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By John Stewart

The market at present supplied by shipments from the phosphate districts of Quebec, Ontario, and New York State requires high-grade ore, carrying from 75 per cent. to 90 per cent. of phosphate of lime. In sorting out such material by hand, much valuable phosphate is necessarily left in the "culls" or refuse, besides which, much phosphate-rock of low-grade is not now mined at all, because it cannot be made available by the crude method of cobbing and hand-sorting. The utilization of such material, which would, of course, greatly benefit this industry, requires either a mechanical separation or a chemical process which would concentrate the phosphate in a form suitable for agriculture. Considering the rich phosphate now shipped as the first class, we may arrange the lower grades in three classes, as follows: Second Class.—Cull-ore from the first class, and the mass of deposits having, as gangue, pyroxene or hornblende. The following table gives the hardness and specific gravity of the minerals concerned: Hardness Spec. gravity. Apatite,....... . 5 3.1 to 3.25 Crystalline limestone (pink calcite),. 3 to 4 2.5 to 2.9 Pyroxene,..5 to 6 3.23 to 3.5 Hornblende,.5 to 6 2.9 to 3.4 Feldspar (orthoclase),. .. . 6 to 6.5 2.5 to 2.6 It is evident that when pyroxene and hornblende are present in large proportions, this ore cannot be successfully concentrated by crushing and jigging. It may be reduced to fine powder by successive treatment in a rock-breaker and a Sturtevant or Frisbee-Lucop mill, or other suitable apparatus, and in this condition it could be largely used by applying it freely upon exhausted clay soils, such as occur in Quebec and Ontario. The occupants of these once fertile river-lands are, however, hard to move in the direction of such improvements. When water-power is at hand, the cost of crushing

Jan 1, 1893

By AIME AIME

AT the Morenci branch of the Phelps Dodge Corporation, of which Frank Ayer is manager, several new types of machines that have been developed by Charles Mitchell, shop foreman in the drill steel shop, invite comment for their time and labor-saving qualities. Foremost of these is an adjustable gage-block and gaging device for attachment to drill-sharpening machines, developed and patent applied for by Mr. Mitchell. It replaces the blocks on the standard Ingersoll-Leyner drill steel sharpener No. 5. Features of the device are gage blocks with a flat surface which can readily be removed when worn and planed in any flat planer; blocks that can be adjusted with a templet to give a far more accurate gage than was formerly possible; and a center stop that is adjustable and can be accurately set to center any standard size drill steel.

Jan 1, 1930

By Walter R. Crane

PAGE I. Apparatus and Methods.......... 406 1. The Magnetic Circuit...........406 2. Apparatus Employed in the Traction-Method...... 406 a. The Coils............409 b. The Pole-Pieces..........409 3. Methods of Testing Fields Produced by Different Pole.Pices.. ..409 c. Testing with a Search.Coil........410 d. Testing with Iron-Filings and Glass Tube.. .. .410 4. General Forma of Pole-Pieces.........411 e. Flat Poles............411 f. Conical Poles........... 411 g. Spherical Poles...........411 h. Chisel-Edged (Chamfered) Poles.......412 II. Magnetic Fields...........412 5. Methods of Testinq for Magnetic Permeability...... 421 i. The Rod-Method..........423 j. Method Employed in These Experiments......424 k. Difference in the Results of the Two Methods..... 425 l. The Traction-Method.........427 m. Effect of Loosening the Charge.......430 n Corrections...........432 6. Theory.............433 o. Effect of Varying Weight on Tractive Force..... 434 p. Effect of Varying Pole-Distance.......436 q. Effect of Varying Magnetization.......436 T. Effect of Varying Size.. .......437 a. Summary,........... 441 III. The Relative Magnetic Permeability of Various Minerals,. 443 The form and strength of magnetic fields have attracted much attention. especially in connection with the designing of dynamo-electric machinery—an art which has been revolution-

Jan 1, 1902

By Samuel J. Sims

The Grace mine magnetite deposit, located 2 miles north of Morgantown in Berks County, Pennsylvania, was discovered in 1948 by an aerial magnetometer survey. It is situated on the southern border of the Triassic lowlands section of the Piedmont province. Cambrian sandstones, shales, and limestones overlie Precambrian crystalline rock and were folded and thrust-faulted during the late Paleozoic Appalachian revolution. Late Triassic continental sediments were deposited on the deformed basement rocks and were intruded by Late Triassic diabase dikes and sills before regional tilting and normal faulting occurred. The Grace mine magnetite ore is characteristic of the Cornwall type. The ore has replaced a Cambrian limestone lens isolated between Triassic diabase footwall and Triassic sedimentary rock hanging wall. The ore body is roughly tabular in shape, dips 20° to 30°NE and plunges about 20°N80°E. The ore is granular, fine- to medium-grained, typically consisting of unevenly distributed magnetite in a matrix of light green to white serpentine gangue. Magnetite is the major ore mineral, pyrite and chalcopyrite are common accessory minerals, and pyrrhotite occurs locally. Sphalerite, marcasite, galena, hematite, digenite, and goethite are uncommon. Serpentine, talc, and chlorite are the major gangue minerals; calcite and dolomite are common, and phlogopite, tremolite, and biotite are present locally. Apatite is a common accessory; sphene is rare. Calcium-magnesium silicates were formed first by contact metamorphism of impure limestone by the intruding diabase. Later, the silicates were altered hydrothermally to the serpentine- talc-chlorite assemblage now present. Magnetite, the first ore mineral, formed by replacing serpentine and was followed by pyritepyrrhotite and then by chalcopyrite-galenasphalerite. Marcasite, secondary pyrite, goethite, and hematite are secondary minerals resulting from alteration of pyrrhotite and magnetite. It is estimated that confining pressure was about 1500 bars and the temperature range was 500° to 675°C during ore formation.

Jan 1, 1968

By Lewis M. Haupt

Discussion of the paper of Mr. Granger, presented at the New Haven meeting, February, 1909, and published in Bulletin No. 25, January, 1909, pp. 1 to 37. LEWIS M. HAUPT, Philadelphia, Pa. (communication to the 'Secretary*) :-This subject is of great interest to me, and I am noting progress and conditions as a test of my own judgment in advocating what I believed to be the nearer, cheaper and better route at Nicaraugua. I have as yet learned nothing to change my views, or modify the convictions which led me to retire from the Commission; but that is not the issue to-day. Our government is committed to the Panama route, and is bound to " make good." There are many points presented by Mr. Granger which seem to me worthy of very serious consideration. But when all is said there remains the risk of seismic convulsions, to which either form of canal is subject; and I fail to see that the risk would be reduced by making the cut deeper, with greater surcharge of lateral pressure upon the side walls. A severe earthquake in the rainy season would doubtless close either type of canal. One of the arguments in favor of the Panama route most insisted on, was that Nature had provided good natural harbors at its termini. Recalling this, it has interested me to note that the cost of creating the necessary harbors is estimated at $27,000,000. Mr. Granger refers to this, and quotes the Board's report to the effect that, on the Atlantic side, it will require 5 miles of jetties to " make an excellent harbor out of a wretched one." The vulnerable part of Mr. Granger's paper seems to me to lie in the admission that the plant required is still in the embryonic stage, and that at least one machine should be built and tested " to demonstrate that the theoretical strains and forces work out in practice exactly as expected." This, how-

Jul 1, 1909

By George Young

DURING the spring of 1910 I visited a number of open-pit brown-coal mines and underground workings in the vicinity of Halle, Halberstadt, Leipsic, Cologne and Bonn. The notes which I took and the observations which I made at the time have been condensed and make up the principal part of this paper. Certain supplementary information has been taken from several sources which are given in the paper. The mining of brown coal is one of the important industries of Germany. The coal varies in color from dark brown to almost black and is soft like loam. Pieces of wood and strips of bark and, even parts of tree trunks are frequently encountered in the excavation although the coal for the most part consists of a pulverulent, more or less matted mass of small particles of vegetal matter. It is a product between peat and lignitic coal. An analysis, taken from Coal Resources of the World shows the approximate composition of the material: Moisture, 53.73 per cent.; ash, 4.98; fixed carbon, 18.08; volatile carbon, 23.31 per cent. The principal characteristic is the amount of moisture. This seldom runs less than 48 per cent. The ash is usually low and ranges from 5 to 10 per cent. The sulphur content is usually less than 0.5 per cent. The heating effect of the fuel ranges from 2,000 to 2,500 calories.

Jan 2, 1916

By W. S. Ayres

I. Introduction. This cavern was discovered Oct. 32,1904, by Mr. Charles 8. Deutschman, in company with whom I made, May 29 to June 3,1905, at the request of Mr. Howard Douglas, Superintendent of the Canadian National Parks, the first exploration of it for the Canadian government. The results were stated in a paper, orally presented, with lantern-views from my photographs, at the British Columbia Meeting of the Institute, Victoria, B. C., July 5, 1905.* The present paper embodies also the results of a second examination, made Oct. 25 to 29, 1905. The accompanging map, Fig. 1, will serve as a guide to the following description. 11. Location. The cavern is situated at snow-line, at the head-waters of Cougar creek, on the west slopes of the Selkirks, about 2 miles north from Ross Peak water-tank, and 5.5 miles west from Glacier station, on the main line of the Canadian Pacific Railway. It was then reached by an arduous climb from the water-tank, up the ravine of Cougar creek, for 8,000 ft. (2,000 ft. of altitude) over rock- and snow-slides, and through a thick tangle of alders. But an easy and very picturesque trail has, during the past summer, been opened by the government from Glacier station, which is also a hotel of the railway company. Figs. 3, 3 and 4 represent views, not heretofore published, of the grand scenery of this region, so rapidly becoming the object of attraction to thousands of tourists from all parts of the world. These views, as well as those shown in Figs. 5, 6, 7, 8

Jan 1, 1908

A regular general meeting of the Canadian Mining Institute will be held in Vancouver, B. C., on Nov. 26-28. The Council extends a cordial invitation to all members of the American Institute of Mining and Metallurgical Engineers to attend.

Jan 11, 1919

By Richard Miller

RECENT studies of creep have made it apparent that plastic deforma-tion may occur in metals under stresses less than the elastic limit as deter-mined from short-time tests. In summarizing conclusions drawn from creep tests by various investigators, Tapsell1 said: "It is evident that if a material has a true elastic range, the elastic limit must represent the maximum stress for no creep." The presence of a. definite elastic limit, represented in single crystals by a critical or threshold shearing stress, is claimed by Schmid2, Elam3 and others who have investigated the plastic deformation of single crystals. However, this "law of critical shearing stress" was deter-mined2 from short-time tests, and the measurement of the deformation was made with apparatus primarily designed to observe large amounts of plastic deformation, not to detect elastic changes. Experimental data recently obtained with highly sensitive instru-ments by A. W. Hanson4 on zinc and by Podaschowsky5 on rock salt indicate that the elastic range in single crystals is considerably narrower than formerly was supposed. Moreover, a theoretical possibility of permanent deformation, under the influence of even the smallest shear stress in single crystals above a certain temperature (Td), has been developed by G. I. Taylor6. This evidence seemed to warrant an examination of the elastic limit in large single crystals by means of creep tests. The first metal chosen for examination was zinc.

Jan 1, 1936

By AIME AIME

WEST TEXAS, New Mexico and Northern Mexico form one of the most interesting regions in America for geologists and mining men and are full of points of historical and human interest for others. Including as the region does, a representative portion of the high plateau of Mexico, the front range of the Rocky Mountains and the great down-dropping plains of Texas, there is variety as well as interest in the geological and mining problems there to be studied. Gold and silver mining were the pioneer industries and are yet of high rank in importance. Among the papers to be presented at the El Paso meeting of the Institute this month will be two dealing with silver mining and ore treatment at the Shafter mine in Texas, that most un- usual property which has for so many years been the largest mining enterprise in its region. West Texas is now better known for its petroleum and gas, and in another paper will be described the problems involved in uding natural gas for smelting at the well-known El Paso smelter of the American Smelting and Refining Co. In still other papers, presented at the session sponsored by the West Texas Geological Society and cooperating organizations, the general geology of the region, the potash and the sulfur deposits will be de- scribed. At El Paso the refineries of the great com- panics will be available for visits.

Jan 1, 1930

By James C. M. Li, J. Weertman

James C. M. Li (United States Steel Covp.)—The author has discovered a single analytical relation between the minimum, or the steady-state, creep rate and the applied stress confirming a statement made earlier by orn" that such relation should exist and should reduce to the power law at low-stress levels and to the exponential law at high-stress levels. However, as pointed out by the author, all the available theories of creep are not adequate to explain such a single relation. Inspired by such a statement, I have made a suggestion concerning a possible explanation13 of the new relation. This is based on the concept that the rate-controlling step is the cooperative motion of a short dislocation segment. The nature of and the reason for the cooperation have been discussed13 as well as the reason why the motion of the dislocation could be controlled by the mobility of the short segments. A natural short segment has been proposed13 to be the node formed at the intersection of two dislocations. The reason why the node may contain only a few atoms has not been discussed and the application of the proposed model to all the metals and alloys reported in this paper has not been attempted. It seems appropriate to include these in this discussion. The model was partly inspired by the substructure recently observed in the electron microscope on creep specimens. One such example is shown in Fig. 48 in Darken's Campbell Memorial Lecture. The substructure is a collection of dislocation intersections and irregular networks. No pileups have ever been observed in such specimens. A closer look at the network indicates that one set of dislocations is more straight than the other set sug- gesting that the other set may be mobile in the plane of the net. Since, for the network to survive the creep deformation, some dislocation reaction has to take place at the intersection of the two sets of dislocations, the mobile dislocation, even if it can slip in the plane of the net, will have difficulty in moving at these intersections. To illustrate, an idealized network is shown in Fig. 9. The thin lines represent the set of dislocations which are mobile and can slip in the plane of the net except at the nodes which are formed at the intersection of the two sets of dislocations. The other set of dislocations, represented by the thick lines, may have a Burgers vector which is not parallel to the plane of the net, and therefore may be immobile. Because of this nonparallel Burgers vector, the Burgers vector of the node, which is avectorial sum of the Burgers vectors of the two sets of dislocations, will also be nonparallel to the plane of the net. Therefore, the node cannot slip in the plane of the net and the set of mobile dislocations will have to drag the node along as indicated in Fig. 9. Now the problem is how many atoms could be involved in the nodes. Exact calculation of the length of the node is a difficult task especially since the length should be a steady-state length and not an equilibrium length. An estimate of the equilibrium length can be made by balancing the line tension of all the dislocations. The results would be a small fraction of the length 1 between nodes as shown in Fig. 10. In some instances such a calculation shows that the node will not be formed. But, since the calculation is only approximate, it does not rule out the possibility of the formation of a short node. In other instances the equilibrium length of the node is an appreciable fraction of I. Such a node would

Jan 1, 1963

By Warren B. Davis

Introduction If a subject this broad were to be covered in even moderate detail, it would require a set of books about the size of an encyclopedia. Since an acceptable length for this paper is a small fraction of one book, it will have to consist of a few samples of the subjects that I think are the most pertinent to World Fossil Fuel Economics. I plan to discuss the trends in world energy demand, particularly in the U. S. and Europe; the consumption patterns and cost patterns of oil, gas and coal; the prospects of synthetics; and some of the effects of government regulation of fuel economics. World Energy Demands Fig. 1 shows Free World energy consumption by principal areas for the period from 1950 to 1970 and a forecast for the period from 1970 to 1985. These figures include only the measurable forms of energy. An example of energy consumption that is not measured is the wood a peasant might cut in the forest and bum in a fireplace to heat his home. This omission probably is a very small part of the total. This forecast is not identical with that of Wayne E. Glenn (see Page 22), but the differences in total energy consumption are not significant. The U. S. consumption, which was 55 percent of the world total in 1950, had declined to 45 percent by 1970, and is expected to decline further to 38 percent by 1985. Western Europe has consumed 28 percent of the total from 1950 to 1970 and is expected to lose share slightly between 1970 and 1985. The most spectacular gainer is Japan, which increased consumption from 2.5 percent in 1950 to 7.5 percent in 1970, and is expected to reach nearly 17 percent by 1985. The over-all Free World total has grown from 62 quadrillion Btu (equivalent to 29 million B/D of crude oil) in 1950 to 151 quadrillion by 1970, an average growth rate of 4.5 percent/year. This total is expected to grow at a rate of 5 percent/year between now and 1985, reaching 315 quadrillion Btu (equivalent to nearly 150 million B/D). Fig. 2 shows which fuels supplied this energy between 1950 and 1970, and gives an estimate of how it will be supplied between 1970 and 1985.

Jan 1, 1971

By George Comstock

IT seems a common opinion among metallographists that all light-gray inclusions seen with the microscope in polished sections of steel are manganese sulphide. Examples of this belief are continually appearing, as for instance in the paper by Dr. Henry Fay on manganese sulphide as a source of danger in steel rails,1 and in Lieutenant-Commander Cook's paper on Metallography of Steel for U S. Naval Ordnance.2 Slate FIG. 1-TRANSVERSE VIEW OF THE EDGE OF A SMALL HOT-ROLLED STEEL ROD. ETCHED WITH PICRIC ACID. X 200. colored inclusions are considered to be silicates, and dove-gray inclusions, manganese sulphide. To show the danger in the latter unqualified assumption, it should be sufficient to examine the edge of any piece of steel that is covered with a fairly thick scale, and that has been polished in such a way as to prevent the scale from breaking away entirely below the polished surface. This can be done by protecting the scaled edge of

Jan 12, 1916

By AIME AIME

WEDNESDAY night, by long tradition, is al- ways set aside for the annual dinner, even when, as it was this year, it is Ash Wednesday. Whether the somewhat smaller attendance than last year is attributable to that cause, the unexpectedly long persistence of business depression, or whatever may have been the reason, it was a joyous occasion, and the grand ball-room of the Commodore Hotel was as completely filled With diners as * was consistent with com- fort. In the half hour before the dinner was actually served the guests assembled in an adjoining room and not only exchanged greetings but proceeded along the receiving line to greet the guests of honor. The number present was so large that hardly more than half of them had been able to do this before the summons to the dining room sounded and a hearty and immediate response was made to it. Toy balloons at each plate, inflated and directed at the heads of companions or nearby friends, but which were just as likely to carom from the nose of a hurrying waiter, successfully broke the ice as well as not a few plates. It would be interesting to know whether the pleasure the guests derive from these de- vices is in part based on the all-too evident annoyance of the waiters, and what the relative quantitative relationships are.

Jan 1, 1931

By J. M. Boutwell

I. Introduction. THE object of this paper is to present a concise statement on the genesis of the copper- and lead-deposits of the Bingham Mining District, Utah. It is essentially a condensation of a chapter in a detailed report on this district, together with so much on geologic features, and on the character and occurrence of the ores as bears on the problems of ore-deposition. The studies upon which the paper is based were undertaken in 1900 under the direction of S. F. Emmons, Geologist-in-Charge of the Section of Metalliferous Deposits, U. S. Geological Survey; and a little additional data was secured in subsequent years. The evidence then obtained as to the genesis of the replacement copper-ores has led, to conclusions which differ somewhat from explanations hitherto current. Accordingly, it seems desirable briefly to present the facts together with the resulting conclusions in a separate paper.

Nov 1, 1905

By L. A. Roe

Magnetic separation of iron ores is one of the fastest-growing segments of the minerals beneficiation industry. The tonnage of taconite ores processed annually by magnetic separation will, in a few years, reach 100 million. Magnetic separation occupies an attractive position in the field of ore beneficiation. It is a simple yet effective method, used for some 150 years and steadily growing more important. This type of beneficiation orginated in 1792, when William Ful-larton was issued a British patent covering the separation of iron ore by magnetic attraction. What is magnetism, and why are some materials capable of being magnetized and others not The study involves many unknowns, and even a partial answer to these questions would be a dissertation in solid state physics and perhaps other fields of science. But the last two decades have revealed basic facts as to why certain materials are magnetic and what happens to them when they are magnetized. Some of the newer studies in solid state physics have developed a theory that can be applied to studies of magnetism. It is claimed that magnetism stems fundamentally from the spin of electrons in atoms that tend to go in pairs, spinning in opposite directions. The atom as a whole can act as a magnet only when there is an imbalance of electronic spin. Whenever an atom has an odd number of electrons, therefore, this imbalance exists. This neutralizing effect explains why a piece of material that contains atomic magnets is not necessarily magnetic. The physicists tell us that iron is composed of many small magnetized regions called domains, which consist individually of millions of atoms. The piece of iron becomes magnetized when an external force lines up these domains in the same direction. Fundamental data developed by physicists working in fields far removed from minerals beneficiation are now available for developing better magnetic separators for ore processing. More Data Needed on Magnetic Properties of Minerals: There is less information on magnetic properties of minerals than there is for certain aspects of magnetic separator design. When the data on magnetic properties is available, it is often directed toward the study of powders for tape recorders and other highly scientific endeavors that are of little use to the beneficiation engineer. W. R. Crane's table of tractive forces, published in 1902, is still a guide in the study of magnetic minerals. Bits of other information regarding electrostatic conductivity, dielectric constant values, and permeability of various minerals have also appeared but are of small practical value in magnetic separation of ore. It is extremely important to obtain pure mineral specimens for making investigations and to record results that may be of use in studies of magnetic processes. Reference to the large volume of data developed by those concerned with analysis and design of permanent magnets soon reveals that these people have extensively evaluated the effect of various impurities on magnetic properties. Much of the science of the ferrite industry is based upon spinel-type structures which are varied by substitution of selected elements or even subtraction of elements, leaving vacant sites in the space lattice. Magnetic separators are used to beneficiate a wide variety of industrial minerals. In this application the relatively large volumes of nonmagnetics are usually the commercial products. The amount of mag-

Jan 1, 1959

By W. L. Saunders

WHEN work was begun in September, 1910, on the rock excavation for the foundation of the gigantic dam at Valhalla, N. Y., which is to convert Kensico lake into an important storage reservoir of the Catskill Aqueduct system, one of the first steps taken by the contractor, H. S. Kerbaugh, Inc., was the development of a quarry to supply the stone needed in the construction work.The importance of a bountiful supply of suitable rock in an accessible location is apparent when it is considered that nearly a million cubic yards of cyclopean masonry will be contained in the completed structure, not to mention dimension and facing stones, concrete blocks, and mass concrete. The dam structure will be over 1800 ft. long and about 170 ft. above the present river bed. However, for a distance of some 800 ft., it will be carried down to solid ledge rock, which will make the finished structure about 300 ft. in maximum height. It will be about 200 ft. thick at the base and directly beneath the coping it will be 28 ft. thick. This dam will raise the reservoir surface 110 ft. above old Kensico lake. The reservoir capacity will be 29,000,000,000 gal.-equal to New York's total needs for over two months. The contract price for this work is nearly $8,000,000 and is second only in amount to the cost, over $12,600,000, of the Ashokan Reservoir work. Fig. 1 is a view of the dam site.

Jan 2, 1914

By Robert K. Linn

The New ldria Mining District is in the southern part of the Diablo mountains of the California Coast Range, 140 miles southeast of San Francisco. The district, noted primarily for quicksilver, also has become important recently as a producer of short-fiber chrysotile asbestos. Between 1853 and 1966, the New Idria district produced 568,092 flasks of quicksilver valued at about $55,600,000, 99 per cent of which was recovered from one deposit, the New Idria mine. In 1944, the district was ranked third in all-time production of North American quicksilver districts, and, since that time, the New Idria mine produced an additional 129,045 flasks, placing the district and the New Idria mine second in all-time production. The major structure of the region is the northwest-trending Coalinga anticline consisting of an asymmetric dome of sedimentary beds ranging in age from Jurassic to Quaternary and marked at its northwest end by an oval body of sheared serpentine 14 miles long by 4 miles wide. The serpentine core, rimmed by Franciscan sandstone of probable Jurassic age, was uplifted in stages between Jurassic and Quaternary time and was intruded along a ring of faults into beds of the Panoche Formation of upper Cretaceous age. The core of serpentine and Franciscan rocks is the locus of about 20 quicksilver mines that rim the faultbounded core and lie within the serpentine mass. The host rock of the most productive deposits is altered Panoche shale and sandstone that lies intermittently along the perimeter of the core. Deposits of the New Idria group of mines and those of a few other small mines lie along the northeast contact in the footwall of the New ldria thrust fault, and a few others occur on steep normal faults around the south and southwest. The chief ore mineral in all quicksilver mines is cinnabar, but minor amounts of metacinnabar and native mercury are found in some of the mines. Ore shoots were deposited in fracture zones and stockworks in altered Panoche shale and sandstone and in definite fissure veins in Franciscan sandstone. Rocks made highly amenable to fracturing by hydrothermal alteration were fractured extensively by late faults. The resulting fracture zones, located along the late faults and at changes in strike or dip of the hanging wall or footwall, are the principal controls of most ore shoots. The largest and richest ore shoots are those of the New Idria mine. The major ore bodies occur in fractured shale and sandstone beneath the New ldria thrust fault at its junction with major tear faults.

Jan 1, 1968

By Daniel T. Brian, O&apos

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

Jan 1, 1970

(Members are urged to send in for this column any notes of interest concerning themselves or their fellow-members.) Members and guests who called at Institute headquarters during the period Feb. 10, 1916 to Mar. 10, 1916: D. A. S. Bell, Ottawa, Can. E. B. Latham, Santa Maria, Cal.. John Cooper, Exeter, Devonshire, Eng. H. N. Lawrie, Portland, Ore. I. Dally, Seattle, `Wash. L. A. Levensaler, Tacoma, Wash. George W. Evans, Seattle, Wash. George J. Lyon, Schenectady N. Y. Alexander Fyfe, London, Eng. Fred MacCoy, Antofagasta, Chile. F. C. Greene, Seattle, «rash. J. Mitchell-Roberts, London, Eng. I. Ishikawa, Tokio, Japan. Chas. W. A. Sultan, Yonkers, N. Y. William Kelly, Vulcan, Mich. R. B. Tinsley, Big Stone Gap, Va. Paul S. King, Wilmington, Del. Walter E. Trent, Reno Nev. Oscar Lachmund, Greenwood, B. C. Alfred W. G. Wilson, Ottawa, Can. J. S. Lane, New York City. Nelson Dickerman has resigned as general Manager of the Pato Mines (Colombia), Ltd., and The Nechi Mines (Colombia), Ltd., and will return from Colombia to San Francisco, Cal., the latter part of April. W. A. Prichard has been appointed as his successor.

Jan 4, 1916