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By K. Verghese, R. W. Rousseau, R. P. Gardner

A radioactive tracer method and a size-discretized, mass balance model are formulated and demonstrated in a feasibility experiment for the determination of crystal growth rates in MSMPR crystallizers. The system studied is aqueous KN03 with K-42 as the radioactive tracer. The results indicate that the method should prove to be very valuable for this application, particularly when systems exhibiting size-dependent growth rates are of interest. An indicated refinement to the tracer method is the simultaneous use of an additional tracer in the liquid to determine the amount of radioactivity from the liquid that is adsorbed on the samples of filtered crystals.

Jan 1, 1980

By Charles W. Merrill

Obsolescence in the mineral world is virtually nonexistent if the term is taken to mean that a mineral commodity, once established in commerce and industry, subsequently has fallen into disuse. We are living in an age of minerals. Each generation puts an increasing array of mineral-based commodities, in larger quantities, to more uses than ever before. Bastnasite, a museum mineral and a collector's item a few years ago, is now produced in quantity at Mountain Pass, Calif. Uranium, a minor byproduct of vanadium mining in the Rocky Mountain plateau area before World War 11, has grown to be a leading mineral product in several western States. And finally the total quantity and value of minerals both in the United States and in the World establish new records almost yearly. Surely the mineral industry as a whole is not obsolescent in our economy. Nevertheless, there are particular uses for particular minerals that are obsolescent and some applications have been supplanted entirely. Tin does not occupy the prominent place in foil manufacture that it once did, and the schoolboy's slate left most classrooms before the oldest of us were born.

Jan 9, 1964

By C. H. Mahoney, A. L. Tarr, P. E. Le Grand

Magnesium, it is now generally realized, differs in some important aspects from most other structural metals, not excepting even its close neighbors, the aluminum-base alloys. This is particularly true with respect to the effects of elevated temperatures on the two light metals when in the molten state. Aluminum, 0' the one hand, should not be raised above its melting point any higher than is absolutely necessary if one is to avoid danger of gas absorption and a tendency toward grain growth in the resultant casting.' Magnesium alloys, in sharp contrast, actually benefit by being heated to temperatures considerably above their melting point, It is a commonly accepted practice to establish the desired fine grain in the industrial magnesium alloys of the aluminum-hearing group by raising the temperature of the melt after the refining treatment to some 250°C (482°F.) above the melting range. To recall briefly the typical practice for magnesium alloys, the molten metal is refined by fluxing at about 730°C. (I350°F.), and after the melt has been covered with a suitable flux, the temperature is raised to between 870°C. (I600°F.) and 930°C. (1700°F.). It is then cooled as quickly as possible to the casting temperature. This superheating, as it is called, results in a fine-grained cast metal structure which has superior mechanical properties, enhanced amenability to 'solution heat-treatment, and better machinability than cast metal that has not been superheated. The minimum temperature of superheating varies to some extent with the composition of the alloys to be treated and usually increases with the percentage of magnesium in alloys containing the same constituent metals.' It should be noted that the grain-refining effect of superheating is markedly apparent only in connection with the alloys containing aluminum as an alloying Constituent—the binary alloy containing 1.5 per cent manganese, for example, is not refined in grain to any noticeable extent by a superheating effort. While the phenomenon of superheating is well known in the magnesium industry, the mechanism of the process has remained a mystery During the superheating cycle something occurs that forces a fine grain upon the solidifying metal. The process has been controlled in an empirical manner, and occasionally, especially on large-scale melts, and for no apparent cause, no grain refinement is obtained from a superheating treatment. Only a few papers of importance have been published on the subject. Of these, one of the most helpful is the paper by Achenbach, Nipper and Piwowarski,3 which gives considerable data concerning the effect of superheating on various properties such as fluidity, shrinkage and hot crack

Jan 1, 1945

By P. Ramachandraraa, T. R. Anantharaman

THE technique developed by Duwez, Willens and Kle-ment' for rapid solidification of molten alloys in small quantities by ejecting them on to a highly conducting substrate with the aid of a shock wave has come to be known as "liquid quenching" or "splat cooling" in literature and has already been applied to alloys of many binary systems.' The very high cooling rates of the order of l060 to 1080 per sec obtained in this technique and the consequent drastic undercooling of the melt have led to such striking results as formation of new amorphous and crystalline metastable phases and extension of solid-solubility limits in many alloy systems. The cooling rates in these experiments can, however, be neither accurately measured nor effectively controlled and hence the occurrence of either more than one metastable phase or appreciable differences in constitution in splat-cooled alloys of the same composition cannot be ruled out.3 In fact, workers in two laboratories have reported formation of two different cubic metastable phases in liquid-quenched Au-Si alloys containing 17 to 20 at. pct si.4,5 The present note deals with some new and interesting results obtained in a Ag-21 at. pct Ge alloy and a Au-27 at. pct Ge alloy subjected to the liquid-quenching treatment at different cooling rates. Two alloys of nearly the same composition had earlier been rapidly solidified by the standard "gun technique" in the same laboratory and shown to solidify in nonequilibrium structures, viz., an hcp phase (a = 2.987Å;c =4.718Å) in the Ag-Ge system6,7 and both hcp (a = 2.885Å; c = 4.754Å) and tetragonal (a = 11.627A; c = 22.491Å) phases in the Au-Ge system.3 Apart from different substrates (copper and stainless steel), different melt temperatures (50º to 500°C above the liquidus), and different capillary sizes (0.4 to 1.5 mm diam) in the "gun technique", slower cooling rates of the order of l050C per sec were also obtained in the present work by replacing the substrate by water at room temperature in a modification of the technique due to Olsen and Hultgren.8 No attempt was made to measure the cooling rate in any experiment. The products varied from fine powder (>40 pct by wt—200 mesh) obtained by quenching in water to thin flakes and foils (11.0 sq mm to 4.0 sq cm) produced by splat cooling. They were subjected to the Debye-Scherrer method of X-ray examination in each case. In case of the Ag-Ge alloy, in addition to the expected metastable hcp phase,6 a coexistent tetragonal phase (a = 5.093,Å; c = 7.009Å) was detected in some experiments. Eight weak X-ray reflections from this phase could be identified, two of them being the same as reported earlier.7 With increase in the cooling rate, the dominant hcp phase seems to be first accompanied by traces of silver or germanium and then either homogeneous or mixed with traces of this new tetragonal phase. The splat-cooled Au-Ge alloy showed generally the expected hcp and tetragonal phases,3 but sometimes traces of germanium were also present. Further, two new tetragonal phases with the following lattice param ters could be clearly identified in samples quenched

Jan 1, 1970

By N. A. Zeigler

Considerable work has been and is being done on the changes of physical properties that take place in alloys at elevated temperatures, and much information on this subject is published. Much less is known, as pointed out by Rickett and Woodll about reactions between the alloys and atmospheric gases and still less is known abut changes within the alloy itself under the influence of heat and given atmosphere. Moreover, most of the work published has been done on the alloys of "heat-resisting" type, in which chromium is an essential ingredient, the behavior of all other alloys being quite unknown, except perhaps of decarburization produced at the surface by oxidizing atmospheres. It has been shown2 that iron, with total amount of foreign ingredients not exceeding 0.01 per cent, if heated in an oxidizing atmosphere at above 900" C., may be saturated with oxygen to 0.1 per cent. It was suspected that something of a similar nature may take place in iron-silicon alloys (transformer material), the mechanism of such processes being either a direct diffusion of oxygen into the alloy, or oxygen combining with silicon to form SiO2 or more complicated (silicate) inclusions. Another possibility to be considered was that during annealing in oxidizing atmospheres, when scale is being formed, silicon may oxidize preferentially at the surface, thus impoverishing the alloy in silicon. In collaboration with Dr. T. D. YensenP3 the writer set out to investigate this problem about two years ago in order to settle these questions. Testing Procedure In the first part of the investigation, two pieces of 4 per cent silicon iron, prepared in hydrogen atmospheres and forged to 3/4-in. square bar,

Jan 1, 1934

IN NOVEMBER 1933 I had the pleasure of receiving an autographed copy of a small brochure entitled "Birth of the Porphyry Coppers." The author, James Colquhoun, a distinguished British mining engineer, had been the dominant figure in the Arizona Copper Company, Limited, which, until its acquisition by the Phelps Dodge Corporation in 1921, had been the principal producer of copper in the Morenci district. In addition to the highly productive Humboldt and Longfellow mines it owned the Clay property, which, of course, has now become Arizona's No. 1 copper mine. Except for Utah Copper it is the premier Porphyry copper enterprise in the United States. Mr. Colquhoun's little volume was inspired by THE PORPHYRY COPPERS which had appeared early that year. In a most courteous and friendly way he adduces data to show that "we (Arizona Copper Company Limited) were successfully treating low-grade porphyry ores in quantity for at least four years (1901 to 19W) before the Utah Copper Company did anything at all." This last remark is based on the figures in THE PORPHYRY COPPERS showing that Utah's first production came from the Copperton pilot plant in 1905. Mr. Colquhoun traces the story of Morenci beginning in 1883 when he first arrived there. He tells how the rich self-fluxing ores (containing lime- stone, silica, and iron in proportion to permit direct smelting to produce black copper) were gradually exhausted. High-grade siliceous ore could be mixed in limited quantity with the self-fluxing ores; and oxidized ores were leached to contribute substantially to the production of the district. But

Jan 1, 1957

By Robert H. Richards

Very little has been published recently on this subject in the mining journals or proceedings of societies. The attention of experts has been diverted perhaps by the demands for pan amalgamation of refractory ores. Yet free milling ores occur in many localities, and it may be interesting to have on record some data as to details of running a small test-mill, especially as details of results do not seem to be accessible to stndents and investigators. Küstel, in 1863, under battery amalgamation, dismisses the subject by stating that "amalgamation on copper-plated platforms, troughs, and other copper fixings" is " very imperfect, and mostly abandoned." J. Arthur Phillips says, in 1867, under placer mining : " A well-amalgamated copper plate is considered as effective for

Jan 1, 1880

By Robert H. Richards

VERY little has been published recently on this subject in the mining journals or proceedings of societies. The attention of experts has been diverted perhaps by the demands for pan amalgamation of refractory ores. Yet free milling ores occur in many localities, and it may be interesting to have on record some data as to details of running a small test-mill, especially as details of results do not seem to be accessible to students and investigators. Küstel, in 1863, under battery amalgamation, dismisses the subject by stating that "amalgamation on copper-plated platforms, troughs, and other copper fixings" is " very imperfect, and mostly abandoned." J. Arthur Phillips says, in 1867, under placer mining : A well-amalgamated copper plate is considered as effective for

Jan 1, 1880

By R. A. Brackett

The most effective means of controlling the dust in the drilling of rock has been found after careful investigation to be collection of this dust at the source. By direct collection, all the dust is collected at the collar of the drill hole and deposited into suitable containers. Equipment for handling this work can be either portable or stationary, depending upon the particular requirements and the application. For most work the portable unit is found most advantageous, and with a capacity capable of handling two drills operating simultaneously. Such a portable unit would consist of a metal cap, or hood, placed against the face of the rock through which the drill steel would be inserted. This hood is connected by a flexible rubber hose to a primary separator, where the bulk of the dust is collected. From here a second length of hose connects to the secondary stage of separation, where the fine particles of dust are collected and which is built in as an integral part of the vacuum producer. Hoods are adapted for vertical, horizontal or stope drilling, and mounted so as to become immediately effective when collaring the hole and remain in place continuously. Such dust collectors can be used with either wet or dry drilling. However, in view of the fact that when drilling dry and using the dust collector, the dust count can be maintained within safe limits, wet drilling becomes unnecessary. Furthermore, it has been found that when using the dust collector not only has the dust hazard been eliminated, but also increased footage can be obtained. Samples taken under a wide variation of conditions indicate that where the dust count required is below five million particles per cubic foot, dust collectors will be required. Opreators, in general, accept the use of this additional equipment favorably, and it is generally felt that such means of collecting the dust will soon be universally adopted. Tests made by the Connecticut Department of Health Bureau of Occupational Diseases show dust counts reduced from 203 million particles to 6.05 million by the use of the dust collector, when drilling dry.

Jan 1, 1934

By H. B. Pulsifer

ONE of the most common basic open-hearth furnace products is a simple carbon steel with a carbon range from 0.05 to 0.15 per cent. The material is widely used for sheets, tubes, bars, wire and the innumerable special objects of secondary fabrication. The properties of the material vary over wide ranges, depending on the more exact composition and details of manufacture or treatment that affect its structure. The present paper is a review of those properties and structures that have been found by studying this steel as used in the cap screw industry. At first glance this might be thought a narrow application of the steel, but, since the industry uses the material in the cold-worked, annealed and heat-treated conditions, the title of the paper may be excused for its comprehensiveness. Yet, in studying the wide ranges of properties and structures that preclude a more specific title, there can be no suggestion of completeness or finality. Even a summary of a few years' work is no more than a preliminary survey of a field that will be fertile in scientific data and industrial products for many years to come. An outline of the structures will be given first, then a list of the previous contributions that are at hand and finally some details of the work and related problems, especially concerning this low-carbon steel in the surface-hardened condition.

Jan 1, 1931

By Henry A. Ley

Kansas ranked fourth on the list of oil-producing states during the year 1930. Progressive statistics show that total production for the year will approximate 42,729,085 bbl. When final figures are compiled for Kansas the production may exceed this estimate, and thereby threaten the all-time record of 43,253,470 bbl. in 1918. Throughout the year the cumulative volume of potential drilled-up production has been increased by new discoveries and by extensions to proven areas in the territory west of the Nemaha (granite ridge) Range. Scattered drilling and leasing operations of a constructive nature occurred, but completions declined to the lowest levels in more than 11 years. Average initial production of current completions climbed to a new all-time high of 512 bbl. to the well. Proration measures were applied to the flush pools. The resulting shut-in potential production, as of December 15, is estimated at 110,000 bbl. This estimate is a wild guess. If all wells of the state were permitted to flow wide open for a period of six months production would not exceed 150,000 bbl. a day. The outstanding development of the year was an intensive drilling campaign in southwestern Kansas, which contributed at least 1,000,000 acres of contiguous natural-gas lands to the natural-gas resources of the United States. Production and Development Prospecting for oil in Kansas began shortly after the initial prospecting at Titusville. Operations and interest in the potentialities became active about 1870. This development was restricted to the shallow districts of northeastern Kansas. By 1895 operations had extended southward to the Oklahoma state line and sufficient prospecting had taken place to prove the potentialities of the state. Active prospecting was extended westward by the discovery of oil on the Nemaha Range in Butler County about 1916. The discovery of oil in Russell County added an extensive borderland province in 1923. The important discoveries of oil in Sedgwick County revived interests and operations throughout this territory in 1928. The development of widespread natural-gas lands in extreme southwestern Kansas during 1930 carried active exploration to the western boundary of the state.

Jan 1, 1931

MINING AND METALLURGICAL SOCIETY OF AMERICA San Francisco Section The San Francisco Section of the Mining and Metallurgical Society of America held a joint meeting with the local section of the American Institute of Mining Engineers at the Engineers' Club, San Francisco, on Tuesday, Apr. 16, 1918. The meeting was preceded by a dinner. Letters from the parent body in NewYork asking for the consideration of the proposed bill before Congress, and an expression of opinion relative to the appointment of a Federal Administrator of Mines justified the joint meeting of the local sections of the two mining societies, in that a more representative opinion of the engineers of California could he obtained. The meeting was called to order at 7:15 P.M. by Mr. Frank H. Probert acting as Chairman. About thirty engineers were present. Mr. Probert read a letter of March 14, from Secretary Huntoon, asking that the meeting be called. He read excerpts from Bulletin 117 of February 28, 1918, of the Mining and Metallurgical Society containing a copy of the proposed bill, so that all present might be advised of its essential contents. He briefly commented on the urgent need of such legislation and invited discussion of the subject. After long and thorough discussion on the part of the members present, Professor Lawson made the following motion: I move that a resolution expressing the sense of the joint meeting of the local sections of the American Institute of Mining Engineers and Mining and Metallurgical Society of America be forwarded to the secretaries of the two societies to the effect that we heartily approve of the purpose and intention of the bill designed to promote and stimulate the production of minerals necessary for the successful prosecution of the war; and that we suggest prices should be fixed for the period of the war and two years thereafter, and that these prices, guaranteed by the Government, should apply at the nearest shipping point to place of production of the minerals. This motion was carried. The meeting then adjourned, and a telegram was sent by Mr. Probert, the Chairman, to Mr. Huntoon, notifying him of the motion that had been carried at the meeting.

Jan 7, 1918

By A. E. Dwight, Paul A. Beck

Known CsCl-type phases in transition metal alloys are shown to be formed preferentially at an electron concentration of approximately 6; a tetragonally distorted version of the CsCl structure is stable at -e/a = 6.5. The relationship of the distortion to electron concentration is verified by experimental data for the quasibinary systems Time ,Os) , Ti(Re,Ir), and Ti(Re,Pt) and the ternary system Ti-Ru-Rh. It was noted some years ago1j2 that the occurrence of CsC1-type ordered structures in equiatomic binary alloys, AB, of transition metals correlates with the location of the component elements in the periodic table. One of the components, A, must be to the left and the other component. B, must be to the right of the chromium group. It was pointed out2 that the CsCl structure does not occur in CrFe. is metastable in VFe,3 and is stable in TiFe up to high temperatures, and that this progressively increasing stability may correspond to an increase in electron transfer between the two components and to a correlated decrease of the magnetic moment associated with the iron atoms. Such a decrease was in fact later demonstrated by Nevitt. 4 The binary CsC1-type phases that are formed by a transition metal with either another transition metal or a lanthanide are listed in Table I. Thirty-three of these phases occur at an average electron concentration (average number of electrons outside of closed shells) of e/a = 6. The five phases that are formed at an electron concentration of e/a = 5.5 appear to be borderline cases. This is suggested for instance by the fact that TiRe is bcc. without any long-range order, while TiTc (at the same electron concentration) has a CsCl ordered structure. Six of the undistorted CsCl phases formed by transition metals with one another have an average electron concentration of e/a = 6. 5. Table I. With the exception of Zr4,Rhs4 and Hf48Rh52. the B component in these phases is a first long-period transition metal, i.e.. iron or cobalt. TiNi. with an electron concentration of e/n = 7, appears to undergo transformation at around room temperature to a more complex ordered struct~re.~ The five other CsCl structures known to occur at e/a = 6.5 have either scandium or a lanthanide metal as the A component; the difference in the elec-tronegativity and in the e/a ratio between the component elements is in these phases very large, A(e/a) - 7, and they may be expected to have a rather strong ionic bond component. Presumably the ionic bond stabilizes the CsCl-type structure at the equiatomic composition and it overrides the electron concentration requirement. When the B element is not from the first long period and the A component is not a rare earth metal. equiatomic (AB) alloys of transition metals with an average electron concentration of e/a = 6.5 in most cases have a crystal structure closely related to the CsC1-type, but slightly distorted tetragonally, Table I. This was first found6 for VRu, NbRu. and TaRu. It was noted6 that the undistorted CsCl structure is also stable in the three systems. but at a lower electron concentration, near e/a = 6. In these systems this requires a deviation from equiatomic stoichiometry. which is otherwise ideally suited for the CsC1-type structure. A similar situation was later found in the Ti-Rh7 and the Ti-Ir systems. 8 The Ti-Rh alloys undergo a second distortion and become orthorhombic when the rhodium content becomes somewhat larger than 50 pct. As mentioned previously. TiRe does not have the CsC1-type ordered structure. In order to investigate how close TiRe is to the borderline of stability of the

Jan 1, 1970

By Frank G. Breyer

THE .following developments in the zinc field during 1935 are listed in the order of their importance. Each will he amplified in later paragraphs. In the field o f Metallic Zinc: (1) Construction of further continuous vertical retort smelting capacity in the United States and Germany. (2) Expansion of fractional distillation capacity in the United States. (3) Great expansion in the zinc-base die-casting industry in the United States and abroad. (4) Wide acceptance of heavy galvanizing by the steel industry. (5) Construction of the first commercial wire electroplating plant for putting on heavy coats of pure zinc. (6) Firm establishment and appreciable expansion of the practice of using zinc dust as a reducing agent in the organic chemical industry.

Jan 1, 1936

AN indication that Mesabi Range iron use companies may develop their own flotation processes for low grade iron ores is the report that Cleveland Cliffs Iron Co. is adopting a variation of one of the oldest known methods at its new Michigan treatment plant. Basically, the method involves using fatty acids and fuel oil reagents. The idea was developed many years ago and should be free of patent control. With other laboratories working on the same tack, it seems to be a pretty good bet that they will come up with their own processes. Any outside process will have to offer considerable advantage or low royalty rate to get consideration. Much of the appeal of the fatty acid process is the cheapness of the reagent. One source is pulp paper liquor in semi-refined form. With stream pollution legislation acting as a strong pressure, paper companies have been seeking ways to dispose of the material. Wisconsin has even attempted to use it for road binder.

Jan 5, 1953

By E. A. Wieselmann

This chapter presents a successful approach for achieving mine entry stability at the Cane Creek potash mine by the utilization of closure measurements. The mine is located in southeastern Utah (Fig. l). Mining is being conducted at depths in excess of 3000 ft under structurally complex geologic conditions typical of the Paradox salt basin. The closure measurement systems described have definite application for determining relative entry stability in other nonelastic rocks which are similar in behavior to potash. Similar types of closure measurements have been taken in various underground openings throughout the United States, Canada, arid Europe. Application of this closure data has previously met with varying degrees of success as a tool for design of under- ground openings in both elastic and nonelastic media.1-32 Closure measurements can be made easily and economically and they provide a practical solutiori to a practical problem. They are in-situ measurements which do not necessarily require laboratory correlation. Simple closure measurements have special significance in potash because "steady-state" ' closure rate, or creep, of the entries is measured. These closure rates can be utilized because nonelastic media such as potash will never achieve absolute stability around a mine entry. The potash will tend to creep or deform until all entries are closed and the overburden stress is redistributed over what was previously the mine area. The time for this ultimate effect to occur is dependent on a number of mining and geologic variables. Percentage of mine extraction, mining

Jan 1, 1972

Prospecting methods used in Tennessee have gradually improved with the years, as required by depletion of the easily accessible and shallow deposits and the universal trend toward mechanization, and as necessitated by exploring deeper beds, often occurring under limestone and flinty overburden. In the early days it was a very simple matter to dig pits by hand, using a plentiful supply of local farm labor to expose relatively shallow deposits of "brown rock" under shallow clayey overburden that would stand up without timbering. Visual inspection of the exposed phosphate and expert judgment of the "grade" analysis, aided by a "biting" test to reveal presence of unwanted silica, furnished most of the information required. All this might be helped by a few samples sent to the local chemist† who supplemented his income by judicious trading or tanning a few bear skins. The extra curricula activities did not affect the accuracy of the analysis which hold up even under present day standards. Some shot and core drilling was done in Hickman County, mostly for the limestone-like blue Phosphate deposits. The next step was the use of a 4-in. posthole auger, hand operated as described by Guenther, followed by a completely mechanized rig, as described by Pickard. Both these methods are practically adapted to the prospecting of the relatively soft brown rock deposits at moderate depths of clay overburden. For prospecting in areas of deeper overburden, such as are often found in Hickman County, up to 150 or even 200-ft depths, a modified core-drilling method is described by Guenther. Johnston describes a special diamond-drilling technique, developed by TVA, to penetrate flint horizons, which was adopted by the International Minerals in chemical corporation to prospect in Hickman County where deposits had previously been prospected at considerable expense and with difficulty, by small, temporary, hand-dug shafts.

Jan 1, 1948

Prospecting methods used in Tennessee have gradually improved with the years, as required by depletion of the easily accessible and shallow deposits and the universal trend toward mechanization, and as necessitated by exploring deeper beds, often occurring under limestone and flinty overburden. In the early days it was a very simple matter to dig pits by hand, using a plentiful supply of local farm labor to expose relatively shallow deposits of "brown rock" under shallow clayey overburden that would stand up without timbering. Visual inspection of the exposed phosphate and expert judgment of the "grade" analysis, aided by a "biting" test to reveal presence of unwanted silica, furnished most of the information required. All this might be helped by a few samples sent to the local chemist† who supplemented his income by judicious trading or tanning a few bear skins. The extra curricula activities did not affect the accuracy of the analysis which hold up even under present day standards. Some shot and core drilling was done in Hickman County, mostly for the limestone-like blue Phosphate deposits. The next step was the use of a 4-in. posthole auger, hand operated as described by Guenther, followed by a completely mechanized rig, as described by Pickard. Both these methods are practically adapted to the prospecting of the relatively soft brown rock deposits at moderate depths of clay overburden. For prospecting in areas of deeper overburden, such as are often found in Hickman County, up to 150 or even 200-ft depths, a modified core-drilling method is described by Guenther. Johnston describes a special diamond-drilling technique, developed by TVA, to penetrate flint horizons, which was adopted by the International Minerals in chemical corporation to prospect in Hickman County where deposits had previously been prospected at considerable expense and with difficulty, by small, temporary, hand-dug shafts.

Jan 1, 1948

By Grover R. Castle

INTRODUCTION "Project Financing" or "Project Loans" have become increasingly popular in recent years, and commercial banks are being asked to consider more and more of such financing. However, the analysis of this type of loan is quite different from the analysis of a loan to a financially sound corporation based on the company's balance sheet. For this reason Chemical Bank did a study of project loans in an attempt to be more sophisticated in our approach to them. As part of this study, we examined 29 project financings for which information was available. In this article I shall describe project loans and set forth the guidelines we developed, as an aid to credit officers who might have occasion to analyse this type of financing. DEFINITION OF "PROJECT FINANCING" OR "PROJECT LOAN" The terms "project financing" and "project loan" commonly describe the various methods that banks and institutional lenders use to finance the construction of new projects on a basis whereby payout is anticipated from the revenue stream generated by the project. A project financing often involves a loan to a new entity formed specifically to own the project. The analysis of a project loan proposal is quite different from the analysis of other term-loan proposals since it involves a credit decision based on the review of a projection or forecast rather than of historical earnings and/or it involves the reliance on contractual obligations of third parties. Lenders are asked to assume the added risks associated with project loans because: 1. Project financing may permit a company to obtain additional leverage. It is possible for companies to arrange financing on a project basis that could not be arranged as a direct borrowing. For example, a company may not be permitted to borrow more money directly, due to a limitation in a bond indenture. However, a project financing can sometimes be negotiated on a basis not prohibited by the indenture. 2. Often the sponsors of, or the stockholders in, the project are seeking an off-balance-sheet financing. For example, 11 of the 29 projects in our study were arranged on an off-balance-sheet basis and one showed on the balance sheet as a deferred income item. An off-balance-sheet financing, for the purpose of this article, is a financing which does not show as a direct liability on the balance sheet of the sponsors of or stockholders in a project. 3. Projects are often located in a foreign country. The financing is arranged so that the lenders assume the political risk on the loan because many companies rightly believe that this arrangement affords a degree of insulation from political risk not otherwise obtainable. 4. Many projects are jointly owned by several sponsors. This form of financing lends itself well to a situation where a new entity is formed to own a project and do the borrowing. Project loans can be used to finance a variety of activities including development of iron-ore deposits and associated pelletizing plants; development of coal reserves; construction of pipelines, alumina plants, fertilizer plants and refineries; etc. The specific areas of analysis can be quite different, depending upon the type of project being financed. It is important, therefore, to classify the proposal according to the type of project, and also by the nature of the financing - nonrecourse financing, financing covered by a guarantee of completion and financing supported by an undertaking lasting for the life of the financing. I will discuss each of these types in more detail later, but first, I should like to make some

Jan 1, 1985

By Wilbur S. Burbank, Robert G. Leudke

The impressive western San Juan Mountains of Colorado were carved by Pleistocene and Recent erosion from a thick blanket of Tertiary volcanic rocks that rests upon a basement of metamorphic, sedimentary, and igneous rocks ranging in age from Precambrian to Tertiary. These rocks record a long, complex, and fairly complete sequence of geologic events that have affected the region through much of geologic time. The geologic history of the region includes several periods of deformation, erosion, and igneous activity; closely associated with two of these periods were two periods of mineralization. The older of these was related to Late Cretaceous-early Tertiary (Laramide) intrusive activity, and its deposits occur in the older sedimentary units. The younger, of later Tertiary age and related to the widespread middle Tertiary extrusive and intrusive activity, is the chief concern of this paper. Tertiary volcanism built a great plateau surrounding the San Juan volcanic depression, a complex of subsided crustal blocks in the vent areas. The Silverton and Lake City cauldrons, nested within the larger depression, were domed by resurgent magma that created keystone grabens along the distended crests of the domed floors and many postcauldron radial and concentric fractures, dikes, and intrusive plutons within and marginal to the cauldron sites. The postvolcanic evolution of large quantities of gases, chiefly carbon dioxide and water, propylitically altered the rocks in and around the volcanic depression prior to the younger period of ore deposition. The ore deposits, localized mainly in the radial and concentric fractures about the cauldrons and in the associated graben faults, include fissure veins, chimneys, replacements, and disseminations in volcanic and underlying basement rocks. Fissure veins, constituting the major economic source, yielded precious- and basemetal ores. Most veins are compound with sphalerite, galena, and chalcopyrite; some veins contain silver-bearing arsenical sulfosalts and free gold. These minerals occur in predominantly quartz gangue. However, gangues composed of several manganese silicates and carbonates and relatively· barren of metals are abundant locally and probably originated by alteration of rocks at roots of faults and fissures during evolution of carbonatic solutions. The bulk of the ores are hypogene and probably had their source in deep parent magmas of the shallow eruptive rocks. Total production since the early 1870's has exceeded half a billion dollars in recovered metals, with a ratio of precious- to base-metal values of about 3 to 2. Since 1930, improvements in metallurgical treatment and mining techniques have increased the base-metal yield.

Jan 1, 1968