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By Hugh M. Roberts

The important place in the economic life of the country that is occupied by the United States Geological Survey and the various state surveys is appreciatcd by most members of our Institute. To the public at large, the functions of these surveys are no doubt largely unknown, and taken for granted. Possibly a realization of the value of the work of these government branches is brought home most fully to that group of our members whose duties as examining engineers and mining geologists take them to mines and prospects in many different parts. The examining engineer or geologist is usually seeking for a judgment on the value of an enterprise from the standpoint of the useful minerals that may or may not be present; he must also attempt some prediction as to future market prices. On his opinion rests the determination of the expenditure of money, which rendered into other language means the expenditure of human effort. An opinion on an exploring venture or the reasoning out of the probable extensions of an orebody requires among many other things a background of knowledge covering the geologic horizons not only of an immediate area but of the surrounding area, a knowledge of the structural geology and of the causes that have operated to form the ores as they are. The great storehouses of this knowledge are the statistics, reports and maps issued by the various geological surveys. They supply the groundwork for additional observations. To these, reference is always made when going into a new district. The technique of work in the field and laboratory, and to some extent the hypotheses that underlie our methods of approach, have been formed by men such as Van Hise, Leith, Kemp, Spurr, Emmons and Lindgren, who developed their powers in the service of the geological surveys. In addition to whatever originality of thought, or power to observe facts and analyze them, may be our portion, we require, in the application of the arts and sciences, a knowledge of what has already been done. We stand on the shoulders of those who have gone before, and the extent of our vision often depends upon the thoroughness with which we form earlier work into one whole and make use of it.

Jan 1, 1935

By C. A. Hartnagel

The year 1944 marks the eightieth anniversary of the discovery of petroleum by drilling in New York State. It was in 1864 that a half dozen shallow wells were drilled at Limestone in Cattaraugus County, in a region that now forms the northern extension of the 82,000-acre Bradford pool. These early wells found oil, but not in paying quantities. They did, however, attract attention to the district and were a factor in the development of the still active Bradford pool of Pennsylvania and New York. During 1943, the production of petroleum in New York amounted to 5,029,000 bbl. This represents a decrease over the previous year, in which 5,421,000 bbl. was produced. The flush production for the New York fields occurred in the early eighties shortly after the discovery of oil in the Richburg pool of Allegany County. During the flush period, production was in excess of five million barrels annually. By 1887, however, the output had decreased to an amount only slightly more than two million barrels, and through the early years of the present century the annual total was often less than one million barrels. Flooding of the oil sands for increasing productioil was made legal in 1919, and in 1927 the output once more reached the two million mark. Two years later it had increased to over three million barrels. In Table r is shown production since 1935, in which year for the first time the output under flooding methods was in excess of four million barrels. From this table, it is evident that oil production in New 'I'ork is rather well stabilized, and since most of the oil is obtained by the flooding, or water-drive, method, with little or no prospect of discovery of new oil territory, rapid changes in yield from year to year are not to be expected. In thickness, the oil sands have a maximum of about 50 ft., and by means oi flooding may produce 10 to 12 thousand barrels an acre and proportional amounts for thinner sands. In some cases, floods have been developed in sands only 12 ft. thick. Under good flooding conditions a yield of 2000 bbl. an acre is about the lower limit at which oil can bc produced at the present price of $3.00 a barrel. The average cost for the physical development ol a lease, not including the cost ol the lease itself, is $5000 an acre. Since several months must intervene before the flood begins to act on the oil wells, and a year or more is required to bring thc wells to maximum daily production, it is evident that a considerable interval occurs before maximum returns are realized. Once a flood is developed and the wells

Jan 1, 1944

By C. A. Hartnagel

The year 1944 marks the eightieth anniversary of the discovery of petroleum by drilling in New York State. It was in 1864 that a half dozen shallow wells were drilled at Limestone in Cattaraugus County, in a region that now forms the northern extension of the 82,000-acre Bradford pool. These early wells found oil, but not in paying quantities. They did, however, attract attention to the district and were a factor in the development of the still active Bradford pool of Pennsylvania and New York. During 1943, the production of petroleum in New York amounted to 5,029,000 bbl. This represents a decrease over the previous year, in which 5,421,000 bbl. was produced. The flush production for the New York fields occurred in the early eighties shortly after the discovery of oil in the Richburg pool of Allegany County. During the flush period, production was in excess of five million barrels annually. By 1887, however, the output had decreased to an amount only slightly more than two million barrels, and through the early years of the present century the annual total was often less than one million barrels. Flooding of the oil sands for increasing productioil was made legal in 1919, and in 1927 the output once more reached the two million mark. Two years later it had increased to over three million barrels. In Table r is shown production since 1935, in which year for the first time the output under flooding methods was in excess of four million barrels. From this table, it is evident that oil production in New 'I'ork is rather well stabilized, and since most of the oil is obtained by the flooding, or water-drive, method, with little or no prospect of discovery of new oil territory, rapid changes in yield from year to year are not to be expected. In thickness, the oil sands have a maximum of about 50 ft., and by means oi flooding may produce 10 to 12 thousand barrels an acre and proportional amounts for thinner sands. In some cases, floods have been developed in sands only 12 ft. thick. Under good flooding conditions a yield of 2000 bbl. an acre is about the lower limit at which oil can bc produced at the present price of $3.00 a barrel. The average cost for the physical development ol a lease, not including the cost ol the lease itself, is $5000 an acre. Since several months must intervene before the flood begins to act on the oil wells, and a year or more is required to bring thc wells to maximum daily production, it is evident that a considerable interval occurs before maximum returns are realized. Once a flood is developed and the wells

Jan 1, 1944

By A. M. Gaudin

THE so-called Kick law' is generally accepted to . mean that for each reduction to one-half in particle diameter, in a unit weight, the same amount of work is required. In crushing-efficiency calculations on crushing tests it is customary, when basing the calculation on Kick's law, to assign ordinal numbers to each standard sieve size. These ordinal numbers increase by a constant difference with each successive sieve aperture, because standard sieve apertures are in constant ratio. Minus 200-mesh is generally assumed as equivalent to 37 microns in size. By definition, the ordinal number multiplied by the per cent material of any size is equal to the energy units in the material of that size in a unit weight of sample. The sum of all energy units is the energy units content of a unit weight of sample, whether it be crusher feed or product. The difference between the energy units in the product and that in the feed is the tangible result of the work input per unit weight of feed. From this the amount of work necessary for one energy unit may be calculated. This has been done for a quartz crushing-test made at the Intermountain Experiment Station of the U. S. Bureau of Mines at Salt Lake City, in which the net work going to crushing was carefully measured. The results of this crushing test are given in Table 1.'

Jan 1, 1929

By A. W. Schlechten, W. J. Kroll

As this paper is written, the only method for the commercial production of lithium metal is by the fusion electrolysis of LiC1-KC1 mixtures, as first proposed by Gunkz.2 The details of the industrial process have not been made public hut Osborg8 stated that an efficiency of more than 90 pct is obtained with a lithium metal recovery above 95 pct and that the metal is 99.5 pct pure. Pletenev9 gave a power consumption of 66 kw-hr per kilogram of lithium metal produced with a salt consumption of 9 kg of LiCl and 0.4 kg of KCI. Pletenev's figures indicate a somewhat lower recovery than that given by Osborg. In a recent report on' German lithium plants, Motock7 gives figures that are also less favorable than those reported by Osborg. At the German plants the lithium recovery in electrolysis was only 83.4 pct, with a power consumption of 140 kw-hr per kilogram of lithium. The metal averaged only 97 pct pure, with sodium and potassium as the chief impurities. The presence of SO2, SO3, SiO2, Ba, Ca, and appreciable amounts of Na and Fe2O3 were especially disturbing in the electrolysis, and it was necessary to run the cell for some time to eliminate most of these impurities and condition the bath. It may be noted here that most of these impurities do not interfere with a thermal reduction process. These facts show that the present method of producing lithium is fairly efficient and would suggest that other methods could not compete. However, fusion electrolysis has certain drawbacks, such as the necessity of supplying costly, low-voltage direct current and of collecting and processing the anodic chlorine if it is not to be wasted. An even greater disadvantage is that lithium chloride must be used for an electrolyte. It is one of the most expensive salts of lithium, since it cannot be produced in anhydrous form by precipitation from aqueous solution, as is done with LiF or Li2CO3. The reduction of lithium by a vacuum process similar to the ferrosilicon method for the production of magnesium would have certain advantages. Small units such as Pidgeon retorts, would give flexibility of production to meet demand, and a small plant would require moderate capital outlay. There is a possibility of using idle Government-owned magnesium plants for such purposes. The raw materials needed for vacuum thermal reduction would not have to be extremely pure, Director, with respect to the iron and calcium Content. This paper describes a series of experiments to determine the effectiveness of various agents for the reduction of lithium compounds. The investigation is part of a program of vacuum metallurgy con-

Jan 1, 1949

By Hugh P. Nicholson

IN view of the many articles that have been written on the proper classification of mining systems without so far having produced any particular tangible results it might seem that the subject is hopeless of solution. I do not believe that is so, and my intention in contributing the following outline is to present a slightly different viewpoint. Too much attention is often focused on unnecessary details and not enough on general principles. Too much attention and emphasis is often given to the system employed at one particular mine or in one particular district. In addition, names that are entirely misleading are applied to mining systems, and their adoption by the coming generation perpetuates a condition that needs clarification badly. The following classification is the result of several years of practical experience in mining and also several years' practice in teaching the same subject. It therefore represents a broad picture of the entire field of mining systems from the viewpoint of the miner as well as the teacher. It seems that the difficulty in the past has been in reconciling these two viewpoints. The need of such a reconciliation requires no explanation.

Jan 1, 1934

Map

Jan 1, 1939

By AIME

Annual production of more than 4,000,000 tons of 0.74 percent copper ore and coincident handling of over 5,000,000 tons of waste at the open-pit mine of Castle Dome Copper Co. near Miami, Ariz. takes a lot of power. Manufacturers have ever co-operated with mining companies in providing the required equipment to suit the problem. Power equipment suppliers have done much to make possible the economic and profitable production of copper from low-grade ores. In the future, as mining operations will necessarily handle even lower-grade ores, the ability of the manufacturer to supply the power and mechanical equipment to produce more metal at a fair and reasonable price will be the good right arm of the miner. About 27,000 tons of concentrate is produced from the 4,000,000 tons of ore.

Jan 1, 1948

By E. H. Dix

During an investigation of high-strength manganese bronze by til Engineering Division of the Air Service, at McCook Field, Dayton, Ohio, particles of a "blue constituent" were noted in the microstructure of most of the bronzes examined. The constitution of the simple copper-zinc base alloy is still a matter of dispute in spite of the fact that the copper-zinc series is one of the oldest industrially important groups of alloys, and has received thc carly co~l+itlcl-ntio11 of scirntific rcsc:trch. Thc diagram, according to the rnost rcrent \vork.' IS shown in Fig. 1. The disputed questions involve the tcrmi~r:~tiorl of the beta field and the lint at 470' C. The parliest expc~imc>ntcr, Rol)erts--~1~11stcri, detectrd an arrest in some of his cooling curves :it approximately this temperature and ascribed them to the formation of a cutectic; it has since been proved that there arc no eutectics in this series. Shepherd? was unable to detect any thermal arrests at this temperature, his. diagram was essentially as shown in Fig. 1, except that the line at 470" ('. was omitted and the beta phase carried down to normal temperature. 1,:ttcr. carpenter and Edwards, by a very painstaking research, definitely established the authenticity of the line but attributed it to the breakdown of the BETA constituent into a cutectoid of alpha and gamma. microscopic evidence of the formation of the cutectoid is doubtful and it seems more likely to he due to an allo-tropic change in the beta constituent as shown by Fig. 1. At least for practical purpose?, it is more convenient to think of the structure of a 60-40 brass as a mixture of alpha and beta prime crystals rather thin alpha plus an unresoluble eutectoid of "apparent beta" as it has often been called. * Chief, Metals branch, Engineering Division, Air Service. 1 0. F. Hudson: Jnl. Inst. of hlvtals (1913) 12, 2 E. S. Shepherd: Jnl. Phys Chrm. (10141 8, 421. H. C. H. Carpenter and O. A. Edwards: Jnl, Inst. of Metals (1911) 5, 127.

Jan 1, 1923

By E. H. Dix

During an investigation of high-strength manganese bronze by til Engineering Division of the Air Service, at McCook Field, Dayton, Ohio, particles of a "blue constituent" were noted in the microstructure of most of the bronzes examined. The constitution of the simple copper-zinc base alloy is still a matter of dispute in spite of the fact that the copper-zinc series is one of the oldest industrially important groups of alloys, and has received thc carly co~l+itlcl-ntio11 of scirntific rcsc:trch. Thc diagram, according to the rnost rcrent \vork.' IS shown in Fig. 1. The disputed questions involve the tcrmi~r:~tiorl of the beta field and the lint at 470' C. The parliest expc~imc>ntcr, Rol)erts--~1~11stcri, detectrd an arrest in some of his cooling curves :it approximately this temperature and ascribed them to the formation of a cutectic; it has since been proved that there arc no eutectics in this series. Shepherd? was unable to detect any thermal arrests at this temperature, his. diagram was essentially as shown in Fig. 1, except that the line at 470" ('. was omitted and the beta phase carried down to normal temperature. 1,:ttcr. carpenter and Edwards, by a very painstaking research, definitely established the authenticity of the line but attributed it to the breakdown of the BETA constituent into a cutectoid of alpha and gamma. microscopic evidence of the formation of the cutectoid is doubtful and it seems more likely to he due to an allo-tropic change in the beta constituent as shown by Fig. 1. At least for practical purpose?, it is more convenient to think of the structure of a 60-40 brass as a mixture of alpha and beta prime crystals rather thin alpha plus an unresoluble eutectoid of "apparent beta" as it has often been called. * Chief, Metals branch, Engineering Division, Air Service. 1 0. F. Hudson: Jnl. Inst. of hlvtals (1913) 12, 2 E. S. Shepherd: Jnl. Phys Chrm. (10141 8, 421. H. C. H. Carpenter and O. A. Edwards: Jnl, Inst. of Metals (1911) 5, 127.

Jan 1, 1923

By Charles Wert

THE diffusion and precipitation of carbon and nitrogen in a iron have previously been investigated using the internal friction as a measuring tool.' Most of this work has been done on rather pure iron; no effect was observed which would indicate that either of these phenomena is affected by the rather small amounts of impurity found in these samples of iron. Fastz observed, however, that both the diffusion rate and the aging properties of nitrogen in iron were sensibly changed by the addition of Vz pet Mn. The diffusion rate at a given temperature is reduced and the nucleation of nitrides is apparently changed somewhat. He observed no such changes for carbon in this alloy. Later Dijkstra and Sladek" extended these observations on nitrogen to other alloys of iron. They found that metals other than manganese also influence the behavior of nitrogen in iron; chromium, molybdenum and especially vanadium affect the diffusion and precipitation of nitrogen even more than manganese does. Their results have been verified in all essential details by this author, who finds in addition that small additions of nickel have about the same effect on the diffusion of nitrogen as the same amount of manganese. The present work was undertaken to study the effect on carbon in iron of these alloying elements. The alloys used had two sources. The material used as a "standard" (designated Fe in this paper) in the measurements was some iron supplied by J. K. Stanley, of Westinghouse Electric Corp., who reported 0.01 pct 0, as the only major impurity. He also made up an alloy of 0.26 pct Ni and one of 0.9 pct Mo using this same iron as a base. They were supplied by him in 2 lb billets, which were sawed into rods and cold formed into 0.030 in. wires for measurement. The alloys of chromium, manganese, and vanadium were prepared by the metallurgy section of the Institute for the Study of Metals, University of Chicago, by adding these metals in turn to vacuum melts of National Research Corp. iron. The small castings prepared in this way were also cold formed into 0.030 in. wires. After these wires had been prepared they were decarburized for 30 min at 730°C in wet Hz. After this treatment, no trace of carbon (as measured by internal friction) could be found. All specimens were then carburized for about 15 min at 710°C and water quenched. By this treatment the internal friction at 40°C was raised to a Q-' ~ 0.015. The diffusion of carbon in these alloys was studied by observing the shape and position of the internal friction peak at 0.9 cycles per sec. These measurements were made using a torsional pendulum in a manner described earlier.' The data are plotted in Fig. 1. It is seen that there is no apparent difference in internal friction between the various alloys. This is in marked distinction to the broadening and shift-

Jan 1, 1953

THE Rocky MountainClub brought into the East the spirit of the West; the impulse to build, to develop, to accept unquestion-ingly the comradeship and help of any straight shooter who had it in him to accom-plish things and a will to work. That this was the spirit of the Club was due to its leaders. It was their spirit and they attracted around them men of the same stamp. Among those who made the Club what it was no one had larger in-low fluence than William Boyce Thompson, the vice-president and chief of financial staff. It was characteristic of him that the same financial genius that was employed in building up Nevada Consolidated, In-spiration, Magma, Texas Gulf, and as director of the Metro-politan Life and the Federal Reserve Bank, was freely placed at the service of the Club. It was equally char- acteristic that the generosity that financed the Red Cross Mission to Russia inspired the use of the Club funds for Belgian and war relief. "W. B.," as he is known to his many friends, was born at Virginia City in Alder Gulch, Mont., on May 13, 1869. His father, William Thompson, born at Cobourg, Ont., had drifted into the old Northwest and, hearing at Yankton of the gold strike at Bannack, crossed the plains on the Oregon trail in the summer of 1863, arriv-ing in Alder Gulch at the inception of a mining boom that lasted several years, during which something like $60,000,000 in gold was yielded by the placer diggings. His mother was a daughter of Maj. James R. Boyce, Sr., from Logan County, Ky., who had served under General Sterling Price of the Confederate Army. Major Boyce's ancestors were early settlers of the Old Dominion, and his grandfather had seen military service in the war for American independence. Major Boyce's mother was a descendant of the Marshall and Smith families of Westmoreland County, Va. When Thompson was eleven years old, the family moved to Butte, then a silver camp. He attended the public schools of Butte, but desiring a better education, entered Phillips Exeter Academy and later the Colum-bia School of Mines. Returning West, for a year or two he ran the Boulder Chief mine near Basin, Mont., which earned him a sobriquet, "Boulder Thompson." While here, some old ore sacks, oil-soaked, introduced him to flotation. He was also the first to leach some of the ore dumps of Butte.

Jan 4, 1928

By M. C. LYNN

RECENT completion of a $40,000 lubricating oil plant will make it possible for students in the School of Petroleum Engineering at the University of Oklahoma to carry out on a large scale the entire process of refining crude oil, from the time it is received in tank cars and pumped through the 1/4-mile University pipe line to storage tanks on the campus until the various products appear in finished form. This plant is part of a $100,000 expansion program which this school has been carrying out during the past year. Two years ago the Oklahoma State Legislature appropriated $50,000 for the School to use in improving its laboratory facilities. A few months later a $30,000 PWA grant was ob-

Jan 1, 1937

Jan 1, 1967

Discussion of the paper of GEORGE K. BURGESS and SIR ROBERT A. HADFIELD, presented at the New York meeting, February, 1915, and printed in Bulletin No. 98, February, 1915, pp. 455 to 468. ALBERT SAUVEUR, Cambridge, Mass.-There is a definiteness and finality in the investigations that have been conducted by the Bureau of Standards and in the method of presenting the results that is most satisfactory and refreshing.. A year ago Dr. Burgess and his co-workers investigated the question of critical points in carbonless iron, and they settled the question once for all. No one can now claim that the thermal point A2 in carbonless iron does not exist. At the past meeting of this Institute in Pittsburgh, Dr. Burgess showed the worthlessness of the shrinkage clause. To my mind after his demonstration no one can again claim that the shrinkage clause renders any service. He also showed us that it was a practicable proposition to use pyrometers in steel work in order to ascertain the finishing temperatures of rails. No one can again come before this body and make the claim that it is not a practical proposition. And now Dr. Burgess shows us that steel ingots can be made in a commercial way, practically free from pipe, from segregation, aid from blow holes. It places again before us in a very clear manner the question of piped ingots and of segregation, a question which has been debated for 20 years or more. I know very well the attitude of the standpatters in the matter. They claim that most of the pipe is removed in the discard, and that if a little is left it is so thoroughly welded that it does no harm. I for one am not convinced of the soundness of the argument. I do not believe there is any one present who would claim that, given an ingot free from pipe, free from segregation, and free from blow holes, better rails will not be made out of that ingot than out of the ordinary piped or segregated metal which is used by almost all of our steel mills. In my opinion, if we give our sanction to the casting of steel in the shape of piped or segregated steel ingots, we are guilty. If we give our sanction to the rolling of rails from such metal, we are guilty. It is our duty as experts, as steel makers, and as steel consumers to make and to use the best steel obtainable on a commercial basis, for the manufacture of rails. Now, we have been shown that sound ingots can be produced from which superior rails can be made. If we do not insist upon these sound ingots, then we fail in our duty. I think that the art of casting steel ingots has advanced to such a point that the casting of steel ingots piped and segregated ought no longer to be tolerated.

Jan 5, 1915

By W. F. Kieschnick, Eugene Harrison, W. J. McGuire

W. J. McGuire, et al, are to be commended for their undertaking of a mathematical solution of a very difficult problem. Unfortunately, however, a mathematical approach requires the application of several assumptions. These assumptions appear to be unrealistic and lead to answers which do not describe what actually happens when hydraulically fracturing oil and gas wells. Considering laboratory confirmation of breakdown phenomena, the authors appear to have tested their theories only on cement specimens and on samples of Austin limestone, much too small to provide any fracture system. This work resulted in the formation of vertical fractures. If the authors had tried similar experiments on thick walled cylinders made from almost any sandstone cores, they would have found that, using crude oil as the breakdown fluid, horizontal fractures would almost always occur, and at pressures much lower than any calculated. They would also find that by confining the fluid to within the bore (using oil base mud for example) on similar samples, the pressures required to burst the cylinders would be considerably higher and most of the fractures would be vertical. This breakdown pressure behavior has been duplicated in wells in Texas, Oklahoma, Kansas and in Wyoming. Considering field data the phenomena of different breakdown pressures for different breakdown techniques can be further illustrated. Most production and service personnel will agree that a breakdown can be more easily obtained if injection into a formation can be established prior to the occurrence of the breakdown. This is true whether the formation being treated is completed as open hole or as a perforated interval. This is clearly illustrated by a Lakota well in Wyoming, completed open hole at a total depth of 7,358 ft. An attempt to vertically fracture this well failed when a bottom hole pressure of 10,326 psi was insufficient to break down the formation. A non-penetrating type fluid (oil base mud) was in the well at the time the breakdown was tried." The oil base mud was then cleaned out of the well and replaced by a 30" API gravity crude oil. With this oil in the hole the formation breakdown was easily accomplished at a bottom hole pressure of 3,607 psi. This large difference in fracture pressures would be impossible according to the theories presented by McGuire, et al. The authors have used as an example the breakdown pressures experienced when acidizing Permian Basin wells. During acid treatments of limestone and dolomite the "breakdown" (drop-off in pressure) seldom occurs until some injection of acid has been accomplished. In these cases the breakdown is most likely to result from the chemical reaction of acid and rock in already existing vugs and fractures rather than from making a new fracture by hydraulic pressure. If this is true, then results in the Permian basin should not be used to validate the authors' calculations. *** AUTHORS' REPLY to ROSCOE C. CLARK and HENRY F. COFFER The purpose of our laboratory experiments in which thick-walled rock cylinders were hydraulically fractured was to determine the validity of the "thick pipe" formula for brittle materials, and not to predict nor demonstrate directly the orientation of field fractures. Our conclusions concerning field results resulted from calculations involving the "thick pipe" relationship as well as considerations of overburden stresses, rock strengths, and the geometry and dimensions of the field system. Clark suggests that had the models been more porous or contained weak bedding planes, horizontal fracturing would have occurred. This is undoubtedly true provided external stresses similar to those in the earth's crust are nor imposed. However, if we were going to design experiments to represent directly the field case we would impose the proper stresses on the models. It is generally recognized that the vertical compressive stress in the earth's crust arising from the weight of the overburden is approximately 1 psi/ft of depth. Then, as an example, even though a horizontal bedding plane has zero strength, the formation cannot be separated to form a horizontal fracture unless the hydraulic pressure exceeds the stress due to overburden. And in those cases in which the stress resisting vertical fracturing is significantly less than that resisting horizontal fracturing, vertical fractures should result, notwithstanding horizontal plane weaknesses. We agree that breakdown pressure will be less if the fracturing fluid penetrates the formation. In Appendix HI of our paper it is shown that leak-off reduces the pressure necessary to initiate either a horizontal or vertical fracture. It would be difficult to attempt to

Jan 1, 1955

Jan 1, 1963

By Frederick Laist

I. INTRODUCTION The new slime-concentrating plant at the Washoe Reduction Works, Anaconda, was put into operation during March, 1914. This plant, which has a capacity of 26,000,000 gal. of slime pulp carrying 2,500 tons. of solid matter per day, consists of Dorr thickeners and Anaconda multiple-deck slime concentrators.' This plant is the culmination of a great deal of experimental work extending over a considerable period of time, which work will be described briefly in the following pages.

Jan 8, 1914

By E. J. Eisenach, Edward Matsen

AT the present time the Climax Molybdenum Co. is the largest molybdenum producer in the world and the operator of the largest underground mine in North America. It has grown steadily and rapidly since its beginning in 1917. Only 250,000 lb of MoS2 were produced during the first year from 1917 to 1918 when the company was formed. Operations were suspended shortly thereafter because of the lack of a market and knowledge of the uses of molybdenum. During World War I it was used as a substitute for some rare metals and for minor chemical purposes. After 5 years of intensive research and sales promotion, Climax metallurgists succeeded in finding proper applications for the newly discovered metal and the mine was reopened in 1924. Demand for molybdenum increased gradually and in 1930, 3.5 million lb of MoS2 were produced. In the meantime, research work for additional uses of molybdenum continued until it had established itself as one of the most important alloying elements in producing high quality steels. After the start of World War 11, from January 1942 to October 1953, 43 million tons of molybdenum ore were mined and 484 million lb of MoS2 were produced. Climax mine is located in Colorado, 100 miles southwest of Denver and 12 miles northeast of Leadville on the Continental Divide of the Rocky Mountains. The principal mine workings range from 11,170 to 12,000 ft in elevation. Topographically, it lies in the base of a large cirque that is surrounded by Mt. Bartlett to the north, Clinton Peak and McNamee Peak to the east and Ceresco Ridge to the south. This cirque opens to the west and to the Ten Mile Valley.

Jan 3, 1954

By John C. Robison

INTRODUCTION Sensitivity analysis is a means of gauging the impact of individual risks on a financing. Key risks can occur in three time periods: - Feasibility, engineering and construction phase; - Start up phase (usually through completion); - Operating phase (post completion). If a company has agreed to cover these risks prior to completion, then less attention will be paid to the sensitivity of the project in the first two time periods. Since the operating phase of the project generates cash for both operations and debt service and generally does not begin until two to six years after the loan is signed, it is wise to look at scenarios other than the projected "base-case" scenario in order to determine the project's capability to operate successfully under a broad range of probable future events. Lenders are compensated at a fixed spread over their borrowing base and generally are not compensated if the project is successful beyond expectation. They are also subject to the loss of principal plus funding costs if the project performs below expectation. Because of this, lenders establish sensitivities around the parameters of conservative projections developed in the project feasibility studies and the cash flows resulting from these projections. The initial cash flow projections should demonstrate the project's ability to meet cash costs, debt service requirements (principal and interest), and still have sufficient cushion to cover contingencies such as strikes, price fluctuations, force majeur situations, etc. (See Schreiber, Chapter 10). The selection of the level of sensitivity analysis to be performed is the result of both objective criteria, including probabilistic analysis applied to the technical parameters, and, of equal importance, subjective criteria applied by the analysts, especially with regard to the economic and financial parameters impacting the project cash flows. RISK SENSITIVITY Assumptions used in the cash flow projections should be realistic. Risks identified by the lenders should be identified and cash flows prepared to assess whether these project risks are acceptable. Typical project risks include the following (see also Chapter 9): - Sufficient reserves - quantity and quality - Product price - Production level - Operating costs - Availability of energy and supplies - Transportation and infrastructure requirements and costs - Interest rate - Completion risks - Tax level - Political risks - Cost over-run risks - Operator experience - Management - Technological risks - Environmental permits and risks - Foreign exchange risks - Insurance coverage - Equity of sponsors - Inflation rate - Capital expenditure during project life In order to see the effect on the cash flow projections, each risk should be analyzed for its impact on the cash flow generating capacity of the project. Sensitivities can be examined to see if the resultant cash flow projection will meet the lenders minimum credit standards. 1.Reserve Sensitivity In general, lenders will not assume the reserve risk. However, it should also be noted that lenders receive loan proposals in which reserves range anywhere from proven to possible. Sensitivities are not generally run for various reserve levels and reserve estimates are either considered acceptable or not acceptable by the lenders.

Jan 1, 1985