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AT THE beginning of February the British Government announced acceptance of the American terms for funding the war debt, the main features-being as follows: Interest rate of 3 per cent. for the first 10 years and then 3 ½ per cent. up to the final extinguishment of the debt at the end of 62 years. The interest from the time since the loans were made to the actual beginning of the funding arrangement to be recomputed at 4 1/4 per cent. instead of the 5 per cent. rate now in effect. Congress ratified the contract respecting the British debt. The ship subsidy bill was relegated to the rear, which is indeed an end to the project. The natural consequence of this will be a liquidation of the Govern-ment's shipping business. The joint committee on the reorganization of Govern-ment departments made its report to the President. In general this seems to offer a well-considered plan for the coordination of Government service. The pro-posals respecting the bureaus that are particularly associated with the mining industry may be subject to criticism. According to the committee's plan, the Geological Survey remains in the Department of the Interior, but the Bureau of Mines and the compilation of the statistics of mineral production are transferred to the Department of Commerce. The Lausanne conference among the European powers came to an end early in February, without any treaty having been signed, owing to the refusal of the Turks to accept the ultimatum of the Allies. Theoreti-cally this left conditions in a state-of war between the Allies and Turkey. However, no actual movements have resulted. The French and Belgians continued to hold the Ruhr district of Westphalia, extending their lines and administration of the region. The Germans adhered to the policy of passive resistance. In the Parliament of Great Britain the French and Belgian policy was plainly declared to be unwise and dangerous. French and Belgian industries, moreover, were troubled by strikes among their own coal miners for higher wages. The Poles and Lithuanians engaged in border war-fare;. the civil war in Ireland continued. The rest of the world was quiet insofar as military operations are concerned.

Jan 2, 1923

By J. C. Borland, J. H. Rogerson

Jan 1, 1963

PRESIDENT Truman's economic report to Congress calls for an increase of 40 billion dollars in the value of goods and services produced in the United States by 1955; this is an increase of 16 percent over our 1949 production. If such an increase is to be realized, it will be possible only by a comparable increase in the production of steel-the keystone of our economy. Going one step further, since the raw materials of steel are iron ore, limestone, and coal, the President's goal can be reached only through the efforts of the mining industry. Coal and limestone reserves are not critical at this time, but the abundance of iron ore reserves has been subject to controversy. In this issue we proudly present "Cerro Bolivar--Saga of a Crisis in Iron Ore Averted" (a story which has been seven years in the making and three years in the getting).

Jan 2, 1950

By NORMAN D. FitzGkrald

IN 1942 the outstanding characteristic of the petroleum industry was the multiplicity of war-induced distortions in virtually every segment of the business. So devastating was the success of the Nazi submarine campaign along the shores of the western Atlantic and on transoceanic routes that within six months after our entry into the war petroleum rationing was necessary in the East Coast area. The conquest of the Netherlands Indies by the Japanese three months after the opening of the war in the Pacific cut off our normal sources of rubber, and in our first year of war nationwide rationing of gasoline had to be invoked to conserve rubber-borne transportation facilities. Meanwhile the oil industry faced the imperative necessity for rapid expansion in the output of aviation gasoline and later accepted the vast responsibility for developing a new industry. synthetic rubber manufacture. Probably no other essentially peacetime industry has been forced to make so many complicated adjustments, yet its response to its wartime obligations has been nothing short of dramatic.

Jan 1, 1943

By A. J. Terrones

THE classical papers on contact metasomatic deposits by Lindgren on the Clifton-Morenci district,' by Barrell on Marysville, Mont.,' and by Gold-schmitt on the Oslo district, Norway,' laid the foundation for understanding of the importance of separating the metamorphic process from the subsequent metasomatic stage. Knopf' made a big step forward by recognizing that sulfide ore minerals are invariably younger than silicates and by further stressing the importance of structural control" in ore finding. Some years later Harrison Schmitt" fought the idea that contact metasomatic deposits are erratic, irregular, bunchy, economically marginal, and of small size, concluding that these descriptions have little factual basis. He emphasized the importance of detail mapping and careful geological study as fundamental requirements for a better understanding of these deposits. This article presents a comparative description of the structural features at the Magistral, Antamina, Morococha, Vilca, Ferrobamba, Katanga (Quibio), Tintaya, and Huarca contact deposits (Fig. 1). Further, it will describe how these structural features controlled the emplacement of the intrusives, their shape, distribution of metamorphic and metasomatic halos, and sulfide deposition in post-skarn structural channelways. Finally, the modifications introduced by a superimposed hydrothermal stage recognized at some localities will be discussed. Primary exploration and careful sampling of recognized structural targets were instrumental in outlining the copper ore potential at the Antamina and Tintaya districts, thus proving the benefits and reward of careful geological examinations in this type of deposit. The Magistral District: This district lies in the Province of Pallasca, Department of Ancash, in northern Peru, at 8o 16' S and 77" 47' W. High to medium grade copper orebodies in garnetite, bordering a quartz monzonite stock, are exposed at the bottom of a glaciated valley in the western slope of the Andes at 4250 m (14,000 ft)* elevation.

Jan 1, 1959

WHAT was certainly the greatest event of January, and perhaps it will prove to be the greatest of 1923, or even of the next decade, was the meeting of the premiers of the principal Euro-pean powers in Paris on Jan. 2, to consider what should be done with respect to German reparations. The French and British were unable to come to any agree-ment, and the conference broke up on Jan. 4. The French and British parted friends, but each with the determination henceforth to pursue its own economic and political way. This event was profound in its significance and perhaps will be calamitous) in its consequences. Following the disruption of the Conference at Paris, the French immediately began preparations to occupy the Ruhr district on the ground that Germany was in default on coal deliveries, without waiting. for Jan. 15, the next due date for reparation payment. This action by the French led to orders being issued by President Harding on Jan. 10 for the withdrawal of the remainder of the American troops on the Rhine. Thus ended the physical participation in. European affairs by the American army, whose vanguard landed in France in June, 1917. The French occupation of the Ruhr Valley, i.e., the great industrial region of western Westphalia, was made with a large military force. The Germans offered no physical resistance, and passed under French control with sullen resentment. The coal miners to a con-siderable extent refused to work and there was more or less disorganization of railway service. Before the end of the month the opinion was expressed that the French occupation was an economic failure and there were reports of French blast furnaces being blown out for lack of coke.

Jan 2, 1923

By Charles R. Keyes

A COMPLETE transformation has taken place in the boras industry during the year 1908. A most remarkable factor in this radical change in method of producing the crude borates has been its removal from the realm of industrial chemistry to the field of mining. With the development of extensive deposits of borate-minerals interstratified in thick sequences of Tertiary clays and sands, their winning becomes a strictly mining-enterprise, of the same kind and of the same certainty as the digging of coal or iron-ore. The major supply of the world's production of commercial borax now comes from the United States. While formerly all of the boric salts of commerce were laboriously extracted from the waters of saline lakes of the arid regions, or from the bottom-salts of desiccated ponds, it later was largely slowly leached from ancient desert shales and clays. During these periods the borax industry was a very hazardous and expensive vocation.

Oct 1, 1909

By H. V. Churchill

THERE are two distinct methods of combating corrosive conditions. The first and most popular method is to choose a surface or material which will give adequate service under the specific and general conditions which are present. The second is a control or modification. of the corrosive conditions to the end that metals and materials which would be attacked and corroded without such control or modification may be used. Under the first method of attack of the corrosion problem may be grouped such devices as the selection of metals or alloys which offer great resistance or the use of protective coatings such as paints, lacquers or metallic coatings. Such procedures are exceedingly useful. It is, undoubtedly true that most of the problems of corrosion will be solved by recourse to this first method of attack. However, it must be remembered that there are many conditions in which metals are used where the choice of the particular metal to be used must depend upon other factors than corrosion behavior. Some of the factors which may govern the selection of metals for specific use are the physical and mechanical properties of the metals. But there is another factor which is of prime importance and that is relative price. It is the pressure of these factors of mechanical properties, physical characteristics, and relative price that has acted as the stimulus for the second method of combating corrosion. The producer and user of various metals is confronted with the fact that because of mechanical properties, physical characteristics, or price, the use of a particular metal is desirable even though the corrosion conditions are adverse to the use of the metal. In many cases, the successful use of the metal may be made even though it is impossible to protect the metal by coatings. This is rendered possible by control or modification of the corrosive media.

Jan 1, 1929

By A. M. Adair

The effect of cathodically charging zone-refined iron with hydrogen and the resultant yield stress-grain size relationship has been investigated by tensile testing at -31°C. The resulting Petch plots (using a least-squares analysis) reveal a significant reduction in the slope and an increase in the intercept for specimens cathodically charged with hydrogen, regardless of whether the hydrogen is present during testing or is removed by evacuation. Other than surface blistering, the major effect of cathodically charging this material is to create occasional grain boundary cracks and thus presumably a large number of free dislocations at grain boundaries. These results are consistent with the hypothesis that the slope of the Petch plot is related to the stress required to activate dislocation sources at or near pain boundaries. While there is no significant effect of the presence of hydrogen on the lower yield stress of this material, the ductility is considerably reduced. After hydrogen removal by evacuation, the ductility recovers substantially and almost complete recovery of ductility is experienced by the smaller grain size specimens. THE influence of hydrogen on the mechanical properties of ferritic materials has received much attention throughout the history of the metallurgy profession. This interest has stemmed from the obvious importance of preventing the catastrophic failure of parts in service, and from the desire to determine what mechanism is responsible for the observed behavior. The various mechanisms proposed for hydrogen em-brittlement have been discussed in detail by Tetel-man,'who concludes that a combination of the applied stress and hydrogen pressure within voids best accounts for the many experimental observations reported. From a quite reasonable correlation of the strain aging and delayed-failure behavior of a variety of materials,2-7 Troiano and coworkers are of the opinion that the delayed-failure mechanism (slow strain rate embrittlement as well) is better explained as a lattice effect; solute elements diffuse to regions of high triaxial stress, form uncondensed atmospheres there, and effect a reduction in the cohesive strength of the lattice. Since hydrogen yield points8,9 have been observed in ferritic materials, and since the hydrogen embrittlement process may be related to strain aging, one further contribution to embrittlement could be hydrogen-dislocation interactions which make crack blunting by plastic deformation a more difficult process. The etch" relationship offers a means of comparing the relative ease of initiating and propagating plastic deformation in metals and alloys. In the present study, this relationship was used to compare the behavior of zone-refined iron in three conditions: uncharged, cathodically charged with hydrogen, and cathodically charged with hydrogen and evacuated. These Petch plots and the observed ductility parameters allowed a separation of the effects of the very presence of hydrogen and the act of cathodically charging hydrogen into this material. MATERIALS AND EXPERIMENTAL PROCEDURE An ingot of zone-refined iron was obtained from Battelle Memorial Institute which contained the following (typical) interstitial impurities in ppm: carbon, 10 * 5; nitrogen, 1; oxygen, 22; hydrogen, 0.9. The ingot was cold-reduced to a 1/2-in.-sq cross section, recrystallized 1 hr at 575°C, and then straight-rolled to a thickness of about 0.105 in. Tensile specimens were milled from the strip having a 1-in. gage length

Jan 1, 1967

By C. G. Wilson

DURING the course of some experiments on the plastic deformation of gallium a standard stereo-graphic projection was prepared with (001) at the center and it was felt that this might be useful to others working with single crystals of gallium. The stereogram, given in Fig. 1, was made using the following crystallographic data (Bradley, 1935):

Jan 1, 1962

By W. C. Maurer

A drilling-rate formula for roller-cone bits is derived from rock crater-ing mechanisms. This formula holds for "perfect cleaning", which is defined as the condition where all of the rock debris is removed between tooth impacts. Under these conditions, the drilling rate is directly proportional to the rotary speed and to the bit weight squared, and inversely proportional to the bit diameter squared and to the rock strength squared. Under imperfect cleaning conditions, such m those usually present in field drilling, re-grinding of the cuttings occurs under the bit, and the drilling rates fall below those for perfect cleaning. INTRODUCTION Drilling with a roller-cone bit consists of two fundamental operations: the formation of craters under the bit teeth, and the removal of the broken rock from the craters. To delineate the mechanisms of drilling, it is first necessary to understand the mechanisms involved in the formation of individual craters and then to relate these mechanisms to the over-all drilling operation. CRATER FORMATION When a bit tooth impacts a rock, the rock is elastically deformed until the crushing strength of the rock is exceeded, at which time a wedge of crushed rock is formed below the tooth1, 2 as shown in Fig. 1. As additional force is applied to the tooth, the crushed material is compressed and exerts high lateral forces on the solid material surrounding the crushed wedge.- en these forces become sufficiently high, fractures are initiated below the tooth and propagate to the free surface of the rock. The trajectories of these fractures intersect the principal stresses at a constant angle,'s4, as predicted by both Mohr's and Griffith's theories of failure. It has been experimentally 3,1 .6 that the volume of an impact crater, V,, varies as where Ec is the total energy imparted to the rock during the formation of the crater, and E is the threshold energy required before cratering is initiated (Fig. 2). Indexing experiments' have shown that, when there is a second free face to which the crater can fracture, a larger volume of material is removed and that above a transition zone there is a linear relationship between V, and Eo., which has a slope equal to the relationship for the single crater. The beneficial effect of indexing tends to offset the threshold energy requirement to a large extent, as shown in Fig. 2, and the relationship is closely represented by Rate-of-loading effects have been used to explain the nonproportional relationships usually obtained between drilling rate and rotary speed. The data4, in Fig. 3 show that the Ec/Vc parameter remained constant for craters produced with impact velocities ranging from 10 to 8,000 ft/sec. Since no rate-of-loading effects were detected over this wide range of loading rates, it seems improbable that there would be detectable rate-of-loading effects present in the small changes in impact velocities produced by varying the rotary speed. The writer has shown (Fig. 4) that, for craters produced in rock by impacting spheres, where X is the depth of penetration. Simon2 has shown that this relationship also holds for craters produced in rock by penetrating wedge-shaped chisels. The energy used in crater formation is

In 1962, minerals beneficiation showed definite signs of coming out of the doldrums into which it has drifted after the uranium boom. Demand by steelmakers for high-grade iron pellets has created the need for concentrating plants to upgrade specular hematite by spiral concentration or flotation and magnetites by magnetic means and flotation. According to a paper given at the AMC annual meeting by C. S. Arms of Pickands Mather, "the shipment of pellets, started in the mid-1950's, has increased to 17.6 million tons in 1961 from North American operations. Many plants already underway will raise this production to about 42 million tons by 1965. This will be a very sizeable percentage of the total iron ore production contemplated by that date." Iron ore concentration methods are gradually raising the assay of pellets into the 65 to 69% Fe range and lowering silica to the 4 to 7% range. Quebec Cartier's Lac Jeannine concentrator went into operation in late 1961 and all grinding units were running by 1962. The Iron Ore Co. of Canada's new Carol Lake plant was started in mid-1962.

Jan 2, 1963

With the inauguration of Petroleum Technology this year, and approval by the Board to add an Assistant Secretary to the New York staff to serve the Petroleum and Coal Divisions, the Petroleum Division looks forward to greater opportunities and responsibilities. An improved medium of publication offers further incentive to engineers and investigators in the oil industry to make contributions. The authorization by the Board of Directors of a new Assistant Secretary is an appreciation of the splendid contributions made to the industry by the open forum of the Petroleum Division. It is also a recognition of the possibilities of greater service to the membership along the lines established ten to fifteen years ago by DeGolyer, Fohs, Ambrose and Lovejoy, to mention a few leaders. It isexpected that the new officer will spend a substantial part of his time in the field, visiting the student sections, the respective Divisions, helping in the arrangement of papers and Section meetings and intensifying interest in the Institute. The Petroleum Division will hold three meetings this year. The Fall Meetings will be held on Oct. 6 and 7 in San Antonio and on Oct. 20 and 21 in Los Angeles. The programs for these meetings will deal chiefly with engineering research and production engineering problems. Papers on production statistics and general economics of the industry are reserved for the Annual Meeting in New York. The annual production symposium and statistics are accepted as standard for the industry. With continuously deeper penetration into the earth in search for and exploitation of petroleum, it is necessary to have a better understanding of reservoir conditions and to place more phases of the operation under engineering control. Among the subjects relating to reservoir conditions tha thave been proposed for the fall meeting programs are phase equilibria at high pressures, interfacial tension between oil and water, the flow of oil and water through sands, the chemistry of films and underground temperatures. Investigations relating to control of operations include methods of continuously logging while drilling both visually and electrically, methods of studying drilling samples, properties of drilling fluids, improved cementing practices for isolating thin sands under high-temperature conditions and gas conservation, particularly production from high-pressure reservoirs. Additional suggestions of general themes or individual subjects will be welcomed, since it is desirable to build a backlog of material for Petroleum Technology. 9

Jan 1, 1938

AT THE dinner at the Cosmos Club in Washington, tendered to Herbert Hoover on Jan. 5, on the occasion of his retirement from the presidency of the Federated American Engineering Societies, he made an informal speech in which he pointed out not only the unique position which the engineer now occu-pies by virtue of the new Federated Societies but also the opportunity that is thus presented for national service. In this connection and in pointing out some of the reasons for the present economic maladjust-ment, Mr. Hoover said in part: This body has entered upon a path of public serv-ice that is unique in the whole United States. The engineer has devoted himself all these years to the upbuilding of the material values of the United States. He has done that effectively more effectively than-has been accomplished in any other of the great countries of the world. The birth of this society marks the evolution of the engineer into an interest in public affairs. With his intelligence, his experience and training and the unique knowledge that he possesses not only of the material but the intangible values among our people, he is now organized so that his united voice may become heard outside of his profession. We have probably 175,000 engineers in our country, representing an intellectual possibility for service possessed by no other group. It is therefore an augury of real social development when the engineers of the United States join together for purposes of public service.

Jan 3, 1922

By ROY BERENTZ

MANUFACTURE is the transformation of material by the application of energy and power. The energy of a man exerted throughout a day is equivalent to about one horsepower-hour of mechanical work an amount which can be purchased for less than 2c. It is evident that manual labor is uneconomical if mechanical energy can be applied effectively, or without disproportionate expense. Since manual energy is relatively so costly, economy demands that mechanical power be employed so as to reduce the human effort connected with mining operations to a minimum. Power, like other commodities, is most efficiently produced in large quantities. Mechanical transmission, once prevailing, is being rapidly superseded by electric drive. There are many reasons for this change; such as increased production, ease and accuracy of control, convenient application, ease of moving, etc.

Jan 1, 1930

By O. E. KEOUGH

AT the Tooele custom lead-zinc ore concentrator,' two sections, each having a daily capacity of 500 to 600 tons, are operated on slightly different types of ores with but little difference in flow sheet and reagents. The ores comprising the two general classes are the coarsely crystalline type, with low pyrite and sphalerite low in iron content, from the Park City district, and the more finely disseminated higher pyrite ores from Bingham, which are more difficult to treat by flotation. Laboratory testing determines with which general class a new ore will work better. The ores are crushed to minus 1 1/4-in. size at either the Utah Ore Sampling Company's plant at Murray, Utah, the Tooele smelter sampling plant, or the crushing plant at the concentrator. The ores for each section are mixed to maintain as nearly as possible uniform lead and zinc contents.

Jan 1, 1930

By Lawrence S. Darken

STAFF: Editor, Gerhord Derge Cornegie Institute of Technology Schenley Pork Pittsburgh 13, Pa. Editorial Assistant, M. A. Redmerski Production Editor, Otto T. Johnson THE METALLURGICAL SOCIETY: J. S. Smart, Jr., President; C. C. Long, Past-President; K. L. Fetters, Vice President; T. D. Jones, Treasurer; R. W. Shearman, Secretary. PUBLICATIONS COMMITTEE OF THE METALLURGICAL SOCIETY: C. L. McCabe, Chairman; H. L. Bishop, K. L. Fetters, J. J. Harwood, W. A. Krivsky, F. C. Longenberg, R. E. Lund, W. 0. Philbrook, L. L. Seigle, R. L. Smith, and F. L. Vogal. Review and selection of manuscripts is under the supervision of the following Publications Committees: Extractive Metallurgy Division: C. L. McCabe, Chairman; R. E. Lund, Vice-chairman; D. H. Baker, Jr., W. A. Krivsky, R. A. Lewis, Paul Qusneau, A. S. Russell, R, E. Shinkoskey, W. W. Stephens, and M. E. Wadsworth. Institute of Metals Division: L. L.Seigle, Chair-man, P. A. Back, J. J. Backer, l.l. Bessen, J. 0. Betterton, Jr., J. 8. Clark, R. S. Davis, A. E. Dwight, R. W. Fountain, R. B. Gordon, C. D. Graham, Jr., R. W. Guard, J. C. Gurland, E. L. Harmon, J. J. Hager, A. A. Hendrickson, M. Harmon, J. N. Hobstatter, H. H. Johnson, Jr., H. 5. Kolish, R. R. Nash, T. N. Rhodin, R. H. Richman, W. Rostokar, P. G. Shawmon, C. W. Spencer, L. Slifkin, J. K. Stanley, C. D. Starr, R. Steinitz, and H. C. Stumpf. Iron and Steel Division: H. L. Bishop, Chairman; 2. E. Boni, F. C. Langenberg, J. B. Wagstaff, and T. V. Wainwright. Published bimonthly by the American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc., 29 West 39th Street, New York 18, N. Y. Telephone: PEnnsylvania 6-9220. Subscription PetroleumEngineers,$30 per year for non-AIME members in United States and North, South, and Central America; 332, foreign; $5 for AlME members. Single copies, $4.00, single copies foreign, $5.00. The AlME is not responsible for any statement mode or opinion expressed in its publications . . . Copyright 1%1 by the American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc. . . . Registered cable address; AIME New York ..Indexed in Engineering Index, Industrial Arts Index, and Chemical Abstracts.. .Second class postage paid at New York, N. Y., and Ann Arbor, Mich. Volume 221, Number 4.

Jan 1, 1962

By Robert S. Dewey

More wells were drilled in West Texas† during 1944 than in any year since 1941. As compared with 1943, there was an 82.5 per cent increase in the total number of completed wells. The 1646 wells required an estimated 140,715 days to complete for a total of 7,632,249 ft. An average of 85 completion days was required to drill to an average of 4630 ft. This depth is approximately 100 ft. greater than that of the previous year. It is estimated that $100,000,000 was invested in drilled wells. As of Dec. 31, 1944, there were 270 field and 91 wildcat wells being drilled. While an identical number of wells were drilling Dec. 31, 1943, the proportion of wildcats increased in 1944 from 19.7 to 25.2 per cent. During 1944, oil wells were completed in 103 of the 164 fields in West Texas. Of the 1361 oil wells, 385 were in Slaughter, 116 in Fullerton, 63 in North Cowden, 62 in Fuhrman-Mascho, 59 in Wasson, 52 in Westbrook and 47 in North Ward. Approximately 22 per cent of the wildcat drilling was to pre-Permian formations. Despite the increasing proportion of wildcat wells drilled, the wildcat discovery rate has declined since the year 1942. AS compared with 1943, the number of wildcat wells drilled increased from 11.7 to 12.7 per cent and the footage in wildcat exploration increased from 13.3 to 13.8 per cent of the total. The monthly production of crude continued to increase to a peak of 15,336,000 bbl. in October 1944. As compared with a similar peak production in October 1943, there was a 37.3 per cent increase. The yearly production increased from 98,165,-ooo bbl. in 1943 to 159,943,000 bbl. in 1944, an increase of 62.8 per cent. Based upon an assumed average price of $1.00 per barrel and less 1/8 royalty, the gross return to the producer amounts to $140, 000,000. From 1943 to 1944, the average number of producing wells increased 6 per cent while the average daily production per well increased 53.1 per cent. The average daily production per well increased from 17.5 bbl. in 1943 to 26.8 bbl. in 1944. The proportion of flowing wells decreased from 50.5 per cent in January to 49.1 per cent in December 1944. Drilling With the continued shortage of labor and materials, drilling costs have risen sharply. Just how much is difficult to ascertain. Owing to competition for available drilling rigs, contractors are reluctant to assume drilling risks. In consequence, some contracts are let on a cost plus basis, or day work below some specified depth with the operator furnishing part of the consumable materials, such as mud and drilling bits. Contractors are having difficulty in maintaining full and effective drilling crews with insufficient and inexperienced labor. Service companies have inadequate labor and equipment to meet their appointments promptly. Pipe Lines The Gulf Pipe Line Co. increased the capacity of its 10-in. main line by filling in gaps amounting to 75 miles on the loops between Judkins and Weatherford, Texas.

Jan 1, 1945

By Daniel T. Brian, O&apos

Exploration targets and results in the mining industry are commonly summarized in terms of tonnage and grade. Business appraisals require, as additional information, the expected profit or loss implied by the physical summay. The early incorporation of knowledge gained through financial analysis computations can provide a means for economically resolving many common exploration and development problems. Examples of such applications from the activities of exploration planning, reconnaissance, land acquisition, and development planning are presented. While prospecting for mineral deposits, geologists are frequently asked what they hope to find or have found. The response is usually descriptive, such as "50 million tons of 1% copper," and the economic implications are deferred until a capital investment decision is required. At that time, a financial analysis integrating the four analysis components is completed. These components are: 1) Tonnage and Average grade above cutoff grade 2) Capital and operating costs 3) Product value 4) Appropriate profit or loss accounting Close examination of these components reveals that there is no intrinsic reason for avoiding financial analyses at earlier stages in exploration, as long as the uncertainty of the estimate is realized. Tonnage and average grades are commonly estimated at early stages in exploration. For this component, the appropriate cutoff is the major uncertainty. Capital and operating costs are difficult to estimate before detailed quantitative information is available, but estimates useful for the types of applications pertinent to earlier exploration stages are possible. Product value estimates may or may not be difficult, depending on the pricing structure of the particular commodity. A simplified accounting procedure usually may be adopted without introducing any significant loss of validity. This paper describe some of the financial analysis applications which are pertinent during mineral exploration and deposit development. These applications lend additional insight during exploration planning, land acquisition, physical exploration, and development. The examples are oriented toward a hypothetical management investment policy which is based on a single criterion, a minimum 15% discounted cash flow rate of return. In reality, managements use multiple criteria. This simplification is convenient for purposes of presentation and does not invalidate the examples. Computers are useful, but not a requirement, for the applications described. The use of computers provides the results on a more timely basis at costs lower than equivalent manual computations. UNDERLYING PRINCIPLES AND ANALYSIS METHODS Data estimates are subject to uncertainty. The analyst may choose to assess this uncertainty by using one of two principles. Each principle has some advantages. The principle most commonly employed is "assumed certainty." Each financial analysis is based on one set of selected data, which may represent the average estimates, minimum expected conditions, etc. The critical data is identified by making successive calculations, varying the values used. Such studies, called sensitivity analyses, isolate the economic effect of various uncertainties, and guide the allocation of future efforts toward improving the overall accuracy of the analysis. A second principle, "assumed risk," examines the interactive effect of the current uncertainties by qualitatively assigning probability distributions to each data element. These probability distributions indicate the currently appraised chance that a given numerical value will prove to be true. The corresponding procedure, risk analysis, consists of processing many individual financial analyses, each analysis being based on randomly selected numerical values from the probabilistic distributions. The result is a numerical presentation of the uncertainty, but care must be exercised in the interpretation of results. The advantage of this procedure is the direct measurement of economic uncertainty caused by the interaction of uncertain estimates. Kennecott Copper Corp. has developed computer systems for accomplishing sensitivity and risk analyses.

Jan 1, 1970

By H. J. Ramey, I. S. Bousaid

Experimental results on the oxidation reaction kinetics in the forward combustion oil recovery process are presented. A total of 48 runs were made wherein a stationary thin layer of coked, unconsoli-dated sand was burned isothermally in a combustion cell. Individual runs were made at various temperature levels to permit determination of the effect of temperature upon the reaction. An expression was obtained for the burning rate of carbon as a function of carbon concentration, combustion temperature and oxygen partial pressure. The carbon burning rate for two types of crude oil indicated a first order reaction with respect to both carbon concentration and oxygen partial pressure. The effect of combustion temperature on the reaction rate constant matched the Arrhenius equation. The activation energy was similar for the two crude oils examined. The activation energy decreased for a porous media containing clay. The rate of oxidation of crude oil at reservoir temperature was found to be significant. Other significant findings included information on hydrogen-carbon content of fuel residues, fuel reactivity and the products of combustion. INTRODUCTION The production of crude oil by underground combustion has been studied in the laboratory by many investigators.1-5 Results of laboratory and field experiments have been reported in the literature describing the forward combustion process. But as yet, no qualitative or quantitative study of the kinetics of fuel combustion involved in this process has been reported. The fuel concentration and the rate at which fuel is burned at the front are important factors governing the air requirement in a forward combustion operation. Although the fuel is essentially unrecoverable crude, the air required to burn the fuel is an important economic factor in this process. Because fuel is burned, the heat transport associated with forward combustion is a key and unique feature of this new oil recovery method. Many investiga-tors5-9 have presented information on the heat transmission and fluid mechanics involved in forward combustion. Berry and Parrish10 demonstrated the utility of considering reaction kinetics in reverse burning. From differential thermal analysis, Tadema11 presented a qualitative discussion of the nature of reactions between oil and oxygen in combustion oil recovery. Although little quantitative work has been done on the reaction kinetics involved in forward combustion oil recovery, an extensive literature does exist on combustion of carbons and oils, and carbonaceous residues from cracking catalyst pellets. Dart, et al., 12 studied the combustion rate for oxidation of carbonaceous residues on clay catalyst pellets, and found the reaction to be second-order with respect to carbon concentration, and first-order with respect to oxygen partial pressure for carbon concentrations less than 2 weight percent of the catalyst weight. The reaction appeared to be first-order with respect to carbon concentration for concentrations greater than 2 percent. Metcalfe13 noted that other workers had found that aging of the fuel during the combustion process was responsible for changing coke properties, and it accounted for the apparent second-order carbon concentration effect found by Dart, et al. It appears that burning of residues from cracking pellets is first-order with respect to both carbon concentration and oxygen partial pressure. Dart, et al., also observed that hydrogen in the hydrocarbon residue appeared to react faster than the carbon. Lewis, et al.,14 studied oxidation of charcoal, coke and graphite in a fluidized bed. Gas velocities were high enough to partially lift and circulate the carbon particles. Their results indicated first-order reaction dependency with respect to both carbon concentration and oxygen partial pressure. One

Jan 1, 1969