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By Byron B. Morton

NICKEL-BEARING alloys are associated with petroleum in the fields of exploration, production, and refining. In the first- named field the geologist of today makes use of such instruments as the seismograph, torsion balance, and magnetometer, the selection of proper alloys and metals for the manufacture of which is an important matter. Nickel-bearing alloys are useful for parts that require resistance to corrosion or that must have non-magnetic properties. Where special co- efficient of thermal expansion are de- sired, they are obtained by using alloys high in nickel (20 to 60 per cent), since, by varying the nickel contents, alloys can be obtained ranging fro111 "Invar", with a low expansion between -40 and 175 cleg. F., to those with coefficients of expansion exceeding that of steels. The latter are obtained by additions of chromiurn to the alloys. Alloys containing 50 to 80 per cent of nickel, which possess high magnetic permeability, find application in certain instruments where this property is important.

Jan 1, 1935

By Joseph E. Pouge

For the purposes of this analysis it is assumed that the petroleum industry has undergone a basic economic change whereby the degree of competition present in its operation is reduced by the collective control of production brought about by statme-directed proration. Formerly freely competitive in all its parts, the industry is now fully competitive only in its marketing, its manufacturing and transportation, its search for new oil supplies, its drilling operations (with some qualifications), and its capital movements. The practical problem before the industry in its new status is the maintenance of equilibrium, with planned control of crude-oil production (proration) substituted for competition and price as the regulatory mechanism at one point in the supply-demand system. It is further assumed that proration has become so firmly established in the legal and operating framework of the business that it may be looked upon as an institution. The purpose of this paper is to call attention to the effect of unregulated drilling upon the orderly functioning of proration. Economic Structure of Petroleum Industry The economic structure of the petroleum industry, under the current form of proration, may be visualized, in simplified form, as shown in Fig. 1. This diagram is designed to indicate the existing mechanism whereby supply and demand are equated. Demand is created largely by conditions external to the oil business, whereas supply is conditioned by a series of stages incidental to the discovery, development and production of a resource. The time elements involved in changes in demand and supply are of an entirely different order, the demand factor being much more flexible and "quicker" than the supply factors. It should be observed, also, that the position of price, formerly between "demand" and "supply," has been moved to a sidewise location where it still affects demand but influences current supply only through its bearing upon proration, drilling and search. Proration has been substituted for price as a throttle at the well head, but at this point only. The mechanism now works in this fashion: a declining price stimulates demand and the

Jan 1, 1936

By Joseph E. Pouge

For the purposes of this analysis it is assumed that the petroleum industry has undergone a basic economic change whereby the degree of competition present in its operation is reduced by the collective control of production brought about by statme-directed proration. Formerly freely competitive in all its parts, the industry is now fully competitive only in its marketing, its manufacturing and transportation, its search for new oil supplies, its drilling operations (with some qualifications), and its capital movements. The practical problem before the industry in its new status is the maintenance of equilibrium, with planned control of crude-oil production (proration) substituted for competition and price as the regulatory mechanism at one point in the supply-demand system. It is further assumed that proration has become so firmly established in the legal and operating framework of the business that it may be looked upon as an institution. The purpose of this paper is to call attention to the effect of unregulated drilling upon the orderly functioning of proration. Economic Structure of Petroleum Industry The economic structure of the petroleum industry, under the current form of proration, may be visualized, in simplified form, as shown in Fig. 1. This diagram is designed to indicate the existing mechanism whereby supply and demand are equated. Demand is created largely by conditions external to the oil business, whereas supply is conditioned by a series of stages incidental to the discovery, development and production of a resource. The time elements involved in changes in demand and supply are of an entirely different order, the demand factor being much more flexible and "quicker" than the supply factors. It should be observed, also, that the position of price, formerly between "demand" and "supply," has been moved to a sidewise location where it still affects demand but influences current supply only through its bearing upon proration, drilling and search. Proration has been substituted for price as a throttle at the well head, but at this point only. The mechanism now works in this fashion: a declining price stimulates demand and the

Jan 1, 1936

By E. M. Furness, A. S. Henderson

ORIGINALLY the Babbitt experimental plant grinding circuit consisted of one rod mill 10 ½ ft diam by 12 ft long in open circuit followed by two ball mills 10 ½ ft diam* 12 ft long in parallel circuit. Shortly after operations commenced it was apparent that the rod mill could not function satisfactorily at the required 125 gross tons of ore per hr. Attempts to operate at this rate produced: 1) excessive tramp material over rod mill trommel screen which could not be handled in this open circuit and 2) excess build-up of coarse ore in the ball mill circuits because of inadequate rod mill grinding. Since Reserve Mining Co. ore must be ground to 85 pct -325 mesh to produce a satisfactory iron concentrate, an efficient and controlled grinding circuit is highly important. The first step in trying to resolve this grinding problem was to determine which unit of the circuit was actually in trouble and to what extent. A series of tests conducted at a lower tonnage rate of rod mill feed indicated that one ball mill could grind satisfactorily at rates up to 70 gross tons of rod mill feed per hr.

Jan 12, 1957

By W. C. McBee, B. W. Jong, T. A. Sullivan

A sulfur concrete technology has been developed by the US Bureau of Mines, where chemically modified sulfur is used with suitable mineral aggregates to produce construction materials that are resistant to corrosion by acids and salts. This report presents a summary of the basic technology and results of testing the materials under actual operating conditions in 50 corrosive environments in 40 commercial plants. After four years of testing, there was essentially no evidence of material degradation or loss of strength. Regular concrete materials were attacked and, in some cases, completely destroyed under the same conditions. Testing is continuing to establish ultimate longevity and durability of the sulfur concretes. The materials are finding widespread applications in metallurgical, chemical, and fertilizer processing plants.

Jan 1, 1986

By Fred D. DeVaney and

The coercimeter, as its name implies, is an instrument for measuring the coercive forcet of magnetic substances. It was developed by Davis and Hartenheim in the Special Studies Section, Metallurgical Division. A detailed description of this apparatus may be found elsewhere.2 The coercive force determinations of magnetic materials are interesting because of the relationship established by Gottschalk,4 who showed a linear relationship between the magnetization coercive force and the specific surface of comminuted particles. The value of this relationship in determining grinding efficiency has been shown by Dean.3 The determination of the surface contained in the subsieve sizes has always been a difficult problem for investigators. They made approximate measurements of the surface of coarse materials by sizing on screens, but for the determination of the surface of the sub-sieve sizes it was necessary to make detailed grain counts or elutriation tests, or to study dissolution rates. The technical literature contains many references to other methods for determining these surfaces, either by some special apparatus or by mathematical calculations based on distribution lines. Many of the methods are long and tedious, and the results of some, at least, are questionable. he turbidimeter gives quick results on ground cement. By using magnetite as the material to be ground, a simple determination of its coercive force by the coercimeter, requiring 10 minutes or less, can be transposed directly and accurately into units of relative surface. This subject has been pursued further by the U. S. Bureau of Mines in cooperation with the Missouri School of Mines and Metallurgy, Rolla, Mo., and the following is a description of the results.

Jan 1, 1939

By Fred D. DeVaney and

The coercimeter, as its name implies, is an instrument for measuring the coercive forcet of magnetic substances. It was developed by Davis and Hartenheim in the Special Studies Section, Metallurgical Division. A detailed description of this apparatus may be found elsewhere.2 The coercive force determinations of magnetic materials are interesting because of the relationship established by Gottschalk,4 who showed a linear relationship between the magnetization coercive force and the specific surface of comminuted particles. The value of this relationship in determining grinding efficiency has been shown by Dean.3 The determination of the surface contained in the subsieve sizes has always been a difficult problem for investigators. They made approximate measurements of the surface of coarse materials by sizing on screens, but for the determination of the surface of the sub-sieve sizes it was necessary to make detailed grain counts or elutriation tests, or to study dissolution rates. The technical literature contains many references to other methods for determining these surfaces, either by some special apparatus or by mathematical calculations based on distribution lines. Many of the methods are long and tedious, and the results of some, at least, are questionable. he turbidimeter gives quick results on ground cement. By using magnetite as the material to be ground, a simple determination of its coercive force by the coercimeter, requiring 10 minutes or less, can be transposed directly and accurately into units of relative surface. This subject has been pursued further by the U. S. Bureau of Mines in cooperation with the Missouri School of Mines and Metallurgy, Rolla, Mo., and the following is a description of the results.

Jan 1, 1939

By William H. Spice

The area on which oil and gas development is reported covers 30 counties, which are included in the Texas Railroad Commission's District No. I. This area not only includes the old established Balcones fault-line group of producing fields but also includes the southwest extension of this trend and some of the deeper Wilcox (Eocene) exploratory development. (Fig. J.) In the old Balcones fault-line zone, three new fields were discovered during 1941. These fields are comparatively small, producing from Dale limestone or Austin chalk. No new fields were discovered during the year in the Edwards (Lower Cretaceous) limestone horizon. One new shallow field was discovered in the Reklaw (Eocene) sand horizon and, in the southwestern part of the district, one oil field and one gas field were discovered in the Navarro (Upper Cretaceous) sand horizon. An extremely important extension was made to the one producing Wilcox (Eocene) field of the district in the Washburn Ranch field of La Salle County. The district produced 6,650,357 bbl. during 1941, which was a 12 per cent decrease under production for 1940. Approximately 4,954,000 bbl. of this total production was produced by the three Edwards limestone fields, Luling, Salt Flat and Darst Creek, the remaining production coming from the other 43 active fields in the district. In all, 3694 wells were producing at the end of 1941, compared with 3559 wells at the end of the previous year. During the year, 139 new producing wells were completed and 29 wells were abandoned in the producing fields. The increase in producing wells represents an increase in new wells over abandonments in these fields, together with a decrease in wells temporarily shut down as of the end of 1941. The majority of production drilling was carried on in the following fields; Bee Creek, Chicon Lake, Elm Creek, Gas Ridge, Pearsall and Tenney Creek. Approximately 250 wells were drilled during 1941, of which 110 were exploratory wells completed as failures throughout the district. Considerable exploratory work was continued during 1941 along the Wilcox trend. Geophysical work employing various types of geophysical methods and leasing activity was continued along this trend, particularly by the major companies. The significance of this activity is apparent from the successful extension and development in the Washburn field of La Salle County, where several well-developed gas-and-oil producing horizons have been developed in the lower Wilcox section between 5100 and 5600 ft. as noted in the following paragraphs. Continued exploratory activity along this general trend as far as present conditions will permit is predicted for 1942. New Fields Elgin Field, Bastrop County.—No. I-A Hiram Walker, Marts and Beaven, Inc., discovery well of the Elgin field, was com pleted on Apr. 22, 1941, in broken Austin chalk from 2820 to 2840 ft., pumping 105 bbl. per day, 36.8°A.P.I. gravity. The well apparently is producing from a crevice in

Jan 1, 1942

By William H. Spice

The area on which oil and gas development is reported covers 30 counties, which are included in the Texas Railroad Commission's District No. I. This area not only includes the old established Balcones fault-line group of producing fields but also includes the southwest extension of this trend and some of the deeper Wilcox (Eocene) exploratory development. (Fig. J.) In the old Balcones fault-line zone, three new fields were discovered during 1941. These fields are comparatively small, producing from Dale limestone or Austin chalk. No new fields were discovered during the year in the Edwards (Lower Cretaceous) limestone horizon. One new shallow field was discovered in the Reklaw (Eocene) sand horizon and, in the southwestern part of the district, one oil field and one gas field were discovered in the Navarro (Upper Cretaceous) sand horizon. An extremely important extension was made to the one producing Wilcox (Eocene) field of the district in the Washburn Ranch field of La Salle County. The district produced 6,650,357 bbl. during 1941, which was a 12 per cent decrease under production for 1940. Approximately 4,954,000 bbl. of this total production was produced by the three Edwards limestone fields, Luling, Salt Flat and Darst Creek, the remaining production coming from the other 43 active fields in the district. In all, 3694 wells were producing at the end of 1941, compared with 3559 wells at the end of the previous year. During the year, 139 new producing wells were completed and 29 wells were abandoned in the producing fields. The increase in producing wells represents an increase in new wells over abandonments in these fields, together with a decrease in wells temporarily shut down as of the end of 1941. The majority of production drilling was carried on in the following fields; Bee Creek, Chicon Lake, Elm Creek, Gas Ridge, Pearsall and Tenney Creek. Approximately 250 wells were drilled during 1941, of which 110 were exploratory wells completed as failures throughout the district. Considerable exploratory work was continued during 1941 along the Wilcox trend. Geophysical work employing various types of geophysical methods and leasing activity was continued along this trend, particularly by the major companies. The significance of this activity is apparent from the successful extension and development in the Washburn field of La Salle County, where several well-developed gas-and-oil producing horizons have been developed in the lower Wilcox section between 5100 and 5600 ft. as noted in the following paragraphs. Continued exploratory activity along this general trend as far as present conditions will permit is predicted for 1942. New Fields Elgin Field, Bastrop County.—No. I-A Hiram Walker, Marts and Beaven, Inc., discovery well of the Elgin field, was com pleted on Apr. 22, 1941, in broken Austin chalk from 2820 to 2840 ft., pumping 105 bbl. per day, 36.8°A.P.I. gravity. The well apparently is producing from a crevice in

Jan 1, 1942

By Edward Halse

The occasional occurrence in metalliferous veins of rounded fragments of rock, matrix or ore, lying loose, embedded in clay, or enclosed in some kind of cement, may be attributed to four causes:— I. They have been washed in from the surface, or from an upper portion of the vein.. II. They are of concretionary origin. III. They have been produced by movements in the country-rock or in the walls of the vein. TV. They have been formed in situ, by the upward, downward or lateral flow of water in the vein itself. In this paper the word " conglomerate " is confined to a rock composed of rounded fragments or pebbles cemented together, as distinguished from a " breccia," in which the rock-fragments are angular. * I. Boulders and Pebbles which have been Washed in from the Surface, or from an Upper Portion of the Vein. In this type it is presupposed that the vein at one time communicated by a fissure or open space with the surface, or with the upper portion from whence the fragments have been washed. One well-authenticated occurrence was described long ago by Fournet. Owing, no doubt, to later dislocations in the lode, pebbles from an old alluvium and sands containing titaniferous iron, as well as fragments of wood, were found in a vein at Huelgoet, in France. " Toutes les parties tendres du filon de Pranal ou ces phenome'nes sont les plus prononces ont 6th excaves jusqu'a d'aasez grandes profondeurs par I' impetuosite des torrents, qui out depose la matiere alluviale.'"

Jan 1, 1906

By C. H. Jr. Herty

The results of a study of the open-hearth process from the physicochemical view-point are given. This study includes experimentation in small laboratory furnaces and in standard 100-ton furnaces. The behavior of manganese, carbon, and phosphorus are quantitatively explained. The action of "residual" manganese is discussed with reference to its relation to iron oxide dissolved in the metal. The solubility of CO in steel and its relation to dissolved FeO and carbon is given. The equation for phosphorus elimination has been tested out on a 200-ton furnace and the results are given in the text. THE effect of temperature and slag composition on the elimination of metalloids in the basic open-hearth process has been qualitatively understood since the early days of steel making. The quantitative effect has, however, only recently been brought to attention. The effect of slag composition has received more attention than that of temperature, primarily because the range of finishing temperatures in the basic open-hearth process is small compared to the large variations found in the composition of the slag at different periods during the process, and to the variations occurring with the use of raw materials of different degrees of impurity. The effect of slag composition on the elimination of metalloids has been studied by Styri1 from the thermochemical standpoint. This method is open to serious errors, in that thermochemical data at 2900° F. are very inaccurate and in many cases completely lacking. Feild2 has calculated equilibrium constants from the rate at which the metalloids are eliminated. The effect of slag viscosity on rate of elimination will affect the constants calculated by this method. Whitely,3 Colcough4 and others have used slag compositions as the basis for calculation of constants by which the extent of elimination may be calculated.

Jan 2, 1926

By Chingyuan Y. Li, C. Y. Hsieh

REALIZING that aluminum will have a great role to play in the coming industrialization of China, Chinese geologists have long been looking about for some aluminum deposits. The possible sources appear to be alunite, the alumina-rich shales, and the bauxite deposits. The locations of deposits are shown in Fig. I. ALUNITE Our attention was first directed to the alunite deposits along the southeastern coast of China. Table I summarizes the reserves now believed to exist in that region. [ ] Other alunite deposits have been found in Kiangpei, Szechuan province; Channing, Liuyang and Hsanshan, Hunnan province; Tsingchow and Chowyuan, Shantung province. No reserve figures are available. HIGH-ALUMINA SHALE Shale high enough in aluminum to serve as a source of that metal has been found in northeastern China (Table 2). [ ] In Manchuria, the Manchuria Light Metals Co., at Antung and Fushun, operating under Japanese control, has been the only active producer of aluminum. It is not known, however, whether the company uses local raw materials or imports ore from elsewhere.* SHANTUNG BAUXITE Bauxite was first recognized in China at Paoshan, Shantung province. Although the reserve is reported to be large (estimated at 271 million tons), the high content of insoluble residue (Si02) and mineral composition (diaspore) are dis-

Jan 1, 1946

By John W. Cabot

THE following series of analyses, which may, be of interest to Bessemer-steel makers, is submitted as a contribution to the much-vexed discussion of manganese in Bessemer steel. They were made by the writer in the spring of 1881, at the works of the Pittsburgh Bessemer Steel Company Limited, during a period of about eight days, part of, which time the rail-steel showed great variation in rolling qualities. During the first part of the time in question, it rolled well; later on it began to roll worse until, finally, it cracked very badly, reaching its worst stage. After this it rapidly improved until it again rolled smoothly. During this .time of transition 'from. good rolling to bad, and back to good again, the course of the manganese was followed' quite closely. It is the striking correspondence between these varying manganese contents and the differences in rolling which is here presented as worthy of notice. The other ordinary elements were determined occasionally, but showed no unusual variation Tim steel, in question, was ordinary rail-steel of about "the following composition : C=.35.P=.08.Mn=.98. Si=.08. S=.05. The samples for manganese determinations were taken at first from an average of two days' work, and later on, when the steel

Jan 1, 1882

By John C. Cook

Long-wave short-pulse radar has been shown capable of exploring to distances of several hundred feet through massive, dry rock salt. Exploration distances of 30 to 60 ft through bituminous coal and massive limestone, respectively, have also been demonstrated with low-power experimental radar equipment in underground mines. Working ranges up to 250 ft in limestone and coal are considered feasible. Radar reflections should be produced by all large electrically contrasting objects such as fault gouge masses, wet shattered ground, metallic mineralization, adjacent mine workings (dry or flooded), and abandoned drill holes. It is believed that radar can locate such obstacles in advance of underground mining through all massive rocks of low free-water content, including many igneous and metamorphic rocks. Three years of studies and experiments in radar exploration through rocks are reported.

Jan 1, 1974

By William M. Shepard

The Tintic mining districts of central Utah com- prise one of the major silver-lead producing areas in the United States. Ore valued at nearly $450 million has been produced from these districts since the initial discoveries, in 1869, of veins cutting the Silver City monzonite stock. Subsequent production from the famous manto-type "ore runs", which characterize the Main Tintic district, was followed during the past 40 years by discovery of the blind orebodies of the East Tintic district, including the famous Tintic Standard mine and the most recent discovery, the Burgin mine, currently being brought to full production by Kennecott Copper. The occurrence of blind orebodies of exceptional size and grade in both the Main and East Tintic districts has made this area a field laboratory of major importance for the study of geochemical dispersion halos and alteration features associated with known ore, and has led to the discovery of additional concealed orebodies. The larger share of the basic data-gathering and interpretation has been done by members of the U.S. Geological Survey who have been studying the Tintic mining areas since before the turn of the century. These studies have been supplemented and expanded by the geological staffs of the local operating mining companies, by exploration geologists and by students.

Jan 4, 1966

By W. M. McKewan

Dense magnetite pellets were reduced in hydrogen-water vapor-nitrogen mixtures over a temperature range of 400° to 500° C at a pressure of 0.97 atm. The rate of reduction per unit area was found to be constant with time and directly proportional to the partial pressure of hydrogen at a constant ratio of water vapor to hydrogen. Water vapor poisoned the oxide surface by an oxidizing reaction and markedly slowed the reduction. The enthalpy of activation was found to be + 13,600 cal per mole. THE investigation of the reduction of iron oxides has been the subject of numerous papers. Most of these papers have dealt with the evaluation of various ores, both magnetite and hematite. There have

Jan 1, 1962

By T. A. El-Bassyouni, Paul Gordon

Grain-gvowth data in zone-refined aluminum and in dilute alloys of copper with this aluminum have been obtained. The amounts of copper added were from 4 to 400 at. ppm. It was found that in both the unalloyed aluminum and the alloys grain growth was characterized by a high value of n in the isothermal growth equation 6n = Kt The inadvertent presence of 1 at. ppm Fe in the alloys was found to he more potent in slowing growth than the purposely added copper. Possible rationalizations of these observations and their general relevance to the theoretical use of gvain-grozvth data have been discussed. Grain growth data of Winegard and his co-workers' on zone-refined tin and dilute tin alloys were analyzed with some success2 in terms of approximate theoretical equations for boundary migration.2-4 In view of this success, experiments were carried out in an effort to obtain similar data on zone-refined aluminum and on dilute copper-in-aluminum alloys. The results obtained were anomalous in several respects and could not be used to test theory. A discussion of these anomalies is presented here; they have been attributed to impurity effects and serve to emphasize the sensitivity of grain growth in general—and the particularly high sensitivity in aluminum—to impurities. The resulting difficulties in the theoretical use of grain-growth data are also discussed. EXPERIMENTAL DETAILS An aluminum bar was zone-refined and leveled by methods similar to those described previously.' The degree of purity obtained is indicated in Table The data in Table I were determined by mass-spectrographic methods through the courtesy of Mr. Thomas A. Johnson of AIAG Metals, Inc.* Three dilute copper alloys with this aluminum were prepared also by methods described previously.' The alloys contained nominally 4, 40, and 400 at. ppm of Cu, respectively (0.001, 0.01, and 0.1 wt pct). Each material was fabricated by swaging and rolling into a round bar about 1/4 in. in diameter with an annealed penultimate grain size of approximately 0.003 to 0.007 cm. In order to minimize preferred orientation the fabrication was carried out in several steps, each consisting of a reduction of about 40 pct followed by a recrystallization anneal. Annealing temperatures for the grain-growth studies were attained by the use of boiling liquids up to 213°C and molten metal baths at higher temperatures. Temperatures were controlled to within 1°C. Samples for measurements were cylinders about 3/4 in. long and 1/4 in. in diameter cut from the fabricated rods. In the interests of sample economy a single sample was used for the grain-growth measurements at each temperature. Each sample was, thus, annealed for several successive periods of time, the grain size being measured at each annealing period on a transverse surface exposed by

Jan 1, 1965

By E. W. Shaw

Continued discussion of the paper of Roswell H. JOHNSON, presented at the New York meeting, February, 1915, and printed in Bulletin No. 98, February, 1915, pp. 221 to 226. See also Bulletin No. 101, May, 1915, pp. 1157 to 1162. E. W. SHAW, Washington, D. C. (communication to the Secretary+). -With the word petrology-literally the science of rocks-being used primarily for igneous rocks, and with geophysics coming to mean the study of lavas and the rocks into which they solidify, contributions to the knowledge of the physical chemistry of sedimentary rocks, even though only ideas which may be used as working hypotheses, become most welcome. The forces which control the formation and subsequent history of the stratified portions of the earth's crust are so little known that no one has yet been able to settle finally the questions as to whether petroleum is of organic or inorganic origin; whether it originated far from its present position, or nearby. Yet both the chemical and physical problems of the rocks in which oil occurs seem to be more simple than those of the igneous rocks. The oil-bearing rocks of western Pennsylvania, for example, have in all probability never been subjected to a pressure exceeding 3,000 or 4,000 lb. to the square inch, nor to a temperature higher than 100° or 200° C. These pressures are considerably below the crushing strength of rocks, and the temperature far below their melting point. The igneous rocks,, on the other hand, have been affected by enormous pressures and very high temperatures and yet steady progress is being made in reproducing in the laboratory the conditions of their formation and subsequent modification within the earth. The solution of the sedimentary-rock problems would seem to be fully as important as those of igneous rocks, and yet we must content ourselves with reasoning backward and our inferences as to what has happened are oftentimes little more than guesses.1 One of the fundamental problems is the origin of the salt water in oil fields. Is the salt water fossil sea water; has it been formed by the solution o-f salts of various kinds from distinct beds, from disseminated par-ticles, and from the weathering of suitable grains in the rock; or is it of deep-seated origin? Its general resemblance to sea water points to the first, but the principles held by some concerning the free circulation of water throughout the earth's crust, and certain peculiarities of composition indicated by the few analyses available, seem out of harmony with such an explanation.

Jan 7, 1915

By Brian J. Gorval, Robert L. Kemeny

INTRODUCTION Financing, or providing adequate capital at low cost for developing and bringing a natural resource property into production, is a fundamental requirement for profitable operation. Under the present economic environment the cost of financing any project is gaining more importance than ever. The fundamental keys for success in mining are "the Four M's": Mineral, Market, Management and Money. In recent years, with capital and operating costs skyrocketing, increased emphasis on obtaining adequate and low cost capital funds for bringing in a prospect is essential. For a small mining company there are limited sources for raising funds. In most cases these companies have neither a substantial asset base, nor any cash flow, and they are deemed as risky investments. The issue of shares of capital stock of such a company is probably the most common method of raising funds via the public purse. Alternatively, debt could be used and a source of such capital might be private investors or financial institutions. The company which intends to raise funds from the investing public by way of the sale of equity, subsequently lists those shares for trading on a stock exchange. Going and staying public commits a company to a multitude of complex laws, rules and reporting requirements. The governing bodies are the watch dogs for the public. The largest of such an organization of this kind in the world is the Securities and Exchange Commission (SEC) in the United States. In Canada, the Securities Laws come from within provincial jurisdiction. Most provinces have their own Securities Act, and Securities Commission. It is the Commission which administers the Act, and hence controls the distribution and trading of securities within the province. Extra provincial registration is required for trading and distribution in more than one province. In British Columbia, prior to a public offering, the approval of the Superintendent of Brokers (SOB) and of the VSE must be obtained. THE VANCOUVER AND TORONTO STOCK EXCHANGES There are five stock exchanges in Canada which supply a trading forum in which mining companies may operate. The stock exchanges are located in Montreal, Toronto, Winnipeg, Calgary, and Vancouver. Of the five stock exchanges, the Vancouver Stock Exchange (VSE) and the Toronto Stock Exchange (TSE) are the most heavily used for resource-based issues and are the focus of this paper. The objective of this section is to provide a brief background on the VSE and TSE. The Vancouver Stock Exchange The VSE is Canada's predominant stock exchange for financing resource-based, junior issues. Since 1907, the VSE has acted as a source of funds for mining, exploration and energy companies throughout Canada and the world. Currently, there are over 1400 companies listed on the VSE. During 1983, over 3.1 billion shares traded at a value exceeding CDN$3.96 million. The VSE has developed a reputation as one of the few exchanges where a speculative resource venture may obtain a listing and subsequent financing in a relatively short time, generally five to ten months. The SOB, the Investment Dealer's Association of Canada (IDA), and the VSE all regulate trading at the Exchange. Any irregularities in a company's stock dealings are investigated and trading may be halted by the VSE until a satisfactory explanation has been received from the suspended company. Companies can be suspended from trading or delisted for various reasons. One reason is misrepresentation of facts in documentation submitted to the SOB, VSE, or to the public, through news releases.

Jan 1, 1985

By H. J. Hand

Statistical methods are becoming increasingly important for interpreting routine reports, or for analyzing special test data in industrial plants, such as steel plants. They have already become practically a necessity to the plant metallurgist. A paper by Chancellor, 1 written in 1933, gives many examples of the benefits the plant metallurgist can derive from the use of these methods. The present paper discusses applications of importance to many others who must analyze reports in the steel plant, as well as other examples of interest to metallurgists. Statistical Methods Logically Suited to Plant Problems.—Statistical methods are not new as a branch of mathematics. Until comparatively recently, however, practical applications were confined mainly to actuarial science, biology, and economics; fields in which an observed result is obviously influenced (and often determined) by a complicated set of variables more or less constantly tending to affect it. As pointed out by Daeves,2 a decade or more ago, problems in industry are basically similar to those in these other fields in that a given result is at least partly due to that chance combination of causes happening to be present at the time. When trying to do the same thing repeatedly, constant results are never attained; they vary about the desired result with more or less well defined mathematical regularity. Such a condition arises out of the great number of factors tending to affect the final result. If statistical methods are so valuable to the biologist or economist, why then should they not also be of great value to plant managers and engineers, and to all who must interpret reports from various sources in the industrial plant? Within the last few years, industry has become conscious of this situation, and the use of these methods has been rapidly expanding in such p1ants. Many Useful Statistical Devices Available.—Many statistical methods of attack are available for the analysis of plant data. It is the object of

Jan 1, 1938