followed the same general trend. Aluminum production began in 1886; petroleum output, which in 1888 was less than it was in 1882, almost doubled in the next three years. Gold alone showed no appreciable change until its discovery at Cripple Creek in 1891, followed by the Klondike in 1896, brought to boiling a public interest in minerals that had been simmering for some years previously. The first cyanide plant in the United States was erected at Bodie in 1892, and the first chlorination plant at Cripple Creek* the next year. Silver- lead smelting had already greatly developed, and the metallurgy of copper was almost transformed. The hearth area and smelting capacity of copper reverberatory furnaces more than quadrupled between 1878 and 1894; matte converters were first erected at Butte in 1884. Copper production of the United States in 1899 was 20 times that of 1872. While it was the increased technology used in mineral production that really made the field attractive for educated young men, undoubtedly they did not realize that, and were impressed mainly by the quantitative increase in output. Another factor was the increased general interest in engineering education; three times as many men took engineering degrees in the United States in 1890 as in 1880; 1892 showed almost a 56 per cent increase over 1890. Industry had come to recognize that technical training was worth while. The mineral industry lagged somewhat at first; the total number of mining degrees

Jan 1, 1941

By D. C. Lindley, D. H. Gaucher

The displacement of oil by water in a waterflood project is accomplished by the action of transient viscous, gravitational and capillary forces which drive fluid through interconnecting pore spaces toward production wells. The relative importance of each of these forces to the effectiveness of the displacement and the production history depends on properties of the reservoir itself and the manner in which it is operated. There has been considerable discussion'-3 concerning the importance of these factors and the extent to which they control the performance of individual waterflood projects. No data have been presented, however, to demonstrate the effect on waterflood behavior of variations in rock permeability, water-injection rates and mobility ratios in three-dimensional reservoir systems in which viscous, gravitational and capillary forces are allowed to assume the proper relative influence on fluid flow. Much information relevant to water flooding has been gained from the study of field case histories. But, the complexity of the systems involved, the difficulty of defining geometry and obtaining sufficient data, and the fact that the same reservoir is never flooded twice with the same initial conditions, all obscure the role of process variables such as rate. Further, mathematical calculations of waterflood behavior are restricted at this time by available mathematical techniques to highly simplified situations. Scaled models, however, do offer an approach at the present time to evaluation of the effects of the pertinent variables. Several investigators have predicted prototype reservoir behavior from observations of model waterflood performance under a variety of conditions. Two-dimensional aspects of waterflood pattern efficiency have been investigated by Muskat, Aronofsky, Dyes, et al, raig, et al,' and Rapoport, et al. he effects of gravity segregation, viscous fingering and permeability stratification have also been studied in two-dimensional models. Craig, et al," studied the importance of gravitational forces on frontal displacement in three-dimensional models with wells on a five-spot pattern. This work in- vestigates the tendency for water to segregate in homogeneous reservoirs because of gravity and to under-run the oil for a range of water-inject ion rates. The effects of permeability stratifications were investigated by these authors using miscible fluids to simulate water-channeling through permeable strata in systems of negligible capillary force. In this investigation, a three-dimensional model of a five-spot pattern flood was designed to represent typical prototype conditions, and the sand and liquid properties were selected so that capillary, gravitational and viscous pressure gradients were scaled. It was not, however, possible to achieve exact similitude regarding viscous fingering when the more viscous oil was used. The effects of rock stratification on waterflood behavior were studied by changing both the permeability ratio and the position of the more permeable sand stratum in a two-layered, horizontal model. For each type of stratification, constant-rate floods were performed and the rates were varied, in separate experiments, over a tenfold range. To observe the effect of mobility ratio on flood performance, two series of constant-injection-rate floods were performed on the most highly stratified reservoir at a water-oil viscosity ratio of one.

By David Sinclair

THE dimensions and shapes of mine structures may at present be determined by (1) field experience, (2) structural calculations, and (3) barodynamic tests.§ None of these, however, provide information as to the stresses, their direction and distribution in a mine structure. For the design of pillars, the placing of openings relative to working places such as gangways, haulage levels, etc., this information is desirable. Photoelastic methods provide this and, while relatively new, their appli-cation in all engineering fields is assuming increasing importance. This paper, therefore, will present the method with a few applications to mining, and with sufficient reference for further study by the reader. PART I THE PHOTOELASTIC METHOD The photoelastic method of stress measurement determines the stress distribution in a two-dimensional model by optical means. It makes use of the fact that when a piece of isotropic transparent material, such as glass, celluloid, or Bakelite, is stressed and viewed in polarized** light a picture is seen which indicates by its color bands of light, or fringes, the magnitude of the stresses, their direction and their distribution.

Jan 1, 1940

(The following list contains the names of those members of the Institute of whose connection with military service we have only recently become acquainted; it also includes the names of a few who have recently been promoted or transferred, indicated by a *. A complete list was published in the Year Book, issued as a supplement of the Bulletin for March, 1918.) ANDERSON, AMIL A., Co. A, 309th Regiment Engineers, 84th Div., American E. F., Care Postmaster, New York. ARMSTRONG, HAROLD K., Pilot, Naval Aviation, U. S. Naval Air Station, Miami, Fla. BASSETT, ARTHUR F., Co. 6, -E. 0. T. S., Camp Humphreys, Va. BEDDALL, THOMAS H., Adjutant, 1st Battalion, 1st Gas Regiment, American E. F. BERNARD, CLINTON P., Candidate, 12th Observation Battery, F. A. C. 0. T. S., Camp Taylor, Ky. BROOKE, LIONEL, 50th Co., 13th Battalion, 5th Replacement Engineers, Camp Gordon, Ga. BROWNING, EDWARD, Corp., 1st Regiment Engineers, Co. D, American E. F. BUGBEE, EDWARD E., S. A. T. C. Headquarters, Raleigh N. C. BUTTERFIELD, G. BRUCE, CO. C, 605th Engineers, American E. F. CADOT, J. J., 1st Lieut., U. S. Air Service, American E. F., Care Post- master, New York. CARLOCK, J. B., Major, 2d Battalion, 1st Gas Regiment, American E. F., France.

Jan 12, 1918

By J. W. Pugh, J. D. Nisbet

THIS study of the ternary has been made as one phase of a metallurgical investigation which began nearly four years ago in the General Electric Company's Research Laboratory in Schenectady, N. Y. The objective of this program is the discovery of new metallurgical information which will lead to the development of better high-temperature materials. Combinations of the four pure base elements—iron, chromium, nickel, and cobalt—are being studied at the present time. It is essential in an investigation such as this to know as much as possible about the constitutional diagrams involved. The study of the iron-chromium-nickel system has been made to this end. Preliminary Explanation of Experimental Procedure: In all, fifty-five alloys at steps of 10 at. pct were made for the investigation of this ternary. Several ternary alloys in the chromium rich corner had to be omitted because their extreme brittleness made testing impractical. All alloys were vacuum melted with hydrogen reduction and centrifugally cast. The apparatus and technique of this process has been described in detail by Nisbet.1,2 The purity of the alloys prepared in this way is considered to be quite good. Impurities are listed as follows: Pct Carbon.............................0.02 Oxygen................................0.02 Nitrogen.........................0.005 Magnesium..................0.03-0.05 Sulphur...........................trace Hydrogen....................trace Phosphorous..................trace Silicon........................ trace After casting, all samples were given a homo-genization treatment which consisted of holding them for 15 hr at 1150°C (2100°F) and water quenching. Testing was begun with the samples in this condition. The tests employed in the study of this system were (1) dilatometer, (2) hardness versus aging temperature, (3) tensile strength and elongation versus temperature, (4) microstructure analysis, and (5) electrical resistance versus temperature. Dilatometer tests were made at the rather rapid heating rate of 1093°C (2000°F) in one hour on a Bristol-Rockwell type instrument. Hardness data were taken on specimens cooled from 204", 427", 649°, 760°, 871°, 982°, and 1093°C under conditions which are thought sufficient to bring the specimens to equilibrium in all but the cases of the very sluggish transformations. Electrical resistance data for several specimens were taken for both heating and cooling conditions in a vacuum furnace especially designed for this work by D. W. Bainbridge, formerly of this laboratory. Provisions were made for heating and cooling standard specimens at a constant rate, while autographic records of resistance and temperature were made simultaneously. Micrographs of all the alloys were made in the quenched condition. Some question may exist as to how such physical values as hardness, tensile strength, and elongation were interpreted to indicate a change in phase. Original data were recorded on physical property versus temperature graphs, each of which was made from the data of a single alloy (fig. la). From these, another series of graphs were plotted with the physical property as a function of composition for constant temperatures (fig. 1b). Sharp deviations in the slope of these composition versus hardness curves often indicate a change in phase. The example of fig. 1 will serve to describe this experimental technique. The plotting of a single point from graph "a" to graph "b," and finally to the phase diagram "c," is illustrated. The location of the point on graph "b" is indicated as point (1). If all the alloys of the A-B binary system were solid solutions at temperature X, the hardness in this curve would be expected to rise at a fairly even rate as A is diluted with B to a maximum at some intermediate value between A and B, as

Jan 1, 1951

By S. S. Clarke

ABOUT two years ago some of my friends were discussing the amount of drill-steel breakage that was permissible or not excessive, per month, per rock ton, per ton of steel or any unit of measure or output that would give a comparison between different kinds of drill steel. No one seemed to know what life to expect of steel, or what percentage of breakage might be termed excessive. In fact there were no operating data available to guide one in selecting the best steel for our mines, nor could any ideas or information be secured from the steel manufacturers. One was merely told that so and so used their steel and it was very satisfactory; or else one was given a highly technical lecture on their specific heat-treatment. Any estimates on expected breakage were just guesses, ranging from a fraction of a per cent to as high as ten per cent per month.

Jan 1, 1933

By L. C. Graton

The federal taxes on incomes and excess profits are of course heavy. In 1917, the value of the mineral production of the United States was a little in excess of $5,000,000,000. The total of federal taxes for that year, for the mineral producing companies, as computed by themselves, amounts, according to tentative compilations, to about $207,000,000, and the total for the comprehensive group of mineral and metal industries to about $766,000,000, which figures represent respectively 9.5 per cent. and 35.1 per cent. of the total tax paid by all corporations. Because of greater complexities in applying the revenue laws to mineral properties than to most other industries, opportunity is afforded for wide differences of view. The taxes indicated above, therefore, are not final and may conceivably be very materially increased. For 1918, the taxes are expected to be still greater, but no compilations are yet available. Taxes at a high rate are to continue indefinitely. The subject is clearly of gravest import to the mining industry in particular. The Commissioner of Internal Revenue, who is charged by law with the administration and collection of the taxes, is determined that these functions shall be performed in a just and businesslike way. Fairness and finality are to be the chief objectives. In view of the peculiar conditions that attach to the tax program as applied to mines and other wasting industries, like oil, gas, and timber, the Commissioner has resorted to professional advice and assistance by manning a Sub-division of Natural Resources with competent engineers, brought in from the several industries, into whose hands he has placed for solution the technical questions involved. These engineers have a two-fold duty: (1) to devote to the solution of these problems their own knowledge and experience; (2) through their acquaintance with their respective industries, and with the men engaged in those industries, to focus upon these problems, by conferences and otherwise, the best opinion of the country. The principal object of this paper is to acquaint the mining profession with the attitude of the

Jan 1, 1923

By L. C. Graton

The federal taxes on incomes and excess profits are of course heavy. In 1917, the value of the mineral production of the United States was a little in excess of $5,000,000,000. The total of federal taxes for that year, for the mineral producing companies, as computed by themselves, amounts, according to tentative compilations, to about $207,000,000, and the total for the comprehensive group of mineral and metal industries to about $766,000,000, which figures represent respectively 9.5 per cent. and 35.1 per cent. of the total tax paid by all corporations. Because of greater complexities in applying the revenue laws to mineral properties than to most other industries, opportunity is afforded for wide differences of view. The taxes indicated above, therefore, are not final and may conceivably be very materially increased. For 1918, the taxes are expected to be still greater, but no compilations are yet available. Taxes at a high rate are to continue indefinitely. The subject is clearly of gravest import to the mining industry in particular. The Commissioner of Internal Revenue, who is charged by law with the administration and collection of the taxes, is determined that these functions shall be performed in a just and businesslike way. Fairness and finality are to be the chief objectives. In view of the peculiar conditions that attach to the tax program as applied to mines and other wasting industries, like oil, gas, and timber, the Commissioner has resorted to professional advice and assistance by manning a Sub-division of Natural Resources with competent engineers, brought in from the several industries, into whose hands he has placed for solution the technical questions involved. These engineers have a two-fold duty: (1) to devote to the solution of these problems their own knowledge and experience; (2) through their acquaintance with their respective industries, and with the men engaged in those industries, to focus upon these problems, by conferences and otherwise, the best opinion of the country. The principal object of this paper is to acquaint the mining profession with the attitude of the

Jan 1, 1923

By M. R. Geer, J. D. Davis, H. F. Yancey

ALTHOUGH the mechanical cleaning of coal is carried out at plants on the surface, preparation is actually begun at the face in the mine. Here the character of the coal and the amount, character, and distribution of the impurities within the bed may be seen. Blasting methods, dust-allaying procedures, location of mining cut with respect to bands of impurity, and the practice of discarding segregated impurities underground, all have an important bearing on the successful operation of surface cleaning units. The most important single characteristic of both coal and its associated impurities from the standpoint of cleaning is specific gravity. Other characteristics related in one way or another to the preparation , of coal are rank, petrographic composition, structure and hardness, and friability. These and still other coal properties are discussed in the first section of this chapter and impurity characteristics in the second. COAL CHARACTERISTICS RELATED TO PREPARATION Rank As a result of work done over a period of several years by committees of the American Society for Testing Materials and the American Standards Association, standard specifications are now available showing the 'classification of coals according to rank and quality of grade.' The term "rank" expresses the degree to which the original coal-forming material has been changed by metamorphism through successive stages from peat to anthracite. Table 1 shows the classification of coals according to rank as devised by the committees of the organizations mentioned. The basic scheme of classification for the higher-rank coals is according to

Jan 1, 1943

By Donald A. Dahlstrom

In 1961 it became increasingly more evident that significant technological changes must be made in minerals beneficiation. The status quo in technology in today's competitive markets will not be tolerated. Higher productivity, greater recoveries and newer and better products must be sought and incorporated with lower operating costs. In other words, "when you build a new mill, don't build an old mill." Recommended reading for proof of the vital necessity of new methods and techniques is in the September 1961 issue of MINING ENGINEERING. The article by one of MBD's cherished and true veterans, E. H. Rose, is entitled "Iron Ore: The BIG Picture". Because of new beneficiation methods for iron ores, nearly 47 million tons of plus 60% iron concentrates will be produced and another 40.1 million tons of capacity will be under construction or committed. Thus in a relatively short period, 87 million tons of this high-grade iron concentrate with record low silica will be available. As Mr. Rose also points out, "in gross tons, without allowance for better grade, this is the equivalent of almost exactly two-thirds of all iron ore used for all purposes in the U.S. and Canada in the peak years of 1953 or 1957." Needless to say, improved mineral beneficiation methods have had far more reaching effects than just the production of higher grade iron concentrate.

Jan 2, 1962

By Robert Bosworth

THE liability for damages to the surface caused by subsidence is an ever present threat in all underground mining. In ordinary lode mining, this threat rarely materializes into an action, due to the method of mining metalliferous ores, the dip of the veins, and the nature of the ground itself. In the mining of coal, however, this threat is very real. The coal frequently lies close to the surface, in beds underlying large areas of land of which the surface is suitable for agricultural or urban development. Furthermore, the coal is generally mined by the "room and pillar " method and when the pillars of coal are removed, the subjacent support is destroyed. This question of the duty of surface support has now become a very live one in Colorado. What was waste prairie land a few years ago has become valuable agricultural land dotted here and there with growing towns. Frequent references will be made here to Colorado conditions and adjudicated cases, but those conditions and cases and the conclusions to be drawn therefrom are applicable to all coal-mining states. Briefly stated, the question is "Does the owner of the substrata or underlying mineral owe any duty of surface support to the owner of the superjacent strata or surface?" There is no absolute duty of support owed by the mineral owner and this assertion is made with full knowledge of numerous expressions to the contrary by courts of Pennsylvania, Illinois, Colorado and other coal-mining states. Whether or not any duty exists depends upon the circumstances surrounding each case, and since in the nature of things those circumstances are rarely identical, there can be no absolute rule.

Jan 1, 1928

NEW- MEMBERS The following list comprises the names of those persons who became members during the period Feb. 10, 1917 to Mar. 10, 1917. ANDERSON, .LAWRENCE W., Min. Engr., Boston Mine, Utah Copper Co. Bingham, Utah. AUSTIN, JOHN W., Assayer, Magma Copper Co., P. 0. Box 101, Superior, Ariz. BARNARD, C. W., Treas. and Resident Mgr., Arizona Asbestos Assn., Globe, Ariz. BIERMAN, A. C : Geol., Producers Oil Co., Box 75, Houston, Tex. BOCHERT, W. C., Prof. of Mining, South Dakota State School of Mines, Rapid City, So. Dak. BROOKS, FLOYD R., Shift Boss, Mond Nickel Co., Ltd., Worthington, Ont., Can. BROWN, CECIL J., Draftsman &,Surveyor, Wallaroo SC Moonta Min. & Smelt. Co., Wallaroo, South Australia. BURRAGE, ALBERT C., Vice-Pres., Chile Copper Co., 85 Amos Bldg.; Boston, Mass. BURGESS, JOHN ALBERT Genl. Supt., United Eastern Min. Co., Oatman, Ariz. CARLOCK, JOHN BRUCE, Supt., O'Neall Oil Process Co., - 608 Haas Bldg., Los Angeles, Cal. CARPENTER, BYRON H., Min. Engr., . . Willoughby, Ohio.

Jan 4, 1917

Jan 1, 1916

By WALTER B. JONES

IN ALABAMA there are three distinct groups of bauxite deposits, as follows: (1) Cambro-Ordovician contact with the principal-deposits located in Talla-dega, Calhoun, DeKalb, and Cherokee Counties, and in adjacent portions of the State of Georgia. (2) Midway-Nanafalia contact, with the principal deposits in Barbour and Henry Counties, and in adjacent portions of Georgia; also in North-eastern Mississippi. (3) Mississippian - Cretaceous contact, with a group of deposits centered around Margerum in Colbert County. For the purpose of more clearly describing bauxite mining in the state, past, present and possible future, these three groups will be described separately.

Jan 1, 1934

By Paul Tyler

STRATEGICALLY situated in almost the heart of the leading fertilizer-consuming area of the United States, Tennessee long has ranked second only to Florida as a phosphate-producing state. Since 1932 its share of the national output of phosphate rock has increased steadily, and in 1937 its production mounted to an all-time record. More significant even than the increase in tonnage are the forward strides in technology. The Tennessee Valley Authority's research program has led to quasicommer-cial operations using hydroelectric power to manufacture concentrated phosphatic fertilizer that is used to further the farmer education program designed to streamline the fertilizer business and halt the appalling waste of farm land by soil erosion. Even more stimulating to chemically minded imaginations is the production of elemental phosphorus by a private company that not only has succeeded in extracting it from the phosphate rock in electric furnaces but actually has contrived to capture it and to transport it safely in tank cars. New values have been created for low-grade phosphate deposits, and the economic life of reserves has been lengthened while the waste of former years goes back into the mills for recovery of its values by modernized methods. Tennesse's phosphate-mining industry dates from the discovery of blue rock in Lewis County in December 1893. Its known reserves are of the order of 101,500,000 tons, which compares with the production of 825,099 tons in 1937; that is, 21 per cent of the phosphate-rock output of the whole nation. The total output reported from 1894 until July 1, 1938, was approximately 19,000,000 tons. Official estimates of reserves are overly conservative and evidence submitted before a joint Con-gressional committee in November 1938 places "probable" reserves at more than 6,000,000,000 tons.

Jan 1, 1939

By E. T. Knight, John D. Gill

IN ITS capacity for service to the public the oil industry is truly gargantuan. But it is only in this respect that the industry is the voracious, many-headed, many-armed and many-handed creature it has been so often painted by those who know it not too intimately and only from the outside. Contrasted sharply with the immensity of the service rendered is the relatively modest share of the national income which has gone to those who provided the tools and the mental and manual labor with which the service was performed. No doubt the relative meagreness of the re- ward was the result of a combination of fortuitous circumstances respecting the nature and accessibility of the industry's raw material and the extensive development and application of the most advanced technology, spurred by an intense competition.

Jan 1, 1940

By E. von Maltitz

IN his highly interesting paper on "Piping and Segregation in Steel Ingots,"1 Prof. Howe emphasizes the effect of successive phases of internal pressure in the ingot in the evolution of gas, and the consequent formation of blow-holes. From his statements in other places, it may be inferred that he does not here intend to ignore the other variable factor, temperature, but rather to discuss this one more particularly. At all events, it is my purpose not to engage in controversy with Prof. Howe, but rather to contribute, towards the complete elucidation of this important subject which we all desire, my own views and experience. If, in doing so, I specially emphasize other factors than pressure, I need not be understood as denying what I do not think it necessary to discuss fully. Nor, in presenting my own original conclusions, need I be understood as claiming to be the first who ever reached or announced them. Many things are asserted or suggested upon inconclusive evidence; and to confirm such tentative propositions may be as valuable a service as to overthrow them. In the following passage, Prof. Howe adduces analogies, based upon the behavior of charcoal and of water, respectively, which seem to me questionable "In general, the. solvent power falls as the pressure falls ; and in general it rises as the temperature falls. Thus, to heat a solid, for instance charcoal, may expel part of its dissolved gas ; and a tumbler of water drawn cold from the faucet gradually evolves gas, as it stands and warms up on the sideboard." (p. 238.) Charcoal is a solid body, which has the property not only of absorbing gases in large quantities, but also of expelling the thus absorbed gases upon heating. A comparison between charcoal and iron as to the absorption of gases is scientifically not possible ; the gas-content of charcoal is partly due to the

Sep 1, 1907

By L. C. Raymond

Valuations in the mineral industry differ from those of other enterprises because mines and oil wells have a definite life so cannot be considered a perpetuity. This requires that in any mineral-property evaluation the recovery of invested capital is necessary during the life of the property. Capital write-offs for nonextractive industries are assumed to be continuously plowed back to sustain the operation and produce yields on the capital invested. The extractive or mineral industry, however, generally attempts to return to the investor both interest and principal during the life of a property. Normally this is done currently and the dividend includes both items. Where the mineral property possesses large reserves and the life factor approximates a perpetuity, the return on investment is generally comparable to that of industrial stocks. The valuation of a mineral property, at best, is based on educated estimates and judgment factors. This is particularly true as it relates to estimating selling prices over a long term or assessing the quality of management. Also, it is possible to make various assumptions as to rapidity of working out the deposit, varying time for start-up of operations, varying earning rates, so as to obtain different results with the same basic facts. Thus it is not surprising that two engineers, irrespective of their abilities, may not agree exactly even when given the same facts, but their results should be close enough to be used in establishing a fair value for trading purposes. The valuation is no better than the source of basic data and the soundness of judgment factors. Fundamentally the basic principles of mineral valuation are similar for base metals, sulfur, oil, or any other mineral. Each mineral, however, requires an engineer to have a knowledge of such factors as its occurrence, distribution, mining and processing methods, and marketing problems in order to gather and analyze all the facts and data that have a bearing on the earning potential of the property. Present Value of a Mineral Property In essence the present value of a mineral property is a sum of money in today's dollars that future income from the property are worth. It differs from the total anticipated earnings by the amount of the interest that the unrecouped investment could be expected to earn during the period of recoupment. Thus, if one could accurately estimate what a mineral property will earn during its life, after deducting all operating, administrative, capital, interest, and tax charges, the determination of present value would be a relatively simple mathematical calculation. Normally, where the expected life of the mineral property extends beyond 20 or 25 years, the discounted value of earnings beyond this period is relatively small. The petroleum industry generally discounts the annual cash flow of an operation rather than earnings since, for tax-saving purposes, earnings are kept

Jan 1, 1976

By James Hance

INTRODUCTION SEVERAL years ago the writer was connected with the Mint and Assay Service of the Federal Government as Assistant Assayer at the-Salt Lake Assay Office. At that time cyanide bars formed approximately half of the bullion purchased by that office. Disagreement in valuation between the producer and the office was not infrequent and to a lesser extent between the Assay Office and the Mint, this latter issue being soon obviated, however, by adopting uniform methods of sampling the bars. A nice problem seemed to offer itself for research and the writer began a series of experiments which were soon terminated, however, by his going into other work, and which he regrets have not since been completed. The results attained may suggest lines of approach to this problem and are, therefore, offered in this article. Frederick P. Dewey, Assayer of the Mint Service, U. S. Treasury, has had abundant opportunity to study this phase of metallurgy, and has published several articles relative thereto.1 In the last article cited Dewey quotes analyses of cyanide bullion similar in content to that with which the writer worked, and which show some of the variations met with. In the discussion of these papers,2 comparison has been made in terms of copper bullion, but to the writer this seems of questionable value. Copper bullion may resemble silver bullion, but its similarity to, gold bullion with little or no silver content is another thing. The freezing-point diagram of Roozeboom, reproduced on page 881 of the discussion cited, is for the gold-silver series as stated. The original problem under discussion, however, is not this alloy but gold with base metals other than copper. As for the statement that the corners are the worst places or

Jan 2, 1916