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By Frank H. Madison

The percentage depletion deduction on Federal Income Tax Returns under the provisions of the 1939 Internal Revenue Code and of Sections 611 to Section 615, inclusive, of the revenue act of 1954, have created innumerable administrative difficulties, and a new interpretation of "gross income from the property" in that the Courts have expanded the ideas of what constitutes "gross income from the property" to a degree unheard of and unthought of prior to the enactment of these two codes. Originally, under the Revenue Acts of 1917, 1918, and 1920 depletion was allowable, based upon mine valuations as of March 1, 1913; if the mine was owned prior to March 1, 1913; upon cost, as of the date of acquisition if purchased subsequent to March 1, 1913; and upon a "discovery" basis if the mine was discovered after March 1, 1913, The "jab" for mine valuations as of March 1, 1913 and for discovery valuations and depletion was not as bad as it has been made out to be. Thousands of valuations and estimates of reserves were made and agreed upon between taxpayers and Internal Revenue Service engineers and as the years went on the answers have been found to be "reasonable." However, human nature being what it is each case was a battle of wits - of a sort - and many resulted in severe differences of opinion and litigation. As tax rates increased the situation was not bettered. I could talk for several hours on this phase of depletion but it is all past now andwould not give any real service or better understanding of the matter.

Jan 1, 1958

By M. Stuart

The copper-silver-mercury orebody of Gortdrum Mines (Ireland) Limited is located 3 miles north of the town of Tipperary in the Republic of Ireland. A drilling programme from 1964 to 1966 delineated an ore¬body of 4.19 million tons of copper ore assaying 1.19% Cu and 0.75 ozs per ton Ag, which could be mined from an open pit. Testwork having shown that the ore was amenable to conventional flotation techniques, it was decided to build a concentrator of 500,000 tons ore per year capacity. Stripping of the open pit commenced in 1966 and in the autumn of 1967 the concentrator started up. The first shipments of concentrates were made to the smelter in Europe in late 1967. In the spring of the following year, word was received from the smelter that these early shipments contained between 1% and 2% Hg, and that the smelter could not accept further shipments of this quality.

Jan 1, 1973

By G. ALBORNOZ, S. Utili, A. AGOSTI, C. VALDERRAMA, R. PELL, N. Morales

The steepness of the slopes of an open pit mine has a substantial influence on the financial return of the mine. The paper proposes a novel design methodology where overall steeper pitwalls are employed without compromising the safety of the mine. In current design practice, pitwall profiles are often planar in cross-section within each rock layer; i.e., the profile inclination across each layer tends to be constant. Here instead, a new geotechnical software, OptimalSlope, is employed to determine optimal pitwall profiles of depth varying inclination. OptimalSlope seeks the solution of a mathematical optimization problem where the overall steepness of the pitwall, from crest to toe, is maximized for an assigned lithology, geotechnical properties, and factor of safety (FoS). Bench geometries (bench height, face inclination, minimum berm width) are imposed in the optimization as constraints which bind the maximum local inclination of the sought optimal profile together with any other constraints such as geological discontinuities that may influence slope failure. The obtained optimal profiles are always steeper than their planar counterparts (i.e., the planar profiles exhibiting the same FoS) up to 8° depending on rock type and severity of constraints on local inclinations. The design of a copper mine is first carried out employing planar pitwalls, secondly adopting the optimal pitwall profiles determined by OptimalSlope. The adoption of optimal slope profiles leads to a 34% higher net present value and reductions of carbon footprint and energy consumption of 0.17 Mt CO2 eq and 82.5 million MJ respectively due to a 15% reduction of rockwaste volume.

Feb 9, 2022

By J. A. Porter

This paper uses project examples, primarily associated with large iron ore mines in Brazil, to demonstrate opportunities for the mining industry to go beyond traditional compliance and impact mitigation to proactively operate within the ethics of environmental and economic sustainability.

Jan 1, 1994

By James J. Meadows, Jason D. Pampena, Emanuele G. Cauda, Lauren G. Chubb

Exposure to respirable crystalline silica (RCS) can cause serious and irreparable negative health effects, including silicosis and lung cancer. Workers in coal mines have the potential of being exposed to RCS found in dust generated by various mining processes. The silica content of respirable dust in one single mine can vary substantially over both time and location. The current monitoring approach for RCS relies on the use of traditional air sampling followed by laboratory analysis. Results generated using this approach are generally not available for several days to several weeks after sampling, and this delay prevents timely and effective intervention if needed. An alternate analytical method is needed to reduce the time required to quantify the RCS exposure of mine workers. The National Institute for Occupational Safety and Health (NIOSH) has developed a new method using commercially available portable infrared spectrometers for measuring RCS at the end of the sampling shift. This paper will describe the application of the new field-based RCS analytical process for coal mines, including the use of the new method with the existing Coal Mine Dust Personal Sampler Unit. In a case study conducted by NIOSH with a coal mine operator in West Virginia, field-based RCS analysis was completed at a mine site to evaluate the new technique. The RCS analysis results obtained by the field-based method in this case study showed sufficiently strong correlation with results obtained by the MSHA standard laboratory analysis method to allow the mine operator to use the field-based method for evaluating process improvements.

By K. D. Dill, S. D. Rosenthal

"This project analyzed the efficiency of incorporating the use of directional drilling technology into coal overburden blasting. Directional drilling is currently in use in the petroleum industry and it is believed that it will be a valuable asset in the mining industry. This project has shown that directional drilling can be a viable technology for use in the coal overburden removal process resulting in increased drill utilization and potential for cost savings. Future work regarding blasting and geotechnical evaluation should be performed to solidify the concept. INTRODUCTION Determine the Potential Drill Utilization Improvements and Rock Fragmentation Requirements Using Directional Drilling in a Coal Mining Overburden Highwall Application was a project funded by Atlas Copco Drilling Solutions (Atlas Copco) based in Garland, Texas. The project was developed and researched by Montana Tech of the University of Montana. This project was intended to show how the use of directional drilling can increase drill utilization, while decreasing costs, without sacrificing overburden blasting results. This paper discusses a review of the literature, the methods performed, conclusions and future work Background Atlas Copco theorized that an alternative approach to drilling a cast blast pattern would be beneficial to coal mining operations by increasing drill utilization and therefore, decreasing overall costs. Increasing drill utilization results in an increase in the amount of time the drill is being productive, more drill bit time in ground. Atlas Copco’s theory is that by incorporating directional drilling in the design of a cast blast pattern, a drill rig could drill multiple directional holes, which are the length of the cast blast, from a single drill set up. A drill goes through a series of steps to complete a blast pattern, these steps include: tramming to the hole location, leveling the drill, drilling the hole, cleaning the hole, and retracting the drill steel. This process is repeated hundreds of times until the whole pattern is completed. The most time intensive part of this process is drilling out the blast pattern. Integrating directional drilling into this process could decrease the overall time it takes to drill out a blast pattern by minimizing the amount of time spent tramming and setting up for each subsequent hole. Tramming and drill set up are two aspects of the drilling process where the drill tool is not engaged with the ground and, therefore, not being utilized. A cast blast pattern designed to utilize directional drilling will allow the drill tool to be “in the hole” longer and will improve drill utilization. This change in drill utilization was analyzed. Drilling and blasting is an integral part of the mining process, without it mining would be a slower process and less material could be mined. Drilling provides holes for explosives to be loaded and then blasted. Blasting has been found to be the most cost effective method of fracturing rock in mining for material removal. Blasting is also used as a low-cost method to move the rock in open cast mines, commonly referred to as cast blasting. A cast blast is a large blast designed to allow for the maximum amount of overburden to be removed using explosives in a single blast thereby uncovering more coal at a lower cost. Not all the material is blasted to cast-to-final, which requires that material to be moved with large mining machinery. Material that is considered cast-to-final is material that has been thrown far enough to never be moved again in the coal extraction process, therefore it is in its final resting place. A typical cast profile and cast-to-final area is shown in Figure 1."

Jan 1, 2017

By John A. Dunn

The history of underground coal mining has developed through the years from a manual digging and loading process to the highly mechanized pro- cess that it is today through the use of electric power. Mine power systems have closely followed the continued pattern of improvement and mechanization, through necessity and the application of technological advances, At the beginning electric power used in coal mines was confined to haulage. Since d-c power was better suited to traction drives, mine power systems naturally developed using direct current. During this development, a number of street railway systems were in service, using 550 volts, and it was natural that mine trolley systems went in at 550 volts. As machines for mining operations developed and the number of operating mines increased, a safety hazard developed through the use of 550 volts. Most regulating agencies opposed the use of 550 volts, and after a time the maximum voltage permitted was limited to 300 volts hot line to ground. Up until this time most mines had operated with one central generating station, which served utilization power to the whole mine. Power demands were not very great and transmission losses were within reasonable limits.

Jan 1, 1964

By J. Kretschmann, R. Amiri

"The Sangan iron ore mines (SIOM) in Iran are located in a remote area near the Afghanistan border. The SIOM deposit contains a geological resource of 1.1 Gt (1.2 billion st) of mostly magnetite with an iron (Fe) grade ranging from 27 to 61 percent. The Iranian government plans a stepwise development of SIOM in cooperation with private companies to satisfy the growing demand of the Iranian steel industry. Sustainable development is an influential ethical concept in mining all around the world. However, a successful realization of a sustainable development plan is not possible without a foundation on the core values and regarding the specific circumstances of the individual mining country. This paper introduces SIOM and describes sustainable development activities undertaken during its development. From the early stages, these activities have been realized to secure the acceptance of the stakeholders in the region. To evaluate their effects, indicators were filtered to the ones with the highest priority for the stakeholders. Moreover, Islamic values and Iranian regulations and their influences on SIOM were analyzed.Mining industry in Iran The Islamic Republic of Iran holds 68 types of minerals, including salt, sand and gravel, gypsum, chrome, lead, zinc, copper, coal, gold, iron, etc., with 33.5 Gt (37 billion st) of proven reserves and more than 51.7 Gt (57 billion st) of potential resources. Iran is ranked among the 15 major mineral rich countries (1). In accordance with the statistics published by Statistical Center of Iran (SCI), there were 5,316 active mines and 84,922 employees in the whole country in 2012-2013 (2) and, according to the statistics published by Central Bank of Iran (CBI) in 2011, the share of this sector in the gross domestic product (GDP) of the country was 1.2 percent (3)."

Jun 1, 2016

By John O. Marsden

"This article is an attempt to capture a presentation given at the 2016 SME Mineral & Metallurgical Processing Division (MPD) Luncheon held on Feb. 24, 2016, in Phoenix, AZ. It was presented as a tongue-in-cheek, lighthearted view of several of the issues facing our industry, while identifying some of the challenges and opportunities available to new engineers entering the industry today.Disclaimer• What you are about to read includes personal preferences, biases and occasionally arbitrary opinions.• Some readers may have dissimilar opinions on the contents and/or the rank order of the lists.There are eight top ten lists offered in this article: (1) Industry realities (2) Things a metallurgical or mineral process engineering graduate should do (3) Books every metallurgist should have on their shelf (4) Things I wish I had known (5) Legends of metallurgy (posthumous, with highlights) (6) Things we’ve forgotten (7) Mineral processing innovations of the past 20 years and, finally, (8) The future? For some items, additional context or clarification is provided after the item, while for other items no further explanation is warranted and none is offered. Top 10 industry realities1. Metal price cycles.2. Bigger is better (except when it isn’t).3. Ore grades declining across the board of metals/commodities.4. Ores becoming more complex.5. Three-fold increase in capital costs between 2004 and 2015.6. Three-fold increase in operating costs between 2004 and 2015.7. Less capital availability/challenging financial markets.8. Environmental constraints increasing.9. Socio-political constraints increasing.10. The mine manager is always impossible to work with.As Table 1 shows, there was more than a three-fold increase in gold operating costs between 2004 and 2014. The increases for copper, iron ore and other commodities were similar."

Aug 1, 2016

Coal-derived flue gases contain CO2/SO2 and these contaminants preferably have to be captured by cheap sorbents. This remediation approach is from the standpoint of addressing issues such as global warming, acid rain and development of Advanced Power Generation Systems and to realize the economic gain as well. Conventional and existing dry scrubbing technologies use regenerable sorbents which are pollutant specific and require expensive stabilizers in order to attain versatility. This paper discusses the use a novel class of sorbents prepared from the heavy metal contaminated Berkeley Pit water (Butte, Montana) by a proprietary process developed at The University of Nevada, Reno. These sorbents are activated mixed spinel ferrite (MxFe,_X04)' Preliminary experimental results show that the sorbents have good desulfurization and CO2 decomposition capacities. The decomposition effectiveness of these mixed spinel ferrites was studied at 300°C and compared against the synthetic magnetite obtained from ferrous sulfate solution in our laboratory. The results indicated that the mixed spinel ferrite had good affinity for the adsorption and decomposition. The CO2 decomposition data of both sorbents fitted the first order reaction kinetics. Even though the surface area of the magnetite was higher than that of mixed spinel ferrite, the CO2 decomposition rate of the mixed spinel ferrite was estimated to be 2.5 times higher than that of magnetite under identical conditions. The carbon analysis deposited on the sample indicated that the CO2 was 100% decomposed into carbon and other carbon! hydrogen compounds by the mixed spinel ferrite whereas the conversion was 43% by the magnetite. In terms of specific adsorption of carbon, ferrite was 3-5 times more efficient than magnetite.

Jan 1, 1996

By Richard Addison

Rosario Dominicana, S. A. operates an 8,500 tonne per dayopen pit gold/silver mine in the Dominican Republic on the Caribbean island of Hispaniola. The mine is located in an agricultural area which is also an earthquake and heavy rainfall zone. In the 64 years from 1910 to 1974 there were 19 earthquakes within 300 km of the mine in the range of 6 to 8 on the Richter scale and the most recent earthquake in this range occurred in March, 1979. Average annual rainfall in the area is 1.7 m and is distributed throughout the year. Safe and environmentally sound tailings disposal in such conditIons has demanded the buiIding of an extremely strong dam wall and use of a fail-safe system of tailings disposal and solution reclaim. The type of dam, the system of tailings disposal and solution reclaim comprise an interesting example of the manner of handling tailings for a medium tonnage mine. The system is relatively costly but does assure a long-term, safe and trouble free structure and operating system. General views of the dam wall and tailings pond are shown in Figures l through 4.

Jan 1, 1980

By Jim McKinley

With a growing number of mines reaching closure and seeing closure costs materialize, regulators, lenders, and banks are observing projects that fail economically by miscalculating these costs. Mine closure costs are often categorized as a type of liability which is defined as the money owed by the company to offset effects from the project, and the money available to pay for those debts (e.g., bond). Often, decisions made before Day 1 of mining (e.g., co-disposal, dry stack tailings, waste segregation) can significantly change the bond calculation. Once the bond is calculated and funded, operators are encouraged to conduct closure research and use applied science for progressive bond release prior to final closure. However, this author has observed few instances of financially significant progressive bond release, as there are typically no robust procedures for bond return, either before or during closure activities. As a result, many companies decide that entering a state of Care & Maintenance (C&M) is less risky than attempting to fund closure activities with an unknown bond return mechanism. Although perhaps less risky in the short-term, the primary long-term risk with entering C&M is that it increases the chances of the bond not covering the cost of closure and the chances of the government/regulatory agency inheriting the mine closure. Bonds are typically reevaluated on a regular cycle (e.g., five years) so every mining company goes through this financing challenge eventually.

Feb 22, 2026

By Miguel Reyes, Mathew Girman, Chenming Zhou

Modern smart mining increasingly depends on sophisticated electrical and electronic systems for improved safety and productivity. With more electronic systems being introduced underground, the mining industry faces electromagnetic compatibility (EMC) issues caused by electromagnetic energy emitted by one device adversely impacting the normal function of another. This paper provides an overview of EMC and electromagnetic interference (EMI) research for underground mining, including a review of EMI in other industries applicable to mining, published EMI research pertaining to mining applications, representative EMI incidences, related EMI legislation in mining, and mitigation strategies.

Jan 3, 2022

By Paul Soros

There has been a steady increase in shiploading capacities in the last 20 years. One of the reasons has been the general increase in ship sizes, with the largest vessels currently around 280,000 DWT in the bulk trades. Obviously, the large vessels can accept loads faster and their economic utilization justifies higher loading rates, up to a point. The high capacity facilities have loading rates far beyond this point. The economic logic of these facilities is based on the fact that for a given annual throughput the capital and operating cost of a single high capacity system is less than that of two smaller systems. Thus, where the projected throughputs are large, there is a great incentive to reduce capital costs by maximizing capacity. Tubarao, in Brazil, designed for a 100 million ton per year throughput with one finger pier and one high capacity berth is a successful demonstration of this approach. In the current state of the art, the high capacity systems have shiploading capacities in the range of 10,000 - 16,000 TPH, for annual throughputs of 20 million tons and larger per loading berth.

Jan 1, 1982

By Joseph J. Feiler

Fires in underground coal mines are persistent problems anywhere in the world that coal is mined. Coal fires pose safety and health hazards in the form of mine subsidence, loss of energy reserves, destruction of property and surface improvements, and air pollution. In 1995, the US Bureau of Mines (US-BM), in cooperation with the Colorado Division of Minerals and Geology (CDMG),entered into a contract with Goodson & Associates Inc. (GAI) to design and field test the effectiveness of a new foamed grout technology called ThermoCell. GAI is a Lakewood, CO geotechnical and mining reclamation engineering firm. The company developed ThermoCell to control and extinguish underground coal fires. The viability of the special grout and the technology of application were established during a full-scale field demonstration at the abandoned IHI Coal Mine fire, near Rifle, CO. Following acquisition of additional funding by CDMG in 1999, Goodson returned to the site in April to continue the grouting to fully extinguish the IHI fire.

Jan 1, 2000

By William Gleason

"There are signs that the commodity downturn that has battered the mining industry for the past five years is beginning to ease up. As the dust begins to settle and mining companies begin to take stock of the battle, Newmont Mining Corp. will be one that is standing strong with just a few scrapes and bruises thanks in large part to the leadership of president and chief executive officer Gary Goldberg and his right hand man and chief operating officer, Chris Robison.As he closes in on retirement (for a second time) Robison, a third-generation miner from Nevada, took time to speak with Mining Engineering about a 33-year career in which, among other things, he is credited with not just helping Newmont survive the turbulent times but with steering the company to a safer, more productive and more profitable heading.“I think we did it better than anyone else,” Robison said when asked how the company fared during the past five years. “We didn’t talk about it a lot, we just put together a strategy and we delivered.”What Newmont, the world’s second-largest gold mining company by production, delivered since Robison took the position of chief operating officer in 2013 are improvements in costs, porduction, projects and safety.Operating under the mantra of “live within your means,” Robison was pulled out of retirement from Rio Tinto and into a challenging situation at Newmont. The price of gold was in a nose dive from a high of nearly $58/g ($1,800/oz) and heading to levels closer to $38.60/g ($1,200 oz).“Newmont is a big ship that can’t be turned, but has to be steered,” said Robison. “We recognized that we had to set a new course. The direction the ship was going was great for $1,600 to $1,800/oz gold but we were chasing ounces.”Like the rest of the gold mining sector before the falling gold prices, Newmont was focused on volume and was looking for gold wherever it could be found. The slogan at Newmont in 2011 was “7 million ounces a year by 2017.”When Robison came on board it was a different reality.“We had to begin focusing on value over volume as the cornerstone of Newmont going forward,” he said."

Aug 1, 2016

By Jerry C. Tien

The rare earth elements (REEs) are a group of 17 chemical (metallic) elements which appear in the periodic table. The group consists of 15 lanthanide elements along with yttrium and scandium (Table 1). They share many similar properties, which is why they occur together in geological deposits. Although commonly referred to as rare, they are really quite common; the reason they are perceived as rare is because it is not common to find them in commercially viable concentrations. These metals are critical to advanced technology, ranging from smart phones to global positions system (GPS) receivers, medical devices and jet engines. They are critical in green, high-tech and defense industries (Fig.1 and 2). Although there have been increasing efforts to find alternative supplies, these efforts have been complicated by the pollution that rare earth mining and processing creates. To extract rare earths minerals from mined ore is a complicated and costly process. The ore is first mined through normal mining process, the bastnaesite, which generally contains a number of minerals of little value, is first removed through a floatation process. The bastnaesite containing the REEs is further separated into their respective pure forms in a separation plant using acid and various solvent extraction separation steps. Each element has its own unique extraction steps and chemical processes. At times, these elements, in the form of oxides, will require reprocessing to achieve ideal purity. The last steps would be to further process into metals first, then alloys for various applications. The entire process takes approximately 10 days. The mining and processing of REEs, if not carefully controlled, can create environmental hazards. This is one of the reasons the Mountain Pass Mine in California was closed down in the 1980s.

Dec 1, 2013

By P. Eger

Minnesota contains a major low- grade copper-nickel sulfide resource within the Duluth Gabbro Complex. Several companies have actively explored this resource. Open pit mining would be required to develop portions of the resource, and as a result, large quantities of sulfide-bearing lean ore and waste rock would be stockpiled. Although the problems associated with high-sulfide tailings and acid mine drainage are well documented, the leaching characteristics of low-grade mineralized stockpiles must be understood for environmental impact assessment, siting, and planning. The Minnesota Department of Natural Resources and AMAX have cooperated in a research program to study leaching and revegetation -of test stock- piles, Six small (1600 'tons) stockpiles were constructed at the MINNAMAX Project Site and they range in composition from 0.29 to 043 g % copper, 0.075 to 0.09% nickel, and 0.6 to 1.45% sulfur. Two of the stockpiles were covered with mineral soil, one was covered with topsoil, and three were not treated Revegetation plots were established on the piles which received a soil cover. Leachate samples and flow measurements were collected at the base of the piles. Initial results indicate that metal concentrations in leachate samples range from 10 to 10,000 times the concentrations found in the streams of the area. During the first growing season, the test pile covered with topsoil yielded 30% less water than untreated test piles. No reduction in yield was observed for the piles that were covered with the less fertile mineral soil. First-year vegetative growth, expressed as biomass, was four times greater on the-topsoil pile than on the mineral soil piles. The long-term effects of vegetation on leachate quantity and quality continue to be investigated.

Jan 1, 1980

By Danny Chan, Shahram Tafazoli, Nicholas Himmelman, Edmond Chow

"While wearable technology has been garnering attention in the consumer market, enterprise and industry have just begun exploring its potential applications. Since February 2014, Motion Metrics International has been working in collaboration with Vandrico Solutions Inc. to apply wearable technology to improve productivity and safety in the mining industry.This article discusses the value proposition of using wearable technology to deliver critical notifications in mining. The advantages and disadvantages of various form factors are explored. The challenges, both specific to mining and in general to wearable technology, are defined. Finally, the concept of MetricsGear, the first wearable technology platform developed for mining by Motion Metrics International in collaboration with Vandrico Solutions Inc., is described. MetricsGear is designed to notify the user with minimal distraction to keep the user focused on his or her primary task and aware of mission-critical events. This focus and awareness allows the user to work more efficiently and safely. The mining process consists of a series of intricate stages, where certain events or conditions in one stage can have a huge impact on other stages. The notification of these critical events or conditions is vital for ensuring the overall efficiency of the mining process. Critical notifications can be classified as two types: timecritical events and contextual information. Time-critical events are situations where a timely response from a responder can have a significant impact on seizing an opportunity or mitigating cost. Some human-computer interaction (HCI) experts classify notification types based on the interruption, reaction and comprehension (IRC) framework. Time-critical events are classified to have high interruption, high reaction and low comprehension due to their urgency. The responder should have just enough information to identify the crisis and react as soon as possible (Chow, 2014). For example, when a tooth is lost during shovel operation, it is necessary to recover the missing tooth before it jams the primary crusher. The consequence of missing this critical time period is a jammed crusher that can cause the mine to be out of production until the jammed tooth is extracted (Baumann, 2013). In this case, the responder only needs to see an image to confirm if the tooth is missing and information to identify which equipment and when the tooth went missing (Fig. 1)."

Jan 1, 2014

By Bruce Kennedy, Charles Bruce

MINERAL EXPLORATION 'The Function of Exploration Mineral exploration aims at locating the presence of economic deposits and establishing their nature, shape, and grade. As all ore bodies are finite, exploration is essentially the lifeblood of the mining industry. It is divided into two phases, reconnaissance and target investigation. It involves geological mapping, geophysical prospecting (aerial and ground or both), geochemical surveys, prospect drilling, and/or exploratory under-ground workings. Successful exploration is followed by development drilling, mine development, and eventually operation. In underground mining, the term "ore" is applied rather loosely to metalliferous rock that can be profit- ably mined, but nonmetallic industrial minerals and energy related materials constitute a large and growing portion of the tonnage extracted by underground methods each year. It is appropriate, therefore, to consider exploration as the search for any useful substance occurring in the earth or in the oceans that is of sufficient value as to volume, grade, chemical and physical com- position, and location as to make extraction by mining commercially profitable for the investment required. The Selection Process The search for ore includes hundreds of mineral commodities. The more successful exploration organizations tend to restrict the search to the mineral commodities for which they have strong exploration expertise and which have a high probability of being concentrated in areas open to exploration and development in sufficient volume, grade, and proximity to the surface to warrant the large expenditures of risk capital in finding an ore body. Special expertise is needed to engage in mineral exploration and development for the extended periods required for success. Individual prospectors continue to discover mineral occurrences, but it generally takes an organization with strong financial resources to carry the exploration process forward to the point of developing "ore." Still greater corporate resources in the form of management, engineering, and sales capability are needed to develop an ore body into an operating mine. In the past, companies other than those engaged in mining rarely conducted exploration, since they lacked the technical skills and know-how to bring a mine to fruition. A notable trend in recent years has been the success of other resource-oriented firms, such as petroleum companies, that have not only acquired the necessary skills to engage in exploration for hard minerals, but are doing so on a far more intensive scale than known in the industry heretofore. The desire to diversify from increasingly regulated oil and gas, the potential for the discovery of a bonanza, and the large scale of mining projects for these capital-intensive firms are the attractions. US government and certain international organizations, such as the United Nations, have fielded sizable exploration programs in the past decade on behalf of Third World countries wherein many of the world's higher grade deposits and scarce mineral resources are located. The level of overall mineral exploration in the industry is, regrettably, closely geared to the business cycle. Accelerated search during the periods of strong demand, shortages, and high prices, together with the long lead times necessary to develop mineral finds, often creates surges in supply which invariably are followed by a collapse in prices. The trend is, therefore, to exploration funding by larger better-endowed firms having the staying power to weather the cyclical nature of mining. Tax incentives, tariff policies, and other incentives have a decided impact on the level and nature of exploration. Surface mining regulations and environmental forces have fostered a renewed interest in under- ground development despite the lower average costs of surface mining. Spiraling inflation has caused mining costs to outpace prices for many mineral substances. Organizations increasingly are directing their search away from high- grade but limited tonnage occurrences toward low-grade disseminated bulk tonnages amenable to mining on a vast scale. Mining continues, therefore, to grow even more capital-intensive with half-billion-dollar mine-mill- smelter complexes now commonplace, compared with the hundred-million-dollar projects of a decade ago. Reconnaissance Exploration Having elected to search for specific mineral commodities, the exploration company narrows its focus to a reconnaissance of those regions offering the best potential. A working hypothesis which is constantly up- dated concerning the geologic controls for ore occurrence guides the search. The possibilities for discovery are best in areas of existing mines and known ore bodies, where the probabilities are high for additional ore occurrences. In such areas, published data on the trends and geologic controls of known mineral occurrences aid the search. Even in some remote territories, a variety of geologic data is available to the explorationist. The major sources of basic geologic data are the libraries of the US Geological Survey (USGS), the state geological surveys, the American Institute of Mining, Metallurgical, and Petroleum Engineers (AIME), the US Bureau of Mines, and various institutions such as Colorado School of Mines. Overseas, virtually all of the countries have their own geologic survey groups which are associated directly, or indirectly, with their respective ministries of mines. The objective of reconnaissance exploration is to narrow the search by pinpointing target areas having interesting mineralization. These favorable areas are then investigated in detail to delineate potential ore bodies.

Jan 1, 1982