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By James H. Boettcher

INTRODUCTION There are many and varied sources of finance available to the mining industry for exploration, development and/or the operation of mining projects and companies. These sources include equity from major as well as "penny" stock exchanges, precious metal mutual funds, private investor groups (from "grubstakes" to tax-oriented limited partnerships) and banks. The variety is representative of the fact that the world's capital markets are segmented and stratified according to risk-reward characteristics. This interrelationship is summarized in Exhibit I and 2 which relate (very approximately) various sources of finance to a typical mining project's life cycle and risk-return characteristics. The objective of this paper is to introduce, as it applies to the mining industry, a somewhat recent phenomenon represented by one of these capital markets segments referred to as "venture capital." Venture capital investing per se, which today is a multibillion dollars per annum investment business, goes back as far as Queen Isabela's backing of Columbus' "wild ideas." The real institutionalization of the venture capital process really began in earnest, however, after World War II. Today over 700 private venture capital sources (and more government related ones) exist providing funding to a range of industries, but typically related to the "high-tech" business. The table to the right shows industries financed by venture capital funds between 1980 and 1982. Conspicuous by its absence is, of course, mining which is not a great surprise since typical mining projects up until recently were large, required long lead times and were undertaken by established mining houses. Also, as most of you can appreciate, successful investing in the mining business requires a great deal of experience and understanding of the industry which most venture capital funds do not have. TARGETED RETURN The rate of return objective of most venture capital funds is, according to the legalized version, to realize a return which is "substantially in excess of that obtainable through conventional equity investments." One may say that a common objective of venture capital funds is to realize a 20% to 30% compound annual internal rate of return on capital over their life which is often ten years. [ ] This objective has been recently more feasible in the mining sector due to the development of smaller precious metal projects which cost less and are quicker to generate cash flow than the behemoth projects of the 1970s. In addition to precious metals, venture capitalists have invested or looked at a variety of other mining projects including ones as prosaic as a high margin "kitty litter" operation, sand-gravel and other industrial minerals operations, the leveraged buyouts of coal mines or mineral divisions of major energy or mining corporations, and even in in-situ copper or gold leaching ventures. A typical investment is in the range of $100,000 to $3,000,000 although some can go as high as 5,000,000. This implies a project size up to, say, 30,000,000 if a venture capital fund does it on its own. Larger projects can be done if the equity portion of the investment is syndicated with other investors.

Jan 1, 1985

By Hans Lundberg

AFTER the war years, great activity has been shown in geophysical exploration for ore. The appreciation by mining and government geologists of geophysical techniques and results is largely responsible for the popularity of these methods. In Canada, plans are being made to study, by geophysical methods, the structure of a portion of the Pre-Cambrian shield in the hope that such studies will not only give a clearer picture of the geology, but will be of direct aid to the mining companies when selecting areas for detailed prospecting. Although geophysics thus has become more popular, some engineers are still reluctant to employ the methods to their full extent. Allotted funds are often rather low, so that the least expensive

Jan 1, 1947

By Douglas D. Donald

The New Jersey Zinc Co. successfully holed through a 2 1/2-mile haulage tunnel connecting its new Ivanhoe shaft with the Van Mater Shaft at Austinville, Va. This 8x 10-ft cross-section tunnel was driven from both ends and met at a point approximately a mile from one shaft and a mile and a half from the other. In order to make certain that the faces met accurately on line and grade it was necessary to refine conventional mine surveying practices. The mines that are serviced by these shafts are located in the southwestern part of Virginia approximately midway between Roanoke and Bristol at the west foot of the Blue Ridge. While the presence of lead-zinc sulfide ores has been known in this area for more than 200 years, it was in 1902 that New Jersey Zinc Co. acquired the Austinville property, which has been in constant operation since that time. About ten years ago the company undertook an extensive diamond drilling program at Ivanhoe several miles to the southwest. This program was successful in locating sufficient ore to justify the purchase of a number of the properties in this area and plans were made to develop the new orebodies. The discovery of this ore as well as substantial addi- tional reserves at Austinville resulted in a decision by the company to increase its daily milling capacity to 3000 tons, of which about 1000 tons would be supplied from the Ivanhoe mine. After careful consideration of all possible methods of transporting this volume of ore from Ivanhoe to the mill, it became evident that diesel locomotive haulage through a 2½-mile tunnel between the two mines would best suit prevailing conditions. Since the lowest operating level, known as the 1100 level, of each mine would be at approximately the same elevation, it was obvious that such a tunnel should be driven on this level. Not only would this tunnel facilitate feeding Ivanhoe ore into the underground crusher and skip loading installation at Austinville, but it would also open up a known orebody 5000 ft southwest of the Van Mater shaft. In addition it would provide a valuable diamond drilling base from which a large and a potentially favorable but untested block of ground might be explored. In order to hasten the completion of the tunnel, it was felt that it should be driven from both ends. ENGINEERING CONTROL PROCEDURES It was vital that the tunnel junction be made accurately on line and grade; thus it was felt that engineering control of an unusually high degree of reliability was required to prevent an accumulation

Jan 1, 1959

By R. V. McAfee

The fundamentals of vertical-lift performance are examined with the aid of computer-calculated flowing gradient charts. Flowing and gas-lift well performance characteristics are determined from available well test data. The effect of tubing size, gas-liquid ratio and wellhead pressure is discussed for both flowing and gas-lift wells. The effect of gas-injection pressure, formation gas, bottom-hole pressure and valve spacing is also discussed for gas lift wells. From these studies conclusions may be reached for improving or prolonging natural flow, obtaining optimum lift efficiency when natural flow ceases and improving existing gas-lift systems. The techniques perfected satisfy the requirement that the time involved to conduct an evaluation be practical for operating personnel. INTRODUCTION Flowing pressure gradients furnish the key to successful evaluation of vertical-lift performance in producing wells. Command of multiphase flow gradients in some readily usable form is a necessity before operating personnel can competently include vertical-lift performance evaluation of both flowing and artificial-lift wells in their over-all consideration of production efficiency. A readily usable form cannot be overemphasized since most of the decisions which confront the production engineer with a problem well must be made quickly. In moving a barrel of oil from the reservoir to the stock tank, the major portion of energy generally is expended in the vertical-lift phase. This may or may not be of concern during the flowing life of a well, depending upon the production requirements. It becomes of some concern when the flow performance of the well becomes erratic, and a conscious effort must be made to maintain natural flow. It is at this time that the first steps may be taken to modify existing conditions to relieve unnecessary limitations to proper flow. When natural flow ceases and some form of artificial lift must be installed, the amount of energy expended in lifting liquids becomes quite obvious. It is at this time, if no other, that lifting efficiency becomes important because that part which must be supplied from an outside source is now related directly as a cost per barrel of oil produced. Ten years ago, the majority of gas-lift wells were produced with gas-well gas. Today, the majority are produced by closed rotative gas-lift systems. This permits a direct evaluation of well performance in terms of horsepower requirements and has resulted in mixed conclusions as to the success of gas lift based upon the relative efficiency of a particular system. An increased awareness of the need to resolve vertical-lift performance on a readily usable, scientific basis was inevitable. An indication of the need for better applied science in this field is the often-asked question of whether or not gas-lift can efficiently deplete a given well or reservoir. This question cannot possibly be answered without first evaluating reservoir, surface and vertical-lift performance both as encountered today and as anticipated throughout the life of the well or wells. The technique presented in this paper was originally developed to upgrade gas-lift installation design from an applied art to an applied science. It has since been successfully used not only for this purpose, but also for the whole field of vertical-lift performance in its broadest sense. Lift efficiency should be considered important while the well is still flowing, as well as after natural flow ceases. Correct interpretation and proper modification of the vertical-lift performance of a producing well can provide dramatic improvement in production performance and/or efficiency. STATEMENT OF THEORY AND DEFINITIONS Fig. 1 illustrates the three divisions of production which will be used in this paper. The terms are a modified version of those presented in the very fine paper by Gilbert.' The fields of reservoir and surface performance both have been greatly improved over the years. A study of those writings which may be found indicates that the field of vertical-lift performance has not progressed as well. There are two possible reasons for this lack of progress. 1. It has not been recognized as a scientific field in itself by the oil companies, as has reservoir engineering. 2. The equipment companies have confined their efforts to mechanical design research rather than the more basic study of vertical-lift performance of producing wells. Both organizations must have an economic stimulus for doing research in this field, and most of the results obtained in past work has been so erratic as to arouse little enthusiasm. The basic purpose of interpreting vertical-lift performance is to predict operating conditions below the surface of the ground from available data. The success of the interpretation depends upon the accuracy with

By O. M. TUPPER

REQUIRING a finer ground clay than that obtainable with a dry pan or hammer mill, the Clay Corporation of California installed a five-roller, low- side Raymond impact mill at its Lincoln plant in 1925 and since then has been economically grinding fire clay with a moisture content as high as 15 per cent. This was one of the first, if not the first, of this type of mill to be used in the grinding of clay on the Pacific coast. The pulverizer consists of a die-ring, lying in a horizontal plane, enclosed in a sheet-iron housing. A vertical shaft supports a spider from which five rolls are suspended in such a way as to always have them bearing on the die-ring. The vertical mill shaft is driven by means of beveled gear and pinion from a horizontal shaft which is connected by belt with a 60-hp. motor with suitable pulleys to give a speed of 175 r.p.m. A large fan which has a speed of 1100 r.p.m. and is belt connected to a 40-hp. motor is connected to the mill housing. The discharge end of the fan is in turn connected to a cyclone dust collector.

Jan 1, 1929

By O. E. Kiessling

THIS announcement of the topics relating to production control, which the Committee hopes to have discussed at the February meeting, supplements the preliminary announcement published in the November number of MINING AND METALLURGY. In the previous article, the writer indicated the kaleide-scopic nature of the questions involved in obtaining better coordination in industry, and that, as a matter of practical expediency, the discussion in February would be limited to the more obvious difficulties in industry which need attention and to those questions which the Committee thinks would be of greatest interest to members of the Institute. But while practical considerations necessitate limiting the program, free discussion of all phases of the subject is urged by 'the Committee. In a preliminary consideration of the production control problem, there loom up two questions which have to be faced: (1) First, there is the question of the extra industrial capacity necessary to meet demand during the ordinary fluctuations of business, commonly characterized as `the "business cycle." Anyone who tries to formulate a program pertaining to productive capacity must decide whether he wishes to discuss the control of business cycles. While this question may eventually lend itself to treatment, the Committee does not feel that it can be considered at present with much profit. (2) The second question arises from the existence of over-stimulated capacity above and beyond peak demands in boom times. Discussion of this topic, it is felt, would be most fruitful. How to prevent capacity from being over-stimulated to an extent beyond any hope of possible demand is a

Jan 1, 1929

By J. HUNER

Twenty-four new fields were found in Louisiana during 1945. Of this number 15 were oil fields, eight were gas condensate, and one a dry gas field. None of these fields, with the exception of West Delhi, is as yet of any great consequence. The Weeks Island field in Iberia Parish may eventually develop into a considerable reserve.

Jan 1, 1946

By AIME AIME

Council.* PRESIDENT OF THE COUNCIL. ROBERT W. HUNT CHICAGO, ILL. (Term expires February, 1907.) VICE-PRESIDENTS OF THE COUNCIL. WILLIAM P. BLAKE TUCSON, ARIZ. THOMAS F. COLE DULUTH, MINN. IRVING A. STEARNS WILKES-BARRE, PA. (Term expires February, 1907.) HENRY AL HOWE NEW YORK, N. Y. J. B. GRANT DENVER, COLO. JAMES D. HAGUE NEW YORK, N. Y. (Term expires February, 1909.)

Nov 1, 1906

The State Mining Bureau of California under the direction of Fletcher Hamilton, State Mineralogist, is starting a field campaign to report on the economic minerals of California, which have an important industrial and military bearing on the present war situation. Particular interest and value attaches at the present moment to our available supplies of chrome, coal, iron, magnesite, manganese, molybdenum, quicksilver and tungsten. Trained geologists and engineers of the Bureau's staff are being sent, out to obtain information with relation to the latest developments. Advance notices will be sent to the local newspapers, from time to time, of the arrival of the engineers in the various districts. All persons interested in the minerals mentioned are earnestly urged to cooperate with the State Mining Bureau by meeting the field men while in their districts or by communicating direct with the State Mineralogist at his office in the Ferry Building, San Francisco. The State Mining Bureau has just issued Bulletin No. 72 on The Geologic Formations of California. It was written by Prof. James Perrin Smith of Stanford University, and contains a complete bibliography and resume of all of our present knowledge relative to the geological formations occurring in California. It also contains much previously unpublished data, and six tables showing geologic columns. It covers 41 pages.

Jan 6, 1917

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Jan 1, 1913

By Louis Ware

A leading executive finds this a bad time to "cry" about taxes. Needed reforms must cede to emergency demands.

Jan 7, 1951

By Robert H. Richards

(Read at the Amenia Meeting, October, 1877.) DURING the summer of 1870, I had an opportunity to visit the laboratory of the late David Forbes, Esq., in London, and was much interested in a labor-saving device which lie had attached to his agate mortar. The mortar was placed in the centre of a small table, and about ten inches to the right of the mortar, a post, perhaps two

Jan 1, 1878

The current status of the US lead and zinc industries was reviewed by J. G. McCullough, president of Amax Lead and Zinc Inc. He reported that in the US, lead and zinc are separate industries because of the nature of mineralization. The large Mississippi-type zinc deposits are practically lead-free, and while the new lead belt in Missouri has some zinc content, it does not have the same favorable economic impact as in the complex massive sulfide ore bodies being developed elsewhere.

Jan 11, 1977

MANY members of the National Societies died in service overseas during the World War. No memorial to these engineers has been set up but a unique and interesting suggestion has been made. While Edward Dean Adams, Fellow of the American Society of Civil Engineers, and Associate of the Ameri-can Institute of Electrical Engineers, ,vas in Belgium last June as delegate of the National Societies, En-gineering Foundation, and Engineering Societies

Jan 12, 1927

By Robert C. Weed

Leaching in place at Cananea began in the 1920's on a limited scale. The first plants were small wooden boxes located underground in the Capote and Oversight mines, and output was low. Scrap iron was used as precipitant. Later several other small plants were started up. Leaching was limited entirely to underground areas, and production remained low. The Veta precipitating plant, the first on a larger scale, was put into operation in the late 1920's. After a period of intermittent service it was rebuilt in 1946 and has since been running continuously.

Jul 1, 1956

By Frank R. Milliken

Before the rather sudden economic downturn in recent months, shortages of materials were painfully felt throughout the US. The current recession has provided a temporary relief here and there-but energy fuels and a number of staples such as sugar are still in short supply. This is an unsolved and fundamental problem that will haunt us again as the economy turns up. There is an awareness that the nation faces a widening supply gap in many of its most basic materials-from asbestos to tungsten-as evidenced by recent studies and government reports, and by the Secretary of the Interior's annual warnings about the mounting seriousness of the problem.

Jan 3, 1975