Search Documents

Jan 1, 1879

By George H. Cook

At first sight this subject seems to belong to pure theoretical geology, but examination will soon show that it has important practical and economic interest to the mining engineer. The conclusion that all the northern portions of our country, as well as of the eastern continent, have, in the later periods of geological history, been covered with a thick bed of ice, is now accepted by geologists. This bed of ice, except in its greater magnitude, was like the modern glaciers of the Alps, and other mountains which extend above the line of perpetual snow. The marks it has left upon the surface show that it was comparatively thin on its southern edge, but that its thickness was much greater a little further north, and that it was several thousand feet thick at its kenviest parts. This variation of its surface would give it a descending slope towards the south, and cause the mass of ice, like a semifluid substance, to move in that direction,

Jan 1, 1879

Some 30,000 people attended from 50 countries. Over 600 exhibitors brought with them a billion dollars of mining technology, ranging from tiny high-precision valves to giant off-highway trucks. Twenty-seven technical sessions with more than 100 papers covered the gamut of mining advancements. It was a grand display of industry vitality just to power the huge exhibit area required 22,000 kW of electricity each day, and support services for the exposition created more than 1000 daily jobs for local labor. Unquestionably, Las Vagas knew the miners were in town for the American Mining Congress' International Mlining Show.

Jan 11, 1978

By Frederic Benard

PRIOR to 1936, the Ontario Refining Co. received all incoming blister copper from The International Nickel Company's smelter in the usual form of 460-lb. cakes, or slabs. These were received in open cars in lots of 250 pieces. At the refinery the cakes were unloaded onto narrow-gauge cars, for convenient handling and pickup by charging cranes. In March 1936, an investigation was started on the feasibility of trans-ferring converter copper in the molten state from the smelter to the refinery anode furnaces, a distance of 114 miles. Although common in steel practice, the transportation of blister copper in this form had not previously been attempted and a preliminary study of the various factors involved was therefore necessary. For this purpose, a series of experiments was made in which molten copper, removed at different stages during the furnace cycle, was held in a small portable holding furnace. This vessel was essentially a refractory-lined steel cylinder provided with ports for filling and emptying, heated by an oil burner. Dimensions of the steel shell were 3 ft. 10 in. diameter by 7 ft. 3 in. long, and thickness of refractories depended oil the design and combination used for the particular experiment. The vessel was filled with approximately 2 ½ tons of copper at a predetermined temperature, the lining having been preheated to a definite point by means of an oil burner. All openings were well luted and temperature readings were made every 15 min. by means of an immersion-type thermocouple. In this manner the rate of heat loss resulting with different refractory design could be developed. The ratio of exterior surface to weight of metal was taken into consideration in comparing the experimental results with what might be expected for a full-sized unit, and observations were also made on type and degree of slag accretion. It was not possible to get as much information on this latter point as desirable, but all evidence showed that the problem would be control of slag build-up rather than attack oil refractories.

Jan 1, 1938

By Dewitt T. Ring

Lack of reliable detailed production figures for earlier years, together with the loose nomenclature in reference to producing horizons and the application of the term "field" without any definite meaning or restriction, has made it impossible to gather statistical data suitable for the Institute's form. In common with all other producing areas in the United States, Ohio has felt severely the economic ills of the entire industry during the past year. With overproduction, not only of crude but also of refined products, going on throughout the country, the price structure as a direct consequence has weakened on Ohio oils. Valuable crude is being sold at a big loss today because producers arc willing to, and do, sell more than the market can absorb. The axe hangs heavy over the heads of Ohio producers, and will until something constructive is done to keep supply in proportion to demand. This not only applies to Ohio but to the entire industry. Production of Pennsylvania grade in Ohio was under 50 per cent proration, which has been in effect since Oct. 1, 1937. Three price cuts since February have lowered the posted price from $1.70 to $1.18, a 30 per cent reduction; other grades were less drastically reduced. Pipeline storage facilities were limited; many producers were faced with the problem of providing their own storage or the risk of ruining their wells. If they wanted to pull and abandon wells, there was no market for junk equipment. Many employees have been cut to half time and in a number of instances their services entirely dispensed with. Summary of Production and Drilling Both oil and gas production in the state during 1938 showed a definite decline over the previous year. (A table showing production by years from 1876 through 1937 was published in Vol. 127 of the Transactions.) The total production of crude oil in the state for 1938 was 3,357,914 bbl., as compared with 3,654,000 bbl. in 1937, a decrease of 7.1 per cent. At

Jan 1, 1939

By Dewitt T. Ring

Lack of reliable detailed production figures for earlier years, together with the loose nomenclature in reference to producing horizons and the application of the term "field" without any definite meaning or restriction, has made it impossible to gather statistical data suitable for the Institute's form. In common with all other producing areas in the United States, Ohio has felt severely the economic ills of the entire industry during the past year. With overproduction, not only of crude but also of refined products, going on throughout the country, the price structure as a direct consequence has weakened on Ohio oils. Valuable crude is being sold at a big loss today because producers arc willing to, and do, sell more than the market can absorb. The axe hangs heavy over the heads of Ohio producers, and will until something constructive is done to keep supply in proportion to demand. This not only applies to Ohio but to the entire industry. Production of Pennsylvania grade in Ohio was under 50 per cent proration, which has been in effect since Oct. 1, 1937. Three price cuts since February have lowered the posted price from $1.70 to $1.18, a 30 per cent reduction; other grades were less drastically reduced. Pipeline storage facilities were limited; many producers were faced with the problem of providing their own storage or the risk of ruining their wells. If they wanted to pull and abandon wells, there was no market for junk equipment. Many employees have been cut to half time and in a number of instances their services entirely dispensed with. Summary of Production and Drilling Both oil and gas production in the state during 1938 showed a definite decline over the previous year. (A table showing production by years from 1876 through 1937 was published in Vol. 127 of the Transactions.) The total production of crude oil in the state for 1938 was 3,357,914 bbl., as compared with 3,654,000 bbl. in 1937, a decrease of 7.1 per cent. At

Jan 1, 1939

By M. H. Rana, W. D. Bullock

A basic requirement in any geomechanical investigation is the establishment of the state of stress in the rock mass. So far, qualitative determinations have been more readily obtained than quantitative ones. This is due to the fact that in order to define stress magnitudes in a rock mass it is necessary to make various basic assumptions about the physical properties and characteristics of the rock itself. The assumptions are generally that the rock is an isotropic, homogeneous solid which will behave elastically under various conditions of applied load. These assumptions are not valid. Due to the foregoing factors, the present investigation was confined to a consideration of stress directions only. Within recent years, two methods of determining stress orientations in geologic materials have been used and have received some publicity in the technical press. These are the techniques of photoelasticity and petrofabrics. The technique of using reflected polarized light for observing strains on the faces of rock samples has been described by Emery.1,2 With this technique it is possible to measure relative strains in relaxation. Absolute strain magnitudes are not attainable without the use of questionable assumptions. However, directions of strains (and thus, stresses) can be determined accurately on a point basis or on a statistical basis over the complete area of the strain gage being used. Petrofabrics, according to Friedman,3 an important geological discipline which can provide knowledge on the state of stress associated with naturally deformed rocks. Even though textural and structural features span at least 15 orders of magnitude, from crystal lattices

Jan 1, 1972

By Warren B. Weeks

Continued development in the deeper fields discovered during 1937 and 1938 was largely responsible for the 16 per cent (2,913,400-bbl.) increase in production, bringing the 1939 output to 21,376,230 bbl., the largest for South Arkansas since 1929. The older settled fields continued to decline and Rodessa was added to this classification. Magnolia field accounted for much of the increase, with Schuler field showing only a slight increase. There were 248 wells drilled during 1939, five more than during the previous year. Of 198 wells drilled in proven fields, 21 were dry; 46 of the 50 wildcats drilled were dry. The old depth record of 8332 ft. was increased to the present record of 9028. Trend of Prospecting Production from the porous " Reynolds " oolite zone of the Smackover limestone continued to be the objective of prospecting. During the year 20 seismograph, 3 gravity meter, 1 magnetometer, 1 soil analysis and 1 electromagnetic crews were reported in the state. The geophysical work was largely concentrated in three southern counties: Columbia, Lafayette and Union. As indicated in Table 2, the same three counties received most of the important drilling tests. At the end of the year only three seismograph crews remained in the areas. The area for prospecting Smackover limestone was greatly narrowed during the year by the failure of two "fault zone" wells to find satisfactory permeability in the oolite zone, and by the relatively thin sections of porosity found in wells drilled in townships 18 and 19 South. Geology Most of the wells listed in Table 2 afforded additional control on structure of the lower beds, but gave little new information on stratigraphy. Of the 248 wells drilled, 3 ended in Tertiary, 34 in Gulf, 1 in Paluxy, 29 in Glen Rose, 15 in Travis Peak, 15 in Cotton Valley, 139 in Smackover, 2 in Eagle Mills and 10 in Carboniferous. The age of the beds between the Travis Peak formation and Carboniferous is still questionable. Most

Jan 1, 1940

By Warren B. Weeks

Continued development in the deeper fields discovered during 1937 and 1938 was largely responsible for the 16 per cent (2,913,400-bbl.) increase in production, bringing the 1939 output to 21,376,230 bbl., the largest for South Arkansas since 1929. The older settled fields continued to decline and Rodessa was added to this classification. Magnolia field accounted for much of the increase, with Schuler field showing only a slight increase. There were 248 wells drilled during 1939, five more than during the previous year. Of 198 wells drilled in proven fields, 21 were dry; 46 of the 50 wildcats drilled were dry. The old depth record of 8332 ft. was increased to the present record of 9028. Trend of Prospecting Production from the porous " Reynolds " oolite zone of the Smackover limestone continued to be the objective of prospecting. During the year 20 seismograph, 3 gravity meter, 1 magnetometer, 1 soil analysis and 1 electromagnetic crews were reported in the state. The geophysical work was largely concentrated in three southern counties: Columbia, Lafayette and Union. As indicated in Table 2, the same three counties received most of the important drilling tests. At the end of the year only three seismograph crews remained in the areas. The area for prospecting Smackover limestone was greatly narrowed during the year by the failure of two "fault zone" wells to find satisfactory permeability in the oolite zone, and by the relatively thin sections of porosity found in wells drilled in townships 18 and 19 South. Geology Most of the wells listed in Table 2 afforded additional control on structure of the lower beds, but gave little new information on stratigraphy. Of the 248 wells drilled, 3 ended in Tertiary, 34 in Gulf, 1 in Paluxy, 29 in Glen Rose, 15 in Travis Peak, 15 in Cotton Valley, 139 in Smackover, 2 in Eagle Mills and 10 in Carboniferous. The age of the beds between the Travis Peak formation and Carboniferous is still questionable. Most

Jan 1, 1940

By L. M. Johnson, C. G. Janes

INTRODUCTION In May, 1966, the General Services Administration (GSA) announced a program to encourage additional domestic production of copper in the interest of national security. Upon learning of the copper production expansion program, Duval Corporation entered into negotiations with GSA for development of the Sierrita copper-molybdenum property under the program. Agreements between the GSA and Duval Sierrita Corporation, a wholly owned subsidiary of Duval Corporation, were concluded in 1967, with the Sierrita Concentrator beginning operation in 1970 at a designed capacity of 72,000 STPD. Subsequent additions and modifications have expanded capacity to 90,000 STPD. This property, located approximately 20 miles south of Tucson, Arizona, represents an investment including working capital of about $200 million. These funds were provided from an $83 million loan from GSA, repayable in copper valued at 38 cents per pound, $48.75 million of bank loans subject to U. S. Government V-loan guarantees, and Company capital contributions. Current general operating statistics for the concentrator are listed below: [Ore Grade 0.32% Cu., 0.030"/. Mo. Daily Tons Milled 90,000 STPD Annual Copper Product ion 94,600 Tons Annual Molybdenum Production 15,000,000 Lbs. Annual Silver Production 1,135,000 Ounces]

Jan 1, 1976

By H. M. Merry

The graphic methods and records described in this article have been developed, with satisfactory results, for the use of executives of the Chino Copper Co., in Hurley, N. Mex. Particular attention is directed to the use of large wall-charts, the quick reference display of large charts, the scale notation of metallurgical charts shown in Pig. 3, and the inclusion of mesh extraction on screen analysis diagrams. To properly comprehend the operation and metallurgical results from a concentrating plant, a daily record of essential data is kept, usually involving the dry weight of ore milled or treated, dry weight of concentrate or metal produced, assay values of heading, assay values of tailing, assay values of concentrate, and percentage of extraction or recovery. In addition it is often necessary to record moisture, pulp density, or dilution, percentage of weight of oils and reagents employed; screen analyses of grinding conditions, oversize, etc.; assay values of non-valuable or interfering substances; cost data; and such special information as may be required. GRaphic Presentation . Close analysis is necessary of a daily operation involving such a number of factors, the relation and influence of which may be of great importance in the treatment scheme. When the analysis is made from a numerical tabulation, the chance for one or more obscure, but perhaps important, factors to escape notice is considerable, therefore the need for an accurate, readily digestible presentation of metallurgical data is obvious.. Graphic records of milling operations are frequently used, but owing to the wide range of magnitude and values, and the number of factors involved, the customary practice of assigning different values to the same ordinates, as in Fig. 1, results in a complex and intricate record which makes little appeal to a busy operating official. The methods shown in Figs. 2 and 3 are devised to display such data in a clear and legible manner, without confusion.

Jan 1, 1920

By AIME AIME

Jan 1, 1926

By R. E. Head

Some mixtures of sulphide and oxide ores from the Tintic district in Utah are of a sufficiently good grade to be shipped to the smelter without beneficiation. In mining this type of ore, however, a material tonnage of ore of a similar composition but of lower grade is obtained. It is a question of economics whether such ore should be shipped with a certainty of a small return or concentrated if that would yield a sufficiently increased return to amortize plant construction and upkeep and yield a higher rate of profit than at present. It may be assumed that the tonnage of this borderline ore is constantly increasing and that eventually it will attain such proportions as to justify plans for milling on a relatively large scale. Under existing conditions, the producer of mixed sulphide and oxide ores is not greatly concerned about the physical characteristics of his ore or of its mineralogical complexities, since his contract with the smelter calls for payment on the basis of chemical analysis. When concentration is contemplated an entirely different picture is presented. Percentages of valuable metal content must then be con-sidered in terms of minerals, for it is in the form of minerals that recoveries are made and losses sustained. In describing the performance of a given flotation mill and reagent combination, it may be stated as a generality that a specific percentage recovery of valuable elements is made. Technically, however, the concentrator is really constructed and the reagents are selected to recover the valuable minerals. These considerations must be given prominence in discussing borderline ores from the Tintic district because of their physical characteristics and mineralogical composition. Because of these peculiarities they may be justly termed complex, since their lead, silver, and copper contents are each represented by two or more minerals of different chemical composition and presenting widely divergent physical properties. This paper sets forth the results of a microscopic study of a type of borderline ore from the Tintic district that is now being treated by direct smelting. A

Jan 1, 1939

By R. E. Head

Some mixtures of sulphide and oxide ores from the Tintic district in Utah are of a sufficiently good grade to be shipped to the smelter without beneficiation. In mining this type of ore, however, a material tonnage of ore of a similar composition but of lower grade is obtained. It is a question of economics whether such ore should be shipped with a certainty of a small return or concentrated if that would yield a sufficiently increased return to amortize plant construction and upkeep and yield a higher rate of profit than at present. It may be assumed that the tonnage of this borderline ore is constantly increasing and that eventually it will attain such proportions as to justify plans for milling on a relatively large scale. Under existing conditions, the producer of mixed sulphide and oxide ores is not greatly concerned about the physical characteristics of his ore or of its mineralogical complexities, since his contract with the smelter calls for payment on the basis of chemical analysis. When concentration is contemplated an entirely different picture is presented. Percentages of valuable metal content must then be con-sidered in terms of minerals, for it is in the form of minerals that recoveries are made and losses sustained. In describing the performance of a given flotation mill and reagent combination, it may be stated as a generality that a specific percentage recovery of valuable elements is made. Technically, however, the concentrator is really constructed and the reagents are selected to recover the valuable minerals. These considerations must be given prominence in discussing borderline ores from the Tintic district because of their physical characteristics and mineralogical composition. Because of these peculiarities they may be justly termed complex, since their lead, silver, and copper contents are each represented by two or more minerals of different chemical composition and presenting widely divergent physical properties. This paper sets forth the results of a microscopic study of a type of borderline ore from the Tintic district that is now being treated by direct smelting. A

Jan 1, 1939

By H. H. Evinger, M. Muskat

A methoD of calculating productivity factors for oil, gas, and water systems in the steady state is presented as an illustration of the quantitative application of the fundamental data on the flow properties of heterogeneous fluid systems. While the numerical results of the calculations cannot be applied directly to field conditions, because they are based on permea-bility data for unconsolidated sands and involve specific assumptions regarding the nature of the reservoir fluids, the methods of analysis and interpretation should havc significance in considering certain specific field situations when the necessary field and laboratory data become available. Moreover, it is felt that even under the idealized conditions to which the numerical calculations refer they should serve to give at least the orders of magnitude of the effects of gas-oil ratio and connate water on observed productivity factors. Within the indicated limitations, the computations imply that the foregoing factors can explain only a part of the apparent discrepancy between the homogeneous fluid productivity factors and those obtained recently in field measurements on the West Coast. IntroductioN Sufficient laboratory research has been carried out in the last several years on the fundamental features of the flow of heterogeneous fluids through porous media to call for consideration of what can be done with this type of information. It has, of course, already led to a, much clearer general understanding of the mechanics of oil production. However, examples of the quantitative application of the results of such laboratory studies are few in the literature. part of the explanation for this fact lies undoubtedly in the lack of sufficient laboratory data relating to practical fluids and sand systems such as would occur ill actual oil reservoirs. However, unless it can be shown that if such data were obtained quantitative applications could be made, serious doubt may be cast upon the desirability of carrying on further extensive experimental research work on fluid flow. The purpose of this paper is to present one approach to the problem of quantitative application of laboratory data to practical field problems. Because the published results on the basic experiments with three-phase fluid systems in porous media are limited entirely to uncon-solidated sands, the numerical applications made here will not pertain directly to any actual field situation. However, they should serve to illustrate what could be done with fundamental laboratory data if they were extended to cover the field of consolidated sands. From this point of view, it is hoped it will serve to encourage further laboratory research on this problem. The particular application to be treated here relates to the calculation of the productivity factors for oil-gas-water systems in the steady state. This specific problem seems especially appropriate for discussion in view of the recent publication by Johnston1 of the results of produc-

Jan 1, 1942

By M. Muskat, H. H. Evinger

A methoD of calculating productivity factors for oil, gas, and water systems in the steady state is presented as an illustration of the quantitative application of the fundamental data on the flow properties of heterogeneous fluid systems. While the numerical results of the calculations cannot be applied directly to field conditions, because they are based on permea-bility data for unconsolidated sands and involve specific assumptions regarding the nature of the reservoir fluids, the methods of analysis and interpretation should havc significance in considering certain specific field situations when the necessary field and laboratory data become available. Moreover, it is felt that even under the idealized conditions to which the numerical calculations refer they should serve to give at least the orders of magnitude of the effects of gas-oil ratio and connate water on observed productivity factors. Within the indicated limitations, the computations imply that the foregoing factors can explain only a part of the apparent discrepancy between the homogeneous fluid productivity factors and those obtained recently in field measurements on the West Coast. IntroductioN Sufficient laboratory research has been carried out in the last several years on the fundamental features of the flow of heterogeneous fluids through porous media to call for consideration of what can be done with this type of information. It has, of course, already led to a, much clearer general understanding of the mechanics of oil production. However, examples of the quantitative application of the results of such laboratory studies are few in the literature. part of the explanation for this fact lies undoubtedly in the lack of sufficient laboratory data relating to practical fluids and sand systems such as would occur ill actual oil reservoirs. However, unless it can be shown that if such data were obtained quantitative applications could be made, serious doubt may be cast upon the desirability of carrying on further extensive experimental research work on fluid flow. The purpose of this paper is to present one approach to the problem of quantitative application of laboratory data to practical field problems. Because the published results on the basic experiments with three-phase fluid systems in porous media are limited entirely to uncon-solidated sands, the numerical applications made here will not pertain directly to any actual field situation. However, they should serve to illustrate what could be done with fundamental laboratory data if they were extended to cover the field of consolidated sands. From this point of view, it is hoped it will serve to encourage further laboratory research on this problem. The particular application to be treated here relates to the calculation of the productivity factors for oil-gas-water systems in the steady state. This specific problem seems especially appropriate for discussion in view of the recent publication by Johnston1 of the results of produc-

Jan 1, 1942

THE Mining Methods Committee during the past year has spent much of its time developing the interest of members of the Institute in the work that comes under its direction. The response on the part of the membership has been most encouraging and in order to give a concrete form to the program which it hopes to develop, an "Outline for Papers on Mining Methods" has been drawn up and is herewith submitted for consideration. This outline has slowly taken shape until it now represents ideas contributed by a great many men, and it is hoped that it will be suggestive and helpful in the preparation of papers. This program can be used for the preparation of papers covering single large operations or, preferably, as the basis for a description of methods and the presentation of results obtained either in different districts or in different branches of the industry. The Committee presents this outline for the consideration of the various Sections of the Institute with the request that they will endeavor to interest the members of the Sections in covering comprehensively the mining operations with which they are connected. It is not the plan of the Committee to publish a paper on every mine, giving all the details outlined, but rather that an engineer familiar with a district prepare the general information and engineers of each important mine in the district compile the specific information of the mine with which they are connected. The general information and the specific information shall be sent to the Committee, and with this information the Committee will prepare a paper on the results obtained under the various mining methods in the different districts. The Committee requests that all papers shall be compiled under the direction of the Chief Engineer of the company and then submitted to the General Manager before acceptance for publication or compilation and tabulation with other similar data. Where the study of this subject approaches the fields of other standing committees of the Institute, the

Jan 5, 1922

By T. A. Rickard

It has been stated, by Sir James M. Barrie, that "the man of science appears to be the only man who has something to say, just now-and the only man who does not know how to say it". The friendly jibe of the novelist contains enough exaggeration to make it humorous to the followers of Huxley and Spencer; but could any litterateur poke similar fun at the exponents of the avowedly utilitarian branches of science-the men of technology-without suggesting an unpleasant truth? Indeed the engineer does bungle language deplorably. He makes a fetish of efficiency, yet he shows no regard for the effective use of one of his most important tools-the pen; he believes devoutly in accuracy, yet he employs an instrument of precision as carelessly as a small boy handles a gun. This inconsistency may be due to causes such as were indicated by the Academic Senate when it undertook to explain the defective writing of the; students in this university.* The Senate suggested that the student is "constantly subjected by his environment to the unedifying influence of myriad examples of poor English", and that he is also affected by "a certain public prejudice against correctness of expression ". With these statements most of us will agree. Our local newspapers, for instance, tend to spoil the student's taste for good English; later in life, as an engineer, his daily contact with illiterate men inclines him to careless speech and slovenly writing. As

Jan 1, 1931

By H. Biloni

A metallographic study of solute segregation produced during controlled solidification of Sn-Pb alloys has previously been reported.' It was found that the growth conditions which produced well-developed cellular substructures led to severe segregation, and even at solute concentrations of 0.2 wt pct Pb regions of a lead-rich phase were formed at the junctions of cell boundaries (nodes). Similar sample preparation and etching techniques have now been applied to several tin alloys at more dilute concentrations. The crystals were solidified uni-directionally under less-severe growth conditions so that the predominant interface structure was composed of two-dimensional cells.* Binary alloys with lead, using 9.999 pct Sn as a solvent, and ternary alloys with lead and bismuth or lead and antimony, using zone-refined tin as a solvent, were examined. The liquid was decanted from the growing crystals in all cases to reveal the interface structure and ensure that two-dimensional cells were being formed. However, since interference may arise from a liquid layer that clings to the interface during decanting,3 an examination of the segregation pattern was always made behind the interface. In all cases, the structure within the bulk of a crystal at greater than 1 cm behind the decanted interface was substantially the same as that nearer the interface. Representative photomicrographs of the dilute Sn-Pb alloy are shown in Figs. 1, 2, and 3. Most observations are similar to those of the previous investigation. For example, the solute concentration at the cell walls is higher than in the intercellular regions; where cell boundaries meet, the segregation is enhanced; the macromosaic or stria-tion substructure and grain boundaries show enhanced segregation; there is also a depletion of solute at cell walls near a striation boundary, as Spittle et a1.4 have observed at decanted interfaces. Not all these observations can be seen in the photos shown since attention has been focused on a special feature; as evident in the photomicrographs, cer-

Jan 1, 1965

By Georges Caraghiaur

INTRODUCTION A small, independent mining enterprise (SIME) is an independently owned and operated business concern engaged primarily in mineral development, from the exploration to the production stage. A SIME may or may not be listed on stock exchanges. By definition, a SIME is not dominant in its field and has no long-term financial backing. As such, it is not a major producer of minerals, nor is it a petroleum company, a government organization or a subsidiary of such organizations. The survival and growth of a SIME is most often controlled by an independently minded entrepreneur, who not only conceives and carries out new projects, but is materially affected by the success or failure of these projects. Usually, a SIME does not have a large or constant cash flow. Such a lack of long-term financial backing forces the SIME to meet the challenge of finding capital for its activities on a step-by-step basis. Its survival strategy is thus based on finding funds at the right time, of the right type and in the right quantities. The purpose of this paper is to show that the type of venture in which a SIME is involved affects the difficulty of raising new capital and the choice of possible sources of funds. The Small, Independent Mining Enterprise The SIME, also called small miner, junior mining company, speculative mining company, and pennystock mining company, is not a figment of the imagination of financial speculators. In Canada, there are more than 1,800 small mineral enterprises which spend on the average less than $1,000,000 per year on activity which is directed at bringing forth new mineral supply. In the United States, 64 percent of the non-fuel mining operations are conducted by nine or fewer men, and the coal industry is characterized by several thousand smaller independent producers, still predominantly family-owned or controlled. In Chile, 80 percent of the mines can be classified as small mines. In the Philipines, approximately 60 percent of metal mining operations are classified as small mines. The SIME is actively engaged in mining all over the world, and very much so in the Pacific Rim. The Mineral Supply Process The whole process of bringing forth new mineral supply involves a dynamic sequence of activities, ranging from the initial exploration for a mineral occurrence to the production of a marketable product. A typical sequence is outlined in Figure 1. At the grass-roots exploration stage, a series of geological, geophysical and geochemical tests is aimed at locating a mineral occurrence. Especially in the early phases of such activities, the uncertainty (risk) surrounding a venture is high, since only general geological information exists on which to base a judgement of the economic viability of the venture. Such risk is attractive to few investors.

Jan 1, 1982