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By John L. Halls

Modern business practice dictates that in order to ensure the economic optimization of investment, the size of any investment venture must be such that every increment of capital invested in such a venture yields at least a corporate minimum acceptable rate of return. This practice is based on the premise that alternative investment opportunities capable of yielding the minimum corporate return are immediately available. If a mining corporation is to make the maximum use of its investment funds, any capital investment in a mining property must comply with the above practice. The most important parameter in estimating ore reserves is the cut-off grade which is used to separate material into ore or waste. The cut-off grade is calculated on the basis that material of cut-off grade produces sufficient revenue to cover the estimated costs of mining and processing through to sales, including depreciation and produce a pre-determined profit. Ore reserves so estimated are adequate for determining the magnitude of an orebody but do not provide a sound basis for determining plant size and therefore capital investment in a new property or for expansion consideration on an existing property. From a financial analysis of this one ore reserve it is impossible to ascertain whether each increment of capital investment is providing the minimum acceptable rate of return, Other difficulties associated with the calculation of a cut-off grade including the determination of depreciation and the amount of pre-determined profit to be included in the cut-off grade calculation are outlined in the text. The proposed solution to determine optimum ore reserves and plant size for new properties avoids the complication of calculating a cut-off grade by computing a series of ore inventories using arbitrarily selected cut-off grades. A comparison of the cash flows generated by production from such ore inventories using incremental financial analysis clearly indicates the ore reserve and plant size which will best serve the corporation's investment and metal production goals. Incremental financial analysis of a corporation's operating mines and prospects assists management in assessing the comparative expansion and investment possibilities of each property for increasing or maintaining metal production on a long term basis.

Jan 1, 1969

By Frank C. Schora

The Institute of Gas Technology for many years has dedicated a large portion of its research effort to the development of a practical solid-fuel-based gasification process to produce a synthetic natural gas equivalent. The work is being done to prepare for the day when supplemental gas will be needed. This program, initially supported by the American Gas Association, and now by both the Department of Interior's Office of Coal Research and the American Gas Association, has developed the IGT Hydrogasification Process. This process, now entering the pilot plant stage, is based on the high-temperature, high- pressure hydrogenation of coal with a hydrogen-steam bearing gas. Product gas from this step is cleaned and catalytically methanated to produce a high-Btu gas. Estimated production costs indicate the process will be competitive with natural gas in certain areas of the country when required.

Jan 1, 1969

By R. A. MacGregor

The Stanreck mine of Stanreck Uranium Mines Limited in located on Quirks Lake in the Elliot lake - Blind River area of Northern Ontario. It is approximately 25 miles north of the north shore of Lake Huron, equidistant between the cities of Sudbury and Sault Ste. Marie. The property was developed ad brought into production at a rate of 3,000 tens of ore/day during the uranium boom of the mid 1950's. By 1960 mine waters were becoming quite acid through the activity of bacteria. Treatment of this water was begun for pollution control and a small amount of uranium which had been leached from the ore by these acid waters was recovered. Development of bacterial leaching with a view to increasing production by this method commenced in December 1962. Subsequently, it was succeesfull in producing 10,000 - 15,000 lbs. of U308/month. Since late 1964 uranium production has been obtained solely from bacterial leaching. A rare earth concentrate was also made for its yttrium content during 1966 and 1967. This paper describes the development, operation and methods used in the underground bacterial leaching process.

Jan 1, 1969

By Bruce F. Bohor

Silica sand has been mined in Illinois from the St. Peter Sandstone since the turn of the century, especially in the area around Ottawa on the Illinois River in the north-central part of the state. Production of this sand, consumed mainly by the glass and foundry industries but also sought after for many other uses, has grown with the economy, and last year's output in Illinois exceeded 4,000,000 tons. Such an important commodity was given the early attention of the Illinois State Geological Survey, and a very complete report was issued in 1928, authored by J. E. Lamar. The mining and processing of the sand has changed very little during the intervening 40 years, so that much of Lamar's data and descriptions are applicable today. More recently, the stratigraphy of the St. Peter Sandstone in north-central Illinois has become better known from the work of Willman and Payne (1942). The present authors have borrowed generously from Lamar's publication, and we wish to acknowledge the contribution of both of these studies to our work.

Jan 1, 1969

By Joe B. Rosenbaum

Waste solutions from sea water desalination processes are enriched in minerals by a factor of two or three. This suggests that extraction of selected mineral components from the concentrated brine might help pay desalination costs. The possible recovery of gold has received particular mention. Sonstadt, in 1872, reported the gold content of sea water as 65,000 micrograms per cubic meter, or 65,000 parts per trillion. At $35 an ounce, this is equivalent to $0.065 per ton of sea water. Fritz Haber, however, after his abortive venture to restore Post War I Germany to economic health by recovering gold from the sea, concluded the gold content was 4 micrograms per cubic meter. Haber's analysis is equivalent to 0.0004 cent per ton. In the past 10 years, investigators using advanced analytical techniques reported from 4 to 27 micrograms per cubic meter. Our brief experiments to determine a threshhold value for the gold in sea water employed solvent extraction for initial concentration, evaporation of the gold-loaded organic for further concentration, and atomic absorption analysis of the gold in the concentrated organic. Radioactive gold was used as a tracer for monitoring the gold through the concentration and analytical steps. Our method established that sea water contains about 11 parts gold per trillion parts sea water, or 0.001 cent worth per ton. This agrees closely with results of recent studies by other investigators employing ion exchange resins and neutron activation techniques.

Jan 1, 1969

By J. R. Dillon

Today more than ever, there is an increased demand for higher plant production capacities and efficiencies to offset the increasing costs for labor and materials. Plants involved in processing large volumes of bulk materials are particularly interested in more efficient material handling systems to (1) reduce labor and maintenance costs, (2) improve blending of non-uniform raw material feed to processing facilities, (3) improve blending of finished bulk materials from storage. DragScraper systems are being used effectively for handling a variety of bulk materials in both indoor and outdoor storage. Materials being handled include ores, chemicals, coke, clay, and stone, to name a few. Handling capacities these machines can provide vary from a few tons to over 1500 tons per hour. The basic components of a DragScraper machine consist of a bottomless Crescent scraper, a two or three-drum DragScraper hoist assembly including gas, diesel, or electric power unit, operating cables, guide blocks, and either fixed or mobile head and tail structures. They are presently available in sizes through 15 cubic yards, for operating spans up to 1000 feet.

Jan 1, 1969

By L. A. Garfield

Since the start of mining operations at White Pine in 1953, over 22 miles of drifts have been driven for the purpose of developing the ore body. The drifts, normally driven in multiples of three or five headings, serve as conveyor belt routes, ventilation ducts, equipment and haulage roads, and initial access to mining blocks. Development openings in the flat-lying, bedded ore body are driven in rectangular section from 16 to 32 feet wide and from 8. 5 to 16 feet high. The floor level normally coincides with the bottom limit of the chalcocite values and the roof or back is carried at the most competent stratum adjacent to the top of the ore. A development front consisting of five headings and associated crosscuts is advanced at an average rate of about 100 feet per month using conventional drill and blast techniques and equipment. The cyclic nature of the functions involved in driving the openings and the need to include them in production schedules preclude significant improvements in advance rates using current drill, blast, muck, and haul sequencing.

Jan 1, 1969

By Melvin W. Jackson

The study of the excavation of large spherical cavities in salt formations first became of interest in 1958 when it was recognized that a large cavity could be of value in the study of the detection or concealment of underground nuclear explosions. Previously unpublished studies are reported in this paper and other studies reviewed relating to the excavation of large cavities in salt by mining ad by solution. Special emphasis is placed on the utilization of the Tatum salt dome (about 22 miles southwest of Hattiesburg, Mississippi) for the proposed site of a large excavated cavity. The U. S. Atomic Energy Commission has recently been studying such a cavity as Project Payette, but no details have yet been published. If Project Payette is determined feasible and work funded, it would eventually involve the firing of a nuclear explosive at the center of a large cavity.

Jan 1, 1969

By Henry R. Linden

The demand for natural gas continues to increase at higher than anticipated rates, partly because of its widening price advantage over most other fossil fuels when the cost of air pollution control is included. However, there are clear indications that natural gas supply from the contiguous 48 states and continental shelves will not indefinitely keep up with this rapid growth in demand. Projections are presented which define the extent of potential deficiencies from the 1970's to the year 2000. Among the sources of supplemental gas - imported pipeline natural gas from Canada and Mexico, tanker import of liquefied natural gas, and synthetic pipeline gas from coal and oil shale - by far the most abundant at potentially competitive costs is pipeline gas from coal. The state of development and relative economics of the various coal gasification processes are reviewed. It is shown that synthetic pipeline gas could become a very substantial market for bituminous coal and lignite at current minemouth prices - 60-70 million' tons of coal for each trillion cubic feet of synthetic pipeline gas produced. This corresponds to only slightly more than the current annual increase is gas demand.

Jan 1, 1969

By William E. Bonini

Gravitational field anomalies have been observed over many igneous intrusives of medium (4000 km2) to small (100 km2) size in outcrop area. These studies give good results because the residual anomalies can be separated from larger scale crustal anomalies and density contrasts usually are present. Although unique solutions are not possible, the analysis of the gravity anomalies can put limits upon the geologic interpretation of such bodies. Three examples in Montana, U. S. A. are discussed: (1) the Boulder Batholith, a late Cretaceous quartz monzonite series of intrusives of 4000 km2 outcrop area; (2) the Little Rocky Mountains, an up-domed area, in which an Eocene porphyry (130 km2) has intruded the Precambrian crystallines and lower Cambrian sediments; and (3) the Crazy Mountains, an Eocene diorite (100 km2), which has intruded the Paleozoic and Mesozoic sediments. In both the Boulder Batholith and the Little Rocky Mountains, intrusive rocks are less dense than the surrounding rocks and negative anomalies are found (40 and 28 mgal, resp.). In the Crazy Mountains, the intrusive is more dense than the surrounding sediments and a sharp positive residual anomaly of 42 mgal is observed. The analyses of the gravity anomalies predict that: (1) the thickness of the Boulder Batholith is on the order of 10 to 15 kms and is concave upward; (2) the Little Rocky Mountain syenite is not a simple laccolith, but is T-shaped and extends in depth to about 16 kms; (3) the Crazy Mountain diorite is not a simple small scale series of stocks, but a large connected body extending in depth 5 kms to the basement (although nothing can be said of it within the basement because there is little density contrast). The analyses of the anomalies place important limits on both the areal and depth extent of the intrusive bodies. Of all possible geophysical techniques, gravity studies offer the most promise in the determination of the shape in depth of intrusive bodies.

Jan 1, 1969

By Phillip J. Maddex

Transportation is a major part of yours in the industrial minerals industry. Whereas federal income taxes merely take 50 per cent of your firms profits, transportation cost may take 50 per cent of the gross realization - selling price plus transportation - on your product, f. o. b. customers plant.

Jan 1, 1969

By Raul A. Deju

This paper shows how one can relate the chemical reactions between water and a silicate bed to the equations of flow. First the reaction mechanism is studied both theoretically and experimentally. Once the reaction mechanism is established, the equations of flow are solved and a solution (under physically reasonable side conditions) is obtained. Experiments to substantiate the solution are also presented.

Jan 1, 1969

By S. J. Aparo

Phosphate mining and beneficiation in the State of Florida are presently being carried on by 12 different mining companies with a total of 21 mining and flotation plant locations. Their combined production of both washer rock and flotation concentrate was approximately 28,000,000 long tons in 1968. This accounted for 70-72% of the total U. S. production and close to 30% of the world's output of this mineral. From this extensive activity in the Florida phosphate field, one basic flow sheet for beneficiation of the ore has developed over the years as the most commonly employed. In fact, all of these plants with the exception of two beneficiate Florida pebble phosphate using a basic operation as illustrated in Figure I. The two plants which differ from this general approach are not using raw matrix as feed. In one instance, +14 mesh pebble is ground in a rod mill to release free silica which is subsequently removed in a cationic froth flotation circuit using an amine acetate blend and kerosene. This technique generally results in a 4-7 BPL unit upgrading of the feed pebble. The other exception to the standard flow sheet illustrated in Figure I is an operation which is beneficiating tailing piles. In this case, the material is first subjected to cationic froth flotation in order to upgrade the feed to a point comparable to normal matrix. Thereafter, after, the phosphate is floated in an anionic rougher circuit followed by cationic flotation of the silica in a cleaner circuit.

Jan 1, 1969

By Arthur M. Ribe

In my experience, nothing helps me better to get off to a good start in preparing a paper or a talk than a copious consultation with a comprehensive dictionary. I also feel defining the perimeters of a particular subject is helpful to the listener and reader. Sometimes thus precisely defining even the most common of words is helpful. Our general topic this morning as all of you know is "Transportation of Industrial Minerals." The definition of transportation given by the dictionary which I think is appropriate here is: "Systems and modes of conveyance of persons or goods from place to place." Our preceding panelists have outlined for you the state of the art inso¬far as systems and modes of conveyance from place to place are concerned today via rail, water and motor. My assignment is somewhat different as indicated by my topic, "The Traffic Manager in an Industrial Minerals Operation."

Jan 1, 1969

By Robert Stefanko

The concept of disposing of liquid industrial wastes by deep-well injection is not a new one. Brines associated with crude oil long have been disposed of in this manner, with the additional benefit of aiding secondary oil recovery. More recently, with the expansion of nuclear energy, the lethal, highly radioactive wastes which are by-products of the fission process have created severe disposal problems. During the past ten years, a variety of industries have resorted to subsurface disposal, some of the details of which are given elsewhere (1,2). The list reveals wide variations in injection rate, pumping pressure, cost, and waste disposition. Included are successful installations in Western Pennsylvania.

Jan 1, 1969

By R. Stefanko

Rock bolting as a method of support continues to increase with applications in many other industries in addition to mining. Nevertheless, with nearly 55,000,000 roof bolts installed in coal mines alone last year, this remains as the single greatest use. While bolts have frequently supported ground where conventional timbering could not, there are relatively few design criteria; and trial-and-error procedures prevail. Furthermore, development of suitable instrumentation that is simple to install and readout, sensitive, durable, reliable, safe and economical in evaluating the effectiveness of a bolt over long periods of time lags behind. Therefore, the pull test continues to be the most popular method of evaluating the applicability of a certain type of roof bolt under specific installation conditions. At Penn State in the Department of Mining, research has been conducted for a number of years to measure bleedoff in carefully controlled laboratory experiments as well as in underground investigations.1,2,3,4 Unfortunately, most of the instrumentation developed has been primarily suitable only for research purposes, not possessing all of the aforementioned characteristics desirable for routine underground use. Other groups also have met with restricted success. Therefore, while relatively crude, the torque wrench continues to remain as the most widely used load measuring device. While both field and laboratory tests continue to be conducted, analytical analyses are attempted to discover the more important design parameters in order that more efficient anchorage might be devised.

Jan 1, 1969

By Roy A. Koski

This paper describes variations in feed characteristics, preparation techniques, response to induration and product quality in pelletizing magnetite concentrates, earthy hematite ore fines, and specular hematite concentrates in grate kiln systems. The Cleveland-Cliffs Iron Company manages plants processing these various materials on the Marquette Iron Range in northern Michigan. The operations include the Humboldt Mining Company, Marquette Iron Mining Company, Empire Iron Mining Company and the Pioneer Pellet Plant. The combined output of the operations is approximately 9,000,000 long tons per year. The Humboldt Mining Company, owned by Ford Motor Company and Cliffs, produces pellets from a specular hematite concentrate. The Empire operation, which processes magnetite ore, is owned by Inland Steel Company, McLouth Steel Corporation, International Harvester and Cliffs. The Pioneer operation, which processes earthy hematite ores, is a joint venture of Republic Steel Corporation, McLouth Steel Corporation, Bethlehem Steel Corporation and Cliffs. The Marquette Iron Mining Company, owned by hones and Laughlin Steel Corporation, International Harvester, Wheeling-Pittsburgh Steel Corporation and Cliffs, produces pellets from specular hematite concentrate at the Republic Mine and Eagle Mills Pellet Plant. With the exception of the Eagle Mills plant, the operations employ the grate-kiln pelletizing system. Descriptions of the Empire, Pioneer and Republic operations, which have a combined capacity of 7,200,000 tons per year, are given in the paper.

Jan 1, 1969

By William F. Lawrence

Research performed by the West Virginia University Coal Research Bureau under the sponsorship of the U. S. Bureau of Mines has demonstrated that coal-ash can be converted into mineral wool insulation of a quality equal to commercial grade mineral wool. An unexpected benefit has been gained due to the discovery that the usual and costly fluxing agents employed when using conventional raw materials are not required when producing mineral wool from coal-ash. Because coal-ash sources are commonly located close to mineral wool marketing areas and because mineral wool is seldom shipped far as a result of its low weight and high volume, the use of coal-ash may offer the mineral wool producing industry profitable opportunities. Moreover, coal-ash produced from experimental limestone based air pollution control processes also yields high quality mineral wool which may aid in retarding corrosion of metals contacted by the wool. In addition, internal fluxing effects and possible sulfur oxide utilization could provide economic advantages to the use of these "modified" ashes.

Jan 1, 1969

By Hugh Boyd

Jet pulverization is a relatively new tool for fine grinding. It is not yet in general use in the mining and ore dressing fields, since most of the requirements in these areas have been for relatively coarse particle sizes. As the need for finer grinding increases - because of different ores, new products, and new values being sought - jet pulverization will, increasingly, be properly used.

Jan 1, 1969

The objective of this paper is, firstly, to summarize several field developments utilizing the art of hydraulic fracturing as it has been extended into various mining applications. Secondly, to summarize the understanding of the hydraulic fracturing processes; and lastly to discuss researchable areas and possible future applications. Hydraulic fracturing was developed as a method of stimulating production of oil from oil producing formations. The primary paper by Clark (1) in 1949, describes the process of placing a hydrostatic pressure of sufficient strength on the producing formation of an oil well that the rock apparently cracked, and then, on allowing the well to flow back, a higher rate of recovery of oil was enjoyed. The interpretation of the process mechanism was that the formation rock was cracked to a considerable distance from the well bore, increasing the drainage area; thus, the productivity of the well was measurably improved. Figure 1 is illustrative of this process. This development was of major significance to the oil producing community and considerable research and development ensued. Improvements in method, engineering development of equipment, and research to ascertain the optimum application of fracturing practice led to a highly sophisticated, but specialized technology. The Production Research Division, Continental Oil Company, vigorously pursued research in this area in the 1950's with a resulting number of process improve¬ments. The research group, published a significant number of technical papers on these various researches. One of the developments was the process aimed at controlled orientation of the fractures, either in the vertical (2) or horizontal (3) orientation.

Jan 1, 1969