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By Delbert E. Gann, Richard D. Hagni

Ore microscopic study of copper-bearing shale at the Creta mine in southwestern Oklahoma reveals a variety of copper sulfide grains and shows that each has originated by replacement of original constituents In the Permian Flowerpot Shale at Creta. The largest grains, about 120 pm in diameter, are replacements of megaspores with triletes morphology. Their interiors are shown by Auger microprobe analyses to be organic matter. The interior organic matter and the spore exines have been replaced by anilite and djurleite. Digenite and anilite replace collomorphic pyrite averaging 40 pm in diameter. Grains 10 pm or less in d~ameter are mostly euhedral, six-sided, platy crystals that have anllite compositions and are pseudomorphous after pyrrhotzte. Other 10 pm copper sulfide grains are pseudomorphous after octahedra and cubes of pyrite. The results of this study indicate that the copper minerals are epigenetic and were deposited from fluids introduced into the Creta shale when it was relatively uncompacted and permeable. The shale served as a favorable reducing environment that contained a source of sulfur in the form of pyrite and pyrrhotite.

Jan 1, 1985

By W. P. Diamond

The Bureau of Mines has been investigating several techniques, including the use of horizontal and vertical boreholes, to remove gas from coal in advance of mining. Horizontal boreholes drilled from underground workings as part of the mining cycle have been shown (Finfinger, 1980; Hagwood, 1983; Perry, 1978; Prosser, 1981; Thakur, 1980; VonSchonfeldt, 1982) to be very effective in providing short-term, immediate relief from high methane emissions. This technique has been widely accepted in the coal mining industry, but it does require close coordination to integrate the drilling and subsequent gas drainage and disposal into the projected mine development plan. Vertical boreholes can be placed several years in advance of mining to predrain gas from coalbeds over relatively large areas (Dunn, 1984; Elder, 1975; Lambert, 1980; Steidl, 1978; Stubbs, 1979). The vertical borehole technique has the additional advantage over horizontal boreholes of allowing work to be performed on the surface instead of in the more restrictive underground environment. However, except for the relatively large scale vertical borehole programs for both mine safety and commercial production in the Black Warrior Basin of Alabama (Dunn, 1984; Lambert, 1980; Stubbs, 1979), the technique has been underutilized. The primary reason for this seems to be a combination of the current economic climate in the coal industry, legal questions as to the ownership of coalbed gas, and potential roof damage from the stimulation treatments required to increase the characteristically low permeability of coalbeds to enhance gas production. The question of potential roof damage is the subject of this paper.

Jan 1, 1985

By James E. Monsees, Richard J. Proctor

INTRODUCTION Los Angeles is one of the world's largest cities in area with a span of 70 km between its north and south limits. The population in the Los Angeles Basin exceeds 11 million people. Los Angeles is second only to New York City in density of U.S. urban population and it operates one of the largest city bus fleets in the world, 2,500 buses. After many years of planning and many consultants' reports, it is planned to initiate a 30 km (18.5 miles) starter line subway -- the "Wilshire Corridor" (Figure 1). Construction is to start in 1985. In several locations, subway routes ultimately will skirt or cross old oil fields, which may cause gassy tunneling. Of particular note are the La Brea Tar Pits, which overlie a part of the old Salt Lake oil field. Tunneling through tar sands for about 3 km will be unique for subway construction and will occur on the starter line. Experience with previous gassy tunnels in the greater Los Angeles area shows that tunnels can be completed safely if precautions are taken. Abundant ventilation is the main solution, although other precautions are discussed herein.

Jan 1, 1985

By Steven W. Schmauch

The Ruby Mountains study area encompasses 75,615 acres managed by the U.S. Bureau of Land Management in Madison County, MT. A mineral survey was conducted by the U.S. Bureau of Mines and U.S. Geological Survey in 1984. Bureau of Mines personnel reviewed literature and county mining records, and examined prospects or mineralized areas to determine mineral resources. Geological Survey personnel evaluated the area by geochemical sampling and geophysical surveys. There are no organized mining districts and no current claims in the study area. Significantly mineralized quartz veins, shear zones, or talc bodies apparently do not exist within the study area. A small part of the Kelly Iron Deposit is inside, but dips away from the study area; the main occurrence is estimated to have 32 million tons of subeconomic resources that average 21 percent iron.

Jan 1, 1985

By John D. Welsh

Jan 1, 1985

By Robert L. Thoms, Richard M. Gehle

Hydraulic fracturing is of considerable interest as a possible release mechanism during operation of storage caverns in salt formations. However, field data are lacking on fluid pressures required to initiate and propagate fractures over a range of depth in U.S. salt domes. A currently active research project is outlined which has the objectives of gathering field data on hydrofracture gradients in inland and coastal domes of the Gulf Coast. A wireline minifracturing system with downhole microprocessor controls is briefly described.

Jan 1, 1985

By Michael K. O’Leary, William D. Coplin

Risks from political instability and government policies restricting equity ownership, local operations and transfers of payments affect the profitability of foreign mining ventures. More than seat-of-the-pants judgments and old-boy networks are required to anticipate these risks and to take actions appropriate to offsetting them. A system for making political forecasts, called the Prince System, and a series of charts relaying risks to a production of key minerals has been developed.

Jan 1, 1985

By Larry H. Heflin

The Washington Metropolitan Area Transit Authority's Wheaton Station and tunnel design was completed and offered for bid in the Spring of 1983. The format was unique to the Authority: a four part, four fiscal year contract developed in response to funding limitations with construction divided into four stages allowing the maximum amount of work to be done each year for the funds available. The bid was based on the entire contract, but was orginally awarded for only the first year's work. Each year's work had a maximum funding limitation thus safe guarding the Authority from a grossly unbalanced bid. The Authority's estimate for this work was $83,871,524. The low bid came in at 61% of this for a total low bid of $51,512,058. The low bidder was ILBAU America Corporation whose home offices are in Austria. Following receipt of the bids (and resolution of objections cited by other bidders who felt that the job could not be done for the $51 Million dollar figure), a Notice-To-Proceed was given on October 5, 1983. The construction contract allows a Value Engineering Change Proposal, called a VECP which is initiated and developed by the contractor to change the drawings, specifications or other requirements of the contract. Among other things the VECP should decrease the contract price while maintaining the service life, reliability, ease of maintenance, and standardized features and appearance and not require an unacceptable extension of the contract time. A VECP must estimate the amount of the net savings

Jan 1, 1985

By William J. Potter, Roger N. Pyle

Introduction The primary ingredient for survival of mining companies during a recessionary period is to be innovative and resourceful in the structuring and financing of operations. Over the past decade, many mining companies have had to retrench and restructure their operations and to redeploy their assets just to survive. During the same period, traditional sources of financing for mining companies -- commercial banks, subsidized export credit loans and long term straight debt financing in the public markets -- became less available and more expensive. Meanwhile, new markets and new financing instruments provided new alternatives for mining companies. Those companies which exploited these alternatives greatly enhanced their capacity for survival and even for profitability. This article considers the strategies adopted by some companies to adapt to changes in this recessionary environment; the inadequacy of traditional sources of financing; certain of the new financing instruments, structures and markets which have become available; and how several mining companies have utilized these new instruments, structures and financial markets to improve their competitive positions. THE IMPACT OF RECESSION ON MINING COMPANIES AND TRADITIONAL FINANCING SOURCES In its 1983 year-end article "The New Economic Order" Mining Journal characterized many of the large private sector mining companies with operations in the industrialized countries as being "gripped between the jaws of high working costs and stagnating metal commodity prices." The article went on to characterize the Canadian mining industry in particular as being "in the difficult position of having to seek to sell the bulk of its output in a world market characterized by over-capacity, where production costs were determined by internal political and economic factors while prices were set by external competitive forces of supply and demand." Miners of a wide range of commodities in the industrialized countries have come to realize that their domestic mineral resources are in many cases no longer competitive with global sources of supply. To compete and survive they would have to rely on their technical and financial expertise in mineral exploration and development and in mining and processing. Strategies For Survival Global competition has compelled management in the extractive industries to improve their worldwide cost position. This is the only means whereby a mining company can differentiate its product and attain a substantial competitive advantage. During the past decade, for example, ASARCO Inc. and Inco Ltd. chopped their payrolls, postponed expansion plans and otherwise retrenched. ASARCO reduced its capital expenditures and cash requirements for operations in 1984 to a level almost equal to its internally generated cash. The company's finances were also strengthened by increasing total lines of credit from outside sources, by selling common stock, and by reducing annual pension funding through a change in actuarial assumptions. Other companies returned to their traditional organizational structure where they had a demonstrated competitive strength. Consolidated Gold Fields, for instance, resumed its operation as a mining finance house. Its capital investment programs are now devoted solely to resource development. In mid-1984, at a time of firming zinc prices, Union Miniere S.A. used the opportunity to integrate its smelting capacity and to direct investment to certain subsidiaries at the expense of less viable operations. Smaller corporations realized that it was not enough just to be the low-cost producer. For example, Drummond Coal Company in Alabama, which dominates its regional market due to its low-costs, has also developed a world-wide trading capability and has placed incremental tonnage from its own mines as well as brokered coal produced by others, thereby minimizing capital risk. In Canada, Campbell Resources has exploited difficult times by acquiring assets cheaply. In the process it improved its capacity to withstand cyclical economic swings by diversifying from solely a copper and gold producer to a company based upon asbestos, coal, copper, gold and natural gas.

Jan 1, 1985

By A. L. Stomberg

Federal and State surface coal mining regulations require special handling of prime soil materials which result in additional costs, and no actual benefit when prime and non-prime soils are similar. The Coteau Properties Company proposes to mix both prime and non-prime topsoil and subsoils at the Freedom Mine in Mercer County, North Dakota, based on an analysis of soil physical and chemical characteristics which show these materials to be comparable.

Jan 1, 1985

By F. C. Bond

Nature of Empirical Calculations The size reduction of large tonnages of ore and rock is an operation of great magnitude. It is a necessary and important part of industry. Its development has been motivated by practical need and has followed the path of an industrial art without much help from theoretical science. Knowledge has been accumulated from experience. Trial and error established the methods; then collected data were tabulated and served as the basis for empirical equations that have been continually modi¬fied and amplified as new data became available. These equations now constitute the bulk of our present knowledge of comminution. There is no accepted scientific theory that is basic to comminution. In electrical, mechanical, and civil engineering, as well as in many other industrial activities, such theories exist and are extremely help¬ful, but rock is essentially heterogeneous, and the zones of weakness that control its breakage are thoroughly diversified. No theory has yet been discovered which can account for the variability of rock, although many attempts have been made. Empirical equations tell nothing of the why of a phenomenon, but if they are properly derived they can tell much about the how. They always represent only an approximation of behavior but never a law. In a proper empirical equation a symbol is assigned for each of the variable quantities that obviously affect the relationship. In a grinding mill these include mill diameter, mill speed, and feed rate among them. In setting up and revising an empirical equation the cardinal princi¬ple in establishing and modifying it is this: any change must be strictly ascribed to the variable which caused it. A useful empirical equation is rendered useless when a change in any convenient coefficient or exponent is made to make it fit a particular set of data, without certainty that the altered coefficient or exponent is the responsible variable in the new data. Such indiscriminate revisions have brought the use of empirical equations into some disrepute. When existing equations are changed to accommodate new data it is a good rule to make a change which gives results intermediate between the new and the old. A halfway point is usually a good choice.

Jan 1, 1985

By Bo R. Arvidson

The strongest magnetic roll separator available on the market enhances certain industrial minerals purity to levels not reached previously. Exceptionally strong forces can also be utilized for processing relatively fine particles at feed rates several times greater than for prior art electromagnetic induced roll separators. Since the unique machine does not work with an air-gap, coarser particles than what has been considered practical can be separated at rates up to 20 tph per single machine unit and 40 tph for a double machine unit. Examples for all these three application areas will be given. While the roll separator can be used only for dry processing presently, the other new separator can be used for both wet and dry applications. It is a medium-intensity, high- gradient magnetic separator employing a filamentary matrix. It was primarily developed for recovery of weakly magnetic iron ore fines, but it is finding applications for cleaning of industrial minerals such as wollastonite, calcite, clay and talc. Its main advantage is a simple design resulting in a very lm cost machine both with regards to total capital investment and operation. A significant technical advantage exists also. The metallurgical performance is similar to conventional electromagnetic separators, while the cost per ton is about half of such separators.

Jan 1, 1985

By J. P. Hager

The formation of the vapor complex AgFeC14 (g) baa been identified and its thermodynamic properties determined. The vapor pressure of silver chloride can be enhanced by a factor of 15-20 due to the formation of the vapor complex. The vapor pressure of both AgCl (g) and AgFeC14(g) were measured using a double-zone transpiration .technique. Gibbs free energies have been determined for the vapor transport reactions. Laboratory kiln tests were conducted to confirm the enhanced recovery of silver through the formation of the AgFeC14(g) vapor complex and to indicate the opportunities for process development using this new vaporization chemistry.

Jan 1, 1985

The introduction refers to observations made in the early days of the Nationalisation of the Coal Industry in the United Kingdom, indentifying the underground transportation problems. Statistical information is presented, highlighting the considerable developments which have been made in recent years with an evaluation of the manpower and cost involvement.

Jan 1, 1985

By R. D. Hendry, R. A. Pearce, Allyn J. Steward, Dennis C. Martin

This paper outlines the geotechnical exploration and design approach utilized for the Km 80 and Km 86 Tunnels on the British Columbia Railway Tumbler Ridge Branchline. Information from surface mapping, trenching and diamond drilling was used to prepare a rational support design using accepted rock mass classification systems. Four possible support types were developed and used as a basis for preparing a cost estimate and contract documents for the tunnels. A unit price contract was selected to provide flexibility and to enable rational selection of support based on actual ground conditions encountered during excavation. Although ground conditions along the tunnels are variable, the general geology and quantities of support installed were consistent with those estimated from the geotechnical investigation and design.

Jan 1, 1985

By William H. Pomroy

Fires in underground metal and nonmetal mines pose a threat to the safety of underground miners and to the productive capacity of this Nation's mines. Contaminated air (smoke, carbon monoxide, and other products of combustion) is the primary life safety hazard created by a mine fire. The most reliable defense against the hazard posed by the rapid spread of contaminated air underground is early warning fire detection and rapid evacuation. This Bureau of Mines report describes the design and operation of four prototype early warning fire detection systems, for underground noncoal mines, presently undergoing prolonged in-mine testing by the Bureau. The systems are described within the context of the underground mine environment.

Jan 1, 1985

By J. Douglas Causey

In 1984, at the request of Bureau of Land Management, the U.S. Bureau of Mines studied the 13,730-acre Burnt Lodge (MT-065-278) Wilderness Study Area (WSA) in order to evaluate the mineral resources. The WSA is located in Phillips and Valley Counties, MT, about 55 miles south of Malta adjoining the Charles M. Russell National Wildlife Refuge. It is underlain by near horizontal sedimentary beds of the Hell Creek Formation, Fox Hills Sandstone, and Bearpaw Shale. No mines or prospects were found in the WSA. Bentonitic beds were examined, but are generally less than 1 ft thick and, except where exposed, are deeply buried. Kaolin-bearing sandstone in the Colgate Member of the Foxhills Sandstone was sampled and may have potential for use in structural clay products. However, remoteness and inaccessibility of the area make it unlikely that the material could be economically extracted even though some of the material is marginally useful.

Jan 1, 1985

By H. H. Kellogg

The thermochemical properties of molten solutions in the binaries Cu-Bi, Cu-Sb and Bi-Sb, as well as the ternary Cu-Bi-Sb, have been correlated and described in mathematical form by use of the associated species concept combined with the three-suffix Margules equations to account for the non-idea 1 behavior of the solution species. Agreement of the correlations with experimental data is excellent (relative deviation of less than 2.5% in the values of the activity coefficients) in most cases. The correlations are applicable over the entire composition range of each system, and in the temperature range 700°-1250°C.

Jan 1, 1985

By L. C. Bird, A. I. A. Salama, M. W. Mikhail

"A program of sampling in Canadian washeries was carried out by the Coal Research Laboratory (CRL) over a period of two years to evaluate the performance of various density separators in these operations(1). Operating data on quality and recovery of products, separation efficiencies and cutpoints for each separator type are compared with data predicted using computer models developed from previously existing data.The Heavy Medium Cyclone (HMC), Heavy Medium Bath (HMB) and jig models give predictions of recoveries and qualities of products for sizes coarser than 10mm with absolute value of error mean less than 7 per cent, whereas predictions of the Water Only Cyclone (WOC) model for -10mmfine coal are with absolute value of error mean less than 8 per cent. Although less accurate for -10 mm fine coal, the HMC and jig models produce predictions of recoveries with absolute value of error mean less than 2 per cent and quality of products predictions with absolute value of error mean less than 28per cent which are generally acceptable because more liberation in the fine fractions appears to compensate for any difference in the accuracy of separation, resulting in good prediction of the clean product. However, ash content of the actual fine refuse was lower than predicted. The difference is attributed to the highly friable nature of Canadian coals which tends to cause an excessive loss of coal fines to the fine refuse.A comparison study based on quality and recovery of products is made between the Dutch State Mines (DSM) models and the recently modified models, both produced comparable predictions."

Jan 1, 1985

By Brooks J. Klimley, Daniel M. Higgins, Grover R. Castle

Measuring The Economic Viability Of Resource Projects (A Western Surface Coal Project) The bankers approach to the analysis of a new "green fields" mining project is similar but different from the approach that the pining company might take. The purpose of this paper shall be to discuss the techniques that are used by mining companies and bankers as they try to measure the economic viability of mining projects. The analysis of these new projects (by both the mining companies and the banker) is based on a projected revenue stream and not on historical earnings or past perfomance because these projects are start up situations with no history to look to. The starting point in the analysis of these projections is the choice of the assumptions to be used in preparing these projections. After the assumptions have been determined and the projections are prepared then the projections are submitted to various tests in order to determine whether the project measures up to previously agreed upon minimum standards. In order to illustrate the analytical procedures used in evaluating a mineral project the writer has constructed a hypothetical case involving the development of a western surface coal mine (Property). The basic data in connection with this hypothetical new project is described in the next section of this paper. After the Description of the Project is a section which shows the type of analysis that a mining company might prepare in order to approach a bank for a loan and the final section illustrates the type of analysis that a bank might prepare in evaluating this loan request. Description Of The Project or Basic Data In Connection With Undeveloped Western Surface Coal Property An independent mining/geological Consultant's report has been completed on the Property which confirms that the Property contains 175 million tons of economically recoverable coal subdivided into the following reserve categories in accordance with U.S. Bureau of Mines and U.S. Geological Survey definitions: Measured or Proven 90,000,000 Indicated or Probable 50,000,000 Inferred or Possible 35,000,000 The owners of the reserves have chosen to drill up those reserves that are nearest to the subcrop and have not spent as much time on those portions of the Property which are on the fringes of the deposit where the overburden is thicker because the stripping ratio and hence the operating costs and capital requirements are higher down dip. The proven reserves are based on an average thickness of 80 feet, of which a mining recovery of 90% is projected. The overburden thickness varies from 0' to 280' with an average thickness of 127'. The overburden consists mainly of scoria, sandstone, gravel, shale and silty clay. 134 holes were cored (and analysis done on five foot increments) in the measured reserve on the following spacing: 100 foot centers to define the burn line; 1,320 foot centers to define the early mining areas; 2,640 foot centers to identify the later mining areas.

Jan 1, 1985