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By H. W. Schreiber, G. R. Castle

INTRODUCTION The small mining company faces the dilemma of how to finance the development of its properties. Many of these small companies don't have the financial resources to pay for development costs from their own funds and frequently they do not even have the financial strength to permit them to borrow the money needed for development. A project financing can sometimes be arranged in such a way as to solve this dilemma. A typical project financing will not provide the answer to the "little guy's" problem because most project financings require that the sponsors of the project provide completion undertakings and sometimes other undertakings. These undertakings are often a prerequisite to obtaining financing, and if the sponsor is not financially strong enough to provide the comfort that the lenders require, then the sponsor will have difficulty obtaining financing no matter what undertakings are offered. However, with a little imagination and the right set of circumstances, a project financing can sometimes provide the solution to the small mining company's problem. The Strathcona Sound Project is unusually suited as a case study because the sponsor, Mineral Resources International Limited,(MRI) was able to arrange a project financing for the development of the project even though the lenders probably would not have been willing to loan a similar amount of money direct to MRI based on the full faith and credit of MRI's balance sheet. The way that MRI was able to arrange this financing makes for an interesting story. THE CASE In early 1974, MRI owned 100% of a small to medium sized zinc - lead - silver massive sulfide deposit (Property) located 475 miles north of the Arctic Circle less than two miles from deep water on Strathcona Sound which is a shipping zone in the Canadian Arctic. The Property was situated at a desolate location except for an Eskimo settlement (Arctic Bay) which was about 20 miles west of the Property. In other words, the project required that complete infrastructure would need to be installed in this far northern location. Independent reserve and feasibility studies (Study) had been completed on the Property which confirmed a total of 6,825,000 tons of reserves classified and summarized as shown below on Table I: [ ] These reserves were based on 229 diamond drill holes totalling 58,909 feet and were established on a cut-off grade of 7% zinc and a minimum mining height of seven feet. The overall mining recovery rate was estimated at not less than 85% and not more than 90%. The feasibility study indicated that it would cost an estimated $45,044,000 to develop an underground mine, a concentrator, a town-site, a power plant, storage facility, loading dock, a tailings disposal area and an airstrip on the Property with an annual capacity of 525,000 tons of ore per year. The construction period was expected to take two years and projected capital costs were broken down as set forth below on Table II:

Jan 1, 1985

By F. W. Lee

A GREAT CURTAILMENT of field activities among the geophysicists occurred last year, especially in prospecting for the common metals. In gold, however, an "outstanding achievement . . . was made by the engineers of Consolidated Goldfields. Here the suboutcrop of the Main Reef Series was traced from Middelvlei through properties of the westward area, a distance of from 30 to 40 miles. Here Drs. Reineche and Krahman prospected with the aid of a sensitive magnetometer and established the singularities of the various beds which heretofore had not been sufficiently appreciated. Several underlying shale beds were used to determine this suboutcrop under the dolomite. This area promises to be the equivalent of one-half the size of the present gold fields and to rank in value with the Far East Rand." The present temperature compensated magnetometers permit accurate field observations to less than 5 gammas. Since magnetic anomalies may have their origin due to a change of elevation as well as to the outcropping of a bed of another magnetically different material, intimate geological knowledge is of great assistance in the interpretation of these measurements. To what extent magnetic measurements reflect the basement when the material is homogeneous, consisting primarily of red granite, was determined by members of the Bureau of Mines and described by Dr. J. H. Swartz. Because of the diverse causes of magnetic anomalies, some of which were discussed and correlated by Stratton and Joyce upon known conditions, magnetometer measurements are often difficult to interpret.

Jan 1, 1933

By Lawrence Addicks

T HIS has been a most momentous year in the annals of the Institute. We have been in the midst of a situation which, were it not for the convulsions of social unrest with which life is surrounded on every side, would have attracted the attention of the world at large. I do not refer to the desperate campaign for new members. That has gone on much as usual except that, this being leap year, the annual proposal to the M. & M. Society has been omitted. Nor do I refer to the desperate situation which we found in other directions, the spread of Bolshevism, the burning of the Engineers' Club, the fact that the selling of copper appears to have become one of the lost arts. No, I speak of the great question which has to be. settled once and for all, as to whether this great Institute should adopt simplified spelling. The whole trouble started in the ranks of the California Hysterical Society. It appears, while most of the San Francisco members can read and write, several of them cannot spell. It also appears that the Secretary, in editing the Transactions, has perhaps made just a little bit too much of a point of employing the correct Stoughton idiom. At any rate, the rebels filed an amendment to the constitution, and the stage was set for civil war, with perhaps more stress on war than on civil.

Jan 1, 1920

By O. B. Harden

In working out the geological structure of a complicated district, where the problems are difficult to solve by the ordinary methods in use, a model, upon which all the geological and topographical data may be put, will be found of great value, bringing, as it does, all the facts in their proper relationship at once under the eye. In the teaching of structural geology, also, a model is of great value, since the student can thus have before him, in miniature, a representation of the rocks, as he would see them in place. Topographical models may often be useful in suits at law for damages in railroad accidents, or for trespass against mining companies, etc., in order

Jan 1, 1882

By O. B. Harden Harden

IN working out the geological structure of a complicated district, where the problems are difficult to solve by the ordinary methods in use, a model, upon which all the geological and topographical data may be put, will be found of great value, bringing, as it does, all the facts in their proper relationship at once under the eye. In the teaching of structural geology, also, a model is of great value, since the student can thus have before him, in miniature, a representation of the rocks, as he would see them in place. Topographical models-may often be useful in suits at law for damages in rail-road accidents, or for trespass against mining companies, etc., in order

Jan 1, 1882

By Evan Evans

HOME-TOWN boy makes good in a i1 big way in the home ' town, expresses concisely the accomplishments of Evan Evans. Born in Coaldale, Pa., in 1895, within sight of the mine head-frames and cleaning plants dotting the Panther Creek Valley, his whole life has been intimately associated with the strip and underground mines of this valley. One of the world's largest mineral deposits exists in the confines of the Panther Creek Valley and mining has been in progress for 125 years. Despite this long period of mining activity, two thirds of the coal in the valley yet remains to be mined. The Lehigh Navigation Coal Co. is the operating company.

Jan 1, 1947

By N. V. Hansell

l. INTRODUCTION. THE last few years have shown an increasing interest in the subject of beneficiating iron-ores -in all iron-producing countries. In the United States, this movement has been slower than in certain parts of Europe, for the obvious reason that the abundance and relative cheapness of the Lake Superior iron ores has hindered the development of enterprises for the preparation of low-grade ores. Gradually, however, conditions have changed. The world's consumption of iron is increasing enormously. Being in 1900 about 40,000,000 tons, in 1910 ii was already 60,000000; and there is no reason to doubt that for the near future the increase in iron-consumption will continue at the same rapid rate, especially with, the development of China, certain parts of Africa, and other regions which have hardly been touched as yet by modern industrialism. It is. therefore, not surprising that apprehension is felt that the known available iron-ore resources of the world are gradually being depleted. Signs of this feeling are the recent investigation, under the direction of the U. S. Geological Survey, of the iron-ore resources of the United States, and the estimate presented to the last International Geological Congress, at Stockholm, Sweden, of the iron-ore resources of the world. These investigations have emphasized the fact that the known high-grade ore-deposits are limited in extent, and will, at a not distant future, be exhausted, compelling the iron industry to depend for raw material on the enormous deposits of low-grade ores which are distributed over almost all the world. The discovery of new deposits of high-grade ore, in countries not yet thoroughly explored, will not materially change this prospect. Of course, the part which such new deposits will play in the future cannot be forecast. The difficulty and cost of transportation will probably exclude many of them from use at the present centers of the iron industry.

May 1, 1912

By Joseph W. Richards

ALTHOUGH bad grammar, the above query is probably, at the present moment, good sense. Why was the Institute started and why does it continue to exist? The small group of men who worked out the original idea felt keenly the necessity of mining engineers and metallurgists getting together in order to discuss their professional problems. That necessity still exists but it does not strike the present generation of engineers so keenly because they have always had the Institute: they do not know what it is to be without it. The Institute is a great graduate school of mining and metallurgy. All of its members who have something to say worth saying are the teachers; all the rest may be learners or critics. No university or technical school can match the experience and information which the authors of its papers possess, no institution of learning has a body of potential listeners so extensive and so vitally interested.

Jan 1, 1921

[†Aaronson, Alfred E., Oil Producer, Pres., Tuloma Oil Cc Tulsa, Okla. '18 ¦Abad, Leopoldo F., College of Min., Univ. of California Berkeley, Cal. '23 ¦Abadilla, Quirico A., Geol. Dept., Cia. Mexicans de Petroleo "EI Aguila," S. A., Edifico "El Aguila," Esq., Calles Aurora y Comercio, Tampico, Tamps., Mexico. '20 ¦Abbey, Robert Graham, Student, Case School of Applied Science Cleveland, 0. '21 Abbott, Clarence E., Gen'l Supt., Iron Mines Div., Tenn. Coal, Iron & R. R. Co., 1405 Minnesota Ave., Bessemer, Ala. '04] [ ]

Jan 1, 1925

By Philip S. Mathews

THE tremendous stimulus given to the mining industry by the gold and silver policy of the present administration has found the capital market for mines ill prepared to afford practical means of financing. Particularly has this been true of the host of abandoned high-cost producers and prospects which increased gold and silver prices have made potentially profitable. In a comparatively short time, experience has demonstrated abundantly that valuable properties have frequently failed to secure capital, while questionable properties have drawn to themselves and their promoters more of the public moneys than their prospects justify. Singularly enough the fault is usually attributable to faulty financing. Discussion and study of this problem are vital to the industry.

Jan 1, 1936

Henry LOUIS, London, England (communication to the Secretary) : Prof. Richards's paper has impressed me as highly valuable. Without entering upon any discussion of it as careful and thorough as it deserves, I venture to mention one or two points which a perusal of it has recalled to my mind in connection with my own study and practice of ore-dressing. I always mentally divide jigging into two phases: 1. A particle at rest on the jig-bed is lifted and carried upwards by the rising current of water, at an increasing velocity, which tends to a maximum. When the upward current is stopped, the particle continues to rise with rapidly diminishing velocity until it comes to rest. This completes the first phase. 2. In the second phase, the particle falls from its position of rest with an increasing velocity which tends again to a maximum, and continues to fall until the rising current of water has reduced its velocity to zero. This completes the second phase. The second phase will evidently be greatly modified by the effect of suction, as Prof. Richards shows; but I do not see that his experiments very clearly imitate the action of the second phase. And the brief intervals at the end of each phase, when the mineral particle, by reason of its acquired velocity, is still moving, though in opposition to the water-current, yet remain to be investigated. I feel especially, in Prof. Richards's paper, a difficulty which I have felt with regard to all similar previous investigations, namely, that the experiments deal with particles falling a long distance, when the velocity becomes uniform. I question whether this uniform maximum velocity is attained in actual jigging-practice. If so, it is certainly for a comparatively very small proportion only of each stroke. It seems to me that an investigation like that of Prof. Richards, but confined to the first 6 or 8 inches of fall only, and carried out with suitably delicate recording-apparatus, is what we

Jan 1, 1895

By W. L. Saunders

THE world's greatest producing area is, geographically, in the midland region of North America about the Great Lakes. This area, with but one- third of the nation's population, produces, with the exception of tobacco and cotton, three-quarters of the principal staples. It provides the surplus or export grain, meats, dairy products, steel and leading minerals. The social and political condition of a nation is determined by its industrial efficiency, and the share of the commerce of the world obtained by a nation is fixed more by the economy of its transportation than by any other factor. It is an economic maxim that: The total cost is the cost of production plus transportation cost. The cost of carrying 1000 tons by water or 100 tons by rail is equal, over the same distance

Jan 1, 1921

By Ta M. Li, Russell A. Carter

The first century of mining in northern Idaho's Couer d'Alene District will soon he drawing to a close. Like so many other great raining districts, it has been a period accompanied by a rich and colorful history. From its early days as a gold rush camp, the district has evolved into the leading silver producer in the US, but the going has not been easy: early-day labor disputes, the challenge of mining for profit in some of the deepest mines in the Western hemisphere, and the constant search for new reserves at great depths have taken their toll of mines-and miners-along the way. To these traditional mining problems have of late been added the burden of inflationary cost increases, pollution control, and reclamation. A recent visit to the district by MINING ENGINEERING, how ever, revealed that the deep commitment of the operating companies and the quiet competence and vitality of their engineering personnel are key factors in the continued prosperity of the district.

Jan 7, 1976

By H. A. Wheeler

IT may surprise some of our members to learn, among the industries based on the mineral resources of the United States that of clay now ranks third, being exceeded in value of product only by pig-iron and coal. The present annual value of clay-products exceeds the value of the outputs of gold and silver, and also exceeds the combined values of copper, lead, zinc, aluminum, mercury, antimony and nickel. These facts are shown in Table I. which gives the statistics for the year 1902

Jan 1, 1905

By Ralph Arnold

LESS than eight months ago at the annual meeting of the American Institute of Mining and Metallurgical Engineers, attention was called to the demoralizing effect of the abnormal oil production of Mexico on the oil situation in the United States, and it was predicted that this unstabilizing influence would probably become impotent in 18 to 24 months through ' the exhaustion of the principal producing fields of Mexico, unless new fields were found in- the meantime. When this statement was made, the daily production of Mexico was about 600,000 bbl. of crude oil; now it is about 350,000 bbl. No new pools of consequence have been opened, although extensions have been made to two old pools. Over 200,000 bbl., or more than half of the present daily production, comes from Los Naranjos, Amatlan and North Zacamixtle fields, in which practically every well is so affected by salt water that the potential production dropped 50 per cent. in the month of September, clearly indicating that these fields are moving rapidly toward extinction. How much longer the one remaining important pool will last is a matter of conjecture.

Jan 1, 1921

EDITORIAL comments on the anthracite report of the Federal Fact-finding Coal Commission, which became public on July 5, together with an analysis of its more important conclusions, will be found on another page of this issue. In this place, only a few extracts from the report, bearing more directly on technical matters, can be quoted, for lack of space. COST OF MINING Mining cost, as it stands on the books of each mining company, represents the average cost of the total output, all sizes, of anthracite. Egg coal has at least five times the market value of barley, but these' sizes are mined together and their costs can not be separated. Mine costs directly reflect the conditions under which these deposits of coal are recovered. Even within the few counties in which anthracite is found there is a conspicuous range of natural conditions. The distinc-tion between the Northern, Middle, and Southern field, or, as they are also termed, the Wyoming, Lehigh, and Schuykill regions, is primarily geologic and topo-graphic, but the effects of the natural conditions largely control costs. The contrast is great between Some of the level-lying beds of moderate but fairly constant thickness under the broad Wyoming Valley, where mining and underground haulage present relatively simple problems to the engineer, and the steeply pitching or overturned and faulted beds of variable thickness in the Schuykill field, where crushed coal' and treacherous roof multiply the difficulties of mining; and increase the unavoidable waste. Even more direct is the connection between geologic processes and the, differences in the character of the coal as mined, the varying proportions of large and small sizes demanding differences in preparation and resulting in different average prices realized for the product of the mines.

Jan 8, 1923

For the first time, the attendance at the meetings of the Institute passed the thousand mark; as is shown by the following table: REGIS- AT BANQUET DID TOTAL TERED NOT REGISTER Men :..:... 703 76 806 Women 195 61 256 1062 The names of the members and guests who registered or attended the banquet but did not register are: A A. D. Beers C. A. Adams Hans Behr Thos. J. Adams Edgar G. Bell Lawrence Addicks Donald A. S. Bell H. T. Abrams W. de LeBenedict G. Aertsen G. B. Bertelli M. M. Albertson Charles P. Berkey James Aldrich Clinton Bernard D. C. Alexander, Jr. W. N. Best W. H. Alexander Robert M. Betts A. W. Allen Christopher H. Bierbaum F. D. Aller Paul Billingsley R. H. Allport R. A. Bingham F. C. Alsdorf R. M. Bird Capt. M. Altmayer John L. W. Birkinbine A.' W. Ambrose G. S. Bisey Henry M. Ami Charles W. Boise F. L. Antisell J. J. Blackmore R. S. Archer A. E. Blackwood Paul' Armitage Capt. C. K. Blatchly Andrew B. Armstrong E. L. Blossom Clifton T. Armstrong C. A. Bohn Ralph Arnold James M. Bonsall R. M. Atwater, Jr. E. E. Boon Joseph E. Aue Gail Borden A. M. Austin R. S. Botsford W. S. Ayres John M. Boutwell

Jan 4, 1919

Aamot, Olav Crone, (M'29) Chem. Engr., Elektro¬kemisk, Raadhusgt, 23; Oslo, Norway. Abadilla. Quirico A., (M'33) Min. Engr., Dir., Bureau of Mines, Manila, P. I. Abbott, Agatin T., ( J'40) Asst. Geol., Trench Mine, Patagonia, Ariz. Abbott, Clarence E., (M'04) Civil Engr., V.P., Tennessee Coal Iron & R. R. Co.. 159'3 Brown Marx Bldg.. Birmingham, Ala. Abel, Raymond L., (M'28) Chem. Engr., Chief of Inspection Div., Pittsburgh Chem. Warfare Pro¬curement Dist., American Batik Bldg., Pitts¬burgh. Pa. Abel, Walter D., (M'32) Min. Engr.. Div. of Cor¬porations, State of Calif.. 403 California State Bldg., Los Angeles, Calif. Abele. Louis T., (M'31) 4800 Patterson Ave.. Richmond, Va. Abell, Leo M., (M'311 Research Met., Mount Mor¬gan Ltd., Mount Morgan, Queensland, Australia. Abenius, Hakan V., (M'37) c/o Falu Gruva, Falun, Sweden. Abernathy. G. E., (M '33S) Geol., Kansas State Geol. Survey. Pittsburg, Kan. Abernathy, Jack. H.. (M'40) Chief Engr., Sunray Oil Co.. Philtower B1dg., Tulsa. Okla. Ahorn, Robert H., (M'19) Asst. Met., Research Lab., U. S. Steel Corp., Lincoln Highway, Kearny, N. J. Abraham, A. W., (M'30) Petr. Engr., Richfield Oil Corp., 555 S. Flower St., Los Angeles. Calif. Abramowitz, William L., (J'40) Chem., National Oil Products Co., Harrison, N. J. Abrams, Charles Jackson, (M'36) Gen'l Supt., Climax Molybdenum Co.; Climax, Colo. Abstein, Henry T., (M'27) Yellow Pine, Idaho. Ackerman, D. E., (M'35) McKinsey & Co., 2 Wall St., New York, N. Y. Ackerman. E. Dumont, (A'3S) Petr. Geol.. Dist. Geol., Quiriquire' Dist., Standard Oil Co. of Venezuela, Caripito, Venezuela.

Jan 1, 1941

Jan 1, 1947

Jan 1, 1947