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By Dale A. Augenstein, S. C. Sun

A primary concern in the solution of any solid waste disposal problem is the characterization of the material. In the past, available methodology for the determination of coal refuse characteristics has been severely limited by the inseparable combination of organic and inorganic matter of which the refuse is comprised. The recent development of an electronic, low temperature asher which removes the organic material without alteration of the inorganic constituents has opened new areas of coal and coal refuse research. This study deals with the development of methodology for the characterization of Pennsylvania anthracite refuse through utilization of the low temperature asher. Seven samples of anthracite refuse were examined for verification of the methodology developed and information concerning the characteristics of the refuse.

Jan 1, 1975

By Arthur Phillips

The progress made in recent years in the art of dispersion-hardening has naturally led to an intensive study of alloy systems capable of yielding supersaturated solid solutions at ordinary temperatures. In general, the investigations have been confined to rather precise determinations of solubility limits and to experimental approaches designed to furnish more complete information regarding the rate and nature of precipitation under appropriate thermal conditions. Efforts are being made to focus more sharply on the atomic changes that are a direct consequence of the instability of the supersaturated solution. Here precision X-ray methods have come to be of considerable importance because lattice parameter measurements indicate very precisely the concentration of solute atoms in the solvent lattice. In spite of the general acceptance of parameter values as a criterion for the placing of solubility limits, it may be suggested that no thorough appraisal has been made of the several factors that conceivably may affect such measurements. More specifically, little attention has been devoted to the significance of surface energy conditions, specimen size and method of preparation, with particular regard to the genesis of the grains and the surface concentration changes as a consequence of heat treatment and etching. Stenzel and Weertsl recently published the results of a detailed study of precipitation reactions in aluminum-rich copper alloys. They found that, although copper lowers the lattice constant of aluminum, a 5 per cent copper alloy quenched from 150" and 225' C. had parameter values unquestionably higher than that of pure aluminum. Their results seem to substantiate, at least qualitatively, the earlier work of von Göler and Sachs,2 who indicated a parameter value, for the same alloy annealed for 24 hr. at 200° C., some 0.0008Å. larger than that of pure aluminum. Stenzel and Weerts attributed the abnormal lattice dimension to the effect of strain induced by the precipitation of CuA12. Weerts3 later

Jan 1, 1934

By Atmesh K. Sinha

In spite of the artificial supports which are provided to reinforce the mine roof and prevent failures, roof falls continue to occur very frequently in the mines due to the very unpredictable geological conditions and the dynamic nature of the mining operations. In fact, roof fall is still one of the largest contributor to coal mine fatalities. The design of a roof support plan is often based on arbitrary criterions due to the unpredictable behaviour of the rocks under the mining conditions. The failure of a mine roof which ultimately results in a roof fall and contribute to mine hazards, is caused following a gradual degradation in its physical conditions. A mine roof monitoring system capable of monitoring the rate of deterioration of a mine roof on a continuous basis has been developed and tested in an operating coal mine. The monitor can help to improve and supplement the roof support plans and

Jan 1, 1983

By F. C. Miller

The metallurgical fuel of Colorado, Utah, and New Mexico has been a Veiny tardy member in the caravan of western industrial progress. The history of western coke has naturally been closely related to the development of the metallurgy of iron and steel and the precious metals, in the State of Colorado. It was at Leadville, with a population of 300 in 1877, that the Sentinel was published by Richard S. Allen. The Sentinel gave very full accounts of the various mineral discoveries at the new town of Leadville, which found their way to the more widely circulated journals of the East, and attracted the attention of many people. At the close of 1878, a census slowed a total of 5040 persons. The first smelter was established in 1877, at Malta, two miles from Leadville, by A. R. Meyer, but was not successful. It was succeeded by the Harrison Reduction Works, in 1878. The La Plata began with one furnace in June, 1878, and in 1879 had four furnaces in active operation. These furnaces used charcoal for fuel, and, because of hot tops, suffered a tremendous loss in lead and silver. This difficulty was overcome by the erection of 50 single-bank 10-ft. beehive ovens at Crested Butte, Colo., in 1880. The slack coal sent to these ovens was very pure, and yielded a coke carrying as little as 4.5 per cent. ash. Among the pioneers in the Leadville district were Grant, Eddy, James, Billings, Eiler, and Dickson. To these men the West owes the present expansion of its mining industry, and the erection of metallurgical processes for the treatment of precious metals. On Mar. 1, 1876, Pueblo was connected to the Atchison, Topeka & Sank Fe by the Pueblo & Arkansas Valley branch. The first smelter was erected in Pueblo by Mather and Geist. This modest plant grew into the immense Pueblo Smelting and Refining Co., now a part of the American Smelting and Refining Co. Coke for these small furnaces was made from unwashed Engleville coal, in 186 single-bank 12-ft. ovens at El Moro, in the Trinidad district, and it was not uncommon for the percentage of ash to exceed the percentage of fixed carbon in the coke. On Jan. 23, 1880, the Colorado Improvement Co. consolidated

Jan 1, 1920

By David R. Mitchell, Ernest M. Spokes

There is evidence that study of minerals now considered to have susceptibilities too low for magnetic separation should be continued. Present concepts may be false. INFORMATION on magnetic properties of minerals other than magnetite is scanty and sometimes erroneous. Often there is no information at all. W. R. Crane's table of tractive forces published in 1901 is still the best guide in the field, but Crane's data can be used as a guide only, since he ignored such important factors as impurities in the minerals, size, and packing effect. During the 1930's work by the U. S. Bureau of Mines added greatly to knowledge of the behavior of certain minerals in a magnetic field. The USBM bulletin gave for the first time complete magnetic characteristics for magnetite and fragmentary data for a few other minerals. The work reported here covers a study of the magnetic-susceptibility relationships of the wolframite series of minerals and sphalerites as related to their chemical compositions. Theories are proposed to explain divergences found from commonly accepted beliefs. Gouy Method for Determining Magnetic Susceptibility: The Gouy principle has been adequately described in the literature1-3 and applied in various ways.'- It may be summarized by stating that a body of material (gas, liquid, solid, or powder mixed with gas or liquid) of cylindrical shape changes in apparent weight if suspended with one end in a zone of higher magnetic field strength than is found in that portion of the field surrounding the other end of the cylinder. This may be expressed as K2 - K1 A (H2 - H2) - mg. [1] In determining the susceptibility of mineral specimens by the Gouy method, the mineral is reduced to a fine powder and packed in a glass weighing tube. Precise measurement of the bore and depth of the tube is made unnecessary by a calibration procedure. Using the basic expression of Eq. 1, Hoare"

Jan 1, 1959

By Frank H. Armstrong

All the mining machinery of the Penn Iron Mining Co. has been operated by electric power for several years and when another shovel for stockpile loading was required the advantages of an electric shovel were naturally considered. After considerable study, serious objections suggested themselves the use of a shovel operated directly by electrical apparatus by reason of the complicated control, severe service on the motors and the heavy surges of current required from the line. It was finally decided to construct an electro-hydraulic shovel using water under pressure to perform all the necessary operations except that of propelling, for which a separate motor was best suited. A car body with boom, dipper handle and dipper of late design, but without any of the steam machinery, was purchased. A motor-driven centrifugal pump, a pressure tank, an air tank, a small air compressor and water cylinders with plungers, pistons and valves, were installed in place of the steam equipment. Fig. 1 shows this shovel under construction and Fig. 2 shows it as it was operated during the first year, the summer of 1914. The large tank at the back of the car, in Fig. 1, carried air under

Jan 1, 1916

By D. P. Harris

This paper examines recent developments and work in progress on the application of quantitative methods and computers to the appraisal of the mineral resource potential of discrete areas by employing reconnaissance geological information and general economic relationships. The perspective of this paper might be that of a firm planning a regional exploration program or of a legislative body seeking to choose between several alternative actions on the basis of their impact upon the regional resources. In addition to this general survey and commentary, an example is presented of the use of geostatistical analysis and computer simulation to evaluate the economic mineral resources of the Seward Peninsula of Alaska.

Jan 1, 1969

By W. H. Emmons

MOST mineral deposits change as they are followed downward on their dips. Some of these changes are due to primary arrangement; different ores were precipitated at different depths when the deposits were formed. Other changes are due to weathering or secondary enrichment. The chief changes resulting from weathering, in the main, are understood and standard changes are recognized. The processes are relatively simple. They take place at ordinary temperatures and pressures and can be duplicated in the laboratories. Moreover, there are thousands of deposits available for study, because the processes take place near the surface where the development of mines is begun. The changes due to primary arrangement of the deposits of the metals are not so well understood. Deposition has taken place at higher temperatures and our knowledge of the chemistry of the processes leaves much to be desired. Very few experimental data are available. The deposits, moreover, offer fewer examples because many mines are not, developed to depths where the changes can be studied and a change to unprofitable material usually results in stopping work. Most, students of ore deposits now accept, as confirmed, the hypothesis that nearly all lodes and related deposits were formed by solutions originating in intrusive igneous masses. Outward from these masses, the deposits at many places are grouped in zones and the arrangement noted from the intrusions outward are commonly the reverse of the changes noted from the surface downward in a single lode. A study of the changes in groups of deposits, from the parent intrusion outward, will throw light on the changes to be expected in a single lode downward. Because the changes in series of deposits from the intrusive outward may all be observed near the surface, where more data are available, it is possible to increase the number of examples many fold and to apply the statistical method of study with greater confidence of avoiding error.

Jan 3, 1924

By Alexandre Pourcel

The phenomena of liquation in steel or iron ingots of all sizes, but naturally to greatest extent in the heaviest ingots, have been noticed ever since the commencement on a large scale of the Besse mer and open-hearth manufactures; but they have been studied with care during the last few years only. The English and the Ameri cans were the first to publish the results of investigation upon phe nomena of this clam, to which they have given the name of segregation. Historical. Passing by that which has been written concerning the segregation observed in gray pig-iron, of which instances were given by Karsten, we shall confine ourselves here to that which is known of this subject with exclusive reference to ingot steel and iron. Mr. H. M. Howe, of Boston, in his Metallurgy of Steel, the most complete and well-arranged treatise upon steel, gives a resume of observations, with the results of numerous analyses, bearing upon the phenomena of segregation. According to Tchernoff (with whom we discussed this question at length in 1878, in connection with the cast-steel plates of large dimensions designed for the Italian fleet, which we showed him at Terre-Noire), Kalakoutsky called attention in 1866 to the lack of homogeneity in Bessemer ingots, especially when cast in sand. Our own attention had been called to the phenomena of liquation in 1868 by a somewhat surprising fact which appeared in almost every one of a number of steel-rail ingots coming from the works of Messrs. Pierre and Emile Martin at Sireuil, to be rolled at TerreNoire. In the heating or in the first groove of the rolls, a slice of from 6 to 10 centimeters (2.4 to 3.9 inches) separated itself from the head of each ingot. As a general consequence, the section of

Jan 1, 1894

By Evan Just

DIRECT subsidies for mine production in this country began as an outgrowth of wartime 'price regulation. The price-fixing authorities realized that the volume of production to be required from domestic copper, lead, and zinc mines would invoke costs of production considerably higher than the established ceiling prices. Accordingly, beginning Feb. 1, 1942 the Premium Price Plan was set up, which undertook to pay premiums to mines for production in excess of quota, of 5¢ per lb of copper and 2Y4¢ per lb of zinc or lead. Quotas, except for small mines, were initially established at the average rate of production in 1941, but were later reduced arbitrarily on an individual basis. Subsequently, additional "B" premiums were set for lead and zinc of 2Y40 per lb and a further "C" zinc premium of 2%¢. Additional copper premiums were negotiated on an individual basis, mainly with small mines. Quotas under each of these successive categories were the production obtained at the next lower premium level. In other words, under ceiling prices of 12¢ for copper, 6,14¢ for lead, and 83¢ for zinc, it was possible for high-cost operations to receive prices plus premiums of 17¢ or more for copper, 12¢ for lead, and 16% 0 for zinc on a portion of their production. On the other hand, some of the larger operators received only slight premiums and in at least one instance none at all. The average price plus premium for copper was 12.25¢ in 1942 and rose to 13.65¢ in 1945. That for lead was 6.99¢ in 1942 and 8.73¢ in 1945, and for zinc it was 9.06¢ in 1942 and 11.200 in 1945.

Jan 1, 1948

By C. M. Young

THE following paper has been prepared with the object of placing on record in the Transactions some facts concerning the present condition and future prospects of the coal industry of Illinois. In presenting it, the writer wishes to say that a considerable amount of the material contained is taken from the publications and records of the Illinois Coal Mining Investigations, the annual Coal Report of the State Mining Board, and the work of the State Geological Survey. Coal Beds and Mining Methods According to the latest maps of the State Geological Survey, there are only 19 of the 102 counties of the State some portion of whose territory is not within the borders of the coal measures. If outlying areas in Calhoun and Whiteside Counties are considered, the number is reduced to 17. This does not mean that all of the 85 counties that are partly or wholly underlain by coal measures will become producers, as there are some portions of the State in which the coal does not occur in beds of such thickness as to warrant the hope that it can be mined. The mining of coal is widespread, however, for in 1916 there was production from 51 of the 102 counties of the State. There seem to be no cases in which operations will be limited by depth, as none of the coal measures lie at depths much greater than those at which it has been proved that coal may be profitably mined in this field. In fact, the deepest shaft reaching a bed of bituminous coal in the United States is located in this State at Assumption, where coal only 3 ½ ft. (1.07 m.) thick is worked at a depth of 1004 ft.. (306 m.) The coal beds occur in the form of a basin which is deepest along a line extending through the central part of the State and bearing a, little west of north. The northern, western and southern borders of this basin lie within the boundaries of the State, but on the eastern side the Illinois field is continuous with the Indiana field. The glacial drift covers all except the extreme southern end of the State and the visible outcropping

Jan 9, 1917

By Owen Rice

CHANGES in coke hardness affect the working of the blast furnace, for soft coke is an obstacle to proper furnace operation. Soft coke is due to a low hydrogen-oxygen ratio in the coal charged; increasing this ratio increases the hardness of the coke. The best means of determining the hardness of coke is the combined tumbler and ball-mill. Soft coke is a great hindrance to proper blast-furnace operation and changes in coke hardness affect the working of the furnace. The best method of determining the hardness of coke is by using a combination tumbler-ball-mill. Soft coke is due to a low hydrogen-oxygen ratio in the coal charged. An increase of this ratio improves the hardness of the resulting coke. WHAT IS GOOD COKE? It is not always appreciated that the correct answer may be such a reliable forecast to the physical condition of the blast furnace, and incidentally its entire operation, that among the ordinary variations in other raw materials and also in operating conditions, it assumes a position of primary significance. Inasmuch as coke forms two-thirds of the total bulk of material charged, this assertion will not seem exaggerated, and in the subsequent discussion its applicability will be presented. Coke is the ideal blast-furnace fuel because it is strong and hard enough to resist the crushing and grinding effects of the furnace burden, and its porosity allows the ready passage of gas upward through the charge, and rapid combustion before the tuyeres. Coke deprived of its strength and with a cell structure physically frail and chemically susceptible to solution by carbon dioxide, has its chief asset eliminated. When the melting zones are approached the fluid cinder trickling toward the hearth will envelope the small pieces of coke and form a sticky mass that will retard the free passage of gas. Blast pressure will then rise, driving

Jan 1, 1921

By David Segura

THE Huitzuco mercury deposits have been described by C. W. Vaupell,1 therefore the general information such as location, history, production, etc. will not be repeated here. The present owners acquired the property when the deep levels of the Cruz mine were flooded, and it was believed that a relatively large tonnage of low-grade ore and fills would be encountered in the flooded section, because of the early mining methods used in the Cruz mine. The mine was partly unwatered and about 187,000 tons of fills was pit-sampled in the San Cayetano stope. These fills average 2.4 kg. Hg per ton. During the period of maximum production at Huitzuco, the ores were sorted in the mine and cobbed into 3-in. pieces, which were treated in Scott furnaces. Large pieces of raw ore are found in the sinter, and it is indicated that both recovery and costs were not very satisfactory. Recent practice has been to treat the ores in closed retorts made of 10-in. pipes. Because of the presence of combined antimony in the mineral livingstonite (HgS.2Sb2S3) and considerable native sulphur, little or no metallic mercury is recovered in the condensers and a second retorting of the condenser muds is necessary. This makes the treatment of the ores expensive and tends to low recoveries of mercury. The principal costs of retorting are, in their relative order: (1) fuel, (2) low recovery of mercury, (3) replacement of retort pipes, (4) labor. METHODS TESTED Three series of experiments have been made, with the object of reducing the costs of recovering mercury and antimony from the ores, by: (1) wet metallurgical methods, (2) bulk roasting in large mechanical furnaces, (3) concentration to reduce the bulk to be followed by roasting in some mechanical furnace. The wet metallurgical methods did not appear feasible because of the high cost of the alkaline solvents used, and investigations of these were not carried beyond the preliminary stage.

Jan 1, 1938

James Gayley, Braddock, Pa. (communication to the Secretary) : Mr. Potter has made reference to our practice at the Edgar Thomson works in the direction of increasing the life of the lining, and mentions the product of one of our furnaces as having reached a total of 370,000 tons. It may be interesting to know that this furnace has been put out of blast with a record of 452,685 tons, after a run of three years and nine months. A companion-furnace to this will produce, hefore the present year is ended, half a million tons. As Mr. Potter has quite correctly designated this as " the newest problem in furnace-practice," a description of the construction of this furnace lining may be Welcome to members. The bricks used in the lining are 9 and 134 inches long, with the requisite quantity of straight and key-shapes to turn the circle. There bricks are well suited for enclosing the numerous bosh-plates used for cooling. The bosh-plates (the efficient fortress of the lining) extend from the top of the tuyere arch to the mantel, and are inserted in rows, 18 inches to 2 feet apart. These form a perfect defence against encroachment on the bosh-lining, and leave the bosh at the end of the blast of the same thickness as at the beginning. The protection afforded by these bosh plates is the principal cause of the increased duration of the furnace-lining. But it must be noted that the shape and material of the plate are essential elements. The most serviceable plate is that made of bronze or copper. We have tried every form of iron plates without obtaining satisfactory results. These were replaced with bronze plates, built into the lining, which gave excellent results so long as they did not leak; but when this occurred, as it did in time, the water was shut off, and, since the plates could only be removed with difficulty, they were allowed to burn off. This permitted encroachment on the bosh-walls, which thus became enlarged beyond the limit required for economical practice. With the introduction of the removable plate, made tapering on the sides, with plain surfaced top and bottom, these troubles have

Jan 1, 1895

By M. E. Wadsworth, R. L. Pearson

THE dissolution of UO, in carbonate solutions can occur only il the tetravalent uranium is oxidized to the hexavalent state. The carbonate system is of particular interest because it provides a means whereby the oxidized uranium may be dissolved by forming the complex ion UO,(CO3)3-1. In the presence of oxygen the over-all reaction may be written UO+1/2O,4CO3T+2HCO2UO,(CO4)11+H2O [1] UO, was used in this study because it could be obtained in high purity and also because it is representative of the most refractory of the primary uranium minerals. The mineral ulrichite is the natural counterpart of the synthetic UO, used. The kinetics of the leaching of UO, should be similar for any of the uraninite type minerals. A pressurized system was used not with the hope it could be extended to commercial systems as a primary purpose but simply to provide the means whereby important temperature and pressure parameters could be varied for the evaluation of the kinetic processes. The importance of such pres-

Jan 1, 1959

By F. Selig, A. S. Odeh

A second-order approximation to the exact solution of the diffusivity equation corresponding to the pressure build-up of a well producing at a variable rate is derived. This approximation is applicable when the well's shut-in time is larger than the total time elapsed since the well was first produced. The resulting equations are compact in form and easy to use. Thus, the need for Horner's' theoretically precise but rather laborious solution to the above problem is eliminated. In addition, these equations apply where the use of Horner's widely known approximate method is questionable. From a practical point of view, the reported method is best suited for analysis of drill-stem tests and short production tests conducted on new wells. INTRODUCTION The utility of drill-stem and short production tests in reservoir studies has long been recognized by the reservoir engineer. If interpreted correctly they could lead to a wealth of information upon which may depend the success or failure of reservoirs' analyses. Initial reservoir pressure and the average flow capacity are two quantities that are normally sought from a drill-stem and/or a short production test analysis. Pressures are the most valuable and useful data in reservoir engineering. Directly or indirectly, they enter into all phases of reservoir engineering calculations. Therefore, their accurate determination is of utmost importance. The flow capacity kh of the reservoir is indicative of its commercial capability. In addition, it can indicate the presence of a darnaged zone around the wellbore and, thus, the necessity for remedial measures. Of the several methods used to analyze drill-stem and short production tests, Horner's' method is by and large the most common. It applies to an infinite reservoir and or a limited reservoir where the effect of production has not been felt by the boundary. Horner's method makes use of the so-called "point-source" solution of the diffusivity equation. The point-source solution is approximated by a logarithmic function and the superposition theorem is utilized to give the familiar pressure build-up equation where is the shut-in time, q is in reservoir barrels per day and the rest of the symbols conform with AIME nomenclature. Eq. 1 was derived for a well which produced at a constant rate q from time zero to time t and was then shut in. In actuality, such a constant rate of production does not normally obtain. Therefore, a correction must be applied to Eq. 1 to account for the varying rates of production. Horner suggested two methods. The first, which results in a theoretically accurate solution, is rather lengthy and laborious and, thus, it is not suited for routine analysis. The second which has been termed a "good working approximation" is the one used by the majority of the reservoir engineers. In the second method, Eq. 1 is modified by simply introducing a corrected time t, and writing where q is the last established production rate prior to shut-in, and t, is obtained by dividing the total cumulative production by the last established rate. Horner's original paper does not give any indication that this method of correction is based on any theoretical justification. In addition, there is a question as to what constitutes the last established rate. In case of a drill-stem test some engineers use the average rate obtained by dividing the total fluid produced by the total flow time, while others calculate the average rate by dividing the total fluid produced by the last flow-period time. Obviously, different results obtain for the different flow rates used. Because of this, a simple method to the varying-rate case was developed which is theoretically sound and which defines clearly the flow rate and its associated time to be used in the calculations. The final equation arrived at is where q* and t* are a modified rate and time, respectively, and can be easily calculated. In addition, it is shown theoretically that Horner's approximate method, if used for a variable-rate case, gives the correct pressure but would not be expected to give the correct flow capacity. MATHEMATICAL ANALYSIS The general equation governing the flow of slightly compressible fluid in porous media may be written as The elementary solution to Eq. 4, representing an instantaneous withdrawal of Q units volume of fluid at the origin at t = 0, is known as the instantaneous sink

By Bernard Rachlin

In the mineral industry measurement of density or specific gravity of slurries is often necessary or highly desirable. To date the most successful method of measuring the specific gravity of various media is to hand weigh a constant volume sample of the slurry. This method is time-consuming, however, and is intermittent rather than continuous. Most density measuring instruments in use today are variations of three basic systems: air bubble tube systems, radioactive methods, and displacer systems. The high cost of the radioactive cell, combined with the precision electronic measuring that is required, limits the practical utility of this procedure to a small percentage of critical processes. In the air bubble systems clogging of the bubble tubes with solids has rendered this type of measurement completely ineffectual for many applications. Continuous or intermittent purging of the bubble tubes with air or water to prevent tube clogging has been tried but has not been very successful, especially in the heavy media process.

Dec 1, 1956

ANY discussion of State-supported schools of mining and metallurgy needs to be prefaced by a definition, since the first school to offer a mining curriculum, the Pennsylvania. Polytechnic College, was established by a grant from the State. But, so far as can be determined, it received no further State support. It would be tiresome to go into precise details, and it will be enough to stipulate that by State schools are meant those which derive their main financial support from regular appropriations made by a State legislature. The University of Michigan was the first of these to. offer a mineral industry curriculum; its story, as well as those of Wisconsin and Illinois, has been related in the preceding chapter.* Arranging the others in chronological order involves making a decision as to what weight to attach to plans for giving instruction, as contrasted with its effective initiation. This may appropriately be illustrated by the history of mineral industry education in California. CALIFORNIA Among those who came to California in 1849 and the following years were many New Englanders who had a keen interest in education. Some of them, mostly Congregationalists and Presbyterians, sought to establish a school of higher education around San Francisco Bay and eventually succeeded in opening the "Scientific and Classical School at Contra Costa" in Oakland, at Broadway and 5th St., on June 90, 1853. This prospered so well that it was chartered by the State as the College of California" on April, 13, 1855. Developing so rapidly that its quarters became. cramped, in 1864 it not only bought a tract of

Jan 1, 1941

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 Bjorn Bolviken

Bjorn Bolviken (Geochemist, Geological Survey of Norway, Trondheim, Norway)-Under the heading "Recognition of Anomalies," the author states, "If the frequency distribution is actually log-normal, the probability of these high values being part of the background population is small (less than 0.023 and 0.0013 for 2 and 3 standard deviation, respectively)." The figures quoted seem to be the probabilities of these high values being the mean rather than part of the background population unless "background" is defined as one single concentration. If the background is considered to be a statistical distribution of concentrations,50 (which is probably the case here since the author uses the term "background population"), the probability of any observed value being part of the background may be estimated through a calculation of the number of observed values that are in excess of (or below) the number expected to belong to the background. Apparently, some confusion exists in the literature regarding this point. Many authors accept the concept of background as being a statistical distribution, but do not seem to recognize the consequences of this concept. One of these consequences would be that the background of a chemical element should comprise any concentration between zero and a theoretical maximum, which is governed by the chemistry and mineralogy of the material

Jan 1, 1974