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By Samuel H. Dolbear

THE value of a mine is basically dependent on its capacity to yield profits. Since the ore must be mined, treated, and sold, some of it in various future years. there is a risk involved as to future costs, selling price, and working conditions. It cannot be expected that the economic condition existing at the time of valuation will continue unchanged for long periods in the future. During the past 20 years, mineral production in the United States has been conducted under a changing economy in many respects more exacting than that applied to other businesses. There have been increased production incentives, technical aid, exploration of privately owned mineral deposits by government at federal expense, and liberal loans for development and equipment, with risk partially assumed by government.. Some of these benefits have been counterbalanced by price ceilings, consumption controls, and stimulation of competition from foreign producers who have been offered the same advantages extended to American operators. For the present, mines will operate under a government policy directed toward reducing federal aid and control. The tenure of this change will depend upon future elections and the status of foreign relations. War and threat of war are now of the most vital significance to the mineral industries. Other factors which influence cost of production, markets, and price of mine output might be classified as Acts of God or Acts of Government. In some countries expropriation and the difficulty of exporting earnings or investment returns are risks that must be considered by foreign capital. Recognizing that this retards American investment in foreign countries, the Mutual Security Agency offers insurance against such expropriation and guarantees the convertibility of capital and profits. Since it is impossible to predict with certainty either cost of production or selling prices of metals for long periods, some assumptions must be made as to profits in the future. The basic assumption must be that the price of the company's product will vary in proportion to changes in operating cost. There is often a lag in this reaction, however, for prices of minerals are generally more sensitive to declines and less sensitive to increases than are costs. This reflects in part the resistance of labor to downward wage revision and a corresponding alertness in realizing its share of price advances. Some labor contracts include automatic adjustments to metal prices. Notwithstanding the complexity of the, problems involved and the difficulty of weighing their effect on value, such risks may be appraised with reasonable accuracy and a rate of earnings adopted that is compatible with the risk. It is, of course, possible to revert to a yardstick of value such as the commodity dollar, which has been advocated from time to time, but while revaluation in 1933 disturbed public confidence, the theoretical gold dollar continues to be the standard of greatest stability. Its gain or loss in purchasing power is reflected ultimately in cost of production and selling price of the mine product. At present 35 dollars are allocated to one ounce of gold. Measurement of Risk In the application of the Hoskold and most other formulae, a yearly dividend rate commensurate with the risk involved is set aside out of annual earnings. If the risk is great, this rate may be 15 to 25 pct of the amount invested. The remainder is placed in a sinking fund invested in safe securities such as high grade bonds or conservative equities, and the interest or dividends from these securities are added to the sinking fund. The sum of these sinking fund payments and the compounded interest at the end of the mine life is taken as the value of the mine. Admittedly the decision as to the size of the risk rate is the most difficult element in valuation and one requiring the most exacting consideration. It is necessary to look years ahead in an effort to determine future costs, market prices, demand, competition which may develop, including that of substitutes, and other influences common to the mine and to the region in which it is situated. Another phase of risk is the enactment of unfavorable legislation, taxes, and what appears to be an alarming spread of nationalization and expropriation. Capital is sometimes borrowed from the government to finance strategic production. Such loans may be collectable only out of production and involve no liability otherwise. Valuation in these cases must recognize the effect of such a reduction in liability. Offsetting some of these risks are the possibilities of mechanization and other cost-reducing discoveries, improvements in mining and treatment methods, new uses for minerals and metals, and normal growth of markets. In this paper, the terms risk rate, dividend rate, and speculative rate are synonymous. Safe rate and redemption rate are also used interchangeably. These alternatives are used here because they are commonly found in the literature on mine valuation. In Michigan, the State Tax Commission has long employed a risk rate of 6 pct in its valuation of iron mines. There the outline of reserves is well established and operating costs and conditions are based on adequate experience. The following comment on rates appears in the report of the Minnesota Interior commission on Iron Ore Taxation submitted to the Minnesota Legislature of 1941.1 Most engineers agree that 7 percent for the specu-lative rate is "an absolute minimum". C. K. Leith in

Jan 1, 1954

Jan 1, 1923

By J. R. Low, D. F. Stein

Single crystals of iron have been grown from three different lots of Ferrovac "E" of somewhat different chemical composition by the strain anneal technique. Using a technique to seed the crystal similar to Dunn's for silicon-iron, it has been possible to orient the crystals grown in both direction and plane of growth. Crystals having the plane of the strip oriented (100) , (110), (111), (112), (123), and (491) have been grown. The growth directions used have been [100], [110], 45 deg from a [110}, and various others of no specific crystal orientation. The usual dimensions of the crystals were 8 by 1 by 0.08 in. Attempts to grow crystals were about 90 pct successful. METHODS of growing single crystals of high purity iron have been reported in the literature.1-4 However, each of these methods was not completely reliable when used on materials having slightly different chemical composition and in some instances a small number of successes were obtained using identical materials. Except for the method used by S. Dohi and T. Yamoshita,1 it has not been possible to reorient single crystals of high purity iron to give any desired orientation. The method to be described has made it possible to grow single crystals from three different lots of material having different compositions, and to orient the crystals with respect to growth direction and surface. STARTING MATERIAL The material used during this investigation was a vacuum melted high purity iron marketed by the Vacuum Metals Corporation designated Ferrovac "E." Three lots of Ferrovac "E" having the following composition were used with equal success: The compositions listed are those of the as-received material; and they may have been modified before the growth of single crystals. Analysis of heat B just before growth and after growth revealed that the heat treatment prior to growth did not change the carbon content, but the oxygen content was changed from 0.0092 pct to 0.0034 pct and the nitrogen content from 0.0003 pct to 0.0001 pct. After growth of the single crystals, the carbon had dropped to 0.001 pct. None of the heat treatments would be expected to change any of the other impurities very markedly. Heat C would be expected to have a metallic impurity content similar to heats A and B. PROCEDURE Ferrovac "E" iron which had been obtained in bar form having a diameter of about 1 in. was rolled into strip for growing single crystals. By passing the 1-in. bar through a cold rolling mill several times, it was reduced to a strip 0.15 in. thick. The strips obtained were then cut into suitable lengths for heat treating (about 9 in. long), annealed at 925°C for 2 hr in dry hydrogen and water quenched. It was then necessary to bake the strip at 200°C for 24 hr in air in order to prevent cracking during further rolling operations. While it was possible to cold roll the 1-in. bar directly to the desired 0.080-in. strip, the intermediate anneal was used because the strip so obtained produced better single crystals. The strip obtained by rolling the 1 -in. bar directly to 0.080-in. strip produced single crystals having a large number of occluded grains. Experiments showed that the optimum reduction in area by rolling prior to the growth of single crystals was about 50 pct. Attempts to grow single crystals from material that had been reduced less than 40 pct were unsuccessful presumably because the matrix did not possess the critical amount of texture necessary for growth. The strip obtained after the rolling operations had very irregular edges which were ground to give a strip with uniform dimensions. The strip was then annealed at 825°C for 3 hr in hydrogen and furnace cooled. Fig. 1 illustrates the grain size obtained. A temperature of 940°C was used for the annealing temperature on one group of strips

Jan 1, 1962

By G. W. Brownell, H. T. F. Lundberg, R. W. Pringle, K. I. Roulston

The rapid improvement of the airborne scintillometer and the perfection of its efficiency for counting low energy gamma radiation has made it possible to work out a technique to map in great detail the radiation pattern at the earth's surface. On such maps low radiation over certain areas appears to indicate the existence of oil accumulations, forming a pattern similar to that obtained by the geo-chemists. RADIOACTIVE analyses of samples from the surface of oil fields were carried out more than 10 years ago in Alberta by the alpha particle ioniza-tion chamber technique,' but large enough tracts could not be covered in these investigations to make possible any evaluation of the method as a means of oil exploration. Considerable interest has recently been revived, however, as a result of certain striking advances which have been made in the instrumentation available -for the measurement of radioactivity. It is the object of this paper to indicate the nature of these improvements in radiation technology and then to describe the attempts that have been made to interpret the radioactive patterns obtained in the course of airborne recordings with the new instruments. Since the survey can be carried out from the air and records can be accumulated over vast areas in a short time, the result may easily lend itself to statistical treatment. Areas have been surveyed in Alberta, British Columbia, Saskatchewan, Quebec, Texas, New Mexico, Nebraska, Colorado, Utah, and Montana. Producing fields in Alberta and West Texas have been flown over several times in different directions, Fig. 1. The operations were then extended into unknown territory and drill holes were put down on the anomalies which looked promising. The results from these drillings were encouraging and have given hopes for the development of an entirely new method of oil exploration. Any large scale method for the survey of radioactive anomalies must be based on the measurement of gamma rays, as beta and alpha rays have much too short a range to be of any significance. Thus the essential improvement which has made the present stage of this work attainable is the development of new highly sensitive detectors for gamma radiation. In the past the only detectors of any consequence that were available were the ionization chamber and the geiger counter, but both of these suffer from the defect that only a small proportion of the gamma rays passing through the counter are detected, possibly 0.1 to 0.2 pct. The recent development of the scintillation counter2,3 has completely transformed the situation and has had a considerable impact on many branches of nuclear technology. The detection of alpha particles in zinc sulphide screens by visual observation of the individual scintillations which these particles produce dates back to the early spinthariscope of Rutherford and Crookes, but the combined use of an appropriate scintillating phosphor and photomultiplier tube had to await the technical development of the latter many years later. With this development came the modern era of the scintillation counter and a knowledge of phosphors which have a large light output under the bombarding action of gamma radiation. Some of these phosphors are relatively dense and are capable of stopping a large proportion of the incident gamma radiation. As the sensitive region is the whole volume of the crystal, a very high detection efficiency, 50 pct or more, can be obtained for medium energy gamma rays. Scintillation counters for geological purposes were first developed in 19494-6 in an attempt to utilize this remarkable improvement in efficiency, which has the attractive consequence that only a small portion of the normal background of the counter is due to cosmic radiation. In 1949 tests were made in northern Saskatchewan by Lundberg Explorations Ltd. with portable scintillation counters which gave excellent results in the search for uranium and served to indicate unknown uranium deposits in areas previously closely surveyed with geiger counters. Portable scintillometers (registered in Canada) are now commercially available and in regular use,' and the adaptation of the instrument to radioactivity oil well logging has also been very successful.8 Initial attempts to measure radioactivity from aircraft with scintillation counters were made during this period in the same area and yielded most encouraging results. It would be appropriate to consider some specific requirements for airborne investigations. The essential problem to be met in the detection of any radioactive source is the necessity of obtaining a signal greater than the statistical fluctuations of the background counting rate for the instrument. It is possible to show that Nt>2k2 is the condition for detectability of a signal where N = average background counting rate for the detection. t = time constant of the counting rate meter, used to determine the average number of counts arriving in a certain predetermined time interval. N' = average source counting rate at the detector. k = N/N', and N>>N'. Sample values are given in Table I. Assume that the aircraft carrying the equipment is travelling at 120 mph, in which case it will cover 176 ft in 1 sec. Assume also, as a first approximation, that a point source target is in range when the air-

Jan 1, 1954

Jan 1, 1938

Table

Jan 1, 1910

Jan 1, 1938

Jan 1, 1911

Jan 1, 1885

By Sherwin F. Kelly

THE principal interest in the meeting sings arranged by the Geophysical Committee this year centered around the many papers dealing with the practical applications of geophysical methods to solving geological problems in many other parts of the world. The program Wednesday morning dealt with work in South Africa, Poland, and South America. Rudolph Krahmann's first paper gave a perspective of the geophysical investigations upon mineral deposits in South Africa. A striking point in his story was the tremendous increase in magnetic work during the last two or three years. This is largely accounted for by the intensive exploration for the extension of the Witwatersrand gold mining area. The author mentioned many surveys in which other methods were used for the search for ores of copper, lead, and zinc, and in the study of water-bearing and oil-bearing structures.

Jan 1, 1935

IRON AND STEEL DIVISION Established as a Division February 22, 1928 K C. McCutcheon, Chairman T. L. Joseph, Past Chairman J B Austin, Vice-Chairman E K Miller, Vice-Chairman T. J. McLoughlm, Vice-Chairman Ernest Kirkendall, Secretary-Treasurer CO M M I T T E E S EXECUTIVE J. A. Bowers '54 J. S. Marsh '55 R. W. Campbell '54 D. L. McBride '53 Walter Carroll '55 G. B. McMeans '53 K. L Fetters '53 F. L. Toy '54 H. M. Griffith '55

Jan 1, 1952

Chester Wells Purington was killed at Yokohama on Sept. 1, 1923, in the Japanese earthquake. Mr. Purington was born in Boston, Mass., Oct. 27, 1871. He prepared for his entrance to Harvard at the Boston Latin School and graduated from Harvard in the class of '93. He started out soon thereafter investigating gold deposits of the Appalachian system in the South and in 1895, made atrip to Alaska, investigating the gold deposits of that territory. The summer and fall of 1896 found him in the San Juan country of Colorado examining the gold and silver properties in the Telluride and Rico districts and in the La Plata Mountains. In the meantime, he had served on the economic staff of the U. S

Jan 1, 1924

PRESIDENTS DAVID THOMAS 1871 R W RAYMOND 1872-1874 A L HOLLEY1875 ABRAM S HEWITT 1876 T STERRY HUNT 1877 ECKLEY B COXE 1878 - 1879 WILLIAM P SHINN 1880 WILLIAM METCALF 1881 RICHARD P ROTHWELL 1882 ROBERY W HUNT 1883 JAMES C, BAYLES 1884-1885 ROBERT H RICHARDS 1886 THOMAS EGLESTON 1887 WILLIAM B POTTER 1888 RICHARD PEARCE 1889 ADAM S HEWITT 1890 JOHN BIRKINBINE 1891-1892 H M HOWE 1893 JOHN FRITZ 1894 J D WEEKS 1895 E G SPILSBURY 1896 THOMAS M. DROWN 1897 CHARLES KIRCHHOFF 1898

Jan 1, 1938

At Asarco's Mission mill. located near Sahuarita, Ariz., the 20 500-t/d (22,500-stpd) throughput of highly abrasive and corrosive copper ore can play havoc on equipment wear parts. To minimize frequent replacement work and extend life on key components, Asarco engineers have over the past five years utilized liners made of "Towniprene" in the secondary grinding and flotation area of the plant. Results to date have indicated that these liners last between three and five times longer than those made of metal or ordinary rubber.

Jan 8, 1978

By John P. Weir

Coal's participation in the domestic energy market depends to a very large extent upon the cost of coal delivered to consumers. Today the principal use of coal in the U.S. is in steam-electric generating stations. Generally, it is the delivered cost per million Btu's that is given the greatest weight in choosing either oil, natural gas or coal as the fuel used in these power plants. There are three major cost components of generating electric energy in steam-electric plants. These expenses expressed in terms of "dollars per kilowatt year" are: (1) operation and maintenance of necessary facilities, (2) fixed charges of necessary capital investment, and (3) fuel. For a modern large plant, the first two items would be approximately as follows:

Jan 9, 1962

By Helen L. Cannon

BOTANICAL methods of prospecting for metalliferous ores are based on the premise that deposits at depth may be reflected chemically in surface vegetation. For the past several years, on behalf of the Atomic Energy Commission, the U. S. Geological Survey has investigated on the Colorado Plateau the application of botanical methods to uranium prospecting. Results suggest that orebodies may be found under a considerable cover of barren sandstone through the absorption of uranium and associated trace elements by plants growing at the ground surface. Plant physiologists have demonstrated that uranium is a necessary nutrient for plant growth and therefore is present in all plants.' The amount present is small but measurable. The absorption of uranium by plants growing over ore deposits forms

Jan 1, 1955

New Products Equipment

Jan 8, 1951

The American Association of Petroleum Geologists, P. 0. Box 1552, Tulsa, Okla. J. P. D. Hull, Business Manager. The official publication of this Association is the Bulletin of the American Association of Petroleum Geologists, issued monthly. It contains illustrated papers, maps, current notes, discussions, reviews and personals. Annual subscription is $15 ($15.40 outside the United States). Back numbers of the Bulletin, practically all of which are available, cost from $1.50 to $3 each; for several years back a uniform price of $1.50 each is charged.

Jan 1, 1933

Henry D. Hibbard, Plainfield, N J. (communication to the Secretary*):—This very interesting history is a valuable addition to our knowledge of the basic process and its introduction to this country. In addition to the attempts noted in the paper which were made here to establish the basic Bessemer process, and the experiment with the Siemens-Martin process at the Otis works, there were others made with the latter-named process at about the same date, all of which failed or, at least, were discontinued. The first attempt which survived was that of Carnegie,

Jan 1, 1911

By R. E. Zimmerman

D. R. Lyons (Republic Steel Corp., Cleveland)— Some tests using wet tables conducted by an operating company to determine the effect of table-water density on the quality of the washed coal should be of interest. The only variable during the testing period was the percentage of solids in the table water. Table operating data are shown in Table XV. The ash content of the washed coal remained constant or nearly so, as the percentage of solids varied while the sulphw content of the washed coal decreased as the percentage of solids increased.

Jan 1, 1952