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By A. Lawley S. Schuster

The tensile behavior of copper foils prepared from rolled bulk material has been studied over the thickness range 2 to 53 , and for a range of pain sizes. For foils of comparable grain size, having the cube texture and tested along (100), yield strength increases with decreasing foil thickness t below -26p, with a corresponding decrease in ductility. Deformation occurs in the form of localized slip clusters distributed throughout the gage section. To the extent that the tensile strength (10 to 18 kg mm-) is unaffected by foil thickness, and that the foils possess fair ductility, the stress-strain behavior resembles that of bulk material rather than that of whiskers or evaporated films of comparable dimensions. The dependence of yield strength o on foil thickness t below -26p is of the form: oy = oo + kt-1/2. Possible explanations for the stress increase are considered based on 1) the dependence of active dislocation source length on foil dimensions, 2) the locking of surface sources, or the blocking of mobile sources at the surface due to surface film. It is now well-established that filamentary whiskers of many materials show exceptionally high strength compared with bulk crystals.'-11 As the diameter of the whiskers decreases to -1, the observed fracture strength approaches, and in certain cases exceeds, the calculated shear stress for the nucleation of slip in a perfect crystal.' In general, the stress-strain curve is entirely elastic, with strains at fracture approaching 1 pct. Similarly, thin films12-24 of evaporated or electrodeposi-ted material have been shown to possess tensile strengths three to seven times that of bulk material, with total strains at fracture -1 to 2 pct. In the present study, attention has been directed to the room-temperature tensile behavior of thin foils of copper over the thickness range 2 to 53, prepared from rolled bulk material. Yield stress, ultimate tensile strength, elongation to fracture, and work-hardening behavior are measured as a function of grain size and foil thickness. Structurally such foils are superior to either evaporated or electrodeposited films, and in the recrystallized condition exhibit considerable ductility. Apart from preliminary work by Sumino and Yamamoto25 on the work-hardening behavior of rolled and recrystallized copper foils, no systematic tensile studies have been carried out on material of this form. EXPERIMENTAL PROCEDURE Tensile specimens were prepared from 99.995 pct purity rolled copper foils of thickness 2, 6, 12, 26, and 53, obtained from the Hamilton Watch Co., Lancaster, Pa. Irrespective of specimen shape, it is necessary to use tensile foils with edges free from notches or tears. To this end, any form of cutting operation was excluded, and the tensile foils prepared using a photoengraving process, the details of which are described elsewhere.26 Since tensile data are required under conditions of uni-axial stress, the specimen shape is extremely important. Ideally, the foil should be infinitely long, allowing a gradual taper from the grip area to the gage section; however, from a practical standpoint, long foils are easily damaged during testing. A modified tensile specimen was therefore selected having a parallel gage section 1.25 by 0.20 in. with a tapered shoulder section increasing to 0.5 in. at the grips, and an over-all length between grips of 4 in., Fig. 1. In practically all tests, these foils fractured within the parallel gage section. By approximating the foil contour (Fig. 1) to a hyperbola it is possible to analyze the stress distribution in the tensile foil using two-dimensional elasticity

Jan 1, 1964

John Duer Irving, who left his post as Professor of Economic Geology at the Sheffield Scientific School, New Haven, Conn., to join the Eleventh Regiment of Engineers shortly after the declaration of war, died in France, July 26, 1918, from an attack of pneumonia. Through the initiative of Mr. Benjamin B. Lawrence, a memorial service to Captain Irving was held at St. Paul's Chapel, Columbia University, on Sunday afternoon, August 4, which was' attended by members of Captain Irving's family, and about four hundred of his friends from Columbia, Yale, the American Institute of Mining Engineers and the Association of the 11th Regiment of Engineers. Professor James F. Kemp delivered the memorial address, and has prepared for the Institute the following account of Captain Irving's life, Professor Kemp and Captain Irving having been associated on the most intimate terms for a number of years. , The war has brought home to friends and kin in the western shores of thc Atlantic many losses whose suddenness has the shock of a blow. Many more will follow, but none can leave a sharper sense of regret than the news that the keen and productive mind; the inspiring teacher; the successful and considerate editor, the fine, true man and friend had all passed away when John Duer Irving made the final great gift to the service of his country, in the cause of decency and right. In the closing days of July, the cable brought the tidings that toward midnight on the twentieth of the month pneumonia had proved too great a tax upon one already worn by excessive labors. John Duer Irving was born in Madison, Wis., August 18, 1874. His father, Roland Duer Irving, was at the time professor of geology, mineralogy and metallurgy in the State University of Wisconsin.' Roland . Irving, the father, had entered Columbia College in 1863, but trouble with his eyes compelled him to suspend his studies in the classical course in his sophomore year, and to replace study with some months of life and travel in England. Ultimately his eyes became stronger, and he entered the School of Mincs, completing the course for the degree of Engineer of Mines in 1869, with the third class graduated. The class of eleven contained other future geologists. It numbered on its roll Henry Newton and Walter P. Jenney of the early survey of the Black Hills, where John, future son of Roland, was in the course of years to make his doctor's dissertation, and with its publication his really serious entrance into the profession. Roland Irving was a favorite student of Professor J. S. Newberry, affectionately known to all of his students as "Uncle John," and after some experience in mining and smelting in Pennsylvania and New Jersey, joined the Ohio Survey under Dr. Newberry. The work in Ohio was largely performed during the vacations of the University of Wisconsin, to whose chair Roland Irving was called in 1870. Later, his residence in Wisconsin led to two events of prime importance in the history of American geology. He began the study of the Gogebic iron range and caught the clue to the origin and stratigraphy of the iron ores of all the Lake Superior ranges; and he later undertook the mapping and description of the copper-bearing rocks of the Lake Superior basin. The formative years of the son, John, were passed in a home where the father.

Jan 1, 1920

By Arthur Taggart

Recent jig practice has shown such marked departures from the pronouncements of the textbooks, particularly as to particle size recovered and size range of feed, as to make it desirable to reexamine the mechanism of jig action. This paper presents the results of such a study. The general conclusions of the Paper are: I. A jig bed is a bi-functioned as well as bi-parted body. The upper layer comprises a plastic stream moving slowly in a substantially horizontal direction from feed lip to tail board. It serves to rough out tailing and light middling and to pick up heavy middling and lift it out 01 the jig box. The lower layer acts as the ultimate separating means by absorbing concentrate and rejecting heavy middling. 2. The separating function of the lower layer is performed in three definitely diflerent ways, depending upon the relative sizes of the grains presented to it and those composing it. Experimental The experimental work consisted of close and long-continued visual observations of operating beds in a plunger jig, eccentric driven, and in determinations of the settling rates of various metal spheres through a quartz bed under various conditions of operation. Falling velocities were measured by an ingenious method devised by A. 6. Dorenfeld, a student in the Mining Department at Colum- bia. Spheres of different metallic alloys, 3/8-in. diameter, were cast with a short piece of fine copper wire frozen in to Serve for suspension-A short piece of black cotton thread was looped to the top of the wire to serve as an indicator. The set-up for a test is shown in Fig. I. The thread should be boiled, if necessary, to make it freely water absorbent. The piece of clean plate glass D is supported rigidly at the proper height in a vertical position. The white scale E is similarly supported behind the glass. At the beginning of a test, D is filmed with water by holding it (best with clean rubber finger cots) under running tap water. It is then clamped in approximate position and C, already wet, is laid across it and drawn straight and vertical with the upper end at or near the top of D, and the ball A slightly above the top of the expanded bed. The water film holds the string to the glass. For a test the string is released, its upper end position noted just after the top of the ball becomes submerged, when the corresponding time is read, and thereafter simultaneous readings of position and time are taken as desired. Results of the visual studies of the bed are given at the pertinent places in the following discussion. Results of the settling tests are summarized in Figs- 2 and 3. Definitions The name bed as used herein refers to the entire mixture of solids and water filling the jig box. A layer is a stratum of a bed composed of particles of substantially the same specific gravities. A granular product is long-range when it approximates a crushed or ground product limited as to upper size only; a short-rafzge product is one closely sized. A bed is loaded when operating with continuous feed and discharge of products; it is unloaded when pulsating norma11y but neither being fed nor

Jan 1, 1943

By R. L. Slobod, B. H. Caudle

In the past, the main emphasis in attacking the problem of the recovery of oil has been on the determination of fluid flow characteristics and residual oil saturation in the part of the reservoir which is contacted by a displacing phase. It is recognized that the determination of the fraction of the reservoir contacted in secondary recovery operations is also of great importance in predicting the ultimate recovery to be expected. A method is described in which radiographic techniques are used to determine these areal sweepout factors for any type of well spacing. Data showing the relationship of viscosity ratio and relative permeability to areal sweepout efficiency are presented for the five spot and the direct line drive well spacing patterns. Further applications of the method to studies of the displacement efficiency in the area contacted are mentioned. INTRODUCTION The problem of increasing oil recovery from typical reservoirs is generally attacked by trying to devise some means for reducing the residual oil in that part of the reservoir which is contacted. The fraction of the reservoir contacted in the displacement process. however, is also of major importance but has been given less consideration in the past. one reason for this neglect is the meager information available on the portion of the reservoir contacted and the magnitude of changes in this factor as operating conditions are varied. Until recently, the only means available for determining this quantity has involved the use of the electrolytic or poten-tiometric modelsl in which one is limited to working with a mobility ratio of unity. while means for calculating the volume of a reservoir contacted do exist. the calculations are very tedious for systems with mobility ratio different from unity. Recently several such determinations have been reported,213 and an experimental method involving a step-wise use of potentiometric models has been described.' A new method which has been developed for studying the areal distribution of phases in a porous medium is discussed below. This tool can be' used to determine the effect of operating variables such as viscosity, relative permeability, presence of gas, mobility ratio, rate and stratification on the fraction of the reservoir contacted by the displacing medium. This development based on the use of X-rays gives a pictorial representation of the location of the phases. Further, the amount of each phase at each point of interest can be determined quantitatively. X-RAY METHOD FOR AREAL STUDIES In this method the location of various phases distributed Over a test area are observed simultaneously by obtaining a photographic record of the transmission of X-rays through the test plate. This procedure is an adaptation of the radiographic techniques which have 10% been used in the medical and industrial fields. Just as the medical profession uses a chest plate to show spatial interrelationships, the location of an X-ray absorbing fluid and a nonabsorbing fluid in a porous medium can be determined by obtaining a photographic record of transmitted X-rays. Moreover, as changes occur in such a System, these changes can be observed by taking successive photographs. Previously, X-ray methods have been used in fluid flow studies to determine quantitatively the saturation at a given point in the system. The intensity of the transmitted X-rays was measured by an ionization chamber, so that a point by point survey of saturation could be made. In comparison with this earlier quantitative procedure, the photographic procedure which simultaneously observes the saturation at many

Jan 1, 1952

By R. L. Perrine

This paper presents results obtained by consider ation of unstable miscible displacement within a porous medium as a quasi-turbulent displacement process, that is, a process characterized by fluctuations around a simpler, mean flow behavior. The instability usually results from the miscible displacing fluid having a viscosity lower than that of the displaced fluid. Such instability is evidenced in suitable experiments by the presence of viscous fingering. A unified theoretical relationship applicable to both stable and unstable displacement is derived. Parameters in the theory are obtained by empirical means. Although the theory describes an idealized conceptual model, agreement with experiment is quite reasonable up to moderately adverse viscosity ratios, such as 17:1. INTRODUCTION Many experimental studies of miscible displacement in porous media have been conducted with prediction of reservoir displacement efficiency as the ultimate objective. Most such studies have utilized lower displacing than displaced fluid viscosity, scaled to potential reservoir fluid pairs. Theoretical approaches have been largely limited to unit viscosity ratios, however, in spite of the necessity for an understanding of the mechanism of the unstable, adverse viscosity ratio displacement process. An obvious reason is the difficulty of describing in mathematical form the viscous fingering characteristic of these conditions. Observation of experiments conducted with dyed fluids in transparent systems suggests an analogy between unstable miscible displacement and turbulent flow in a pipe. In both cases there are fluctuations around a simpler, mean flow behavior. An important difference is that flow behavior of interest in the porous medium is entirely transient, contained within a transition zone between displacing and displaced fluids. Transient behavior complicates description in that coefficients in the equations become variables rather than constants. In the study reported here, the analogy with turbulent flow has been used in treating unstable miscible displacement as a quasi-turbulent displacement process. The purpose has been to derive, even if restricted to an idealized conceptual model, a unified theoretical relationship applicable to both stable and unstable displacement. A relationship meeting these specifications up to moderately adverse viscosity ratios, such as 17:1, is presented. One fluctuation parameter in the theory and dispersion coefficients are obtained by empirical means. The idealized theory is compared with experimental results. UNSTABLE MISCIBLE DISPLACEMENT AS QUASI-TURBULENT DARCY FLOW The miscible displacement of one fluid by another within a porous medium is considered in this study. Flow conditions are such that Darcy's law is applicable. It is further assumed that, by the stability criterion proposed by perrine,1 initial flow conditions lie well within the regime of instability. Thus substantial viscous fingering is assured. We wish to show how this flow regime can be represented as quasi-turbulent. That is, the Reynolds number for the established flow conditions is below that for inertial or turbulent flow within a porous medium, and lies within the regime for which Darcy's law is valid. Yet flow behavior can be described as the combination of some relatively simple average result, and characteristic fluctuations that are superimposed on the simpler behavior. Stated another way, flow behavior includes the movement of layers of fluids with different velocities past or over one another. Such descriptions are characteristic of turbulent pipe flow. The fluctuations in the present case are a direct consequence of the local viscous fingering which accompanies the unstable displacement process. Should displacement become stable, fluctuations would die out. It is of particular importance to note that fluctuations such as these can interact in a way that contributes to material transport by the basic flow. The basic transport equations required for engineering calculations must be modified to reflect this fact.

By R. W. Shoenberger, J. D. Clendenin, W. L. McMorris, N. Schapiro, B. R. Kuchta, A. A. Terchick, R. J. Gray, J. G. Price

INTRODUCTION * The United States is fortunate in having enormous reserves of metallurgical-grade coals. Although these coals are better in quality and more accessible than most coals found throughout the rest of the world, the best grades of these coals are being depleted. Consequently, more efficient exploration tools and techniques, such as advanced methods of core drilling and logging, correlation by palynology,** stratigraphy, paleontology and petrography are being used to help assess the extent and quality of the remaining coal reserves. Exploration and assessment of new and existing coal properties become of utmost importance in determining (1) the economic justification for mining the coal, (2) the optimum design of the preparation plant and (3) the most effective use of the coal. Fortunately, the cost of mining coal has remained stable because of better mine planning, more efficient operations and increased mechanization of mining operations. However, increased mechanization raises the amount of impurities in the coal mined, and this requires more and better coal beneficiation to meet the more stringent quality requirements set by the market. Besides, mechanical miners also produce relatively fine coal and, to ensure maximum liberation of impurities, much of the coal presently being used must be crushed to a finer size prior to preparation. The bulk of all coals presently used in this country is mechanically cleaned, much of it at a lower specific gravity than in the past. This necessitates the use of new and improved processes and equipment for coal washing and recovery, such as heavy-medium cyclones and vessels, and froth flotation cells. However, because wet-cleaning processes are pre- dominant in the United States and fine coal retains large amounts of moisture, the increased production of cleaned fine coal accentuates the need for new or improved methods and equipment for dewatering and drying this coal. The larger amounts of coal being beneficiated and the use of new and improved beneficiation processes will aid in controlling and ultimately eliminating sources of pollution. Modem coal markets demand coals that meet rigid specifications. Most coals are purchased under contracts that specify moisture, ash, and sulfur contents, or heating value, depending upon the end use. There has also been a growing trend toward specifying other properties, including particle size and coking capability. These specifications may include not only the * Editor's note: Because of the numerous and varied contributions of the associate authors of this chapter, the text does not differentiate between sections prepared by each individual as has been done in other chapters. ** Palynology is the study of plant microfossils, especially spores, pollen, and other types of fossils not usually studied by paleontologists.

Jan 1, 1968

By D. E. Peacock, B. Harris

The mechanical behavior of a niobium (columbium)TUNG alloy containing 20 wt pet Ta. 15 wt pet W, and 5 wt pct Mo has been studied in the temperature range 77° to 423°K. All specitrzens tested, apart from those into which oxygen was introduced deliberately, were fully recrystallized at 1500°C, had an average grain diameter of approximately 0.03 mm, and a combined carbon, ox-vgen. nitrogen, and hydrogen content of not not more than 250 ppm The meckatnical behavior of this alloy was found to be similar in seine respects to that of unalloyed bcc transilion metals. Both yield and flow stresses were sensililae to changes in deformation rate and both increased rapidly as the temperature was lowered below 150°C. A detailed examination revealed, however, that most of the temperature dependencc of the yield stress could be accounted for by the temperature dependence of the elaslic, modulus, whish is not true of the unualloyed metals. In lension at moderate strain rates, the trunsition fvom ducfile to hvittle behavior occurred just belour room teunperature bur incveasing the oxygen content from 190 to 200 pptn raised the transition temperature to about 4000K. TUNGSTEN and molybdenum have been found to be very effective high-temperature solid-solution strengtheners of niobium, but the amounts of these elements that can be added are limited if the alloy is to retain useful room-temperature ductility. It has been shown, however, that partial replacement of niobium with tantalum lowers the ductile-to-brittle transition temperature of such alloys and allows larger additions of molybdenum and tungsten to be made. Some of the high-temperature properties of niobium alloys containing these elements have been reported by Bartlett et al.,' and the work presented here describes the low-temperature behavior of one of these, a solid-solution alloy containing, by weight, 20 pct Ta, 15 pct W, and 5 pct Mo. The elastic modulus, the temperature and strain-rate dependence of the yield and ultimate tensile stresses, and strain-hardening effects are discussed and compared with those of unalloyed niobium. EXPERIMENTAL MATERIAL AND PROCEDURE The material used in this investigation was produced from a 6-in.-diameter, double arc-melted ingot. This was can-extruded at about 1150°C to a 3-in.-diameter billet, and after annealing for 1 hr at 1345°C the billet was heated to 1315OC and part rolled and part forged to 0.5-in.-thick plate. The resulting material exhibited a cold-worked structure

Jan 1, 1965

By Raymond D. Sloan

Development and exploration in Oklahoma showed a definite increase in 1941 over 1940 in production, wildcat activity and total well completions. Geological and geophysical work continued and possibly increased slightly in amount. Oklahoma retained third place in the ranking of oil-producing states of the nation, topped only by Texas and California, and followed by Illinois in fourth position. Production averaged 416,800 bbl. daily, a 1.7 per cent increase, as compared with 409,900 bbl. daily for the year 1940. Maintenance of the state's relatively stable producing rate resulted from the discovery of numerous small pools, the recombing of old areas, the establishment of new producing horizons, and the drilling of an increased number of marginal wells. The market for the Mid-Continent crude was strengthened materially to meet the increased demand. Coincident with a deeline in production in Illinois, shipment of Oklahoma-Kansas crude to the eastern points averaged 453,000 bbl. per day, an increase of 49.4 per cent as compared with 1940. The movement south amounted to an average of 42,000 bbl. per day, a loss of 41.7 per cent. Secondary-recovery programs in Oklahoma were given more consideration, operators realizing that in the future many pools would necessarily have to resort to this type of operation. Five permits for water-flooding were issued by the Corporation Commission during the year. These projects were in Rogers, Wagoner and Nowata Counties, in the shallow northeastern area, which has relatively extensive development of this type in the Bartles-ville sand at from 600 to 1000 ft. in depth. Gas repressuring of an individual lease in the 35-year old Glenn pool, Creek County, proved relatively successful, and after a year's operation was extended to cover a much larger area, with several operators participating. More of this type of work is expected in the future; however, it was given an initial setback when the legislative proposal authorizing secondary recovery in the Wilcox zone of Oklahoma's largest pool, the Oklahoma City pool, was pigeonholed by the committee. A continuation of the low discovery rates within the state would possibly lead to a revival of interest in the project. Many pools formerly classified as prorated areas were removed from this classification and transferred into the group of settled production. At the close of the year the issuance of the Federal Conservation Order M-68 and the interrelated Preference Rating Order P-98 caused a sharp decline in drilling operations, which is expected to continue until such operations are stabilized at a lower rate. The ultimate effect of these two orders on discoveries, production and reserves is a matter of speculation and conjecture. During the year, 2110 new wells were drilled, an increase of approximately 18 per cent as compared with the previous year. Of the total, 1235 were oil wells with a combined initial potential of 342,754 bbl. daily, 178 were gas wells with a total

Jan 1, 1942

By Raymond D. Sloan

Development and exploration in Oklahoma showed a definite increase in 1941 over 1940 in production, wildcat activity and total well completions. Geological and geophysical work continued and possibly increased slightly in amount. Oklahoma retained third place in the ranking of oil-producing states of the nation, topped only by Texas and California, and followed by Illinois in fourth position. Production averaged 416,800 bbl. daily, a 1.7 per cent increase, as compared with 409,900 bbl. daily for the year 1940. Maintenance of the state's relatively stable producing rate resulted from the discovery of numerous small pools, the recombing of old areas, the establishment of new producing horizons, and the drilling of an increased number of marginal wells. The market for the Mid-Continent crude was strengthened materially to meet the increased demand. Coincident with a deeline in production in Illinois, shipment of Oklahoma-Kansas crude to the eastern points averaged 453,000 bbl. per day, an increase of 49.4 per cent as compared with 1940. The movement south amounted to an average of 42,000 bbl. per day, a loss of 41.7 per cent. Secondary-recovery programs in Oklahoma were given more consideration, operators realizing that in the future many pools would necessarily have to resort to this type of operation. Five permits for water-flooding were issued by the Corporation Commission during the year. These projects were in Rogers, Wagoner and Nowata Counties, in the shallow northeastern area, which has relatively extensive development of this type in the Bartles-ville sand at from 600 to 1000 ft. in depth. Gas repressuring of an individual lease in the 35-year old Glenn pool, Creek County, proved relatively successful, and after a year's operation was extended to cover a much larger area, with several operators participating. More of this type of work is expected in the future; however, it was given an initial setback when the legislative proposal authorizing secondary recovery in the Wilcox zone of Oklahoma's largest pool, the Oklahoma City pool, was pigeonholed by the committee. A continuation of the low discovery rates within the state would possibly lead to a revival of interest in the project. Many pools formerly classified as prorated areas were removed from this classification and transferred into the group of settled production. At the close of the year the issuance of the Federal Conservation Order M-68 and the interrelated Preference Rating Order P-98 caused a sharp decline in drilling operations, which is expected to continue until such operations are stabilized at a lower rate. The ultimate effect of these two orders on discoveries, production and reserves is a matter of speculation and conjecture. During the year, 2110 new wells were drilled, an increase of approximately 18 per cent as compared with the previous year. Of the total, 1235 were oil wells with a combined initial potential of 342,754 bbl. daily, 178 were gas wells with a total

Jan 1, 1942

By John K. Gustafson

The title of my talk is "The Gold Miner and the Future of Gold." This title might just as accurately have been stated as "Gold and the Future of the Gold Miner." Since prehistoric times gold has been sought by mankind for its beauty and its unusual physical and chemical properties. Early in the dawn of civilization it became the ultimate unit of value and lubricated trade between peoples. For at least 6000 years, gold has been used to barter for other commodities. It has been prospected for, treasured, made into works of art and personal adornment, and from time to time has been the object of conquest. Because of its predominant role in recent centuries as a basis for money, economists began to think of it solely in these terms. Annoyed by the disciplinary pressure of gold on the money manager's desire to manipulate money, the famous economist, John Maynard Keynes, characterized it as a "barbaric relic of the past", a characterization repeated by William McChesney Martin, Jr., when he was head of the Federal Reserve Bank. Gold, however, has physical and chemical properties that make it one of the most useful metals in the modern world.' It is the most ductile metal known. An ounce of gold, for example, can be drawn into a continuous wire over 35 miles long. It also is so malleable that an ounce of gold can be beaten into films ten one-millionths of an inch thick sufficient to cover 68 sq ft of surface. It has a density of 19.3 and is so heavy that 1 cu ft of gold weighs more than half a ton. Gold is nonmagnetic and has a high electric conductivity, only slightly less than silver and copper. Gold is so inert to all the chemicals found in nature that gold coins and jewelry buried beneath the soil or at the bottom of the sea for thousands of years appear to be as bright and perfect as when they were first immersed. Finally, gold has an extremely high reflectivity both to light and infrared rays. Because of these qualities, in addition to its rare beauty, industrial and artistic uses of gold have been growing rapidly. On a world basis, a recent study estimated that in 1960 about 750 tons of gold were used for fabrication, and that the amount had grown to about 1296 tons in 1968. My objective in this talk is to discuss with you the present and future supply of and demand for gold on a worldwide basis and the effect these forces are likely to have on the price the miner can expect to receive for the gold he produces. This is a highly controversial and risky subject to discuss before any audience. Nevertheless, it is a subject that I live with constantly as Chairman of the

Jan 1, 1972

By William E. Greenawalt

Ever since electrolytic copper refining gave promise of success, about a half century ago, efforts have been made to apply the idea to the extraction of copper from its ores. The methods of attack have, usually, been to leach with a dilute acid and then to deposit electrolytically the copper from the resulting solution with the simultaneous regeneration of the solvent used in the process. Many efforts have been made, and many patents have been taken out, both in the United States and abroad, to give this idea practical application, but only within the past few years have the difficulties been surmounted. Leaching and electrolysis, as applied to copper ores, are among the most promising fields in modern metallurgy. New conditions are arising, which will bring the wet methods into prominence; while high freight rates and increasing cost of fuel will tend to limit smelting to highly favored localities. The possibilities offered by the installation of hydroelectric plants and the greatly enlarged range of power transmission will greatly widen the field of electrolytic methods. Electrolytic methods are ideally adapted to hydroelectric development, for the load is constant throughout the full twenty-four hours, and the cost of both installation and operation of hydroelectric plants is not appreciably greater when operating for twenty-four hours than when operating for eight or ten hours; whereas, in fuel-power generation, as also in smelting, the cost is more or less in proportion to the fuel and power used. Nevertheless, fuel-power generation presents advantages in electrolytic methods, as the power plant may be located in a favorable place while the leaching and electrolytic plants may be located at the mine. The ultimate possibilities of the wet methods have yet to be determined. The possibilities of smelting have been thoroughly worked out; there is no unsolved major problem in copper smelting, and it has practically reached the limit of its possibilities. It seems hardly probable that any future improvement, either of method or apparatus, will greatly

Jan 1, 1924

By W. C. Lacy

This article is a progress report of a program designed to quantitatively evaluate geological parameters to predict stable slope angles. The author feels that, although there does not appear to be any one technique or characteristics that will suffice as an index to the determination of stable slope angles, a combination of seismic methods as outlined here, detailed geological mapping and logging of core, and a better understanding of the angle of internal friction in rock types will permit accurate estimation. A mining engineer friend once remarked, "If we don't have pit slope failures, the slopes are too flat." Since economic justification of an open pit project is based upon ultimate pit slopes, we cannot wait until the pit is developed and slopes established by trial and error. Some combination of geological and/or geophysical techniques must be developed to permit accurate prediction of stable slope angles and to suggest modification of pit outlines to result in slopes enabling maximum economic yield. This presentation is a progress report of a program designed to quantitatively evaluate geological parameters to predict stable slope angles. The principle of the weakest link applies to any slope stability evaluation and necessitates detailed geological examination and recording of observations. Physical failure will occur along any surface where shearing stress exceeds shearing resistance. Rock conditions are seldom uniform even within a single cut or pit face, so stability conditions will vary. Consequently, both plan outline and ultimate slope limits must be tailored to the specific situation. Economic advantages to be gained by slight increases in slope angles in deep pits are well recognized and stimulate efforts to obtain maximum permissible slope angles. MECHANICS OF SLOPE FAILURE Excellent reviews on the nature of slope failure have been presented+2,6,8,11 For the purpose of this study, the writer considers failure to take place by one or more of three processes: 1) ravelling, 2) translation or slope failure, and 3) rotation or base failure (Fig. 1). The effects of increased pore water pressure in soils were recognized in 1923 by Terzaghi in his development of the concept of effective stress, and he has applied the same principle to jointed rocks designating water pressure as cleft-water pressure.8 Cleft-water pressure in a rock slope reduces normal pressure on the plane of failure, thus reducing shearing resistance and resulting in slope failure. In the following discussion it is assumed that adequate drainage is supplied to prevent any build-up of water pressure. This is the first step in any program to establish maximum slopes. Ravelling: Ravelling occurs in rocks with low cohesion and entails the free movement of individual fragments ranging from single rock falls to running ground. Removal of lateral support wherever slope angle exceeds the angle of repose of the rock parti-

Jan 1, 1963

By Joseph E. Worthington

The present-day Northumberland gold mine is one of the deposits generally characterized as a Carlin-type occurrence. It lies at the crest of the Toquima Range in Nye County near the center of Nevada. Gold mineralization occurs in two modes, in argillaceous and in silicified limestones, and is generally very fine-grained or micron gold. The Northumberland district has had a history that is typical of many western gold districts: minor production prior to World War II and intermittent exploration thereafter until a combination of geological insight, improved economics, and the advent of heap leach technology created the Northumberland gold mine. Nye County, Nevada, was sparsely populated and little explored in the early years of the settlement of the west; the Northumberland district was not established until 1866. Initial interest was in silver and the district operated as a very small producer for the next seventy years. The disseminated gold occurrences in silicified limestones were recognized and Northumberland Mining Co. was organized to develop the property in the late 1930s. Northumberland Mining Co. actually conducted drilling operations (over 200 drill holes) and mined from small open pits in the silicified limestones. They ultimately produced almost 936 kg (33,000 oz) gold before being shut down by War Production Board Order L-208 in 1942. After World War II gold mining activities were essentially nil for over a decade due to the poor economics of gold production. The property was, however, a known gold producer and attracted recurrent exploration attention. About 45 holes were drilled under the direction of Peter Joralemon for private interests between 1959 and 1963. Next Kerr McGee drilled about 25 holes during 1963 and 1964. Some- what later, in 1968, Homestake drilled 20 holes. The property was then acquired by Idaho Mining Co. which drilled about 30 more holes between 1972 and 1974. By this time the Northumberland mine was becoming somewhat shopworn with over 300 holes drilled. Interest in gold prospects was increasing substantially in Nevada, how- ever, due to rising gold prices in late 1974, and several companies were interested in continuing exploration at Northumberland. In 1975 Cyprus Mines Corp. was successful in obtaining a joint venture arrangement with Idaho Mining Co. for further exploration and development of the property. The overall Cyprus exploration program was under the direction of James G. Hansen, Vice President Exploration. The geologist recommending acquisition of Northumberland was Peter E. Chapman who reported to Joseph E. Worthington, Manager of U.S. Exploration for Cyprus. The basis for selection of the Northumberland mine as an exploration target for Cyprus by Chapman was essentially prior knowledge of regional and 16cal geology and of the mine. Exploration for the next few years was directed by Chapman under the supervision of Worthington. During 1975 and 1976 rotary and check core drilling were conducted that indicated that a substantial Carlin-type or disseminated, low-grade gold deposit occurred in two separate bodies. Drilling was based on geologic mapping and rock chip geochemical sampling. Both ore zones were reflected at the surface as gold and arsenic anomalies in rock chips. Heap leach tests attempted in 1977 were aborted by a flash flood, but were completed in 1978. Engineering studies occupied the next couple of years until the property achieved production in the fall of 1981. It is now producing by open-pit mining with gold recovery by heap leaching and cyanide extraction at a rated capacity of approximately 2722 t/d (3000 stpd) ore. Metal recovery has been projected (probably conservatively) at 5 10 kg/a (18,000 oz per year) gold and 1.6 Mg/a (59,000 oz per year) silver. Reserves are reported to be adequate for ten to fifteen years of production. REFERENCES Anon., 1981, "Gold in Nevada," Span Magazine, Vol. 21, No. 3, Standard Oil Co., pp. 6-9. Koschman, A.H. and Bergendahl, M.H., 1968, "Principal Gold- producing Districts of the United States, Professional Paper 610, US Geological Survey, p. 193. Kral, V.E., 195 1, "Minerals Resources of Nye County, Nevada, Bulletin, Vol. 45, No. 3, Geology and Mining Series 50, Nevada University.

Jan 1, 1985

By Jack A. Simon, M. E. Hopkins

Coal is defined as a combustible rock that originated in the accumulation and physical and chemical alteration of vegetation. Coal can be ignited and burned like the wood that was man's earliest fuel, but coal gives more heat than the same amount of wood and has many industrial uses. Unlike wood, coal is not generally found on the surface of the ground but is mined from the solid rock of the earth. Before taking up the occurrence, formation, and the unique character of coal in the rock sequence, let us briefly consider the general character of all rocks in the crust of the earth. Relatively little is known about the very earliest history of the earth, although a number of logical theories have been developed. Manned exploration of the moon and the rocks returned to earth continue to provide some answers to questions concerning the earth's origin and history. The period of earth history with which we concern ourselves here begins after great areas of water had evolved on earth and substantial land areas of once molten (igneous) rock existed. Weathering and other processes that attacked the surface of the rocks reduced them to small particles. Water provided by rainfall transported this material, ultimately, to large bodies of water where it was deposited. Thus was initiated the geologic sequence of sedimentary rocks that lie above the once molten igneous rocks. The crust and upper mantle of the earth are made up of several large plates along which differential movement (primarily horizontal) takes place. Such movements, although small, are occurring today. These horizontal movements are accompanied by vertical movements causing important changes in the relative position of the continents and oceans. Low-lying coastal swamps with favorable climates are ideal locations for coal accumulation and burial by river-borne sediments, and large areas

Jan 1, 1981

CHARLES CATLETT, Staunton, Va.-A great many important things have been said in an interesting way but the most startling, to me, is that for 25 years, the price has been in the neighborhood of $1.00, with a minimum of 86 cents and a maximum of about $1.25. It is evident that during all that time the price was inadequate. The amount paid to be divided between the land owner, the capitalist, and the laborer was too limited or too irregular to permit of a healthy condition; yet it is evident that the enormous industrial development of this country was fostered by this very cheap coal, probably the cheapest that has been provided in quantity in any country. I entered the coal business when the price was lowest and my interest and sympathy went out to the man who spent his days in the dirt and foul air of a mine and I was filled with schemes for helping. But at the end of the year, after exercising every economy and in blissful ignorance of proper depreciation and obsolescence, there was still only a profit of 1 cent per long ton for what I think is one of the best coals in the world, the best grade of New River coal. We are now paying a great deal more than we did a few years ago and probably will continue to pay more for some time; but any one who thinks we will not have low prices again is very young or very forgetful. Yet we must have larger profits if the industry is to be healthy, if the three parties to the production are to get adequate returns and be in shape to provide the improvements which will be needed to take the place of and supplement the man-power. This will come when the men are making so much money that the operator wants to replace the man by a machine, and when the operator is making so much money as to be in a shape to make the improvements. He will not put in machinery unless the machinery will save money. We have got to pay a higher prime cost for coal, but engineering skill will teach us how to handle it better and use it more economically, and the ultimate result ought to be of advantage to the public.

Jan 3, 1920

By B. L. Averbach, M. Cohen, C. H. Shih

The isothermal formation of martensite is studied in Fe-Ni-Mn and Fe-Mn-C alloys under conditions where the athermal transformation is completely avoided, there being no martensite present at the beginning of the isothermal reaction. The initial rate of martensite formation is extremely low under these conditions, but it increases greatly as soon as some martensite is formed. It appears that true initial characteristics of the isothermal reaction can be studied only in samples wherein the formation of martensite on cooling is completely eliminated. THE phenomenon of isothermal martensite formation is well established1 -" but the observations have been made in the presence of varying quantities of athermal martensite. Complete avoidance of athermal martensite and the formation of martensite under pure isothermal conditions have been reported by Kurdjumov and Maksimova2 in an Fe-Ni-Mn alloy (23 pct Ni, 3.4 pct Mn, and the balance Fe) and have been confirmed by recent experiments of Cech and Hollomon in a similar alloy. In each case, the isothermal transformation rate was a maximum at the beginning of the transformation and decreased as the reaction proceeded. These initial transformation rates were used by Fisher7 for the confirmation of calculated nucleation rates based on classical nucleation theory extended to include the effect of elastic strain energy. Cech and Hollomon have admitted, however, that up to 3 pct martensite formed on cooling in their samples and thus was present at the initiation of their isothermal runs. In this paper, experiments on similar alloys are described, except that care was taken to remove the incidental martensite developed at the surface prior to the isothermal reaction. It is shown here that the reaction rate at the beginning of the strictly isothermal reaction is very low. As soon as some detectable amount of martensite is produced, the transformation rate increases rapidly but ultimately decreases as the reaction proceeds. When martensite is allowed to form isothermally in the presence of about 2 pct of prior martensite, the apparent initial reaction rate is a maximum and corresponds to the observations of Kurdjumov and Maksimova and Cech and Hollomon. It is evident that the cooperative nature of the martensitic reaction results in a significant stimulating or autocatalytic effect on the isothermal reaction rate. Experimental Procedure The chemical compositions of the alloys used in this investigation are listed in Table I. The Fe-Ni-Mn alloys A and B were melted in an induction furnace, cast into ingots 2 in. diam by 4 in. long, and forged into % in. diam rods. The manganese steel (alloy C) was melted in an arc furnace and cast into ceramic molds 1/4 in. diam by 5 in. long. The rods were sealed in evacuated Vycor tubes and homogenized at 1175" to 1200°C for 50 hr. The long homogenization resulted in some manganese loss from the surface, producing a thin layer of transformed material. This surface layer was removed by grinding and the specimens were then swaged to 0.050 in. diam wire. Measurements of electrical resistance were made with a Kelvin double bridge to follow the course of the martensitic transformation. A small permanent magnet was also useful in scanning an entire specimen for small localized quantities of martensite. This test is almost as sensitive as the electrical resistance method in detecting the presence of martensite (which is ferromagnetic in these alloys) and it was especially useful in deciding whether a specimen was completely free of martensite. The wire specimens (0.050 in. diam by 2.5 in. long) were sealed in evacuated tubes and austenitized for 5 min at 1150°C. The specimens were quenched into water and, unless otherwise stated, stress-relieved for 1 hr at 650 °C in order to induce greater uniformity in the subsequent martensitic transformation. As dem-

Jan 1, 1956

By William L. Langdon

PRELIMINARY COMMENTS Recent years have been difficult for the mining industry, as reported in the most recently published Minerals Yearbook (Volume III), the estimated value of world crude mineral production has been generally declining since an historical peak in 1979 (16).* The costs of mineral extraction have, however, been rising rapidly. Individual project costs are, in general, exceeding the growth rate of mining companies, while operating and technical risks continue to increase (16). Risks resulting from currency flotation and political actions in the host country are also on the increase. Labor difficulties (such as those experienced by Phelps Dodge) and the Reagan Administration's recent rejection of a proposal by the International Trade Commission for higher tariffs and/or quotas on copper imports have also contributed to the mining industry's difficulties. The net result of these factors has been financial difficulties for mining companies with respect to paying for their current financial obligations as well as trouble finding new financing. It may be that one of the main factors in determining the future of the mining industry will be centered upon capital structure, i.e. how its assets are financed. Historical Perspective on Capital Structure In The Mining Industry As discussed by Isreal Borenstein in (4) and Thomas Navin in (7), mining firms typically have used a financial model based upon high financial leverage, i.e. large amounts of debt relative to equity. This has been especially true for American firms developing orebodies discovered overseas. Problems sometimes occurred for those who were forced to commit themselves to completion guarantees in order to obtain bank loans. Mines under these circumstances must be brought into operation regardless of market conditions. Politicians in overseas countries also may use the high profits required by these high risk ventures to argue for nationalization of mines. Coupled with the frequent use of high leverage, mining companies traditionally have paid out a higher percentage of earnings in the form of dividends than manufacturing firms. This is significant, in that such funds paid out in dividends are not available for other uses. Hence, a greater reliance upon debt and/or additional stock issues than would ordinarily be the case for manufacturing firms. Thomas Navin has stated in (7), that the theory behind the high dividend payout was that, "most mining investors thought of themselves as investing in a wasting asset, one that would gradually deplete over time until it ultimately became valueless." Investors, therefore, required a receipt, in the form of dividends, of a percentage of current earnings and a return on original capital. This view of reality, apparently, has not changed in some quarters, even though modern mine management ordinarily replaces depleted mines with new ones. It may be that this practice of high dividend payout coupled with relatively high financial leverage should be reexamined. Current capital structure theory could prove interesting and useful for those concerned with current conditions. Capital structure patterns and related practices in this industry are not, in many cases, congruent with those thought by some to be theoretically optimal. Prelude to Capital Structure Discussion With a few notable exceptions (such as the Guggenheims and Anaconda's chief operating,. officer in 1971) mining companies' chief executives and boards of directors have not been persons with financial backgrounds. This, one could conjecture, might have accounted for the relatively nonsophisticated nature of capital structures of mining companies. In order to appreciate the possibilities with respect to alternative influence on a firm's performance, one must be acquainted with the basics of financial theory. This paper is an attempt to familiarize the reader with (1) capital structure in general, (2) the usual components of this structure, (3) the general theory behind the use of financial leverage, and

Jan 1, 1985

ONE of the largest hard rock operations ever undertaken on the continent is part of the Aluminum Co. of Canada's gigantic British Columbia development in the mountainous wilderness back of the north coastal port of Prince Rupert. To provide electric power for the huge aluminum smelter under construction at Kitimat, 400 miles northwest of Vancouver, Alcan is reversing the flow of a 5000 sq mile drainage area by blocking the eastward-flowing Nechako River with the largest sloping clay core dam in the world. The backed-up waters of a 110-mile chain of lakes will be tapped at their eastern end by a 10-mile tunnel piercing a mile-high mountain range. From this tunnel water will pass through penstocks to a subterranean powerhouse after a drop of 2600 ft and empty into the Kemano River almost at tide water. A projected battery of eight turbine-driven generators will produce more than a million horsepower, although, initially, three generators of 140,000 hp each will be installed. Power will travel 50 miles across another mountain range, over a glacier, and across an arm of the ocean to what will ultimately be the world's largest aluminum smelter-a plant 2 ½ miles long. Ore smelted at Kitimat will come from Jamaica, but carving the tunnel, penstocks, and powerhouses cavern out of the heart of a mountain is so vast a job that most of the problems of a major mining operation are encountered. The powerhouse cavern alone is a big hard rock job. This chamber lies 1400 ft back from the mountain face and will eventually be 1100 ft long, 80 ft wide, and an average 118 ft high. Now under construction, the roof of this cavern will take the form of a parabolic arch. The prime contractors, Morrison-Knudsen Co. of Canada, are to excavate a length of 700 ft by May 1954. This section will provide a main control room, erection bay and space for eight generating units. The roof arch is to be lined with reinforced concrete and a plan now under study provides for concrete curtain walls separated from the rock sides of the cavern to prevent moisture accumulation. Cavern Excavation Excavation of the cavern began with the driving of an 8x8-ft exploratory drift 1500 ft long. Two horseshoe-shaped access and tailrace tunnels were bored to serve excavation work. These tunnels are approximately the same length as the exploratory drift and 25 ft high. The floors of both tunnels were graveled to permit the use of rubber-tired equipment. Eventually, the tailrace tunnel will be enlarged to 40 ft height to drain water from the turbine pits below the powerhouse floor. When the tunnels reached the cavern location, a mucking tunnel, approximately 25 ft square, was driven the projected length of the powerhouse at the floor level of the cavern. Another tunnel, 10 ft square, was carried in the same direction from the exploratory drift at the level of the arch spring line, 65 ft above the cavern floor. To connect these two tunnels, seven shafts 10 ft wide and approximately 80 ft long were driven through to the lower mucking tunnel, 65 ft below. These shafts were located on 120-ft centers, the length of the powerhouse cavern. Blasting is done from this upper tunnel to the final line of the roof arch. Two bulldozers, an International TD-24 and a TD-9, doze blasted material to the shafts where it drops to floor level. From here, the rock is loaded by Eimco loaders and power shovels into rubber-tired Koehring Dumptors and Euclid end-dump trucks. The arched roof section will be completely excavated and concreted before vertical blast holes are drilled down from the level of the arch spring line to the floor of the cavern. The arched roof section with its parabolic curve will have a width of 80 ft and a rise to the crown of 47 ft.

Jan 1, 1952

By A. L. Barnes

A number of reservoirs have been partially invaded by bottom water. Water flooding such reservoirs can be especially inefficient if the oil has a high viscosity because injected water will under-run the oil and emerge at producing wells without having displaced much oil. A possible means of improving water sweep efficiency would be to precede the water flood with a slug of water purposely thickened with a chemical additive. This possibility has been studied with a scaled laboratory flow model. The investigation was carried out on a model representing a 20-acre five-spot with one set of reservoir condition~. Displacements were performed with water, with viscous-water slugs of 10 and 25 per cent of the pore volume followed by water, and with all viscous water. Displacement tests were made at several rates of injection. For all cases, compared at the same producing water-oil ratio, an increase in rate resulted in an increase in volumetric sweep. The larger the quantity of viscous slug injected, the greater the crossflow of oil ahead of the displacing front and, thus, the lower the WOR during that period of a displacement. This investigation indicates that the injection of aqueous viscous slugs in this type of system would give some additional benefit over conventional flooding by (I) reducing the life of the flood, (2) reducing lifting costs and (3) increasing ultimate recovery. The benefits of a viscous-slug displacement would warrant its use if the viscous water could be created for a few cents per barrel. INTRODUCTION The most appropriate method for water flooding oil reservoirs which have been partially invaded by bottom water has been a problem of considerable interest. Such reservoirs, having good vertical permeability and unfavorable mobility ratios, are difficult to produce efficiently under normal waterflood procedures. Even though the injection wells have been plugged back above the oil-water contact and the water zone has been squeezed off, injection water will enter the formation and not only displace oil, but also much of it will displace the bottom water, thus creating a high producing water-oil ratio at the start of a flood (see Fig. 1). Since the rate of injection and the viscosity of the displacing fluid are the more easily controlled physical parameters of the reservoir, it is quite natural to study their effects on the volumetric sweep of the oil zone and on the producing water-oil ratio. Increasing the viscosity of the displacing fluid has two disadvantages—it reduces the maximum rate of injection into the reservoir, and it costs more than water. It was thought that the injection of a viscous-fluid slug, followed by water, would minimize these two disadvantages, increase the volumetric sweep of the oil zone and reduce the producing water-oil ratio. Water with an additive to increase viscosity would probably be the most effective. The primary purpose of this investigation was to determine the feasibility of injecting viscous-water slugs followed by water to improve or hasten oil recovery while reducing the producing water-oil ratios. The effect of injection rate upon recovery was also investigated. A laboratory model, scaled to a 20-acre five-spot prototype with one set of reservoir conditions, was constructed. Laboratory studies of displacements with (1) water, (2) viscous-water slugs of 10 and 25 per cent of the pore volume followed by water and (3) all viscous water were performed at several rates of injection. THEORY OF SAND MODEL SCALING There are two conventional means of determining scaling criteria. These are dimensional analysis and inspec-tional analysis. Determining scaling criteria by dimensional

By Michael A. Gustafson, Fernando B. Sotelino

INTRODUCTION The degree of success of any new project will ultimately depend on two factors: (i) the underlying economic strength of the project; and (ii) how successfully the parties involved can coordinate their interests to establish a financing structure which indeed capitalizes on the project's inherent economic attractiveness. A project's underlying economic attractiveness is determined by its inherent comparative advantage in accessing the factors of production, combining these factors of production to create a product and marketing this product. Initially, the decision regarding whether to go ahead with the project - the go/no go decision - has to be based on its total ability to generate cash flow returns to project participants to compensate them for resources committed and risks undertaken. The extent to which project sponsors will actually benefit from the project's inherent economic attractiveness is fundamentally dependent on their ability to establish the long-term financing arrangement which best meets the objectives and constraints of each project participant and sources the most advantageous funding. The decision regarding the financing of the project, the "how-to-go" decision, is then an attempt to find the capital structure, consistent with market terms and conditions and sound financial management policies which will best: (i) match planned outflows with cash inflows; and (ii) maximize the return for project sponsors. This article makes use of a case study to illustrate the analytical process involved in dealing with the go/no go and the how-to-go decisions on a project. Though most commonly applied to project finance situations, the guideline described herein is equally applicable to other financing situations, such as leveraged buyouts and debt restructurings, where timely repayment of debt depends largely on the future cash flows to be generated by the entity being financed. Our case study is of a hypothetical expansion of an existing copper mining operation in Latin America. The company, Latin American Copper (LAC) currently has 147 million metric tons of proven sulphide ore reserves. The existing mine complex consists of an open pit mining operation and a conventional flotation plant with a processing capacity of 20,000 metric tons of ore per day. LAC sells copper concentrates primarily to Japanese custom smelters. The mine has been in operation for 5 years, fine copper production last year was 108,240 metric tons, and LAC currently has assets of $175 million and net worth of $135 million. Due to a recent increase in proven reserves, LAC is considering doubling the treatment capacity of its flotation plant to 40,000 tons per day, and expanding its mining capacity to meet the additional concentrator capacity (the "Project"). Project capital expenditures and incremental working capital have been estimated at approximately $210 million. The construction period is expected to cover one year, including a three-month start-up phase. The Project is to be funded by a combination of equity, senior debt, including both supplier credits and/or commercial bank term loans, and subordinated debt. LAC's shareholders are willing to commit a maximum of $50 million to the Project. A government development agency, which is also a minority shareholder, might be willing to lend approximately $40 million to LAC in the form of subordinated notes, depending on the ability of the Project to generate foreign exchange reserves. Commercial banks cannot be expected to offer loans with maturities longer than ten years. The Project is expected to increase the value of the firm because: (i) It will solidify the Company's position as a low-cost copper producer by taking advantage of economies of scale. As a result of the expansion, cash production costs are expected to decrease 7.0[c]/lb. and all-in costs 11.0[c]/lb; (ii) The potential earnings stream from the sulphide ore reserves will be realized

Jan 1, 1985