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By J. A. Herrick Nashua

IN this country steel made in a Siemens furnace or Bessemer converter, is generally tapped into a ladle or shoe, and then drawn through an aperture in its base into the various moulds. In order to regulate the flow of the molten mass a refractory valve is arranged at the aperture. A plumbago nozzle is fixed firmly in this aperture, and a stopper of like material is fitted to it, making a socket valve. In order to raise and depress this stopper at will, a rod is fastened-to it, extending through, the metal and over the brim of the ladle, where it is bent back in a half circle and secured in a slide. This slide plays vertically in a frame, permanently fastened to the outside of the ladle, and is moved by a lever having as a fulcrum a pin fixed in this frame, one end, of the lever being temporarily fixed to the slide, and the other end being moved by hand. Reference being had to the drawing (see Plate 1, Fig. 1), E is the nozzle, D is the stopper, A is the rod, protected as hereinafter described, C is the cast-iron framework, B is the wrought-iron slide, B' is the offset into which the rod, A, enters, and is secured in the usual manner by a key, a. Section J, K, shows the manner of hanging the lever. J is a pin attached to the slide by which the end of the lever raises the slide, B. J is the fulcrum fastened to the frame, C. K (Fig. 1) is a hand-nut fastening the slide, B, to the frame, C, at will. Fig. 2 is a side elevation of ladle, showing the outside working of the parts above described. It is the common practice to protect the rod, A, by a coating of clay and fire-sand, kneaded to the right consistency and applied to the rod, and then thoroughly dried. Just before casting, the plumbago stopper, D, is heated at its extremity to redness separate from the ladle and, at the moment of pouring, is placed in the ladle and slide, and adjusted as well as practicable. Some very serious defects ensue, causing much trouble and vexation as well as actual loss. The fire-clay coating in drying becomes cracked and seamy, and at its best is more or less loose on the rod. The hot metal sometimes cuts

Jan 1, 1879

By Milton F. Goodrich

The idea of using water-only cyclones to scalp clean coal from the feed to other devices has recently been gaining in popularity. 1,2,6 An indication of this popularity is that water-only cyclone scalping is already employed in a few commercial plants. Water-only cyclones scalp the feed to a heavy media vessel in the Warwick plant,3 to Deister tables in the Rowland plant,4 and to a heavy media cyclone circuit in the Amherst Coal Company's McGregor plant.5 Despite this trend, we found surprisingly little information in the literature on the performance of water-only cyclone scalping. Therefore, we undertook a study of its technical merits, limiting our investigation to a water-only cyclone scalper in conjunction with heavy-media cyclones. We felt this to be a reasonable combination of equipment, since both processes operate well on the same size coal. First, we developed simple mathematical relationships revealing general characteristics of the system. Next, we compared the clean coal yield and quality obtainable by the system on four different coals with that obtainable by heavymedia cyclone circuit alone and water-only cyclones middlings recirculation circuit alone. This was done by using computer program to simulate the operation of the three systems. Finally, we considered the effect that implementation of the system would have on a typical preparation plant circuit. The System The system chosen for study [(shown schematically in Fig. 1)] comprises two stages: a primary stage (PI) consisting of water-only cyclones, and a secondary stage (P2) consisting of heavy media cyclones. The water-only cyclones separate raw coal at a low specific gravity, producing a relatively small amount of high quality clean coal and a refuse containing much good coal. This refuse is then recleaned in the secondary stage, where the sharper separation of heavy media cyclones, operated at a higher specific gravity, reclaims additional clean coal. Finally, the clean coal from both stages is combined as the system's clean coal, while the refuse from the secondary stage becomes the system's refuse output. Theoretical Analysis Two assumptions lie behind the following theoretical analysis. The first assumption is that partition curves can represent not only the performance of each stage but also the performance of the system as a whole. These curves show partition number as a function of specific gravity, where partition number is either the percent or fraction of a raw coal with a given specific gravity reporting to clean coal. The second assumption is that these curves are independent of the raw coal characteristics. At any specific gravity the system's partition number is solely a function of the partition numbers of each stage. For convenience, we use the following variables in describing this relationship: g = specific gravity, PS(g) = the partition number of the system at specific gravity g, P1(g) = the partition number of the primary stage at specific gravity g, P2(g) = the partition number of the secondary stage at a specific gravity g. For this system, we can show algebraically that the relationship is: [Ps (g) = PI (g) + (1- P1(g)) P2 (9)(1)] With this equation the system's partition curve can be determined if the partition curves of each stage are known. By definition, the partition numbers P1(g) and P2(g) must each be less than, or equal to, one. Placing these constraints on Eq. (1), we arrive at the relations: [Ps(g) % P1(g) and Ps(g) % P2(g)(2)] Thus, at any specific gravity the system's partition number is always greater than that of both stages. [Figure 2] shows typical partition curves. Curve I represents the primary stage, which consists of water-only cyclones operating at a separating gravity of 1.3. (The separating gravity or the

Jan 1, 1979

By M. G. Driessen

For a number of years the cyclone, familiar to Americans as a dust collector, has been used as a thickener of suspensions at one of the coal-preparation plants of the Netherland State Mines in Limburg. The plant treats nut-size coal at 120 tons an hour in a heavy-medium washer. The diluted medium from the rinsing screens is thickened in cyclones. More recently the cyclone has been adapted to act as a coal cleaner. The principle of the cyclone thickener is the same as that of the cyclones used in industry for catching dust or fine particles suspended in the air or in gases. Generally the latter are more efficient in this respect—the smallest particles that can be caught with reasonable efficiency are considerably smaller than with the cyclone thickeners. The reason is obvious; the ratio of specific gravities between the dust particles in a gas and the gas itself is about 800 times larger than the ratio between, for instance, the specific gravities of shale particles and water. The ratio of the velocities of fall of shale particles (? = 2.5)† in air and in water is as follows: In the range of Stokes: ?air = 93?water In the range of Allen: Wair = 49Wwater In the range of Newton-Rittinger: ?air = 36.6?water The same ratios apply for the velocities in the centrifugal field, from which it follows that it is especially difficult to catch the very fine suspension particles in a liquid. The efficiency of a cyclone thickener depends mainly on the circumferential velocity of the liquid at its innermost radius, because here the centrifugal forces are the highest. However, these velocities cannot easily be calculated, as the flow is three-dimensional, and thus the axial components cannot be neglected .(p. 252, condition 3). We believe that at first a spiral tangential motion along the cyclone wall is created, which causes the inner vortex ascending from the apex of the cyclone (Fig I). At the same time the inner vortex is strengthened by the individual vortices in horizontal planes, and thus a part of the total flow can find another and perhaps quicker way to the outlet. In any case, the exact motion, not only of the fluid but especially of the suspended particles, is so difficult that we have to refer to the experiments to find the exact behavior of this kind of apparatus. Method of Judging PerforMance of Coal Washer Geologists, rather than mechanical en-gineers, would be able to describe the separating or stratifying effect in nature, but even a bather on the shore lying on the soft sand near the sea wonders why all the small sand grains have approximately the same size. A child playing on the border of the river could easily

Jan 1, 1949

Jan 1, 1947

Executive BENJAMIN B. THAYER, .Chairman. JAMES F. KEMP, CHARLES F. RAND, ALBERT R. LEDOUX, JOSEPH W. RICHARDS, Membership KARL EILERS, Chairman. W. R. INGALLS, JOHN H. JANEWAY, Jr., JOHN D. IRVING, SIDNEY J. JENNINGS. Finance CHARLES F. RAND, Chairman. KARL EILERS. W. L. SAUNDERS.

Jan 1, 1917

By R. J. Hafsten, E. S. Davenport, R. A. Grange

The influence of austenite grain size upon the hardenability of steel is now fairly well understood; for a given austenite, increasing the grain size increases the depth of hardening, and, since the latter is related to the fundamental transformation behavior of austenite, it follows that austenite decomposition must, in general, be retarded by increasing grain size. To date, very little quantitative information bearing directly on the effect of austenite grain size upon the progress and result of isothermal transformation has been published. Davenport and Bain,' and Zimmerman, Aborn and Bain2 have shown that the transformation is definitely relarded in hypereutectoid plain carbon steels at temperatures near and above the upper region of rapid transformation (Ar') when the austenite grains are increased in size. More recently, Griffiths. Pfeil and Allen3 investigated the effect of a series of different heating (austenitizing) temperatures upon the progress of isothermal transformation at 1245°F. (675°C.) and 745ºF. (395°C.) in a medium carbon, low-alloy steel; while they reported no measurements of the austenite grain size, their results suggest that increase in grain size retards austenite transformation at 1245ºF. (675°C), but has no appreciable effect at 745°F (395°C.). The present paper deals with the results of a study of the isothermal transformation of austenite in a single commercial alloy steel in which a fine-grained or a coarsegrained state was induced by appropriate selection of austenitizing temperature. The data are presented in the form of isothermal transformation diagrams, which clearly show that coarsening the grains lessens the rate of transformation of austenite to proeutectoid ferrite and pearlite—that is, at temperature levels above about 1000°F. (540°C.)—but is without significant effect at lower temperatures where the transformation product is bainite or martensite. It is to he presumed that the foregoing statement would be valid, at least in principle, for many other grades of steel; it confirms again that the mechanism of transformation to a pearlitic structure is fundamentally different from that to an acicular structure. A number of related observations were made, which seem to throw some light on the transformation process as it takes place in alloy steels, particularly at temperature levels in the vicinity of 1000ºF. (540°C.), where the transition from lamellar to acicular structures occurs. These data are discussed briefly in the belief that they may lead to a clearer understanding of this aspect of the subject. Material and Experimental Procedure The material investigated was a cornmercial grade of S.A.E. 4140 steel, the composition of which was as follows: 0.37 per cent C, 0.77 per cent Mn, 0.98 per cent Cr and 0.21 per cent Mo. It was hot-rolled to a 1 1/8-in. round bar and normalized by air-cooling from 1800°F. (980°C.).

Jan 1, 1941

By C. F. de Mendonca, T. Kater, R. P. de Souza

Since 1976, Cia Vale do Rio Doce (CVRD) has carried out tests to develop a type of pellet made with an organic binder. Peridur is one binder that showed it could be used in industrial plants. Extensive tests were run in CVRD's pilot plant. The results are presented in this paper. The decision was made to carry out an industrial production of 50 ht (55,000 st) of pellets. The results are shown in this paper. No detrimental effects of the Peridur were observed in either the process or in product quality.

Jan 1, 1985

By R. W. Raymond

Samson Jordan was born at Geneva, Switzerland, June 23, 1831. At the age of 20 years he entered the Ecole Centrale des Arts et Manufactures, at Paris, from which he was graduated with high honors in 1854. After some months of service with the Compagnie du Chemin de Fer du Nord, he was employed (upon the recommendation of his former instructor, Prof. Burat, who had recognized his remarkable ability) at the mines of Portes, belonging to the Société de l'Elairage au Gaz et des Hauts Fourneaux, etc., of Marseilles, and subsequently to construct the St. Louis iron blast-furnaces of that Co. After finishing this work, he remained at Marseilles as a member of the directory of the Co., particularly connected with the development of its mines. In 1862 he became the general advisory engineer of the Co., and still later (1873) its general manager (Administratet~r), a position which he retained until his death, February 24, 1900. He became subsequently Administrateur of other important French industrial enterprises, including those of the Compagnie des Naut Fourneaux, Forges et Aciéries de Denain et Anzin, and the Compagnie Banco-Belge des Mines de Somorrostro ; and he was also, at various times, President of the Société technique du Gaz, Vice-President of the Comité des Forges de France, mepber of the Council of the Société d'Encouragement pour l'Industrie nationale. In all these positions, it is the unanimous testimony of his colleagues that he was no mere ornamental figurehead, but a profoundly wise, practical and industrious laborer and adviser, both patient and keen in the mastery of details, yet at the same time competent to apprehend the wider bear-

Jan 1, 1902

By Zavis M. Zavodni, Carl D. Broadbent

During the past 15 years, rock mass structural properties have become acknowledged as the focal point for rock slope design. Re- search into the methods for measuring and incorporating structure into the design effort has taken many directions and has produced a variety of useful techniques. Among the findings at Kennecott has been the realization that structure-controlled instability can be categorized as regressive or progressive depending on the relative geometries of slope and structure and on the strength characteristics of the structures. It was further identified that a failure condition can initiate as regressive and in time become progressive should external stimuli increase or structure characteristics be altered due to extensive displacements. The transition point has been shown to be a useful indicator of the expectable collapse time. This paper defines three fundamental failure types as dictated by structure and offers discussion on the practical value of such a classification to slope design and failure control. Several prominent examples of failures typifying the categories of structure- controlled instability are discussed. An application of f allure prediction based on the regressive-to-progressive transition point is described.

Jan 1, 1983

By L. W. Casteel

This is a story of progress through research, invention and innovation-progress that made a small mine in Missouri into a large and prosperous corporation. The St. Joseph Lead Co. was founded in Borne Terre, Missouri, in 1864. At that time, the mine consisted of a narrow trench eight feet deep; the mill was a hand-operated jig; and the smelter, a charcoal oven with a sloping hearth. During the first year, production was suspended for two months because of an invasion by the Confederate army. There have been few interruptions since that time.

Jan 7, 1964

By R. V. Ramani, C. J. Bise

The potential of deep-mineable coal reserves in the western United States for meeting future energy needs has been recognized for quite some time. However, two of the major constraints tending to limit the development of these underground reserves are the great thicknesses of the coal seams encountered and their high pitch. Although new mining methods may need to be developed to recover these reserves, at least in the short-term the industry has to incorporate presently available equipment not originally designed for thick-seam mining. The purpose of this paper is to present an analysis of the various equipment in use today and their possible application to thick-seam mining. The paper also addresses various ground control and safety considerations unique to thick-seam extraction.

Jan 1, 1984

By J. L. Whitlock

An attached growth aerobic biological treatment process has been developed at Homestake Mining Co.'s Lead operation which not only oxidizes free and complexed cyanides, including the stable iron complexed cyanides, but also thiocyanate, and the oxidation byproduct ammonia. Through the employment of a mutant strain of bacteria which has been gradually and specifically acclimated to the waste, these potential pollutants are mineralized to relatively harmless sulfates, carbonates, and nitrates. The resultant effluent, through toxicological testing, has been shown compatible with the receiving stream, which serves as a cold water marginal trout fishery.

Jan 1, 1985

By E. J. Haug, M. M. Fine

For several years work has been carried on by the U.S. Bureau of Mines at Rolla, Mo., to develop improved methods of concentrating the oxidized ores of lead and zinc. Various samples have been investigated, and results on some have been published. Details of the progress to date are given in a mineral dressing study now being conducted for an extensive oxidized lead-bearing tract in southeast Missouri, property of St. Joseph Lead Co. These oxidized ores present problems typical of many encountered in modern mineral dressing research in that recovery of very fine particles is of

Jan 4, 1955

C. Q. PAYNE, New York, N. Y. (written discussion*).-The method adopted by Mr. Lennox is a very interesting test of the practical application of Mr. Gates' crushing-surface diagram to a greet variety of gold and copper ores. His method of dealing with the material below 200-mesh is also a distinct contribution to the subject, although, as he suggests, it seems likely that some microscopic measurement of this material may be advisable before the mesh reciprocals of its group particles can be dealt with as accurately as can those coarser than 200-mesh. In examining the general results shown in Table 3, it is somewhat puzzling to perceive why Calumet &, Hecla jig tails should show a crushing resistance 3 - times greater than that of the ore from the Ray Consolidated copper mine. The latter is, I believe, an altered. Pinal schist

Jan 10, 1918

By George A. Bell

The mine and milling plant of Demonstration Gold Mines, Ltd., is near the city limits of Baguio, Mt. Province, P. I. The mine road connects with the main highway to Manila. The nearest railway point is near sea level, approximately 40 miles distant. The Baguio district is very mountainous and has one of the heaviest rainfalls in the world. It is therefore difficult to maintain roads or to impound tailings and mine dumps. All supplies are trucked into the district direct from Manila or the nearest railway point, which means uncertain deliveries and high freight rates. Installation of equipment is difficult and costly. The average elevation at the mine is 4000 ft. and the climatic conditions are ideal except for a three months rainy season. The company generates its own power for mining and milling operations with three 400-hp. Ruston Diesel engines direct connected to 250-kw. General Electric alternating current generators. Labor conditions have been excellent, although at present social security laws are causing some unrest. Labor receives a higher average wage rate in this district than other labor in the Islands. The company also furnishes free living quarters, hospitalization and workmen's compensation. Taxation has been reasonable up to the present time, but some of the new mining legislation may make it difficult to operate and pay dividends. The future depends largely upon the continuation of $35 gold and the political outcome in the Islands. History The Demonstration ore body was worked by the Igorots for many years, as evidenced by old stopes and fill encountered in present operations. Attention of Americans was first attracted soon after the Spanish-American war. During the building of the Benguet road to Baguio, the engineers and foreman became interested in the geology of the district.

Jan 1, 1939

By J. B. Cheatham, R. B. Paslay

Rock stresses and steady-state flow rates induced by the pressure gradient associated with the flow of formation fluid into a borehole have been analytically determined for a permeable, elastic material saturated with an incompressible fluid. In this analysis, the material properties and loading are considered to be symmetric about the axis of the borehole and independent of axial position. For Case I the material is assumed to have uniform permeability in the radial direction, whereas for Case 11 the permeability is assumed to have been reduced in a localized region adjacent to the hole by either normal well completion and production operations or deliberate plugging during air drilling. Results of a numerical example indicate that, in the absence of plugging, the rock shear strength must be approximately two-thirds the formation fluid pressure in order to prevent rock failure. The required rock strength is high for small radial zones of plugging and decreases as the region of reduced permeability becomes larger; however, a depth of plugging can be reached beyond which there is no real gain in strength, although the flow rate can be further reduced. INTRODUCTION During normal production of oil from a well, it is often desirable to increase the production rate of the formation fluid by increasing the pressure gradient through the formation adjacent to the borehole. Depending upon the magnitude of this pressure gradient and strength of the rock material, this production-rate increase can cause sloughing of the hole wall. In many cases, the production - rate increase can result in excessive sand production, increased wear of production equipment, lost production time and expensive workover jobs. In addition, the phenomenon of increased rock bit penetration rate with the use of a gaseous instead of a liquid drilling fluid has been observed in oilfield drilling operations and experimentally demonstrated by various investigators for several years. The improvement obtained by employing this technique can be quite significant and offers apromising method for reducing drilling costs. However, air drilling is currently limited to geographical locations where high-capacity water-bearing formations are not encountered. This limitation has prevented widespread adoption of air-drilling techniques, because the water influx into the borehole interferes with efficient removal of the drilling cuttings and usually results in a condition such that the bit becomes "balled-up" or stuck in the hole. In an attempt to remove the water - intrusion limitation from air drilling, various chemical and mechanical water shut-off methods have been proposed. Goodwin and Teplitzl suggested one such proposal whereby the permeability of the water-bearing rock structure was reduced in the vicinity of the borehole. Although the development of a shut-off method based upon this approach would certainly be welcomed by the oil industry, it is conceivable that, under certain conditions of the pressure gradient, strength of the rock material and depth of the modified permeability zone, a stress field can be created that will result in an unstable hole. As part of their study, an analytical solution is given for stresses in an idealized model of a hole and the surrounding rock material. The purpose of the present study is to extend the analysis of Goodwin and Teplitz to gain more insight into the details and consequences of excessive production rates and formation water shut-off. In particular, simplified models of these problems have been analytically examined, which makes possible the evaluation of the type of stress fields that can be anticipated as a result of these production and drilling practices. Both problems solved concern the determination of the steady-state volume flow rate of the formation fluid and the resulting steady-state stress and displacement distribution in a hollow, cylindrical configuration. The cylinder of Case I, corresponding to the production-rate problem, consists of a material with a constant permeability from the inside surface to the outside surface; the cylinder of Case 11, corresponding to the water shut-off problem, consists of a material with a constant permeability from the inside surface to an intermediate concentric cylindrical surface and a second constant permeability from the intermediate surface to the outside surface-

By C. Stansfield Hitchen

THE introduction of the logarithmic sector method of quantitative spectrography by Scheibe and Neuhäusser in 1928, and the subsequent .modification and improvement of the method by Twyman and Simeon, would seem to have marked yet a further advance in quantitative spec-trum analysis and its industrial application, inasmuch as it offers a simple means of eliminating some of the uncertainties inherent in the older methods based upon mere visual comparison of line intensities. In their recent admirable review of the position and capabilities of industrial spectroscopy, Brownsdon and van Someren1 say: Ways and means of facilitating the comparison of line-intensities so as to give them numerical values are helpful, and of these a logarithmic sector rotating in front of the slit appears to he one of the most promising; . . . the success recently experienced by the author in using this method for the examination of steels and solutions of metallic salts prompted him ,to investigate its possible use in estimating the impurities commonly present in crude and refined tin. The results of this investigation are submitted in the present paper. Details of a number of spectrographic analyses of tin for various impurities have already been published. Thus, Schweitzer2 describes the spectrographic examination of tin for lead, bismuth and cadmium, and was able to distinguish between such atomic percentages as 0.01, 0.05, 0.10, 0.30, 0.60, 1.20, 3.00 and 10.00. Negresco3 investigated the bismuth content of tin over a range of from 0.0005 to 35 per cent. Meggers, Kiess and Stimson4 compare spectrographic and chemical analyses of tin metal for copper, lead, iron, zinc, silver, nickel and bismuth. They stress also the value of spectrum analysis in the examination of tin used for boiler plugs, where the requirements that only minute quantities of impurities shall be present render the chemical analysis both tedious and difficult.

Jan 1, 1933

By Joseph Winlock, Francis B. Foley, Henry M. Howe

This investigation was undertaken for the purpose of determining, in a systematic way, the effect of the rate of cooling of steels, heated to above the transformation range, on their various mechanical properties. This paper gives the results obtained in the investigation of the heat treatment of carbon steels carried out under the auspices of the Committee on The Heat Treatment of Carbon Steels of the Engineering Division, National Research Council. The objects of this committee, of which Dr. Henry M. Howe was chairman, were to increase knowledge of the influence of heat treatment on the mechanical properties of carbon steel. The mcthod pursued was to subject specimens of steel of the carbon contents most used for engineering work, 0.34 per cent., 0.52 per cent., and 0.75 per cent., to various heat treatments, and to test the mechanical properties thus induced. The steels were the same as were used by the committee on fatigue phenomena. This project was financed jointly by the U. S. Bureaus of Mines and Standards; industries and university laboratories have cooperated. A large part of the work was done at Doctor Howe's private laboratory. The committee consisted of F. B. Foley, H. AT. Boylston, H. C. Boynton, G. K. Burgess, H. J. French, J. H. Hall, Zay Jeffries, R. S. Johnston, F. C. Langenberg, H. F. Moore, E. H. Yeirce, H. S. Rawdon, W. E. Ruder and 11. J. Stagg. The work was undertaken at the suggestion of Doctor Howe, who thought, at the outset, that steel in the sorbitic state might have properties which, for most engineering purposes, would be better than those of the usual or pearlitic state. By a systematic variation in the heating

Jan 1, 1923

By E. A. Trager, A. W. McCoy, H. R. Shidel

Sampling of the fluid from oil wells for percentages of oil, emulsified oil, and water during the last two years has brought out some interesting facts concerning oil-water emulsion. This result led to a laboratory investigation of emulsion, which substantiated the conclusions made from the field observations. The purpose of this paper is to present the information collected, the laboratory experiments, and our interpretation of the same. In order to define emulsified .oil exactly, give its synthesis and origin, and to show how and when it is formed in the wells, the work was necessarily divided into two separate lines—laboratory work and field observations. It is hoped that this study may lead to a discussion of such points so that the petroleum engineer, geologist, or technologist may be benefited by its practical bearing on oil-field management. Special credit is due Mr. Everett Carpenter, chief geologist of the Empire Gas & Fuel Co., for his assistance and cooperation in this work. Labobatory Investigations on Emulsified Oil Laboratory investigations were conducted in an attempt to learn the composition and some of the properties of emulsified oil, or B. S., as it is more commonly called, also to demonstrate, by laboratory methods, how B. 5. may be formed under conditions similar to those existing at the time a well is being pumped, and how it may be broken down. Literature bearing on this subject is widely scattered and very limited in scope. Bacon and Hamor define B. S., or bottom settlings, as "earthy matter, inert organic matter, or, in the case of Pennsylvanian petroleum, an emulsion of paraffin wax and water, which accompanies crude oil." In this discussion we will limit the term B. S. to that heavy, dark-brown emulsion, composed of a physical mixture of water, oil, and air with some included inert matter, either organic or inorganic. Possibly the first step in a description of this product should be a description of its physical properties, but since most operators are quite

Jan 1, 1921

By H. W. Schreiber, G. R. Castle

INTRODUCTION The small mining company faces the dilemma of how to finance the development of its properties. Many of these small companies don't have the financial resources to pay for development costs from their own funds and frequently they do not even have the financial strength to permit them to borrow the money needed for development. A project financing can sometimes be arranged in such a way as to solve this dilemma. A typical project financing will not provide the answer to the "little guy's" problem because most project financings require that the sponsors of the project provide completion undertakings and sometimes other undertakings. These undertakings are often a prerequisite to obtaining financing, and if the sponsor is not financially strong enough to provide the comfort that the lenders require, then the sponsor will have difficulty obtaining financing no matter what undertakings are offered. However, with a little imagination and the right set of circumstances, a project financing can sometimes provide the solution to the small mining company's problem. The Strathcona Sound Project is unusually suited as a case study because the sponsor, Mineral Resources International Limited,(MRI) was able to arrange a project financing for the development of the project even though the lenders probably would not have been willing to loan a similar amount of money direct to MRI based on the full faith and credit of MRI's balance sheet. The way that MRI was able to arrange this financing makes for an interesting story. THE CASE In early 1974, MRI owned 100% of a small to medium sized zinc - lead - silver massive sulfide deposit (Property) located 475 miles north of the Arctic Circle less than two miles from deep water on Strathcona Sound which is a shipping zone in the Canadian Arctic. The Property was situated at a desolate location except for an Eskimo settlement (Arctic Bay) which was about 20 miles west of the Property. In other words, the project required that complete infrastructure would need to be installed in this far northern location. Independent reserve and feasibility studies (Study) had been completed on the Property which confirmed a total of 6,825,000 tons of reserves classified and summarized as shown below on Table I: [ ] These reserves were based on 229 diamond drill holes totalling 58,909 feet and were established on a cut-off grade of 7% zinc and a minimum mining height of seven feet. The overall mining recovery rate was estimated at not less than 85% and not more than 90%. The feasibility study indicated that it would cost an estimated $45,044,000 to develop an underground mine, a concentrator, a town-site, a power plant, storage facility, loading dock, a tailings disposal area and an airstrip on the Property with an annual capacity of 525,000 tons of ore per year. The construction period was expected to take two years and projected capital costs were broken down as set forth below on Table II:

Jan 1, 1985