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By John S. Brock

INTRODUCTION The Oxford Dictionary says that the word "promoter" has usually been used in an opprobrious sense since at least 1876. This popular image of mining promoters is of cigar-chomping shysters and Brooklyn-Bridge vendors, improving their standard of living with the aid of funds raised through the sale of stock to little old ladies. It is unfortunate that mining promoters are considered crooks until they can prove their integrity and honesty by finding a mine. A common rule of thumb states that for every 1,000 prospects, 100 come to be drilled, and one becomes a mine. However, it is also a statistic that there have been mining promotions, where money raised has gone elsewhere than into the ground; Junior exploration companies can be handy vehicles for unscrupulous financial activity. One must remember though that every stock exchange has had its share of sound mining promotions that, because of the one in 1,000 odds, have failed for legitimate reasons. The promoter must be able to rationalize the worth of a mineral discovery which, on an industry- average basis, probably cost more to find than the discounted value of its net return, which return is not an assured percentage of invested capital, and furthermore, is ultimately from a wasting asset. So, it is easy to understand why the promoter must constantly justify the credibility of his operation to his grubstakers during the course of the "five phases of exploration," those being (1) euphoria, (2) disillusionment, (3) search for the guilty, (4) punishment for the innocent, and (5) distinction for the uninvolved. The promoter with the exploration organization that does not have the benefit of positive cash flow, by definition for the sake of this article, works for a promotional outfit, a Junior Company, that must raise its exploration budget from a variety of sources. Promotion, as discussed here, will not entirely refer to the formation and operation of a joint- stock company but rather to the overall methods of raising risk capital for mineral exploration ventures from outside sources. THE NECESSITY OF PROMOTION In Canada, the publicly financed Junior Company has had an enviable record of mine-finding success. In the Province of British Columbia alone, the discovery of fifteen out of twenty-four mines has been as a result of the activity of the Junior Company (B. C. & Yukon Chamber of Mines, 1977). In the Province of Ontario, one research study indicated that between 1951 and 1974 the 'Juniors' spent only 28 percent of the total exploration funds but were responsible for 62 percent of all economic discoveries (Freyman, 1978). The reasons for the success of the Juniors are tied to a variety of factors, the main one being personal initiative based on incentive. In other words, the principals, or their employees have 'a piece of the action.' The smaller companies can operate faster and more efficiently than their larger counterparts. The Junior Company is also destined to take some bigger risks, the 'long shots,' many of which efforts by virtue of the Junior's perseverance coupled with a touch of 'ore is where you find it' philosophy, result in major discoveries. The individuals, syndicates, private and publicly financed Junior Companies, because of high costs of exploration and development, cannot hope to finance most mineral prospects all the way to production. Exceptions do exist, those being the lower capital cost, small, high-grade deposits. Private investors and publicly financed Junior companies, therefore, can usually afford to finance most exploration through the initial drill-testing stage. The major resource company will enter a mining deal with a Junior Company usually by way of option or joint venture agreement, and will finance to production to earn an equity in the prospect or the Junior Company or both. The conventional lending institutions, banks and government agencies, will usually only participate through loaning a portion of capital

Jan 1, 1985

By Finlay, J. S.

THE North Lily Mine started its career in an unusual way it was discovered by a geologist. The remarkable circumstance of driving a 2400-ft. drift into an unexplored country and "hitting her on the nose," indicates that geologists are sometimes numbered among those whom the Lord loves. Diamond- drilling from surface had previously shown the presence and position of the Ophir beds, and surface showings of pebble-dykes, faults, and bleached rhyolite indicated conditions similar to those at the Tintic Standard "Pot-hole." The discovery drift from the Tintic Stand- ard 700-level reached the North Lily orebody in January, 1926, and development and stoping were continued by Tintic Standard men and equipment until the North Lily shaft was sunk and put into service in May, 1928. The discovery drift was run on a cooperative basis by the Tintic Standard and North Lily mining com- panies. Finding the North Lily mine cost the North Lily company $26,000. The Tintic Standard Mining Co. furnished men and equipment to drive this discovery drift at a fraction of what it would have cost to find the orebody from surface. This was the beginning of the friendly cooperation that still exists. Through Tintic Standard ground the Tintic Standard paid two- thirds of the cost and the North Lily one-third; the cost of the drift through Eureka Lily, into North Lily ground, was paid by North Lily. Later, another drift from the Tintic Standard 900-level was run on the same plan, excepting that Eureka Lily paid its share of the cost; that is, the Eureka Lily paid one-third of the expense in Tintic Standard ground, and the Eureka Lily two-thirds and North Lily one-third in Eureka Lily ground. This 900-drift was driven by North Lily from the Eureka Lily line to near the North Lily west side-line. From this point the Chief Consolidated continued the drift well into Tintic Bullion ground.

Jan 1, 1929

By George A. Komadina

From its modest beginning in 1957 with one mill grinding section handling 3000 tpd Pima has steadily expanded. In July 1966, work was completed that allowed the concentrator to treat in excess of 18,000 tpd. Almost immediately Pima embarked on another expansion program that will increase plant capacity to 30,000 tpd during the summer of 1967. This repeated expansion has corresponded with the development of additional low-grade ore deposits and with the improved operating economics realized by handling larger masses of material. Early in the life of Pima it was known that a mineralized area was present on the flanks of the high-grade orebody which systematic drilling had shown to be a low-grade copper orebody. Many months of engineering studies revealed that this was sufficient to allow Pima to compete with other large scale, low-grade copper operations in the Southwest.

Jan 11, 1967

THE following employment items are made available to AIME members on a nonprofit basis by the Engineering Societies Personnel Service, Inc , operating in cooperation with the Four Founder Societies Local offices of the Personnel Service are at 8 W 40th St , New York 18, 100 Farnsworth Ave, Detroit, 57 Post St , San Francisco, 84 E Randolph St , Chicago 1 Applicants should address all mail to the proper key numbers in care of the New York office and include 6c in stomps for forwarding and returning application The applicant agrees, if placed in a position by means of the Service, to pay the placement fee listed by the Service AIME members may secure a weekly bulletin of positions available for $3 50 a quarter, $12 a year MEN AVAILABLE Executive Engineer, 37, married, 3 children Now Resident Manager nonmetallic underground mine and processing plant Management and operational experience in gold, copper, zinc, limestone and lime products manufacture Mine plant design and construction, underground mines and quarries Excellent references Currently employed but available reasonable notice Prefer U S M-687-426-E-5-San Francisco Metallurgical Engineer, 29, married, one child, B S Metallurgical Engineering Five years' practical experience in milling and laboratory research Available thirty days Prefer West or Southwest U S A M-689¬522-E-1-San Francisco Experienced Mining Engineer, university graduate, 40, married Twenty years' experience all phases metal mining, past 13 years as manager, excellent cost and safety record Available short notice Best references and complete professional record available upon request M-690

Jan 1, 1952

By W. P. Lass

The gold precipitate from the zinc-dust presses in the cyanide plant of the Alaska-Treadwell Gold Mining Co., Treadwell, Alaska, is treated, in the refinery adjoining, by the Tavener or lead-smelting method. About 3 or 4 tons of this precipitate is produced monthly having 'a gold assay value of $40,000 to $60,000 per ton. It was formerly the practice to treat the byproducts from this process, consisting of 2 tons of slag, 300 lb. of matte, 500 1b. of refinery refuse, flue dust, etc., in a 24-in. water-jacketed blast furnace. This practice was discontinued in the summer of 1914 by reason of the difficulty of keeping the lead-well open when treating a high-grade lead product; of preventing the loss of gold in the flue dust; and of avoiding injury to the general health of the refinery operators; a plain single-phase electric furnace was substituted for the blast furnace. The furnace was constructed from an old steel acid drum by cutting off the top and introducing a cable, made from strands of bare copper wire, through the bottom and spreading the strands out fan-shaped on the inside of the drum. Powdered graphite, obtained by grinding up old crucibles, mixed with 10 per cent. cement, was tamped wet into the bottom of the drum, around and completely covering the copper wires. The graphite was carried up to the bottom of the furnace, or lead-well, and acted as the lower electrode. The sides were built up of ordinary firebrick forming a melting chamber 14 in. in diameter by 20 in. high. The upper electrodes, of graphite or carbon, are 3 in. in diameter and 40 in. long, arranged with joints enabling new electrodes to be connected without shutting down or wasting stubs. A screw feed was arranged for raising and lowering the upper electrode. (Figs. 1 and 2.) The cover for the furnace had three openings, one for feeding the charge, one for the escape of gases, and one in the center for the introduction of the electrode. It was later found more practical to enlarge this center opening to 6 in. in diameter, to allow of a central feeding of the charge around the electrode.

Jan 1, 1916

By James K. Richardson

STATISTICAL evidence shows that continued efforts made by Government and industry to make mining safer during the last two decades have had most favorable results. In the copper-mining industry an accident frequency of 146 per million man-hours worked in 1925 dropped 71 per cent by 1945 to 43. This downward trend was relatively consistent except for a high period in 1937 which was probably due to a resumption of large-scale operation with many untrained miners. The iron-mining industry showed a similar trend, but at the relatively lower accident frequency of 66, which dropped to 24 in 1945. The close relationship between the steel and iron-mining industries may be one reason for the lower accident frequencies, because the steel industry is noted for its greater recognition of the fact that safe working conditions are an important part of labor-management relations.

Jan 1, 1948

By HAROLD E. WHITE

LONG before the Stone Age, when man first sought shelter where there-were no natural shelters, such as caves and clefts in the rock, he uprooted trees and planted them upside down so that the roots formed the roof. By selecting trees whose roots grew out in a horizontal direction and; by planting these trees close enough - together, a crude shelter was formed. He then took mud, formed a plaster and covered over the' roots. Later the walls were made by using sticks and twigs and plastering between them. It is natural then, that he wiped his muddy hands on- his own hairy body and soon found that the mud was difficult to remove when, dry. It is due, to this discovery that we mix animal hair in 'our modern plaster to increase its strength. The use of fibrous asbestos in some refractory cements has followed this same principle.

Jan 1, 1929

By Best W. N.

Discussion of the paper of W. N. BEST, presented at the San Francisco meeting, September, 1915, and printed in Bulletin No. 104, August, 1915, pp. 1527 to 1537. WILLIAM A. WILLIAMS, San Francisco, Cal.-I would like to ask whether .Mr. Best ever had any experience with an oil burner that used neither air nor steam? W. N. BEST, New York, N. Y.-Yes. This type is commonly known as the "mechanical spray burner" and uses oil heated under high pressure to above its vaporizing point. These burners are not as efficient as the atomizing type for the following reasons: 1. They produce a round flame which; as with any other type of burner, must pass over a flat surface. A round flame cannot fit a flat surface. 2. They do not evenly distribute the heat, resulting in localized heat. 3. The outlet through which the fuel passes is very small; so all gravities of oil, especially oil containing sand, cannot be burned. 4. Their construction is such that they must be cleaned frequently, as the residuum in the fuel clogs the burner. 5. The oil opening being small, the capacity of each burner is small, so that many burners must be used in a boiler or furnace. (The fewer burners there are, the more accurately they can be regulated.) In marine boilers, these burners are largely used, because they do not require either steam or air for atomization. However, there are other methods by which this objection to other types can be eliminated, such as by the use of a rotary blower and steam turbine engine, the exhaust front the engine passing into the engine condenser, thus obviating loss of water. Mechanical burners are rarely used in shops. I know of but one power plant using them. With mechanical burners, the fuel must be maintained at a high pressure. On board naval vessels, some mechanical burners demand an oil pressure of from 100 to 6001b. It is advisable to reduce the pressure as much as possible, as fractured pipes or fittings are particularly dangerous, for the heated oil escapes as a vapor. In such cases there is liability of an explosion caused by spontaneous combustion.

Jan 12, 1915

By Edward L. Beutner, Robert M. Crump

Benson Mines low-grade iron ore reserve is a replacement deposit within the Grenville gneisses of the Adirondacks. The average grade of the crude ore is about 23 per cent iron. The iron minerals are principally magnetite and hematite disseminated throughout the gneisses as discrete grains about 1 mm in size. Both the ores that are beneficiated by magnetic means and the non-magnetic ores that are treated by a gravity method of concentration are found in stratigraphically different positions but are mined from one open pit, which is about 2.5 miles long and 800 feet wide and are treated separately. The gneisses are described and named according to the distinctive mineralogy of each. Recognition of the gneissic types permits the interpretation of the structure as a northward-plunging syncline overturned to the west. A large subsidiary anticline-syncline complex occurs on the east limb of the major syncline. Iron minerals in sufficient quantity to be considered ore are confined to areas where the footwall rock has been overturned to become the hanging wall.

Jan 1, 1968

By John Boardman

THE Anaconda company has never indulged in any employee activities at Butte which might be termed paternalistic, but it has exerted a vast amount of effort in care of its employees during working hours. The reason for this policy is not lack of interest or that the company does not feel the effect of employees' activities while they are "off the job"; it is that the company and the city of Butte have grown up together and, each has been adequate in its own sphere, the company in providing employment at the highest possible wage and the city in providing housing, sanitation, commercial services, medical services, schools, churches, amusements and entertainments. The one exception to this independence between the company and the community is the Butte Water Co., which is a wholly owned sub-sidiary of the Anaconda Copper Mining Co. Mention of this relationship is made here because the water supply of such a city as Butte is one of the principal factors in determining the health of the people. Very early in the development of the Anaconda company an adequate and dependable water supply for the operations became necessary, therefore the company took over this important community function. So well has this activity worked out that during the whole period of time covered, in which the company has expanded to become practically the sole mine operator and the community has grown from a small mining camp to the status of a modern city, there has been no shortage of water or any outbreak of water-borne, epidemic disease.

Jan 1, 1938

By H. L. Talbot, R. S. Young, A. Golledge

The differentiation of oxidized forms of lead from lead sulphide in complex products by chemical analysis is of considerable importance to certain mining and metallurgical companies. A method for the separation of "oxide" lead, (non-sulphide), from sulphide lead, based on the solubility of the former and virtual insolubility of the latter in concentrated ammonium acetate solution, has been employed for many years in the industry.1,2 Unfortunately this solvent, while satisfactory for lead sulphate and carbonate, is without action on lead phosphates or vanadates, with the result that at .Rhodesia Broken Hill Development Co. where these latter minerals are present, they have counted as sulphides when using this procedure. For the control of operations in the new concentrator it became necessary to have a closer check on sulphide lead than could be obtained by the only current method of differentiating this constituent from oxidized lead. For some time this problem has engaged our attention, and after a large number of solvents had been tried, the following procedure was evolved. Like all methods depending on selective solution in a com- plex material, it will not give 100 pct separation into oxide and sulphide portions. Because of the ease of oxidation of galena this is almost an impossibility. Our procedure will, however, give a recovery of 99-100 pct of the oxidized lead, contaminated with very small quantities of lead sulphide, and a corresponding recovery of 97-98 pct of the sulphide lead. The procedure is simple and reproducible, and gives results quite .satisfactory for routine control purposes. Experimental For this work standard samples of the following pure lead minerals were obtained from Broken Hill, Northern Rhodesia. These were hand-picked specimens, and were carefully ground to —200 mesh. Since it was realized that a fair-sized sample would be necessary for this work to thoroughly test the large number of procedures we had in mind, a compromise had to be effected between a few grams of very pure minerals and a large sample of lower grade material. For this work the presence of gangue was not deleterious, so long as the oxide lead minerals did not contain lead sulphide, and vice versa. Table I shows the lead minerals used, and their total lead content, both theoretical and actual. Apart from the pyro-morphite the minerals are seen by analysis to be quite pure. Many solutions were tried in an effort to dissolve the oxidized lead minerals and

Jan 1, 1949

By J. T. Ryan

SAFETY practice or the elimination of accidents in our coal mines is specifically a problem of management. It cannot be delegated to any governmental agency except that the various coal-producing states do and should have some minimum safety standard laws. However, the legislative method of attempting to control mine accidents is ineffective because of the delay between the necessity and the action. It will always be impossible to keep our various state mining laws up to date; and when the law says you must do a certain thin there is a tendency to do this and no more. Unless the scheme for setting up state regulations is so flexible that when a new hazard develops it can be immediately and adequately covered and the whole responsibility for accident elimination placed undivided on the

Jan 1, 1937

SAMUEL L. HOYT,* Minneapolis, Minn. -I was privileged to see the apparatus used by Mr. Scott, which is quite unique. It is, as the author says, a modification of the apparatus designed by Dr. Rosenhain, but it is evidently quite an; improvement. The author is to be congratulated on the fact that lie has given us, with his apparatus, a quantitative thermal analysis of these critical points. I notice the author refers to Ac3, Ac2, and Ac1. His designation of the Ac2 point is all right, but naturally in a steel with as much carbon as this, which would mean a hypereutectic steel, the other point might better be considered as an Ac, point with possibly another point above the Ac, point. Another important point brought out is the fact that, in Fig. 3, the lines representing the Ar1, transformation and the Ac,1_3 transformation do not intersect at the zero rate curve,

Jan 5, 1919

By E. Kendall Cork

The traditional financial objective for a single mine company has been to operate as frugally as possible and to pay out most of the earnings as dividends. If the business is cyclical (as it is for most metals) the dividends might fluctuate quite widely. When the mine is exhausted the company disappears. This is still quite a viable strategy for a single mine company. It is not however a viable strategy for the world as a whole. The mining industry is built by mine development companies who can mobilize the people and capital to bring new mines into production. Their skills must include marketing, engineering, finance and other politics. It is very rare for a property to be brought in without the support of a major company that can provide all these services. The exceptions will usually have some other form of big brother support, for example the U.S. government uranium contracts at guaranteed generous prices. The mine development company will seek as a minimum to perpetuate itself by developing new mines in order to replace those which are running out. The more common and more ambitious objective is to grow -- that is to add to its ore reserves and current production by developing more new mines. The financial objectives for that company are very different. Obviously if all the earnings were paid out in dividends there would be nothing left to work with. The first financial policy then is to spend an appropriate amount on exploration for new properties. The next is to retain enough of the earnings to provide the capital for new projects at least sufficient for the equity. There is no magic formula as to what proportion of earnings should properly be distributed as dividends by a growth-oriented mine development company. As a rough rule of thumb distributing half or more will probably leave too little to work on and 30% or so is probably a good balance. However the circumstances differ widely from company to company. It may be useful to set an objective for the rate of growth of a company's earnings. Some have picked rates such as 15% per annum compounded. Others have set a target in real terms which might appear as 10 or 11% plus inflation. Obviously the arithmetic of compound interest is very attractive; however in practice there is much variation. Indeed current returns from existing operations swing widely with the business cycle and there is no assurance that economic new properties will be found according to someone's arbitrary time schedule. For example, Western Mining Corporation Limited in Australia explored for 30 years with little to show for it, but then found the great Australian nickel deposits and more recently the huge Roxby Downs copper. That long dry spell could not have fitted anyone's arbitrary calendar of growth and yet they would not have found such orebodies without that long period of effort. Should they have abandoned the search? Once a new property has been found or acquired there has to be a threshold rate of return on the new capital to be invested against which to evaluate the property's economics. Conventionally this seems to be 15% after tax, a number common in other heavy industries as well. In some cases it is expressed as a lower number plus allowance for inflation. Discounted cash flow analysis is a very useful tool but it does not make the decision. In the end a "go" decision depends on judgment of many factors some of which are numbers used in the DCF calculation whose credibility must be examined. It is curious how frequently investment proposals come in with the rates of return very close to 15%. The project advocates know that a number much less than 15% will not fly and that a number much more is not necessary. With much higher nominal and real interest rates of recent years, even though before tax, logic suggests that the hurdle rate should also rise. The power of compound interest is so great that 20% is very hard to achieve in any cash flow projection but 18% may be a sensible yard - stick. Once again it is remarkable how many project proposals come in with an 18% return. On the record the mining industry as a whole has not been overly restrictive in choosing its hurdle rates of return. This is shown by the abundance of metals in recent years and the failure of metal prices to keep up with inflation. All of the foregoing is standard text book stuff.

Jan 1, 1985

By John A. Church

When, in 1879,I examined the mines of the Tombstone Mill and Mining Company, at Tombstone, Arizona, I found a bed of tailings containing 12,000 tons, which had a value of 9 to 12 ounces of silver per ton and some gold. The ore had been amalgamated in pans, in which each charge had been ground for four hours, having been pre viously stamped through rough-punched screens, which gave a pro duct varying from 1-100th to 1-20th of an inch, according to the state of wear of the screen. It was certain that a large proportion of the tailings must be in fine slimes, and the question of recovering their value was difficult. Even now the concentration of slimes is . an unwelcome task, and at that day very little was known about it. Nevertheless, after considering the results of a test by repanning the tailings, I advised the company to concentrate and smelt, although they had to face the difficulty of making a smelting-product from slimes containing only 3 per cent. of lead. Limestone was abundant enough, but no iron suitable for flux was to be had for hundreds of miles. One of the company's claims con tained an argeutiferous manganese-ore, which gave but poor results by amalgamation. This was one reason for recommending smelt ing ; for if manganese would play the part of a precipitant, as iron does, the company could smelt by combining two of its silver ores, without other flux than the small amount of lime that might be needed. At that time no smelter had ventured to trust manga nese as a precipitant, though large quantities of this ore containing silver were bought and used by custom-smelters, who looked upon the manganese solely as a basic flux for silica. I believe that no other furnace has been obliged to trust this metal, and that the man ganese practice of Tombstone remains unique among the records of smelting lead-ores in the shaft-furnace. The bright side of the problem was given by the fact that the mines were shallow and that the enterprise would at least begin with oxidized ores. The tailings contained about 85 per cent. of silica,

Jan 1, 1895

By R. W. Mancantelli, J. R. Woodward

In 1947 a large low grade deposit of uranium was located in the northwest corner of Saskatchewan, in the Beaverlodge property of Eldorado Mining & Refining Ltd. Most of the values occur as thin seams and as coatings on other minerals, and the ore, which is light and friable, is not amenable to the usual gravity methods of concentration. The acid leaching process developed to retreat the company's Port Radium tailings was also impractical, as the percentage of carbonates is high and the percentage of sulphides relatively low. Construction of the mill building and installation of equipment, both scheduled for 1952, awaited selection of a satisfactory ore dressing process on or before Oct. 1, 1951. An extensive research program on dressing of ores from the Ace mine therefore was undertaken by the Mines Branch in Ottawa, a research team at the University of British Columbia and an ore dressing group at the company's Port Hope refinery.

Jun 1, 1955

By AIME AIME

AN enthusiastic crowd, cheerfully confident that the upturn in the oil industry has arrived, gathered in Los Angeles on Sept. 29 for a Petroleum Division meeting arranged by the Southern California Section. The assembly room of the California Oil and Gas Association was the place of meeting. H. Norton Johnson was in the chair for the morning session, with about eighty members and guests present. Four papers were presented before lunch and a fifth, on electrical coring, was withdrawn as the work on which it was based is still confidential. Joseph Jensen read his contribution on the "Kettleman Hills Middle Dome Unit Plan" and, as he had an active part in framing the plan, his outline and discussion of it was authoritative and informing. J. H. Woods asked concerning the operation of the casing-head gasolene plant under the plan and was informed that one company would operate the plant and royalties would be paid participating companies

Jan 1, 1933

By Brian R. Castle, James J. Scott

INTRODUCTION Referring to a ground support system as a 'band-aid' borders on getting cute, but the application of cable slings in U.S. mining is somewhat analogous. Where problems in the roof or rib require additional support, the versatile cable sling is the answer in a variety of conditions. To fully understand how and why cable slings are used today we must briefly review their development history. Much of the thrust over the last five to seven years in ground support fixtures has been the development of hybrid systems. Taking the best of two or more existing roof bolt fixtures and marrying them into a new fixture which exhibits the good characteristics without the bad of the parent systems. Resin point anchored mechanical bolts, continuous threaded rebar bolts, and others have all be- come important fixtures in rock mass stabilization. HYBRID GROUND SUPPORT SYSTEM The cable sling system is also a hybrid, both in its parentage and in its ground support characteristics. See figure 1. Cable slings combine the techniques of cement. grouting high-strength cables, Friction Rock Stabilizers, and truss-like suspension into a versatile and high- strength ground support system. 1/2" high-strength cable is cement grouted in place in a manner similar to pre-

Jan 1, 1983

By A. L. Moore

KAISER Bauxite Co., a subsidiary of Kaiser Aluminum & Chemical Corp., has been mining and shipping Jamaican bauxite for over a year. On Feb. 10, 1953 the first boat load of bauxite left Port Kaiser, Jamaica, for the company's alumina plant at Baton Rouge, La. To provide its own source of the aluminum ore, a Kaiser Aluminum & Chemical Corp. exploration party started initial reconnaissance in 1947. This work, and subsequent exploration, led to the acquisition of reserves sufficient to warrant a full-scale mining operation for several decades.

Jan 3, 1954

By M. W. BERNEWITZ

AUSTRALIANS and New Zealanders, whose countries have respectively yielded gold to the value of £666,000,000 and £96,000,000, are taking full advantage of the current high prices for that metal. There is a marked activity in ordinary prospecting, geophysical exploration, further development of working mines and reopening of old properties, formation of new companies, installation of new equipment and processes, and expansion of operations generally. Australian gold production last year was approximately double the quantity of 1929 and its value three times as great, 1929 being the low of recent years. The 1933 production was about 821,000 oz. From New Zealand, 165,000 oz. was exported last year. Papua and New Guinea contributed slightly over 100,000 oz. What the future price of gold will be nobody knows, but, even if it returns to the former level, Australian producers are almost sure of 110 shillings an ounce until 1940 through the Commonwealth Government's Gold Bounty Act, at present temporarily and necessarily suspended from operation.

Jan 1, 1934