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By Harry Perry

A technology for producing liquid fuels from oil shale at prices competitive with crude oil prices is a necessary but not exclusive prerequisite for the development of a shale oil industry. Many other factors will affect the timing and the rate at which oil shale is commercially developed. Among the more important are: governmental policy concerning oil shale and oil resources (including the Outer Continental Shelf) that are under Federal control; oil import policy; Federal taxation of shale oil production including depletion allowances; regulatory practices; competition from other energy sources, both synthetic and natural; Federal treatment of factors affecting competing energy resources; and present legislation under which the public resources must be leased. Significant changes in any of the foregoing factors could have a controlling effect on the timing and rate of oil shale development. The effect of changes in each of these factors is evaluated.

Jan 1, 1969

The Colorado portion of the Rio Grande rift is clearly defined physiographically from the south in the San Luis valley northward to the latitude of Leadville where sediments of the Dry Union Formation (Tweto, 1961) accumulated within the subsiding rift zone. To the north of Leadville is a system of faults active in the late Tertiary, including the Mosquito fault that offset a portion of the Climax mineralization (Wallace et al., 1968). Tweto (197B) describes remnants of Dry Union Formation against the Mosquito fault north of Dillon in the Blue River valley, so it is apparent that the rift and associated sediments extended well to the north of Leadville. Kelley (1952, 1954, 1956) and Chapin (1971) have noted in New Mexico that the Rio Grande rift is a series of en echelon basins, offset to the east, with constrictions connecting them (Fig. 1). In Colorado the structural basins are offset to the west. The net effect of all the rift zone basins in New Mexico and Colorado is an arcuate pattern (Fig. 1) abutting the Colorado Plateau and Sari Juan Volcanic Province on the west. The width of the rift system gradually decreases northward to about Leadville where rift definition is not apparent.

Jan 1, 1987

By Davar Abi-Zadeh, Cillian Brown, Deepak Kandra

"Grout backfill strategy for a particular subsurface concrete tunnel (~4.9km long, 3.5m in diameter, carrying 20” gas pipeline) was based on achieving 1:100 slope of the fill in order to progressively fill the tunnel, in a series of 350m section. Grout rheology, particularly its non-Newtonian and thixotropic behavior, determines the final fill slope for given backfill strategy. The objective of this study was to simulate the two-phase grout mix backfill process using Computational Fluid Dynamics (CFD) and determine the slope of the fill to validate and optimize the backfill strategy. Three dimensional CFD study showed that for a 500m long tunnel section with a single injection point of grout, given its rheology, it will likely keep flowing without filling the 500m section height wise. Design optimization for filling was carried out using two dimensional studies to make the backfill process “slope independent” by incorporating a 2.5m high bulkhead at ~1,000m. INTRODUCTION As part of a gas field development a 20” onshore gas pipeline is required from the landfall site to the processing terminal some 8km inland. At the landfall site the gas pipeline is routed in a ~5km underground tunnel underneath a bay. For operational reasons and planning consents as well as to mitigate environmental impact based on an environmental impact study, once the gas pipeline and the associated services and spares have been installed, the subsurface gas tunnel will be fully grouted. There will be no permanent access to the tunnel after construction is completed and the site compounds have been reinstated once works are complete. One of the key requirements is that “full grouting of the tunnel” is desired. The grouting material used is a non-Newtonian and thixotropic fluid mixture of bentonite, cement, plasticizer, retarder/stabilizer and water. The tunnel is filled progressively in 350m sections using a combination of existing and new pipework assuming the grout rheology will yield a fill slope of 1:100 in a 350m section. The proposed grouting system used one pump at the grouting compound to pump the grout into the tunnel using the existing tunneling pipework. For the longer runs a second booster pump was used in series to pump the grout to its final discharge location. The filling process is controlled via a system of flow meters, pressure transmitters and a tunnel CCTV system."

Jan 1, 2016

By Michael Prince

"Managing slurry is a constant challenge for mining operations. Since slurries are not uniform, the challenge is complicated by varying rheology, velocity, temperature and pressure, all of which affect how the slurry moves through the pipeline and how destructive it is to the system it is flowing through. Picking the right equipment from the outset — the right size pipe, the right size pump and the proper valves for the application — allows mines to operate more efficiently. Better valve designs deliver multiple benefits — they can lower the cost of operations, reduce the amount of maintenance and associated downtime required and are better for the environment. Historically, modulating systems have used ball, plug and pinch valves to manage the flow of slurry, but each of these alternatives has limitations. Ball valves require ceramic lining in order to delay wear, and once a ball valve does wear, the entire valve must be replaced. Similarly, plugs in plug valves should be coated to perform in control systems, and whole valves must be swapped out upon wear. Pinch valves are expensive and only require replacement of the sleeve. However, sleeve replacement involves an extremely arduous process in which the valve is completely taken apart.Traditionally, designers have avoided using knife gate valves (KGV) in modulating systems because KGVs have not been able to hold up under the harsh operating conditions. The throttling that is required in some of these processes rapidly fatigues conventional KGVs, rendering them useless and in need of replacement. Fortunately, innovative design changes have the potential to change established views.Breaking new groundRecognizing the need for improved components, Victaulic took on the challenge of designing a valve that could withstand abrasive slurry systems for a much longer period of time. The first step in this process was to talk to miners, maintenance personnel, process engineers and operators in the field about the limitations of current offerings and then determine design specifications for an ideal replacement.Many of the responses to these inquiries were very similar and reflected challenges with current operations; the primary objective was to find a valve that would be lighter and cheaper than the valves currently in use. In theory, a lighter valve would be easier to replace, and since replacements need to be performed frequently, a cheaper valve seemed like the right idea."

Feb 1, 2019

By N. Vayenas

Modern mines possess a wide variety of capital intensive equipment. Equipment failures and the associated down time contribute significantly to the overall maintenance, operating and production costs of a mine. Reliability investigations are becoming a standard practice, as the equipment becomes more complicated and the effective use of resources is critical for achieving higher productivity and mine safety. In view of the recent global initiative for sustainable development in the mineral industries, reliability of capital intensive machinery should be considered as a key indicator for sustainable development and growth. This paper discusses the application of equipment reliability as a sustainability indicator and proposes a methodology for its practical use. Reliability of equipment systems is useful for product life cycle assessment, mine performance measurement and evaluation.

Jan 1, 2007

By ERIK CHARRIER, ADITYA JUGANDA, Jürgen Brune, Patrick Maier, Gregory E. Bogin Jr

Confined explosions are a major risk in underground coal mine operations. Depending on confinement, ignition location and obstacles in the flame path, methane explosions can transition to detonations. As a result, the severity of mine explosions ranges from minor damage to loss of lives and permanent mine closure. Experimental results have shown that the inclusion of obstacles can significantly increase the flame propagation velocity by inducing turbulence. This research focuses on explosion experiments in a 71 cm diameter, 30.5 m long reactor that includes rock piles as obstacles along with developing the corresponding CFD model that captures the observed flame behavior and interaction with the obstacles. The rock rubble increases the flame front propagation velocity by 500% compared to the maximum velocity observed in the empty reactor experiments. The 2D and 3D CFD models predict the experimental flame front propagation velocity, whereas the 3D model shows a more explicit conformity than the 2D model. Although the computational time to complete the simulation is much less for the 2D model than for the 3D model, the 2D model is not sufficient to simulate cases with rock rubble since it cannot capture the propagation of the flame through the small voids between the rocks with the same effective blockage ratio as the 3D model. The validated CFD model can be scaled up to simulate methane explosions in full scale mine and industrial settings.

Nov 20, 2023

By Norbert Patzelt, Johann Knecht

INTRODUCTION Grinding mills have been used in the minerals processing industry for over 100 years. Their dimensions have grown continuously during this time. Besides increasing throughput rates of grinding plants due to the depletion of high grade ores, the lower specific in- vestment costs, as well as reduced operating and maintenance requirements are major reasons for this trend. When selecting new plant equipment one must consider that design principles which have proven their reliability on sizes of today's equipment do not automatically warrant a successful operation on the ever larger size of equipment. Modern calculation methods as for instance the Finite Element method already contribute considerably to the safe design of the huge equipment being built today and are a standard tool of the design engineers. More recently, modern computer programs are also being used in order to size the equipment to meet the process requirements. Today, two design principles are on the market - one which supports the weight of such a unit on trunnion bearings through cast conical endwalls and one which is supported through slipper pad bearings arranged at the circumference of the mill shell (Fig.1). The reason for the development of this alternative grinding mill design can be found in the past. During the sixties and seventies the growing sizes of ball mills with high LID ratios caused many mill failures due to cracked endwalls. The accuracy of the calculation methods as well as the quality standards for castings were not developed to a degree required for such kind of heavy equipment. One way to overcome these problems was the increase of the manufacturing quality standards as well as the introduction of the finite element method based on the analysis of the experience available. The biggest grinding mills being built today are large size SAG mills with cast conical endwalls and trunnion bearings (Fig.2). This is due to the fact that mill manufacturers who had come from the conventional ball mill design adopted these principles as well to their SAG mills. These grinding mills perform well without special concern to the operators. Other manufacturers overcame the problems as mentioned above by eliminating completely the heavy castings and trunnion bearings and the problems associated to it (Fig.1). This design was originally applied to ball mills for the mining and other industries. Due to the success of these shell supported ball mills, this design principle was also applied to SAG mills(Fig.3). Despite of the fact that the majority of today's grinding mills are built to the conventional design it is also interesting to have a look at this alternative. Principles which have proven their reliability on sizes of today's equipment do not automatically warrant a successful operation on the ever larger equipment if bigger mill sizes are realized only based on the pantograph principle. With growing grinding mill sizes, the mass and volume flows through the equipment increases rapidly. Thus it is very important not only to concentrate on the safe design of the structural components of the equipment but as well on the process requirements. The influence of the design on important process parameters of dry and wet grinding plants are discussed thereafter. It shall be shown how modern computer programs can assist in the optimization of the design of components in order to fulfil the operational requirements of such large size equipment. PROCESS REQUIREMENTS OF LARGE SIZE GRINDING MILLS Dry Grinding Mills The world's biggest ball mill is a dry grinding ball mill having a diameter of 6.2m and an overall length of 25,5m with a drive power of 11,200 KW or 15,000HP. This grinding mill dries and grinds gold ore at a rate of 500 tons per hour at a moisture content of up to 9,5%. As shown in Fig.4 this mill was built as a shell supported unit. In fact only this design principle allowed to meet the process requirement. This mill could hardly be built with cast conical endwalls due to the constraints of the trunnion bearings limiting the mill inlet. The following case shows how modern computer programs can help to meet the design criteria of the air system of large size dry grinding plants. For dry grinding plants, the gas flow through the SAG mill has to match the drying, as well as the material transportation require-

Jan 1, 1998

By-products are of greater importance in lead and zinc mining than in any of the other major base metals. While I think most mining people would accept that statement, you would probably get some widely varying estimates when attempting to quantify the value of by-products in lead and zinc mining. We are now able to do this with our lead-zinc mine cost model. This model was originally developed as a zinc mine cost model to help us forecast long-term zinc supply and price as part of a study we completed in late 1979 entitled "Zinc - The Next Decade". Before demonstrating the importance of by-product revenue to lead- zinc mines, let me first explain how the cost model was constructed. I will discuss the model as it was originally constructed - as a zinc mine cost model. It has subsequently been expanded to include lead only mines and now can Be run either as a zinc or a lead mine cost model.

Jan 1, 1980

By Steven I. Olson

Since the introduction of froth flotation, the Florida Phosphate Industry has faced the challenge of coarse particle -850 +425µm (-20 +35 Tyler mesh) beneficiation. Several techniques have been used to upgrade this difficult size range. This paper discusses one approach that has met with success; namely, improved fractional recoveries through enhanced areation and improved material transport characteristics via larger than standard flotation cell mechanisms.

Jan 1, 1981

By J. S. Hastings

Tertiary calc-alkalic to alkalic rocks of the Little Rocky Mountains in north-central Montana host low-grade heap-leachable gold-silver deposits being mined by Pegasus Gold Corporation. Total production from 1884 through 1985 is estimated at 22,625 kilograms (727,414 ounces) of gold. This includes 10,774 kilograms (346,400 ounces) recovered by Pegasus between 1980 to 1986 from 20,318,000 tonnes (22,396,000 tons) of ore grading 0.960 grams of gold per tonne (0.028 ounces per ton). Silver production during this latter period was 24,556 kilograms (789,500 ounces), but reliable silver statistics prior to 1980 are not available. Ore reserves as of January 1, 1986, were estimated to be 35,380,800 tonnes (39,000,000 tons) grading 0.720 grams per tonne (0.021 ounces per ton). Present ore production is 5,533,920 tonnes (6,100,000 tons) per year at a 0.45 to 1 waste to ore strip ratio. Current annual metal production is about 2,644 and 5,288 kilograms of gold and silver respectively (85,000 and 170,000 ounces of gold and silver respectively). The Little Rockies were formed by a calc-alkalic to alkalic magma penetrating through the Precambrian basement into the overlying Paleozoic and Mesozoic sedimentary rocks. This intrusive center is Dart of the Central Montana Alkalic Province, a region comprised of twelve separate intrusive centers aligned in a northeast trending belt measuring 200 by 400 kilometers (124 x 248 miles). The ore deposits are structurally controlled epithermal systems which vary from deeper narrow veins to shallow, wide, low-grade stockworks, breccias and intensely fractured "sheeted" zones. The shallow types are now being exploited. Primary mineralization consists principally of gold and silver associated with pyrite, native gold and silver, sylvanite, calaverite, and hessite. Alteration is broadly classified as weak argillic. Pyritization, kaolinization, silicification and feldspathization are the dominant forms of alteration. Fluorite is a common hydrothermal gangue mineral.

Jan 1, 1987

By J. Jeffrey Wagner, Michael J. Bailey, Peter M. Douglass

The Chambers Creek Interceptor Sewer Tunnel project consisted of 2-1/2 miles (4 kilometres) of nominal 9-foot (2.7-metre) O.D. tunnel driven through predominantly glacially overridden soils. Mole-Collucio Construction Company initially elected to drive the entire tunnel with a Lovat TBM. However, this machine could not control the fast raveling ground conditions which developed when the TBM encountered sands overlying very dense, hard glacial till or boulders. As a result, a shield and digger machine was brought in for a 1700-foot (518-metre) long segment. Pumped wells spaced roughly 50 to 125 feet (15 to 38 metres) apart were utilized to dewater about two-thirds of the alignment during construction. Initial support consisted of steel ribs and wood lagging, with a final lining comprised of pre-cast concrete pipe segments grouted in place.

Jan 1, 1985

By A. K. Bakshi

An on-line rheometer, suitable for use with slurries, has been developed at Michigan Technological University. This rheometer can be used with both Newtonian and non-Newtonian slurries, and produces complete shear-rate/shear stress curves which characterize the time-independent rheology of the slurry. The sensor utilizes the Hagen-Poiseuille equation and Boyle's Law to calculate the shear rate, slurry flowrate, and shear stress from a series of pressure measurements. The design of the unit allows the measurement sample to be continuously collected from operating process streams in the often-hostile on-line environment. The shear rate/shear stress curves can be used to conveniently calculate the apparent viscosity at any given shear rate, and also to measure any yield stress or other deviations from Newtonian behavior.

Jan 1, 1999

By James R. Garvey

The impact of conversion on the coal industry can be summarized very briefly: We are going to have to mine an awful lot of coal. Fortunately, the United States has the coal reserves available, and given the right conditions, we can mine it. The coal reserves of the United States are enormous. If we consider them on the basis of proved reserves, using the standards of the petroleum industry--that is, resources mapped and explored and recoverable with present techniques at close to present costs--and compare that with the reserves of other fuels, coal constitutes 88 per cent of the proved recoverable energy resources of the nation. That includes oil, natural gas, oil shale and uranium, so long as the uranium is used in burner reactors. If we consider resources on the basis of "ultimate recoverable" reserves, that is, those resources which can be extracted with improved technology and at somewhat higher costs--and if we include those resources of all fuels not yet found but believed to be waiting discovery--coal still accounts for 74 per cent of the national total. We have built a hydrocarbon economy in which about 76 per cent of our total energy needs are supplied by petroleum and natural gas, and about 20 per cent by coal. Domestic resources of oil and gas are running dangerously low and, assuming a continued hydrocarbon economy, the 20 per cent supplied by coal may increase dramatically. We already import nearly a quarter of the petroleum we consume, and the chief source of additional imports seems to lie in the politically unstable Middle East. Natural gas is in even shorter supply, and the problems of importing it seem at least as difficult as those of oil. The fact is, the United States is already relying to an increasing extent on foreign fuel sources. There is an obvious national risk in making an important part of energy supply hostage to foreign governments of uncertain tenure and friendliness. There is also an economic risk--one of the chief reasons for last year's economic freeze was to try to correct the deficit in our balance of payments; it is obvious

Jan 1, 1972

By Karin Bäppler

Mechanized tunnelling is undoubtedly one of the most innovative disciplines in the international construction industry. Technological progress in the planning and production of most modern infrastructure is constantly striving for new records on basis of highly specialized solutions and know-how. Humans and technology have accomplished excellent achievements over the past few years in varied, difficult terrain. New length records are being set with the 64 km long Brenner Base Tunnel and the HS2 Railway system currently under construction in Europe. Cities are building ever longer and more demanding sewer tunnels. The paper highlights some of the challenges, trends and innovations of long-distance tunnelling projects.

Dec 1, 2022

By W. H. Strickland

The research reported here characterizes ultrasonic ranging sensors for autonomous navigation on underground mine mobile equipment. Because ultrasonic rangers are inexpensive, have no moving parts, have no lenses to clean, are small and unobtrusive, and can measure distances in dusty environments, they are especially sui ted to underground mi ne environments. The investigation began with laboratory tests of field of view, angle of incidence, intersensor variation, and ranging accuracy of individual rangers and a ring array of 24 sensors. The results showed the sensors have good accuracy and low variability. Additional experiments at AHAX' s Henderson mine Showed the sensors could accurately and reliably measure rib features, convex and concave corners, and drift intersections. The results showed that when used and analyzed properly, the sensor data may be used reliably for underground mobile equipment navigation.

Jan 1, 1990

By C. E. Jordan

Abstract. The U.S. Department of the Interior, Bureau of Mines, as part of its effort to maintain an adequate supply of minerals and metals to meet national economic and strategic needs, is conducting research on the pneumatic recovery of coarse mica. A system of crushers, screens, and zigzag air classifiers is used to concentrate coarse liberated mica particles from mica ore and from the waste tailings of abandoned mica operations. The plus 0.21-millimeter-size mica is effectively recovered by this method. The mica concentrates produced contain over 90 percent mica. The method recovered up to 78 percent of the mica in the samples. As a dry concentration method, the pneumatic-beneficiation technique may be advantageous in areas of limited water resource.

Jan 1, 1980

By Landy Stinnett

"When performing a valuation of a mineral property, a developing mine or perhaps an ongoing operation, the appraiser is typically provided with a range of information prepared by the property owner. This information can include ownership records, geological interpretation, assay data, an estimate of the reserves or resources believed to be on site (tons and grade), mine plans, production forecasts, capital and operating cost projections, and so forth.The appraiser familiarizes himself with the data, analyzes the various reports and then prepares the appraisal. There is usually a site visit, and there may be some effort at comparison of the particular mineral deposit with others in the region or with those of similar depositional characteristics, but for the most part, the appraiser is relying on the corporate documents, tempered by his/her experience in the field. Time is usually of the essence, the cost for the assignment has been trimmed, and therefore independent verification of the various components comprising the underlying data base (legal review, redrilling portions of the deposit, collection of new samples, re-assaying, etc.) is unlikely in most situations.In the case of high-value commodities — gold, silver, diamonds, perhaps the platinum-group elements — there have been numerous examples of the property owners attempting to increase the value of their holdings by nefarious methods. Most of these involve salting the deposit in some fashion; i.e., introducing small amounts of the commodity into samples being sent to a laboratory for analysis so that the resultant assay shows a higher grade (Donaldson, 2002; Greeley, 2001; Lechler et al., 2008 and Meech, 2001). Other schemes to enhance the apparent worth of a property include the use of nonstandard assay procedures, incorrect handling or withholding of the underlying information, and false reporting."

Sep 1, 2016

By R. D. Grove

The control of Florida phosphate flotation plants is largely based on the visual observations of experienced operators, both in recognizing good and bad froth conditions and in making judgments about the composition of feed, concentrate and tailing streams. Chemical analyses lag the process by at least two hours and therefore only assist in recalibrating the operators' vision when major deviations occur. An image analysis system has been developed by IMC Fertilizer to improve upon the accuracy and precision of the composition estimation process. It still relies upon the operator taking a representative sample, but provides a measurement in about 15 minutes after that sample is obtained. This paper describes the system and its use and presents comparative results for various process streams.

Jan 1, 1993

By O. A. Bascur

In recent years, metal-producing companies have increased their investment in automation and technological innovation, embracing new opportunities to enable transformational change. Transformation to a digital plant can fundamentally revolutionize how industrial complexes operate. The abundant and growing quantity of real-time data and events collected in the grinding and flotation circuits in a mineral processing plant can be used to solve operational issues and optimize plant performance. A grade recovery model is used to identify the best operating conditions in real time. The strategy for increasing the value of instrumentation in current plants is reviewed. An optimal Gaudin size distribution model provides augmented information from traditional sensors to find the optimal grind cut size to reduce metal losses in the flotation circuits. Sensors in flotation circuits enable an estimate of the recovery and determination of the optimal froth depth and aeration using an air hold up flotation model. A strategy of classifying data for on-line generation of insights to using operational intelligence tools is described. The implementation of a recovery/grind strategy with industrial examples in non-ferrous mineral processing is presented.

By F. Heivilin

If the past is the key to the future, we will have ?tough? times maintaining Industrial Mineral reserves we have and proving new reserves around our plants and in new locations. The tough times will come from resources being more difficult to find, more hoops to go thru to make them Proven or Probable reserves. As always, Industrial Minerals require competitive quality, location, and costs. Since in most cases the market has suppliers, you will have to take away customers from their present supplier. This may take years or not happen even with lower cost higher quality raw materials. To determine the finished cost for a new deposit you need to design, determine capital costs, and operating costs for a new plant . Stripping, mining, hauling, processing, and transportation costs are part of the equation. After satisfying that your costs are in line you will need to do production tests to make sure the process works on the ore. You may want to complete permitting before purchasing the property. If you are new in the business you will have to prove you can deliver the right quality, the right quantity, on time consistently year after year at lower cost to take away a customer. Without being in the market this will be hard. The cut off grades to enter a market may be much lower than sale indicates because a competitor often lowers the price to keep you out of the market. We have many more items to check before the new deposits can be put on reserves. Our old reserves will require drilling to check for new products and prove that they do not contain items that would make them unusable for our product line or cause permitting problems. Archeological checks, wetlands, more water discharge testing, county zoning, and endangered species are among many items that have been added to mine permits. There will be more. A 4-6 page mining permit becomes 30-300 pages and consists of 5-15 permits, any of which might be a fatal stumbling block. It is not guaranteed that we can mine what we have on reserves. We may fight and lose. Oil-Dri?s loss in Reno and LaPort?s in England are examples where permitting failed. The NOx, sulfur, and carbon problems are just starting. Dioxin is in the background requiring monitoring on food products to Europe. What other anions, cations, endangered species, and land types are going to be problems in the future are guesses now. What new products are we going to have to test for and cause out of balance reserves? If there are none we probably won?t be here. We are competing for land use with ?Endangered Species?, wetlands, farming, forestry, cities, roads, and hunting. We?ve mined the best quality, low overburden, easiest to mine and process raw materials. The price of land and taxes are increasing. Old royalties are 2-3 times the present acre value instead of 8-10 times the property value when leased. Land taxes are up. It was and is best that we get the land in Fee Simple Title. This isn?t always possible. However, plants are closing and people have overlooked, made mistakes in drilling or interpretation of deposits. These may be opportunities. China is eating up high quality ?Industrial Minerals ?which have caused prices to rise. We may need to change our cutoffs? in terms of smaller pit sizes and higher overburden ratios. This is money in the bank. Overburden ratios and other items increasing cutoff costs need to be rethought. Suddenly doubling cutoff ratios for overburden and decreasing pit sizes are good alternatives to looking elsewhere where we might not be able to mine for a number of reasons. The higher prices make them competitive, especially when a competitor goes out of business. However, our low overburden ratios and short hauls around our plants are not safe from new roads, condemnation by county or city governments (N. J.), zoning changes (Reno, FL., CA, and environmental regulation changes (Buffers GA, MS). New roads ?Interstates? can take reserves, increase hauling distances and reduce tons per load. Let?s combine the Refractories, fullers earth, and bentonite industries and use the last 40 years as a guide to the future looking for problems and opportunities. Some or most of the following will apply to other minerals. WHERE DO WE LOOK? First, on our own properties, those next to our properties and on properties near our competitor?s plants. Where the profit margin has increased, the distance from the plant and thickness of overburden we can use is increased. The thickness of clay is decreased. For new locations we pick the ideal location and look at deposits and closed or open operations in ever increasing distances away from that location. We need to be aware of: 1. Increased transportation costs a. Access to Roads -Backhauls b. Haul with doubles and triples c. Railroads - Loading on sidings - Ability to get switches - Cars/backhauls versus rates 2. Cost of building a new plant 3. Cost of infrastructure 4. Cost of repair or new equipment when purchasing an operating or shutdown plant. 5. Local, state, and federal mine and environmental permitting. When exploring around an established operation expect that property acquisition, drilling, mining, stripping, and hauling costs will be greater due to them having second, third, or even fourth the pick of the deposits. I found this in New Jersey looking for refractories and around Quincy, Florida looking for attapulgite. You may be able to get some better properties because the operating company has angered some land owners, their drillers missed the clay, or the property wasn?t available when they were actively exploring for reserves. You may have some product lines your

Jan 1, 2009