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By F. W. Lake

The ultimate production from a natural reservoir of petroleum is inversely proportional to the gas-oil ratios existing during the producing life of the reservoir whenever gas is the major expulsive force in the recovery. In other words, in the period during which gas is the major expulsive force the ultimate production will be increased if the gas-oil ratio is decreased, and vice versa. This condition prevails in the greater number of the present producing districts. While this relation is difficult to prove from actual operation, on account of the present paucity of detailed observations, it must be admitted after a study of the forces and conditions governing the recovery of petroleum from natural reservoirs. Where gas and oil exist under pressure in sand interstices and water movement is not freely possible, the force expended in moving the oil to the well is the expansion and movement of the gas through the pressure differential existing between the interior of the reservoir and the well. If pressure and solution conditions in the untapped reservoir are such that the relation between gas and oil volumes at atmospheric conditions is as 100:1; and if during the producing period, until the gas is exhausted, the relation between the gas and oil volumes produced is 300:1, it follows that only one-third of the oil has been produced and the remaining two-thirds cannot be recovered unless some extraneous force is introduced into the reservoir. This serves to illustrate the importance of gas-oil ratio control during normal producing operations. Gas-oil Ratio Control Eliminating natural conditions in a reservoir, which govern gas-oil ratios, such as the physical properties of the oil and gas, the physical characteristics of the reservoir strata and the original pressure and solution conditions in the reservoir, which cannot be controlled by operation practice; and also eliminating operating conditions that apply to the reservoir as a whole, such as well spacing, well locations, relative completion dates, various penetrations and drilling practice; there remains but one condition in each well that influences the gas-oil ratio and that is

Jan 1, 1928

By W. N. Best

Crude oil attracted attention because of its excellence as a fuel for openhearth furnaoes; for making crucible steel and brass; for melting copper, lead, tin, zinc, nickel, silver, malleable iron, gray iron; and for the production of steam in all sizes and types of boilers. For heating furnaces, mold-drying ovens, core ovens, ore roasters, calciners, hotair furnaces, sand drying, asphalt road work, etc., its superiority over other fuels is due to the fact that the heat is at all times under perfect control, so that a constant temperature may be attained and maintained at the will of the operator. This mcans a maximum amount and uniform quality of work. Crude oil is of two kinds, paraffine base and asphaltum base, and varies from 11 to 46 gravity BaumB. The light-gravity oil does not require heating before use; but oil of less than 20 gravity Baumé should be heated to just below its vaporizing point, in order to reduce its viscosity and to obtain the highest efficiency of combustion. Heavy California oil vaporizes at 230". F., Mexican crude oil at from 175" to 210" F., and Beaumont, Texas, oil at 142" F. Fuel oil vaporizes at 130" F. Scientific Installation Essential The burning of oil is an art based on science, and the "rule of thumb" should never be employed, especially in heating heavy crude oil. Thermometers should be used on both suction and supply pipes so that the fireman or smith will at all times know the temperature of the fuel. The indicators on such thermometers should be large enough to be readily seen by the operator, night or day. It is necessary to have an unvarying pressure of steam or air through the burner, to atomize the fuel. Also, the air used to support combustion should be delivered through a nozzle under the burner at a constant pressure. The oil pressure must not fluctuate; under no eircumstances should it vary more than 1 1b. The oil pump, which should be brass-lined, with the aid of the pulsometer and superheater, will insure a constant

Jan 1, 1916

By T. A. Rickard

In a previous paper (ante, p. 411) some description was given of the occurrence of the auriferous alluvium, extensive deposits of which lie among the highlands of the province of Otago, New Zealand. The present paper will describe some of the methods by which that alluvium is exploited. The alluvial mining of New Zealand is not yet hindered by " debris legislation." The mines are for the most part situated in a country of little agricultural value, and large rivers with rapid currents act as tailings conveyors. In time, however, steps will have to be taken to restrict the discharge into the Clutha of the tailings which are slowly raising the river-bottom. The methods of California have been followed in Otago with such alterations as peculiar local conditions require. The distinctive feature of the alluvial mining of Otago is the prominence given to the hydraulic elevator. The all-important factor in this form of mining is the control of an abundant water-supply at a suitable height above the level where it is to be utilized; and in this respect the gold-fields of the south island of New Zealand are most favora-

Jan 1, 1893

By Alan F. Stewart, Douglas R. Piteau, Dennis C. Martin

Three examples of open pits where toppling failure controls the stability and design of the slopes are described. Two examples involve the design of overall slopes in base metal mines. The third example concerns the analysis and design of remedial measures to prevent toppling failure from occurring in a critical slope in a coal mine. The analytical techniques for assessing toppling failure on a rational basis are discussed for the three examples. This includes an assessment of the important parameters which govern the stability for the toppling failure mode. The geological setting and input data for each example are described, as are the important external or limiting factors pertinent to the sites in question. A statistical cumulative technique was used to assess one of the most important input parameters in the two examples involving overall slope design. Both deep-seated toppling failures, involving the entire slope, and shallow bench failures are considered. Results of the stability analyses and their related engineering significance with regard to slope stability and design are discussed. A sensitivity analysis of various parameters is effectively utilized. Design charts are developed and evaluated accordingly. In the example where toppling failure was unavoidable, the rationale for design of stabilization techniques to prevent toppling is discussed.

Jan 1, 1983

By C. W. Spencer, R. A. Rummel, F. N. Rhines

SPECIMENS of five cast Cu-Bi alloys, containing 4.68, 0.53, 0.043, 0.0064, and 0.0025 wt pct Bi and cast pure copper were subjected to a bend test to determine their relative ductility. Using metallo-graphlc methods the structures of the fractured surfaces were compared with those of the polished cross sections. Embrittlement was found to be associated with the presence of a second phase in the grain boundaries although, in the lower bismuth

Jan 1, 1958

By Richard Kunter

INTRODUCTION Additional work has been done on the CIP circuit at Creede, and a brief description of this work is presented in this paper. DREDGE The original dredge for the Bulldog was built by Al Hack, Inc. of Denver. The dredge cutter head is mounted on a boom made of 6-inch diameter pipe which is raised and lowered by a cable-pulley system. Maximum cutting depth is 8 feet. Slurry from the dredge flows through a floating 6-inch diameter pipe supported on 55-gallon drums which runs from the dredge to the shore and then to a trash screen and pumping system. See Figures 1 and 2. The cutter head, suction pump, winches for dredge movement, and all other operations are controlled from a small operations house located toward the rear of the dredge. All of the basic dredge equipment is mounted on a chassis about 8 ft x 16 ft in size. Additional buoyancy was originally provided by sealed 55-gallon drums supported along the sides of the chassis by a small wooden framework. Additional framework and barrels on the front of the chassis on either side of the cutter boom provided additional stability, particularly when digging in hard material. The dredge was quite stable, but two problems were apparent. For one, it could have been sunk by someone from the shore firing a rifle into all of the barrels. In prime deer-hunting and sportsman country

Jan 1, 1983

By F. Milton Lewis, James L. Coburn

In this paper the economics for a conventional comminution system, consisting of three stage crushing and one stage ball mill grinding, are compared to a semi-autogenous/ball mill comminution system. Capital and operating costs for a copper concentrator in Arizona at two levels of production, 20 and 40 thousand short tons of ore per day, are estimated. In order to minimize the investment and operating costs, large size equipment is selected for all four cases. These cost data are evaluated and conclusions are presented.

Jan 1, 1982

Jan 6, 1953

By J. V. N. Dorr

THE Elko Prince mine is in the Gold Circle district, Nevada, about ½ miles(2. 4km.) from the town of Midas, 55 miles (88.5 km.) west of Battle Mountain and 50 miles (8.5 km.) northeast of Golconda. The district is described by Emmons in U. S. Geological Survey Bulletin 408, 1910. Little was said of the Elko Prince, however, as only a small amount of work had then been completed. The geological structure of the region is simple. The oldest exposed formation, covering most of the area, is rhyolite, which has a light-colored devitrified groundmass enclosing phenocrysts of feldspar, quartz, and magnetite. It has been somewhat weathered and partially stained with oxide of iron. There are several outcrops of andesite which cut the rhyolite. The ore deposits occur as fissure veins, replacement veins, and sheeted zones. The Elko Prince vein is of the first type. The rhyolite near the veins is silicified, stained with oxide of iron, and, at some localities, replaced by ore, or is so permeated by metals as to be classed as ore. The vein filling consists chiefly of quartz, and the values consist entirely of gold and silver. Part of the gold exists as the native metal and part is associated with pyrite. Silver occurs free and its argentite in handed streaks through the vein. These veins trend in a northwesterly direction, with dips varying from 65° to vertical.

Jan 8, 1918

By Herbert K. Kutter

This paper is concerned with the physical phenomena in the fracture process of presplitting and only indirectly with the establishment of the optimum presplitting parameters. Its nature is therefore qualitative, rather than quantitative. Before examining the problem of presplitting, it is first necessary to study the phenomena which occur when an explosive charge is detonated in a borehole. To do this it is desirable to consider the action of the explosion wave separately from that of the expanding gases.l In the theoretical analysis such a separation poses no problems. Experimentally this was accomplished by use of an underwater-spark discharge to generate the stress wave and by pressurized oil to simulate the pressure of the explosion products. The main role of the wave is to generate a densely radially fractured zone around the borehole. The subsequent gas pressure, exerted against the walls of a highly (radially) fractured cavity, generates a quasi-static stress field (henceforth referred to as static stress field). This stress field was found to be the same as that of a pressurized cylindrical "equivalent cavity" with a radius equal to that of the crack tips. Under these conditions the quasi-static stresses become appreciable and cause further extension of the radial cracks. It was further found that, under gas pressure, the longest of the radial cracks would extend first, and extension of two diametrically opposed radial cracks requires the least pressure. From these observations concerning the single shot the transition to a whole series of more or less simultaneous shots, as in presplitting, can readily be made. In the case of multiple shots, as in presplitting, exactly the same effects occur, but at numerous locations and sufficiently close in time that they interfere with

Jan 1, 1968

By M. King Hubbert

THE growth of human knowledge is an evolutionary process. His-torically our separate sciences came into existence as people became interested in various apparently unrelated domains of phenomena, and in this manner we acquired the sciences of physics, chemistry, astronomy, biology and geology. As various of these sciences became established, cognizance of them came to be taken by the universities and in this manner there arose the traditional departments of physics, astronomy, chemistry, biology and geology of our American universities. As there was no particular rationality in the boundaries separating the various sciences, in the university departments the jurisdiction of each has assumed quite arbitrary limits. In the domain of earth phenomena the first science to grow up was that of geology, which arose originally from the activities of the collectors of rocks, minerals and fossils. Thus geology evolved as a descriptive science dealing with directly observable terrestrial phenomena for which elementary rational explanations were offered. The traditional treat-ment of phenomena by the science of geology has rarely been with more than an elementary regard for the fact that these phenomena were also phenomena of physics and chemistry. Since the latter part of the nineteenth century, a new approach to terrestrial phenomena has been emerging and becoming of so great a significance that it can no longer be ignored. This approach has been made by people trained primarily in the sciences of physics and chemistry, who have investigated terrestrial phenomena as constituting phenomena of, their respective sciences. In this manner we have acquired the so-called "borderland sciences" of geophysics, the physics of the earth, and of geochemistry, the chemistry of the earth. Neither of these fields is new, having arisen chiefly at the hands of European investigators during the latter part of the nineteenth century. The European uni-versities have long since given official recognition at least to geophysics, by the establishment of departments or institutes of geophysics, which are on a par with ,the university departments of the other sciences.

Jan 1, 1938

By W. Rostoker

INTRODUCTION THE process of diffusion alloying of mixed powders offers attractive possibilities both commercially and experimentally. It avoids the fabrication difficulties arising from high alloy contents. Indeed, the process is facilitated by larger alloy additions. The direct formation of the part or test piece and the opportunity to perform machining operations under more favorable conditions are of no small importance. However, it is necessary to make only brief mention of the interesting features. As yet there have been few attempts to study this process in detail and to carry it to completion, if such is possible. It was intended not only to measure the intermediate and optimum magnetic properties of sintered alloys but to use magnetic testing itself as a means of following the progress of alloying under various conditions. Having established that alloys could be successfully synthesized by this technique, the opportunity was taken to study the magnetic properties of several alloys of iron and silicon which had hitherto been too difficult to prepare in suitable test piece form, While avoiding some of the difficulties inherent in the fabrication of alloys by orthodox methods, the diffusion alloying process introduces a few of its own. The first of these is the evaluation of the approach to homogenization. In recent years some notable contributions have been made to this question, but considerable uncertainty remains in its definition and evaluation. This work has concerned itself with further study of this problem and it is hoped that more light has been shed on it, The second of these difficulties arises from the presence of porosity. It is inevitable that in the consolidation of a loose bulk of powder, there should remain some voids unless extremely high pressures are repeatedly applied. It was therefore of importance to investigate their effect on magnetic properties. Recently this effect has been studied and certain predictions made of its behavior. It is believed that the experimental results presented here provide a sound substantiation of the theoretical treatment. The attempt has been made to synthesize five alloys of the iron-silicon system and three each of the iron-nickel and iron-cobalt systems. A series of experiments was also conducted on some of these alloys to test their susceptibility to heat treatment. Some unfortunate experiences have provided opportunity to report data on the deleterious effects of nitrogen on magnetic properties when present as a contaminant in protective atmospheres. MATERIALS, PREPARATION OF SAMPLES AND TESTING The purest materials available were employed for this work. A specially purified,

Jan 1, 1948

By Irving A. Palmer

During the past 15 years in this country there have been few additions to the literature of lead smelting. After the consolidation of the principal smelting companies at the beginning of this period it became the policy of the larger company not to permit the publication of details in regard to many of its metallurgical processes. This led to similar action on the part of some of its competitors. The result, of course, was a decided decrease in the number of papers written upon the practical side of the subject. Even upon the theoretical side the contributions have been few. It would seem that the industry as a whole has suffered from this general unwillingness to exchange information. While it is true that a given company is entitled to the reward that may come from its own development of a new process, it is also true that a still greater reward might be the result of a free exchange of ideas with other plants. This principle has been recognized for a long time in other metallurgical industries, notably those engaged in the smelting of iron and the manufacture of steel. It is pleasing to note that the leading lead-smelting company has very recently decided to modify its policy of secrecy, and to permit the publication of papers covering some details of its metallurgical methods. The statement has been made that there has been but little progress in lead smelting during the period just referred to. This impression is due in part, no doubt, to the scarcity of papers written on the subject. 'There has been, it is true, some discussion of the new sintering processes, but with little reference to detail, and to the effect that blast roasting has had upon the industry as a whole. In spite of the prevailing belief, it may be said that lead smelting, in common with other metallurgical industries, has made steady and substantial progress. It is the purpose of the present paper to discuss briefly some features of the industry as it is now conducted, with special reference to the blast-furnace practice in the larger silver-lead smelting plants of the United States and Mexico.

Jan 1, 1915

By H. A. Hamza, N. E. Andersen

Emulsions have long occupied an important position in many industries. In the petroleum industry, where enhanced oil recovery techniques such as steam stimulation, flooding, etc. are being increasingly practiced, emulsions are very frequently produced. Characterization of these emulsions are an important prerequisite for monitoring and evaluation of the recovery processes. Emulsion properties will also determine the type of treatment required to separate and recover the oil phase. A variety of laboratory, pilot-scale and field-generated emulsions were characterized. Coulter technique results for size analysis are compared with microscopy (image analysis) and laser light scattering methods; Coulter determined oil contents are compared with gravimetric and volumetric methods of analysis.

Jan 1, 1980

By Robert T. Pring

In addition to the humanitarian aspects of a dust-control program, certain economic benefits are becoming more fully recognized and now furnish a greater incentive to the mill operator to eliminate the dust from his plant. It is well known that a favorable working environment promotes increased efficiency and improves the morale of employees, with a consequent decrease in labor turnover rates. One progressive mining company' estimates its direct and indirect labor turnover costs at from $40 to $50 per man; for skilled labor, such as machine operators, the cost may approach $100 per man. While these figures may not be typical of every plant, they do indicate a potential savings in operating costs. Dust signifies waste; its elimination decreases maintenance costs of mechanical and electrical equipment; its recovery is often justified from the standpoint of values contained in the collected material, although in large-scale milling operations handling low-grade ore this may not be an important factor, Perhaps the most significant trend in industrial sanitation is that dust-control equipment and procedures are becoming recognized as integral parts of the mill flowsheet. Exhaust ventilating systems are now afforded equal care in design and maintenance to that given other machinery more closely related to the Process. Methods of Dust Control "Dust control" is a general term descriptive of a number of methods used singly or together to prevent particulate atmospheric contamination. These methods are: in order .of their desirability, as follows: 1. Change of process. 2. Isolation of process. 3. Wet methods. 4. Ventilation. a. Local exhaust ventilation. b. General ventilation. 5. Personal respiratory protection. In ore-concentration plants it is seldom prac tical to change a process to eliminate the dust it creates It is possible in some cases to isolate a particular dust-producing operation from the rest of the plant, provided that constant attention on the part of the operators is not required. Frequently water is used in fine crushing and fine grinding, primarily to facilitate the processing of the ore and incidentally to allay the dust produced. Wet methods, however, are not feasible in coarse and secondary crushing operations, because of the relatively great volume of water required in instantly wetting each freshly fractured rock surface. Such quantities of water would entail conveying and storage difficulties. Local exhaust ventilation is the most effective and most commonly applied control measure, wherein directional air currents through the zone of dust production draw the contaminants into a duct system. Unfortunately, only a limited amount of reliable information on exhaust ventilation is available.2-5 of necessity these publications are rather general, being primarily concerned with engineering fundamentals. While many organizations have successfully

Jan 1, 1943

By W.C Ellis, Earle E. Schumacher

Nonferrous alloys upon which desirable properties can be conferred by heat treatment are becoming of increasing industrial importance. The alloys of copper with a constituent which has a solubility varying with temperature are materials of this character. Some of the constituents which are effective in producing a change in the mechanical properties of these alloys upon heat treatment are, according to Corson,' nickel and silicon, iron and silicon, cobalt and silicon, and chromium and silicon. In addition to these elements, Gregg2 states that the combination of beryllium and silicon is effective in producing age-hardening characteristics in copper. The effect of these elements, however, as dispersion-hardening constituents in the copper alpha solid solutions does not seem to have been studied in any considerable detail. This paper deals with the heat treatment and properties of three alpha brasses containing 3 per cent. of nickel plus silicon in the proportion necessary to form the compound nickel silicide, Ni2Si. Some information of a preliminary nature in regard to the hardening by heat treatment of phosphor bronze containing the same percentages of nickel and silicon is included. The method of hardening the alloys, which is effective in increasing the tensile strength and proportional limit, is similar to that used in the case of duralumin type aluminum alloys. It consists of a quench from a temperature at which the hardening constituent is in solid solution, followed by an aging at a lower temperature to precipitate the dissolved constituent in a dispersed condition. This results in an increased resistance of the alloy to deformation with an attendant improvement in the tensile properties.

Jan 1, 1929

By Henry J. Joesting

During the past year and a half, the Territorial Department of Mines in Alaska has conducted a modest experimental program for the purpose of determining the extent to which magnetic and resistivity methods can be used in interior Alaska in connection with prospecting, mining and geological studies. Since little information is available concerning previous work,l,2 and since conditions differ considerably from those in most other regions, it was considered advisable to make a general study of the possibilities and limitations of the two methods, rather than a detailed study of any single problem. Problems One of the most serious handicaps to prospecting and geological study in interior Alaska, especially in the mature regions, is a cover of unconsolidated deposits ranging in thickness from a few feet to several hundred feet. These deposits, some of which are permanently frozen, consist of silt with varying proportions of vegetation and windblown material in the valleys and of residual deposits on the hills.3'4 The problems treated here are caused by the existence of this overburden: I. Location of buried placers. 2. Determination of depth and areal distribution of permanently frozen and of thawed unconsolidated deposits. 3. Location of water-bearing beds under unconsolidated deposits. Instruments and Methods Magnetic and direct-current resistivity methods were used because they are relatively simple, rapid and inexpensive and because generally they are well suited to the study of the problems indicated. The instruments used were a vertical Schmidt-type magnetometer and a direct-current resistivity instrument similar to those used by the Geophysical Branch of the U. S. Geological Survey. For placer surveys with the magnetometer, a sensitivity of about 25 gammas per scale division was found suitable. For resistivity studies of frozen and thawed overburden and of underground water, the Lee partitioning method6 was found to be most generally suitable. In the Lee method a central potential electrode is placed midway between the two potential electrodes of the Wenner four-electrode configuration.7 Nonpolarizable electrodes were made from unglazed porcelain pots about 10 cm. high and 5 cm. in diameter. In order to retard evaporation of the electrolyte the sides of the pots were glazed, inside and out, with clear Duco lacquer. For resistivity work in cold weather, a nonfreezing electrolyte consisting of equal parts of ethylene glycol and a saturated water solution of copper sulphate proved satisfactory. Stainless steel rods of 3/4-in. diameter made excellent current electrodes because their bright finish enabled good ground contacts to be made.

Jan 1, 1946

By H. B. Pulsifer

The unprecedented high price of zinc ore prevailing through the early months of 1915 caused great activity in the Joplin district of Missouri. The Media mill is conspicuous as one of the first of the new "big mills" of the district. The mill was built over a mine previously worked but abandoned in 1912 because of the leanness of the ore and the large quantity of water encountered. The ore prices prevailing—$100 a ton in June, 1915, as against $50 in 1912-—favored the new undertaking. The mill was designed for good recovery so that it might operate in times of depression. In design and equipment, the mill is exclusively local in conception and construction. Former Exploitation The tract of land is a part of the large Guinn holdings; 70 acres are comprised in this particular lot, which is situated just a mile north of the center of Webb City on the Alba line of the Southwest Missouri Electric Railway. The ore lies 242 ft. below the surface at the top of the knoll which is surrounded by the well known properties: Black Cat, Ground Floor, Florence, Hurry-Up, Electrical, and Mercantile. Since the abandonment, in 1913, of the Yellow Dog a bit farther to the north, the Black Cat, Ground Floor, and Florence workings had been flooded. However, as there was no cut through from this side into the area it was proposed to exploit, it was thought that moderate pumping facilities would take care of the water. Three shafts had already been sunk to the ore horizon during the previous operations; the ground was connected by wide drifts and possibly 10 acres mined out, principally about the two southerly shafts which at surface are 8 and 13 ft. lower, respectively, than the collar of the shaft at which the new mill was built. The former mill on the lease was known as the Bohemian Girl. This mill, built in 1910, was removed after some 3 years' work. A head frame and hopper still existed at the middle shaft, sometimes known as the lower Hold Out shaft, but at the most northerly

Jan 1, 1918

By W. G. Whildin

This paper will be confined to a discussion of the methods in use in the property of the Lehigh Coal & Navigation Co. in the Panther Creek valley. Only the methods used in mining the Mammoth vein will be .considered, as the methods in use in the smaller veins are adaptations of the same. Typical cross-sections of the coal basin are shown in Figs. 1, 2, and 3. The Mammoth vein varies in thickness. It is 21 ft. at one colliery, 50 to 125 ft. at another, and over 200 ft. at still another. Its normal thickness is 35 to 40 ft. At some points in the Panther Creek basin the Mammoth vein is made up of three splits-the Bottom, Middle, and Top, while in other portions the dividing strata between the benches amount to only 1 ½ to 2 ½ ft., and the vein is practically in one. The section of the Mammoth vein shown in Fig. 4 was taken at the Greenwood colliery, and shows a thickness of 60 ft. The miners know it by benches, as follows:. The Three-Foot, the Four-Foot, the Eighteen-Inch Slate, the Bony, the Grey Slate, the Grain Clear, the Five-Foot, the Seven-Foot, the Slaty or Dirty benches, the Blue Slate, and the Top bench. The present-day methods of mining are an outgrowth of the experiences of the last 100 years in this territory. The first attempt at mining, according to the company's maps, was made at Summit Hill in 1792, when open cuts and pits were made. Later the pillar-and-breast method was introduced. This and other methods will be discussed hereinafter. Drifts, slopes, and shafts, according to the requirements and physical conditions, are the main openings, from which the gangways are driven. The gangways (haulageways) and airways are driven along the strike of the vein; the gangways in the various veins on the same level being connected by tunnels through the intervening rock. The gangways and airways in thick veins are heavily timbered ;throughout. The sets of timber, consisting of a collar and two legs, are spaced 5 ft. apart, and later, after the ground :has settled, additional sets, called "liners" or "relief sets," are placed between, to relieve the strain on the original timbers, so that the result is a set of timber every 2 ½ ft.

Jan 12, 1914

By Hans W. Schreiber, David W. Neuhaus

INTRODUCTION The Sunshine Mining Company's 16-to-1 silver deposit and mine project are located 384 kilometers (240 miles) southeast of Reno and 360 kilometers (225 miles northwest of Las Vegas, near Silver Peak in Esmeralda County, Nevada, at an elevation of about 2,300 meters (7,000 feet). The deposit was being developed, in 1980, with an anticipated mining and milling rate of 150,000 tons per year (500 tons per day). Mining is by underground, blast-hole open stoping with rubber-tire haul-age out of the mine to a straight cyanide plant about 5.5 kilometers (3.5 miles) from the mine. The product is a gold-silver dore which may be further refined at Sunshine's new refinery in Kellogg, Idaho. The cash required for investment was obtained through the sale of $25 million worth of 6 l/2h silver-indexed bonds. Some $15.0 million were directed toward development of the 16-to-1 Mine. These bonds, which were underwritten by Drexel Burnham Lambert of Chicago in April of 1980, are redeemable on or after April 15, 1985 or payable at maturity on April 15, 1995 at the greater of either $1,000 or the market price of 50 ounces of silver. Behre Dolbear acknowledges the kindness of the Sunshine Mining Company (Sunshine) for allowing the presentation of the subject material for this Case Study. APPLICABILITY AS CASE STUDY Reasons for Choosing 16-to-1 The reasons for choosing the 16-to-1 Mine as a case study follow: 1. The project is simple and compact. 2. The mine is small -- thus relevant to other contemplated precious metal operaions in the western states. 3. The areas of risk are readily identifiable. 4. A change to project financing was under consideration. 5. A substantial decline in the price of silver was experienced during development. 6. Behre Dolbear undertook one of the first feasibility studies of The 16-to-1 and thus has some familiarity with the project. Historical Summary The following history serves as a setting: 1. Late 1920s -- minor "production"(?) via shallow pitting. 2. Mid-1930s -- neighboring Nivlok Mine successfully put into production. 3. Late 1950s (?) -- Callahan Mining Company acquired rights and drilled -- results inconclusive; Callahan turned property back to Arthur Baker, who had originally interested Callahan in 16-to-1 on the basis of its similarity with Nivlok Mine.

Jan 1, 1985