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By L. P. Davidson

THE new electrolytic zinc plant of the American Zinc Company of Illinois commenced operation in April 1941. The simple flowsheet using the standard current density and the economic reasons that dictated it are given herewith. The Evans-Wallower Zinc Co. built an electrolytic zinc plant at Monsanto, Ill., in 1929 and operated it for about two years. The plant stood idle from 1932 and was purchased by the American Zinc Co. in 1940. Because of the condition of the equipment, excepting the motor generator set, a complete rebuilding was necessary. The Fairmont City plant of the American Zinc Co. could treat the leach residues, the purification cake and the skimmings from the melting furnace in its various plants. This possibility permitted a simple flowsheet with good economic results. The flowsheet is shown in Fig. I. The calcined concentrates are leached in mechanically agitated tanks with spent electrolyte and such ferric iron solution as necessary. When the acid has been neutralized and the iron coagulated, the fluid is discharged to settling tanks. The underflow from these thickeners is filtered on a Moore filter; the filter cake leaves the plant for retreatment and the filtrate joins the thickener overflow. Zinc dust is added to this solution until the copper and cadmium are precipitated. The pulp is filtered through Shriver presses, which deliver the purified solution to storage tanks, and the copper-cadmium-zinc cake is shipped for retreatment and recovery of these three metals. The purified solution is electrolyzed; the regenerated acid is returned for use in the leaching plant and the cathode zinc, after stripping, goes to the melting furnace, from which it is cast in slabs. The skimmings from the melting furnace are shipped to the Fairmont City plant for reduction to metal in the retort furnaces. The choice of this simple flowsheet was made possible only because of the facilities of the Fairmont City plant. The long leaching period, with high acid content and high temperature which characterize the high-density process, gives a higher zinc extraction but also dissolves more impurities, which must be removed. The same is true to a lesser degree of the multi-step leaching of the western low-density plants. By the sacrifice of some initial extraction, solutions can be obtained that are relatively easy to purify and give good ampere efficiency. This loss in initial extraction is made up in the retreatment of the residues in the Waelz plant. The impurities that accompany the zinc thus extracted are inconsequential when the Waelz product is treated in a distillation plant. It was recognized that this flowsheet would require a somewhat greater amount of sulphuric acid-either as acid or as sulphate sulphur in the calcine-because of poorer washing. The sulphuric acid plant at Fairmont City could deliver 60° Bé. acid to compensate for the sulphate loss and the cost would be less than the cost of more intensive washing.

Jan 1, 1942

By W. F. Durfee

In the year 1862 the author of this paper was called upon to design and superintend the erection and working of the machinery of an experimental works for the production of steel by a process

Jan 1, 1884

By Lord Marley

ACTIVE participation by the United States in the war acted as a stimulant on the Annual Institute Meeting in New York rather than a retardant as feared. Attendance was about 10 per cent under the all-time high reached last year, but considering the number of men who could not possibly come because of active military service and the additional number who are devoting their whole time and effort to turning out vital war materials, the registration was really greater than might have been expected. But all in all the Institute put on a show that taxed the capacity of the Engineering Societies Building as well as the capacity of the visitors to find time to attend everything that promised to be of interest.

Jan 1, 1942

By JAS. F. McCARTHY

THE present Hecla Co. is a Washington corporation; the Hecla Co. of Idaho was the old company. The older corporation owned two claims, the Hecla and the Katie May, and was incorporated for 500,000 shares of one dollar par value. The principal shareholders and officials of the older company were among the early mining men of the camp. Among the active officials were John A. Finch and A. B. Campbell. Among the directors and share- holders were Patrick Clark, J. R. Smith, Frank Upman, F. J, Kipp, Chas. Kipp, B. A. Kipp and Carl Landsee. F. J. Kipp and Carl Landsee are now directors of the Company. All of the others mentioned have died, but the surviving members of their families retain their ownership in the Company's shareholders. B. A. ,Kipp, who recently died, was the largest shareholder at the time of incorporation and Patrick Clark was the second largest shareholder. B. A. Kipp is a brother 'of F. J. Kipp, director of the Company.

Jan 1, 1924

By R. H. Wightman, G. H. ADAM

In order to secure good results in the prevention of accidents, it is generally recognized that the desire for such accomplishment, as well as the aggressive and constructive action to achieve it, must emanate from the Top Management and permeate successively down through the "Chart of Authority" to the workmen. Several years ago, with the above as a basis and with full support of the Top Management, the Mining Department started a program of selling the foremen and bosses the idea that safety could be achieved and that it was desired and required. Using psychology, persistence and numerous other methods, the foremen and bosses were finally impressed with the idea that "It can be done" and "It will be done." With this in mind, new ideas were brought forth by the foremen and bosses regarding the caving operation and the specific jobs in the operation. These new ideas were taken up in round-table discussions and resulted in certain changes in the undercutting method and the actual drawing of the blocks. These changes resulted in increasing fragmentation of the blocks which prevented the usual hang-up areas in the blocks. With the rock smaller in size and within reasonable reach from the tapping drifts, accidents were prevented in the tapping section. At the same time, an enforced campaign of housekeeping throughout the mine was undertaken with very beneficial results. The foremen and bosses then, in turn, educated and trained the workers themselves to become safely conscious. In so doing, a constant re- minder was given on all jobs assigned that the job was to be done safely as well as efficiently. No man is assigned a job who is not qualified for the type of work required. Efficiency and safety go hand in hand.

Jan 1, 1949

By R. Dawson Hall

LONG regarded as nearly worked out, the anthracite region still shows promise of a hundred years of life, for means are being found to get bottom, top, pillar, and other coal that earlier generations disregarded as too expensive to mine. Rock drivages and, still more, machinery are making it possible to get such coal. Mechanical methods enable the owner of thin beds to mine these with profit, and the miner recognizes that he must permit the use of machinery or the inexorable laws of economics will deny him opportunity to work. E. L. Dana, Jr., well outlines this situation, which in the past year became definitely established. Stripping also is recovering, safely and inexpensively, coal that past generations regarded as too hazardous and costly for mining.

Jan 1, 1935

By Greenleaf W. Pickard

The Parral mining district is located in the southern part of the state of Chihuahua in north-central Mexico, in the border area of the physiographic provinces of the Mesa Central and the Sierra Madre Occidental, at an average elevation of 1700 meters. This is one of the most highly productive lead-zinc districts of Mexico. The principal operating units are the Prieta, Santa Barbara and San Francisco mines. The Santa Barbara-San Francisco del Oro area is located 25 kilometers to the southwest of the Prieta mine. It has a system of generally narrow veins in fault zones, entirely in the shale series. The Santa Barbara veins follow long, persistent fractures, while the San Francisco del Oro veins are in relatively short fractures. The Veta Colorada structure, located 5 kilometers to the northwest of the Prieta mine, was a major producer of high grade silver ore with low lead-zinc content during the eary 1900's. It follows a major north-south fault zone in andesite and is noteworthy for a number of wide oreshoots of limited vertical extension along its 10 kilometer length. The Palmilla and Esmeralda mines are on the south end of the Veta Colorada structure. Numerous smaller mines are operating in the Parral area. During the last 45 years the Prieta mine has produced approximately 15,000,000 tons of complex sulfide ore, principally from one single vein. Extensive stoping has

Jan 1, 1970

By C. C. Miller, A. B. Dyes

The cost of finding and developing new reserves is continually rising. We must meet these rising costs with more economical operations. This can he accomplished if we revise our ideas of proper well spacing and well allowable to consider the concept of optimum well spacing. According to this concept, the optimum spacing is the one which leads to the maximum present worth for a reservoir when ail factors affecting total cost and total revenue are considered and when the wells are produced in the most eficient manner. Application of this principle efficiently utilizes available well potential and properly considers the recovery eficiency in addition to fixing the spacing on the basis of the amount and value of the oil to he recovered. This Study presents an analysis of one producing zone containing low gravity crude to illustrate the effect of these factors on the present worth and on the optimum economic spacing under two production drives—-evolved gas and water drive. The maximum present worth occurs when the optimum number of wells for open-flow operation is employed. Frequently, this optimum development cal1s for very wide spacing and the ideal field rates are not unreasonable. Under other circumstance. where proration is necessary, an optimum combination of well spacing and well allowable exists which permits production at relatively high rates. The optimum well density in a field depends on the recovery efficiency and the valule of the oil. In solution gas-driven reservoirs this optimum spacing for operation at high producing rates can vary from extremely wide spacing to handle viscous low gravity oil in thin formations to relatively close spacing in thick sands where good recoveries are expected. Because of the better recovery from water-driven fields, the optimum spacing in these fields is closer than in solution gas-driven fields. Also, the water encroachment pattern is dependent upon the well spacing, and an adequate numher of wells is needed to assure a good sweep eficiency. The economic optimum well density in a water-driven field is high enough for this purpose. INTRODUCTION From year to year domestic oil becomes more difficult to find. The fields we do locate are frequently smaller and deeper than older fields and the costs for men, material and equipment are continually rising. To replenish our reserves we must continue to search for and develop new fields, but experience has shown we cannot expect prices to rise in proportion to costs. Consequently, we must meet increasing costs by more economical operations. A vigorous effort is being made within the industry to improve exploration methods, to cope with the problems of deeper drilling, and to obtain a secondary yield from older fields. Many significant contributions have resulted from these efforts. The economic operation of new fields can be further improved by developing these fields on optimum spacing and producing the wells at higher rates. This would avoid the drilling of unnecessary wells and provide additional capital for seeking new oil. While the benefits of these practices are obvious, the problem of defining the optimum development of a field for natural depletion can become very complex. A study of the effect of well spacing and several reservoir variables on economic worth of a specific field is reported here to illustrate the problem and to show the magnitude of the benefits to be realized. This study is necessarily limited to the field conditions selected and is not intended as a general solution of the well spacing problem. It does, however, indicate factors to be considered, the trends to be expected, and the direction in which we should proceed in developing new fields. NO consideration is given to land and legal considerations which might arise. METHOD OF ANALYSIS The optimum method of developing and producing a field is to use the combination of spacing and prora-tion which gives the maximum return. In addition, we do not want to lose recovery. These considerations of maximum return and maximum recovery present no serious conflict. The value of each method of operation is conveniently expressed in terms of its present worth. According to the present worth method of evaluation,' an acceptable annual percentage return is assigned to the operation, and all incomes, capital costs, and expenses are discounted at this rate to the start of the operation. This net value is the present worth. If we apply the same discount rate to several alternate methods of operation, the one yielding the greatest present worth is the best method. If we express net income in terms of price per barrel of oil produced, drilling and equipment costs on a well basis, and expenses as cost per well year, this evalu-

By John Mullen

Impingers TWO types of midget impinger apparatus are used at Climax. The Mine Safety Appliances Company's midget impinger (MSA) and the Climax Molybdenum Company's midget impinger (CMC) (Fig. I). The Leiman Brother's No. 25, positive displacement pump is used in the CMC impinger instead of the four-cylinder radial pump that is used in the MSA impinger. With the MSA apparatus it is possible to obtain the proper vacuum by adjusting the needle valve on the vacuum chamber, while with the CMC impinger the proper vacuum is obtained by varying the rate at which the pump is cranked. The Leiman Brother's No. 25 pump is built to displace 0.1 cu. ft. of air per min. when operated at 145 r.p.m. In the CMC impinger this pump is so geared that the required crank speed is approximately 59 r.p.m. Both types of impinger apparatus are equipped with a water gauge mounted on top of the case and they are calibrated and operated in reference to the gauge. The MSA impinger flasks and nozzles are used with both types. Calibrating Impingers A calibrated precision Sargent wet-test meter (Fig. 2) is used in calibrating the impinger apparatus. The apparatus is set up as for taking a sample in the field, except that the hose from the outlet side of the meter is attached to the impinger nozzle. One revolution of the large hand of the meter indicates 0.1 cu. ft. of air displaced. The impinger pump is cranked for one minute, therefore, at a rate that will cause the large hand of the meter to make one revolution. The gauge reading is noted, then the impinger is cranked at this rate for 10 min. and is checked for error. If the meter indicates that more or less than I cu. ft. of air has been displaced, the impinger must be cranked—ither slower or faster according to the error—for another 10 min. and again checked for error. This operation is repeated until the proper gauge reading for a sampling rate of 0.1 cu. ft. per min. has been determined. This gauge reading is used in all sampling operations until the impinger is again calibrated. An impinger is calibrated at least twice each week. MlCROPROJECTOR A Bausch and Lomb model B micro-projector is used (Fig. 3). It consists of a substantial metal base supporting the light source and a microscope. Illumination is provided by a Bausch and Lomb 4.5-amp. arc lamp with mechanical feed. A glass water cell filled with a heat-absorbing and color-filter solution is placed between the arc lamp and the microscope. Two types of solution have been found satisfactory— a 2 per cent solution of copper sulphate or a 2 per cent solution of picric acid and distilled water. This percentage may be varied to give the desired color to the light reflected upon the screen. Any standard microscope may be used. A Bausch and Lomb microscope with

Jan 1, 1946

By Sydney H., Ball

ONE of the important mineral discoveries of the eighteenth century was , that of the Minas Geraes, Brazil; diamond fields. The production of this and of .other diamond discoveries in neighboring states made Brazil the premier producer of diamonds, succeeding India; its 140 years of supremacy finally passed to- South Africa- 60 years ago. Three times have diamonds contributed heavily to Portugal's somewhat checkered financial history; first in the sixteenth and seventeenth- centuries when the diamond trade of India was controlled by its citizens residing in ,Goa, later in the late eighteenth and the first 75 years of the nineteenth century when the Brazilian fields were the world's source of diamonds, and now, when the Angola diamond mines are the principal source of revenue of its colony, Portuguese West Africa. Certain phases in the history of the administration of the Brazilian field are sufficiently curious to warrant description.

Jan 1, 1929

By Oliver Bowles

EACH year the broad diversified field of industrial minerals offers a panorama of new and interesting developments that not only concern the welfare of the industries themselves but have a more or less direct influence on the lives of citizens at large. Thus, the home life of multirudes may be affected by new building units that transmit light through walls instead of windows, by illuminated processed marble lighting fixtures and decorations, by the vast impetus given to thermal insulation Ly .mineral wool, expanded vermiculite, and related products, and, more remotely, by fireproof rugs and drap-

Jan 1, 1937

By CARL B. SNYDER

PERHAPS the most extraordinary thing about business, the trade and production of the country as a whole, is its amazing continuity and growth, its momentum and energy. It goes on year after year, growing steadily, almost without breaks, in spite of every kind of disturbance. We have been grossly deceived into the idea that business is highly variable. We have taken a few things like pig iron, and the like, constructional activity broadly, and imagined that these are a trustworthy measure of trade. Actually they are the worst that we could find. They do not apply to more than 10 per cent or, at the most, possibly 15 per cent of the total of the country's industrial activity. The other 85 or 90 per cent, or even more, goes on growing surely and steadily just like the growth of population and the steady advance in technique, invention, discovery, and improved methods of production Let me give you what seems to me one of the most remarkable examples of this amazing momentum and regularity. You know that 90 per cent or more of the business of the country is done 'by means of checks. About seven-eighths of the total of all checks drawn are reported regularly every week in the newspapers. Let us follow these reports from week to week, just as they come, and plot them up against the correspond- ing weeks of last year, and the year before, and the gear before that, as far back as you would like to go. Take especially the figures for 140 selected cities out- side of New York.

Jan 1, 1929

By J. F. Myers, F. M. Lewis

THE crushing of ore, as defined by Taggart,1 is "usually a stage process, utilizing . . . machines especially suitable for the reduction of particular sizes... . down to a final stage, employed for the reduction of the finest sizes. . .. In contradistinction, comminution to 20-mesh or finer is called grinding. There is a twilight zone in which the product is 6, 10, or 14mesh limiting size which is either crushing or grinding. . .. " Since the data in this paper pertain to a rod-mill operation, comminuting a particular ore size of ¾ in. to a final stage, coarser than 20-mesh, the rod mill is designated as a "fine crusher machine" in this paper. The published literature discloses a wealth of data regarding a rod mill as a fine-grinding machine but relatively little as a fine-crushing operation. Typical of the latter operation is: (I) a description by F. J. Tuck2 in which a fine-crushing rod mill replaced crushing rolls and (2) a description by the present authors3 in which a fine-crushing rod mill was installed instead of a conventional fine-crushing machine. The experience of the authors is that a definite distinction must be made between the rod mill functioning as a fine crusher and as a fine-grinding machine. As a fine-crushing machine it prepares * relatively large amounts of ore for a subsequent fine-grinding operation; as a grinding machine, it grinds relatively small amounts of ore to some predetermined finished product. PULP MOVEMENT AND ACTION IN MILL In considering the work performed by a fine-crushing rod mill, it seems important to understand just what takes place within the mill. We were inspired to study this matter by a paper by E. W. Davis,4 which indicated that definite water classification of ore particles took place in a ball mill. However, in thinking of the rod-mill action from this point of view, we were confronted with the fact that our rod-mill discharge product showed no evidence of action by water classification. The Tennessee Copper Co. ore is relatively high in sulphides, and the gangue rock and the sulphides are of about the same hardness. In the presence of any action by classification, the coarser sizes are definitely very lean in sulphide minerals. [ ]

Jan 1, 1946

The Role of the Drilling Contractor BY FERRIS E. SAINSBURY Ron Haxby, Occidental Minerals What is the best method for drilling a 12-in. diam hole to a depth of 1200 ft and maintaining the deflection within 25ft from vertical? Ferris Sainsbury: In order to drill a 12-111. hole down to 1200 ft, In most places you would have to employ a rotary tricone bit With a down-the-hole hammer, I expect by that depth significant Inflows of water would be experienced Even with foams, we would not be able to get the water out of a hole of that diameter So the down-the-hole tricone method of drilling would be best. To keep it straight, we would probably employ the largest square drill stem compatible with the diameter of the hole. Ron Haxby: Is it common in drilling contracts to put in a vertical hole clause? Ferris Sainsbury: You can put in the vertical hole clause Ron Haxby: Does it cost more? Ferris Sainsbury: Normally, if the hole deviates, the driller can correct it with deflection wedges and will charge it back to you at cost, plus 10% or somewhere along that range Any drill hole has a tendency to go perpendicular to the dip, and there are times when stabilization systems are not successful in preventing the hole from turning into the dip of the formation. The only solution, in this situation, is to go in with an oriented wedge and kick the hole back out.

Jan 1, 1979

By Basil B. Zavoico

ALTHOUGH the American petroleum industry was affected by the Second World War from its early beginning it was not until Dec. 7, 1941- that the industry was placed on full war footing. Even throughout most of 1942 the American overseas operations were limited and not until late in the year did expansion of military activities, more particularly the offensive in North Africa, affect the domestic supplies to such an extent that critical deficiencies developed locally in this country, particularly along the East Coast. The definite outlook for greatly expanded offensive operations by the United States on both Atlantic and Pacific fronts makes certain that during 1943 the domestic situation will. not be alleviated; rather it may become even more critical even though additional transportation facilities, now being built and planned. will be completed from the southwestern producing states to the East Coast.

Jan 1, 1943

By Henri S. Swolfs

INTRODUCTION In this paper we present preliminary results of a research program in site characterization methodology. We are interested in under- standing the response of discontinuous rock to mechanical, hydrologic, and thermal loadings. To carry out such a study we selected a field site with simple geology, uniform distribution of lithologies, and easily verifiable boundary conditions on temperature, fluid flow and stresses. The spatial distribution of fractures at the site was established and tests were conducted to determine the temperature field, hydrology, rock-mass properties, and in situ stresses. As part of the study selected borehole instruments were compared to assess their performance and reliability. SITE GEOLOGY The study area is in the eastern part of South Table Mountain, a mesa near Golden, Colo. The exposed cap rock is a single lava flow of uniform thickness (6-7 m) that rests on the clastic sediments of the Denver Formation (Van Horn, 1976). The surface of the cap rock (N. 75º E., 3º S.) is topographically featureless and slopes south- southeast; drainage is predominantly downdip and punctuated by occasional contact springs. The age of the lava flow is 64-65 m.y., or early Paleocene. Paleo- botanic evidence confirms the upper part of the Denver Formation as Paleocene (Van Horn, 1976). "Rapid-rock" analyses of core samples from the lava flow at three depths (0.2, 3.3, and 5.8 m) suggest a uniform chemical composition throughout with an increase in the Fe2O3/ FeO ratio (1.05 to 1.60) with increasing depth, reflecting the existence of a perched water table in the lava flow, To identify the rock

Jan 1, 1984

By Dever C. Ashmead

Anthracite was first mined in the Wyoming Valley and sold as an article of commerce in 1808. As some preparation has always been necessary to make it ready to burn, the preparation of anthracite must date back over a hundred years. Two vital factors have determined to a large extent the degree and the method of anthracite preparation. These are, first, the character of the beds worked and the methods by which they are mined and, second, the equipment used and practices followed in the burning of the coal. It is not the intention here to go deeply into these phases of preparation as a paper of no mean length could be prepared on the history of either. Rather, the intention here is to point out the main considerations and to show the influence they have exerted on the preparation of anthracitc. Mining Methods and Their Relation to Preparation In the beginning of the nineteenth century, the coal beds were virgin with the possible exception of some outcroppings that had been worked, to a slight extent, by the Indians. It is known that the American aborigines had a, knowledge of the use of this fuel, because when the Wyoming Valley was purchased from them, in 1754, they mentioned the fact that, by selling the land, they would lose their coal. Real mining of anthracite began about 1808 when Judge Jesse Fell, of Wilkes-Barre, discovered that the "common stone coal of the valley" could be burned in an open grate. For some years thereafter mining was conducted near the surface. The working p1aces were driven narrow; only the best of the coal was selected and the remainder was left in the ground. Only the lumps could be used, as no market existed for other sizes. As time passed, however, it became necessary either to go farther into the ground or to widen the working places. When these places were widened, falls of roof were apt to occur, making it necessary

Jan 1, 1922

By William P. Blake

IN southern Arizona and in Mexico the word caliche is in general use to denote a calcareous formation of considerable thickness and volume found a few inches, or a few feet, beneath the surface-soil, upon the broad, dry, gravelly plains and mesas. In western South America the same name is applied to the beds of crude soda-niter (Chili saltpeter). While these deposits of South America and of Arizona are totally different in composition, and have nothing in common, except that both occur in layers in the strata near the surface, it is probable that an explanation of the origin of the calcareous beds may equally apply to the accumulation of sodaniter and other deposits of easily soluble minerals. But the name, taken from the Latin, Calx, is more appropriate to the calcareous beds than to those of niter. Caliche has a wide distribution in the arid regions of Arizona and Mexico. It is usually hidden from view by a slight covering of soil; but it is easily found by digging, and is often revealed by a flow of water during heavy rains. It is practically a continuous sheet, from three to fifteen feet thick, of earthy limestone or travertine, through which the smaller plant-roots find their way with difficulty. The presence of this comparatively impervious layer of cemented earth may account for the absence of trees, or of the larger shrubs, over wide areas. The shrubs which gain a foothold are those whose roots do not extend far downwards, and which do not require much water, such as Larrea Mexicana and the [Cactaceoe]. If trees are planted, it is necessary to break up the caliche by blasting, or at least to crack the upper layers. The top of the caliche is more dense and solid than the lower portions. The surface of this top crust, or layer, is comparatively smooth, though undulating, while the lower portions, under the crust, are irregular, cavern-

Jan 1, 1902

By O. W. Shimer, D. C. Helms, C. E. Brown

The early history and progress of anthracite stripping, from the first known operation at Summit Hill in 1821 through 1917, was covered in 1917 in a paper by J. B. Warriner,1 then chief engineer, now president of the Lehigh Navigation Coal Co., and stripping methods between 1917 and 1931 were the subject of a paper in 1931 by H. H. Otto,2 of the Hudson Coal Company. . The present paper is confined to methods used today on pitching beds in the western middle and southern anthracite fields. The anthracite industry, not unlike other large industries, had been affected for more than a decade by the adverse economic conditions of the country. High development and operating costs and the competition of other fuels caused some collieries to be closed temporarily, while others were permanently abandoned. In order to obtain a larger tonnage at a lower development cost, a larger stripping program was put into effect by many companies. In 1932, stripping operations accounted for 3½ million tons, or 7 per cent of the total anthracite production of the year, and in the next 10 years this increased until more than double that amount, or over 14 per cent of the total production, was from stripping operations. These figures represent the total production of the entire anthracite region; unfortunately, the figures have not been separated from the different fields. There are some operations in the southern and middle western fields where the tonnage obtained from stripping amounts to more than 30 per cent of the total colliery production. Stripping operations on pitching beds present difficult problems. Owing to the various geological formations, a different situation is encountered in nearly every stripping pit; and because of the proximity of an overlying bed, it is very often necessary to load the entire overburden into trucks and haul it out of the pit to the dump area, although back filling and casting is done whenever possible. Beds in the areas described in this paper pitch from 20" to 90 and some are on the invert in many sharp folds and faults. Planning The more successful strippings have had adequate engineering analysis. Some work is being done without much preliminary planning, but many strippings would have failed completely if close supervision by the engineering department had not been . maintained. Locations of stripping areas are determined as follows: I. By constructing cross sections over the areas and drilling sufficient diamond-drill or well drill holes to study the strata and to determine the location, thickness

Jan 1, 1944

By Canada Ernst & Whinney

INTRODUCTION The principal objective of this chapter is to provide guidance in understanding and making effective use of published financial statements of mining companies. Although financial statements only represent a gathering together of information relevant to an enterprise's financial position and results of operations, they increasingly reflect the complexities of the modern day business environment. In the mining industry, a wide variety of accounting practices have evolved to deal with the unique aspects of the business in the absence of authoritative accounting pronouncements from standard-setting bodies. Given such complexities and divergent practices, financial statements of mining companies are not easily understood and cannot be used effectively as a tool in decision-making without a basic knowledge of fundamental accounting concepts, generally accepted accounting principles and their application in the mining industry. As such, this chapter is not restricted to a discussion of the accounting for the unique aspects of the mining industry. These aspects are dealt with at length but the text also includes a discussion of general accounting concepts and practices which have wide application in the mining industry. Frequent references are made in the text to international practices and to specific rules and requirements of individual countries. In this respect, the scope is restricted to four major mining environments, Canada, the UK, the US and Australia, all of which have made significant contributions to the development of generally accepted accounting principles. Acknowledgements This chapter was prepared under the direction of Ian Murray of Ernst & Whinney in Toronto, Canada. Contributions were received from Graham Butt, Mark O'Sullivan and Dominic Robinson, all from Ernst & Whinney in Toronto and Bill Duvall and Tom Schoenbaechler from Ernst & Whinney in Louisville, Kentucky, US. The authors would also like to acknowledge the assistance received from David Ferguson, Don MacLean, David Taylor and Susan Zoutman from Ernst & Whinney, Toronto, from the UK and Australian practices of Ernst & Whinney and from Ernst & Whinney International. FINANCIAL STATEMENTS - ELEMENTS AND CONCEPTS Financial statements were originally a stewardship report to owners to satisfy them that management had given a proper account of the resources with which it had been entrusted. Today, the number of users of financial statements has expanded to include the following groups: - shareholders, present and prospective; - lenders, present and prospective; - financial analysts; - regulatory authorities; - taxing authorities; - labour unions and employees; and - creditors and customers. The expectations of these user groups differ. For example, investors and lenders require information that will indicate the adequacy of their security and the profitability of the enterprise; taxing authorities will be concerned with the concept of income; labour unions and employees will focus on the profitability of the enterprise. Ground Rules for Preparing Financial Statements Responsibility for Financial Statements Financial statements are the representations of management. This may strike the reader as a rather obvious statement. It is important to remember, however, the role of judgment in accounting. Notwithstanding the promulgation of accounting standards in the developed countries, considerable flexibility remains in the selection of accounting practices and methods and in their presentation. Arguably, there is more flexibility in the mining industry as few countries have developed standards to deal with its unique aspects. Accordingly, financial statements are as much a product of management's perspective and philosophy as they are a compliance document.

Jan 1, 1985