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By Rodney R. Koch

The phys ica l properties of gold should faci li tate its detection. However, the average concentration of gold in the ea rth's cru st precl udes the ability of geophys ical methods to detect the metal directly. In order to effectively pursue geophys ical detection and location of gold mineralization there must also be geological input - i.e. a model. This will lead to the selection of the appropriate geophy ical techn ique(s) in the fo llow-up programs. Interpretation of the fie ld survey data is of con iderable importance in expl oration geophys ics. Analytical techniques such as cont inuation, fi ltering, and spectral analys is, are now routinely empl oyed in the analys is of survey data to aid the interpretation process. The uccessful application of geophysical methods and the use processing techniques is demonstrated by two recent Saskatchewan discoveries. The first, the Star Lake 21 Zone, with reserves of 230,000 tons grading bener than 17.14 git Au associated with a disseminated sulphide quartz-bearing shear zone yielded geophysical anomalies that were distinctive, obvious, and would have lead directly to its discovery. The econd , the Laurel Lake Prospect, with ore grade intersections of 28.0I git Au and 52 .46 git Ag· over 5.49 m, resulted in numerous geophysical anomalies. However, none of these anomalies demonstrated association with the mineralization until processed results indicated that structural features crosscuning regional trends were important cont rol mechanisms for the mineral ization.

Jan 1, 1986

By A. H. Ransom, M. E. Robb

The Salmita Gold Mine is located 240 air kilometres northea t of Yellowknife on the east shore of Matthews Lake. Salmita is one of several gold showings which are regionally associated with the steep easterly dipping contact zone between mafic, intermediate and fe lsic volcanics to the west and overlying finely laminated argillaceous sediments to the east. The volcanic assemblage forms a narrow 2 m to 7 m wide north to northwesterly trend ing Belt of Yellowknife Supergroup Archaen greenstone rocks. The contact zone exhibits exhalite character and the increased sulphide content provides a di stinct VLF-EM , IP/Resisti vi ty and/or magnetic signature. Gold occurs at or near this contact in three main settings: associated with si liceous vein-like structures; with finely disseminated sulphides within ericitic altered upper fe lsic tuffaceous unit ; or with quartz in narrow shear zones within the overlying sediment . The B-Vein is of the former type with free mi ll ing gold occurring within a highly sil iceous zone having an average widtn of 1.69 m. Alteration is intense within the immediately su rrounding host lithologies and includes the development of si lica, carbonate, sulphide, sericite and chlorite with minor graphite, epidote. tourmaline and scheelite. The mineable zone above the 4th level (-200 m) ha an average strike of 160 m and is divided into three south plunging ore shoots separated by the regional Salmita Shear Zone in the south and by a low-grade structural hiatus in the north. Production from the B-Vein commenced in August 1983 based on a diluted in situ ore reserve of 140,000 t grading 26.6 git Au . As of December 31, 1985, a total of 131 ,537 t grading 27.8 git Au have been mined at a ra.te of 160 t per day and a 96.4 percent recovery, to produce 3,522 ,000 g (113,227 ounces) of gold . Current (January I, 1986) reserves total 45,500 t grading 37 g/t Au down to the 10th level (-500 m) .

Jan 1, 1986

By Robert Macdonald, William Coombe, John F. Lewry

Gold occurrences have been known in the La Ronge Domain for many year . Mineable reserves have more recently been outlined and there is every prospect of a major gold camp being established in the domain within this decade. The La Ronge Domain lies in the Lower Proterozoic 'Trans-Hudson Orogen' and is part of a collage of Early Proterozoic crust comprising volcanoplutonic arcs, batholiths, associated volcaniclastics and volcanogenic sediments lying between the Superior Craton to the outheast and the reworked Archean basement/Aphebian cover terrain to the northwest. The domain has several lithostructural subdivisions, the most important of whjch , from a gold exploration point of view, is the Central Metavolcanic Belt. This belt is composed dominantly of a range of metavolcanic rocks and gabbroic to granitic intrusives, which geochemically resemble younger subduction-generated 'primitive' arcs developed on oceanic crust. U-Pb zircon geochronology indicates that the arc volcarusm and pre- to late-kjnematic plutonism occurred about 1890 Ma to 1850 Ma ago. The belt has an attained grade of upper greenschist to amphibolite facies and is relatively undeformed , though high strain zones occur locally. Most gold occurrences in the La Ronge Domain have been found in the Star-Waddy Lakes area of the Central Metavolcanic Belt, and in the Sulprude-MacKay Lakes area to the south which is interpreted as a tectonically dismembered part of the main belt. Both tratiformand vein-type gold occurrences are present in the domain; vein-type predominate and form nearly 90 per cent of the occurrences. The stratiform-type occurrences show a regional lithological a sociation with iron-rich sediments within proximal felsic volcanjc sequences. Some vein-type occurrences appear related to brittle fracturing associated with intrusive emplacement (the magmatic-hydrothermal "syn:' and "subvolcanic" veins) and faulting. However, most of the vein-type occurrences exhibit a spatial association with regionalscale ductile shear and other high strain zones, and were probably formed by metamorphichydrothermal processes.

Jan 1, 1986

By P. K. Gummer

Gold was fir t di covered on the Seabee property in 1947 by the Con olidated Mining and Smelting Company Limited. Acquired by Claude Resource Inc. in 1984, the property is now being explored by Placer Development Ltd . in joint venture with Claude Re ources. Between Augu t, 1985 and March, 1986, Placer completed 54 drill holes, extending the main o. 2 and o. 5 vein y tern to a depth of 1000 feet below surface and di covering two new satellitic gold zone 800 feet west of the o. 5 gold zone. Drill proven and probable geological re erve in four zone ( os. 2, 5, II, 14) to a vertical depth of 1000 feet, are approximately 1,120.000 tons averaging 0.32 oz. Au/ton.

Jan 1, 1986

By Ian Hattie, Mark R. Wilson, T. Kurtis Kyser, Brian W. Janser

Petrographic, chemical and isotopic compo itions of auriferous and non-auriferous quartz vei ns from the Sta r Lake and Flin Flin-Amisk Lake areas of northern Saskatchewan indicate diver e origins fo r the fluids associated with gold mineralization. In the Sta r Lake area, the metavolcanic , Star Lake pl uton, and heared mafic dikes have retained their original igneous 81 80 values. The 81 80 value of quartz from mi neralized veins vary by I per mi! and range from+I0 to+IJ. The only quartz ample having a 81 80 value outside th is range came from a vein not associated wi th a dike or gold mineralization . Quartz from the Star Lake pluton has identical 8180 value to the qua rtz from mi neralized vei ns which suggests that the vei ns and the pluton are related to imilar proces es. The diffe rence in 81 80 values between mi neralized and barren vein may erve a a potential exploration tool in this area. Because o34S val ues of a limi ted number of amples of pyrite from gold-bearing quartz vei ns at Star Lake correlate directly with gold content. the gold may have been syngenetic with the su lphur and the 834 value may be useful for exploration . 8180 values of co-existing quartz, calcite, and amphibole in the veins from Star Lake indicate that isotopic disequilibrium among the minerals is common, but the val ues also record a high temperature of formation (ea . 500°C) involvi ng a component of magmatic fl uid. TheoD value of hydrou mineral from Star Lake retain their original igneous values but whole rock values are generally much lower, an effect attributed to interaction of the minerals with a late meteoric water. In the Fl in Flin-Amisk Lake area, auriferou and barren quartz veins formed from a mixture of hydrothermal and metamorph ic flu id at lower temperatures (ea . 350°C) than those at Sta r Lake. Becau e there i no apparent correlation between 8180 values of the quartz with gold content or relative age of the vein , nor between the 834S val ues of pyrite and gold content, table isotopes appear limited as an exploration tool in the Fl in FlonAmisk Lake areas.

Jan 1, 1986

By T. I. . I. Sibbald, D. E. Jiricka

The Goldfields area on the north shore of Lake Athabasca , was active in the thirties and early fortie . In 1934, Tom Box discovered gold mineralization in quartz veins in pyritized 'granite' at the ite of what wa to become the Box Mine of the Consolidated Mining and Smelting Company of Canada Ltd . In the rush of activity that followed numerou other gold occurrences were found. the most significant of the e being the Athona and Frontier prospects which underwent underground development bur did not reach production. Probable reserve identified to date in the Box and Athona deposits amount to some 3.5 million ton grading an average 0.ITT oz gold/ton . Some 10 to 15 million tons of lower grade, po ible reserve are also reported at the Box. From 1939 to 1942, the mine produced, from underground , 64,066 ounces of gold from ore grading 0.0452 oz gold/ton at a cost of between $1.5 and $2.0 a ton. The Goldfield area is underlain by upracrustal rock intruded by mafic bodies and invaded by ·granite'. The upracru tal . thought to be of Lower Proterozoic age are characterized by a helf-type ucce ion metamorpho ed under lowermiddle amphibolire facie conditions into quartzites, quartz-mica chi ts. dolomitic marbles, diop idic calc-silicates and cordierite-anthophyllite-biotite schi t . Amphibolites of presumed igneou origin form concordant to subconcordant units up to a few ten of metre thick in the upracrustals and occur as le regular masses in the 'g ranite·. Compositionally they vary from gabbroic to granodioritic. with the more mafic varieties being most common. Granitic rocks exhibiting a variety of textural , structural and compositional characteristics underlie most of the area. Four main units are recognized: foliated (older) 'granite', 'leucogranite', feldspar augen 'granite· and pyritic mine 'granite', however, in geological mapping the e are somewhat arbitrarily differentiated due to transitional relationships and admixture of types. Although there is no unambiguous age data available for the e 'granite ' adjacent northshore 'granite' of geologically similar age yield Rb-Sr isochron dates around 2000 Ma. The area is characterized by two major deformation events of which the earliest gave rise to the dominant regional foliation and to rare minor and outcrop scale folds. This foliation which in general parallels compositional layering is folded into the major Goldfields syncline, whose axis plunges weakly to moderately outh. Related open minor folds have subvertical axial surfaces which are locally paralleled by a weakly defined schistosity. Most rock display a pronounced rodding fabric, coaxial with second fold axes and apparently the product of this deformation event. However, a note of caution is introduced into this interpretation, as the rodding fabric is also parallel to first fold axe .

Jan 1, 1986

By W. L. Murphy

The Star Lake property, located 115 km northeast of La Ronge, Saskatchewan is underlain by metamorphosed andesitic tuffs and flows which have been intruded by the dioritic to granitic Star Lake Pluton. Gold mineralization on the Star Lake property was first discovered at Ru h Lake by E. Beveridge in 1959 and by M. and E. Hird in 1961. In 1960 E. Partridge discovered Kahn 18 and Kahn 28. In 1982 the SMDC-Starrex joint venture completed geophysical and geochemical urveys including magnetics, VLF, IP/Resistivity, vegetation, bulk till and oil sampling, followed by drill testing of pecific targets. To date the most ignificant depo it is the 21 Zone which contain drill indicated reserves of 230,000 tons grading 0.5 oz/ton Au . The 21 Zone con ists of quartz with 5-10% (locally > 30%) drusy pyrite, minor chalcopyrite and trace amounts of scheelite, chalcocite and arsenopyrite. The 21 Zone is enclosed by a 25-50 m wide band of mylonitized monzonite. The mylonite occurs in the central portion of a 300 m wide northeasterly trending zone of brittle deformation .

Jan 1, 1986

By K. Howard Poulsen

Shear zones are tabular tructures which tend to occur either discordantly within, or concordantly along the margins of, competent rock masse uch as plutons, sill or flows. They contain deformed equivalents of their host rock and are common sites for gold mineralization localized in tructure oriented y tematically relative to the shear zones and internal linear fabric. Apan from genetic implications, hear zone analysis proves useful in exploration for this type of deposit because the zones are generally wider and more continuous than associated mineralization and because there is an element of predictability to mineralization geometry (i.e. vein orientation. plunge).

Jan 1, 1986

By Samuel B. Rombeger

The behavior of gold in hydrothermal systems is evaluated as a function of pH and oxygen and sulphur activities at temperatures to 250°C. Under conditions of stability of pyrite and argillic alteration as emblages, gold will be transported as bisulphide complexes. In systems containing significant amounts of arsenic, thioarsenide complexes may be important. Oxidation, dilution and reduction in sulphur activity would cause gold deposition from saturated solutions under these conditions. Gold chloride complexes will predominate under oxidized conditions where hematite or other oxides are stable and depo ition would result from increase in pH and/or reduction . Absorption and coprecipitation are po sible mechanisms of deposition for gold in certain low grade depo it . Low concentrations of gold in the transporting solution combined with the ignificant solubility of gold as bisulphide complexes, sugge t hydrothermal solutions rarely may be saturated with gold and coprecipitation with sulphides may be an important initial depositional process. Recrystallization of the sulphides in the presence of the hydrothermal solution would be re ponsible for release of gold to more table ite . Thi mechani m i supported by the close association of gold with pyrite in many hydrothermal gold deposits.

Jan 1, 1986

By Charles Preble

El presente texto refiere la producción y consumo del cobre desde 1980 a 1984, deficiencias, reducción de costos y consumo a nivel nacional.

Nov 1, 1985

By Luis Noval García

La reestructuración de las explotaciones de la Cuenca Central de Asturias (España) en unidades de producción de mayor capacidad originó unas redes extensas y complejas, donde no hubo posiblidades de cálculo mental y la aplicación de métodos intuitivos para solucionar los problemas de ventilación. Por ello, Hunosa decide crear un equipo de técnicos especializados en estudiar y resolver los problemas que se presentan en la explotación de minas subterráneas a través de un centro de cálculo de ventilación.

May 1, 1985

By Ángel Rodríguez Avello

En 1968, a raíz de la liberación de su precio, la explotación del oro aumentó considerablemente. En ese sentido, las técnicas de su extracción y tratamiento renovaron las antiguas instalaciones e iniciando nuevas operaciones. Por ello, el texto señala la selección del procedimiento de tratamiento de minerales del oro a partir de sus propiedades físicas o químicas, granulometría, asociación con otros minerales y el tipo de ganga acompanante.

Mar 1, 1985

By Werner Joseph

El presente trabajo describe los aspectos que comprenden la metalurgia del antimonio y sus compuestos. Para ello, se revisa su historia, propiedades físicas y químicas, origen y materias primas, pirometalurgia de los minerales sulfurados y oxidados, hidrometalurgia y electrometalurgia, métodos extractivos especiales, producción de los principales compuestos, mercado y proyecciones futuras.

Mar 1, 1985

By Nelson Rivera

El presente texto analiza la crisis económica y su relación con el Banco Minero. Para ello, se revisa las dos últimas recesiones económicas que tuvo el Banco entre 1975 y 1982, donde la crisis se agudizó por una caída en los precios de los metales y una inflación de costos que no pudo ser transmitida al precio de venta. Como consecuencia de ello, las empresas mineras que tuvieron préstamos, acusaron pérdidas en sus ejercicios e incumplieron en el pago de sus obligaciones. Como medida anti-crisis, el Banco Minero estableció comisiones de alto nivel para evaluar las situaciones y recomendar la dación de dispositivos legales que permitieron asistir a los Pequeños y Medianos mineros en la restitución de liquidez mediante préstamos sobre liquidaciones a precios deprimidos, Asimismo, generó la consolidación, refinanciación y moratoria de los clientes que estaban en suspensión de pagos de las obligaciones contraídas con el Banco Minero y la creación de líneas de crédito especiales para la Pequeña Minería.

Mar 1, 1985

By Tim Neil, O&apos

Introduction On the banks of the Columbia River, about halfway between Seattle and Spokane, sits Wenatchee, WA. It calls itself "the apple capital of the world." And it has a gold mining history that dates back to the 1880s. It was just outside Wenatchee - three blocks outside, to be exact-that Asamera recently dedicated its $60 million Cannon underground gold mine. At full production, it is estimated the Cannon mine will yield between 5 and 5.6 t/a (160,000 and 180,000 oz per year) of gold. That would make Cannon the largest North American underground gold mine to be brought into production this year. Cannon should also be among the top 10 of all North American gold producers. Asamera officials project Cannon's operating costs at about $4.8019 ($150 per oz). At that rate, the mine should also be one of the lower cost and most profitable gold mining operations in North America. One reason for low operating costs is low electric power costs. The Cannon operation will be paying about 2.5 cents per kWh for hydroelectric power supplied by the Bonneville Power Authority. Proven and probable ore reserves at Cannon are in excess of 4.7 Mt (5.2 million st). Reserve grades average 7.29 g/t (0.21 oz per st) of gold in three ore zones, in order of discovery - B, B West, and B North. The ore bodies could have been mined by open-pit methods. But underground mining was chosen for environmental reasons. In addition, the rich B North ore body extends beneath a nearby horse stable and arena. The Cannon mine area comprises some 20 km2 (5000 acres) in Chelan County. The mine site is located at the 305 m (1000 ft) elevation in Dry Gulch at the base of the Cascade Mountains. The initial estimate of mine life for the Cannon operation is eight years, depending on gold prices. But Asamera officials believe the Wenatchee area has excellent potential for future gold discoveries. Asamera, Inc. of Calgary, Alberta, owns 51% of the Cannon property, through its wholly-owned Asamera Minerals (US). Breakwater Resources Ltd. of Vancouver, British Columbia owns 49% of the operation. The Cannon mine is named in honor of longtime Asamera, Inc. executive and current company director, geologist Donald G. Can¬non. It was he who first brought the Wenatchee property to Asamera's attention and urged the company to pursue it. Asamera is a major explorer and producer of oil and gas. Its Cannon operation is the largest and most significant to date in its mining division, according to Rob¬ert G. Welty. He is Asamera's chairman and chief executive officer. It should be noted there was an element of serendipity involved in Cannon's development. The development program be¬gan when geologist Cannon visited the Wenatchee area. He was visit¬ing old mining districts. He liked what he saw. The Cannon property was eventually optioned for ex¬ploration, including a modest drilling program.

Jan 12, 1985

By Gerald C. Smith

Introduction Newmont Mining Corp.'s Carlin Gold Mining Co. mines gold ore and waste material from four open-pit mines in Northeastern Nevada. Combined production rate is 24.5 Mt/a (27 million stpy). The company is producing gold bullion from the 2.4 kt/d (2600 stpd) Carlin Mill No. 1. and the 2.3 kt/d (2600 stpd) Maggie Creek heap leaching plant. In August 1985, the 6.3 kt/d (7000 stpd) Carlin Mill No. 2 at Gold Quarry came on-line. The total combined throughput of 11.2 kt/d (12,000 stpd) will make Carlin Gold Mining one of the largest US gold producers. Feasibility studies are underway to increase the total gold out-put from Gold Quarry. This will be done by adding a continuous dump-leaching process that will recover gold from lower grade ore. History In 1961, Newmont exploration geologists located claims in the Lynn Creek mining district near Carlin, NV. An exploration drilling program revealed significant gold mineralization. A stepped-up drilling program revealed an ore body with an estimated 10 Mt (11 million st) of ore containing 109 t (3.5 million oz) of gold. Test results in 1963 allowed metallurgists to develop the flowsheet and design for a 1.8-kt/d (2000-stpd) countercurrent decantation (CCD) cyanide plant. Carlin Gold Mining Co. was formed to operate the property. Carlin purchased its first mining equipment in 1965. This consisted of two Bucyrus-Erie 2.7 m3 (3.5 cu yd) shovels and nine 27.2 t (30 st) Wabco Haulpak trucks, two Inger¬soll-Rand track-mounted drills, one Chicago Pneumatic T-650 rotary drill, one rubber tired Michigan 280 dozer, one Caterpillar D-8 36A track dozer, one Caterpillar 16 motor grader, and the necessary ancillary equipment. The fleet was capable of mining 3.2 Mt/a (3.5 mil¬lion stpy) working two eight-hour shifts, five days a week. In 1967, one P&H 1500 3.8 m3(5 cu yd) diesel electrical shovel and three 59 t (65 st) Dart trucks were added to the fleet, along with a Chicago Pneumatic rubber tire mounted rotary drill. This equipment addition increased the mining capabilities to 5.7 Mt/a (6.3 million stpy). Three separate pits, the Main, East, and West, within a 1.6-km (1-mile) radius of the Carlin mill were being mined. The crew consisted of 46 hourly men and three supervisors. This equals 497 t/ total hourly manshift (548 st) or 407 t/total manshift (515 st). Rising gold prices in the early 1970s allowed lower grade deposits to be mined at greater distances from the mill. The Boot-strap pit, 19.3 km (12 miles) north of Carlin, was started in 1973. Two Hough 45.4 t (50 st) front-end loaders, four Wabco Haulpak 45.4 t (50 st) trucks, and a second track type D-8H dozer were added. The higher grade ore was trucked to the Carlin mill using three

Jan 11, 1985

By Mark A. Krall, Robert L. Geddes, James C. Frost

Introduction The Conda Partnership's Dry Valley phosphate mine is a thinly bedded, multiple seam open-pit mining operation where selective mining techniques are used to recover phosphatic shales. The mining methods used are truck/shovel and scraper/dozer operations. Ore is shipped 32 km (20 miles) by rail to a beneficiation facility. The ore is upgraded by washing and calcining. The mine and beneficiation complexes are owned by the Conda partnership. It is a joint venture between Beker Industries Corp., of Greenwich, CT, and Western Co-Operative Fertilizers (US) Inc., of Alberta, Canada. The Partnership operates as a separate entity of the two partners. The Dry Valley mine is located 48 km (30 miles) northeast of Soda Springs in Caribou County in southeastern Idaho. The mine is situated on the Caribou National Forest. Mining operations take place between 2 and 2.4 km (6400 and 7900 ft) in elevation. It is accessible partly by 32 km (20 miles) of paved roads and 16 km (10 miles) of dirt roads. The winters are long and severe, and the summers are short and mild. This article describes the history, geology, exploration, mining, and reclamation that makes this mine Idaho's largest producing mine and the western US' leading phosphate producer. History and production In the mid-1950s, Western Fertilizers of Salt Lake City, UT, drove an exploratory drift in Maybe Canyon. A large bulk sample of phosphatic shales was analyzed for phosphate content and processing characteristics. No large scale mining or processing operations were undertaken. In the late 1950s, the Dry Valley property was sold to Central Farmers of Chicago, IL. No major operations took place. In 1964, Central Farmers sold the property to El Paso Products Co. of Odessa, TX. El Paso Products supervised the mining operations of Wells Cargo Mining Co. from 1965 through 1967. During this time, El Paso Products built a beneficiation facility and a fertilizer complex in Conda. A 32-km (20-mile) railroad was also constructed from the mine to this facility. From 1968 through 1972, the mine was shut down due to a depressed fertilizer market. In 1972, El Paso products sold its ore reserves, beneficiation plant, and fertilizer complex to Beker Industries Corp. In 1979, Beker Industries sold 50% of its ore reserves and 50% of its beneficiation plant to Western Co-Operative Fertilizers (US) Inc., of Alberta Canada, forming the Conda Partnership. It has operated the mine and beneficiation plant since January 1979. From the mid-1950s to the mid-1960s, no substantial production took place. From 1965 to 1967, El Paso Products stripped 3 Mm3 (4 million cu yd) and mined 2.3 Mt (2.5 million st). From 1972 through 1983, 50 Mm3 (66 million cu yd) were stripped and 18 Mt (20 mil¬lion st) were mined. Geology The Wells Formation forms high ridges and hillsides in the Dry Valley area. It is best exposed along the west face of Dry Ridge. It forms the imposing wall on the east side of Dry Valley. The formation is divided into two members. The lower member, about 213 m (700 ft) thick, is dominantly thin to medium-bedded limestone and silty limestone. It contains nodules and stringers of chert and minor sandstone. The upper member is composed principally of thick-bedded to massive cross-bedded, light-gray to orange-yellow, fine grained sandstone. There is some interbedded brown to light-gray limestone. This member varies from 369 to 457 m (1300 to 1500 ft). Recent investigations indicate that the upper Wells is of Permian age. Under some conditions, the Wells may be water-bearing. Otherwise, it has no apparent economic significance. Grandeur Member (Park City Formation) Overlying the Wells Formation is a distinctive light-gray to white dolomitic fossiliferous limestone. This unit has been identified by the US Geological Survey (USGS) as the Grandeur Tongue Member of the Park City Formation. This member is sometimes absent due to its contact with the Meade Peak Member of the Phosphoria Formation. It is easily detectable by its color, hardness, and fetid odor. Phosphoria Formation The Phosphoria Formation of Permian age was named from Phosphoria Gulch, Bear Lake County. The formation has been studied extensively and developed for its economically valuable phosphate reserves.

Jan 11, 1985

By Pan Eimon

She was young, beautiful, intelligent, virgin. Her name was Barbara and she captured the attention of many men, especially those in dangerous occupations. Her rich and doting father was hopeful of making an advantageous marriage for his daughter. Instead, she defied him, became a Christian, and refused to marry. Traumatized, he killed her and was himself struck dead by lightning. That is not the plot of a new soap opera. It is the melodramatic story of a Turkish teenager who was martyred in the third century but lives still as patron saint of mining. The story begins with a 20th century fact. Santa Barbara is a figment of imagination - perhaps based on an early oriental folk heroine, embroidered by a seventh century storyteller, and reworked by a ninth century Greek martyrologist. The authoritative Lives of the Saints reports: "There is ... Considerable doubt about the existence of a virgin martyr called Barbara and it is quite certain that her legend is spurious. There is no mention of her in the earlier martyrologies, her legend is not older than the seventh century, and her cult did not spread until the ninth." The Catholic Dictionary adds that the Barbara story is probably "a pious legend." Widely revered Santa Barbara was one of the most widely venerated saints of the Middle Ages. She became the patron, not only to miners, but also to artillerymen, engineers, architects, builders, stonemasons, gravediggers, and sailors. Mines, mountains, churches, and places bear her name. Barbara's feast day, Dec. 4, appears on the most ancient holy day calendars. And a Barbara festival is still celebrated throughout central Europe, in Spain, and in mining areas of Latin America on that date. The Pacific coast channel, the city, and the mission of California are named for Santa Barbara. An expedition, sailing that coast under Viscaino in 1602, was saved from shipwreck on Dec. 4 after the sailors prayed for Barbara's intervention. Franciscans gave her name to the modern Franciscan Province of Santa Barbara, which embraces six western states and the Philippine Islands. Barbara is intimately entwined with mining. The origins of both saint and profession are lost in an-

Jan 11, 1985

By Peter J. Szabo

The mining executive works in a cyclical industry. His employment is subject to the vagaries of the marketplace. Boom and bust has always been the industry's story. "Big oil" failed in its mining effort. This left emotional and financial scars on many mining families. One must remember that mining executives always play a high-stakes game. Given the cyclical nature of the mining industry, mining executives need to take care of their own financial security. The mining executive that does not plan for his financial security in this cyclical business is playing Russian Roulette with his future. Take a look at those people who have reached their later years with the mining industry. One usually finds three categories of people. Those few in the first group have been fortunate enough to have worked for one company. They have survived the winnowing process of cyclicality, political problems, and takeovers. They have reached normal retirement age. For them, the retirement years are usually comfortable. People in the second group have worked for those same mining companies. But these people have been forced out by early retirement. Or they have been laid off for cyclical, takeover, or political reasons. The third group includes those who have held many positions in the mining industry. Probably not until their later years are they fully vested, if at all, in a pension program. The first small group, then, is the exception. The others, unless they have taken care of their financial security, are doomed to later years of financial problems, stress, and unhappiness. Too late in life, many realize the harsh realities of failure to plan and implement a personal financial program. Mining executives go to some of the world's leading mining schools, to learn how to make money. The curriculum is technically strong. Most mining graduates are familiar with the intricacies of discounted cash flow, present value, and the Hoskold formula. But few of these same mining schools require courses on personal financial planning. Such courses could give mining students a realistic foundation and the mechanisms with which to cope with their cyclical profession. An executive has only three sources of money. He can make money at work. He can put his money to work. Or he can get money from charities, such as government programs. Of these three sources of money, money at work has the best chance of providing financial security in later years. The mining executive must think of the day when he will be too old to work and contribute to the market place. At this point, the quantity and quality of his investments will determine whether his later years will be secure. Along with the Mining Engineering Handbook, two key books should be included in the mining executive's library. These are Venita Van Caspel's The Power of Money Dynamics and Benjamin J. Stein's Financial Passages. These books contain the basic concepts of personal financial planning so critical to an individual's financial survival. Venita points out the simple formula that is the key to financial independence: Time + Money + American Free Enterprise (Rate of Return) = Opportunity to Become Financially Independent Chart 1 shows that this is not a trite formula. The chart shows the dramatic effects of compounding over time. The chart also shows at various yields what a $2000 a year Individual Retirement Account (IRA) contribution will accumulate. Chart 1 (from Money magazine) is based on the future value of an ordinary annuity. It shows that the key to amassing a small fortune by the time a person reaches his 50s is starting to save methodically in his 20s. This, coupled with the highest yields consistent with safety of principal will ensure financial security. There are significant effects from compounding money over time. Every year the decision is put off to save for later years will cost a person dearly by the time he reaches his 50s. For example, consider the decision to put off for one year a $2000 IRA investment at a 12% return. Starting it at age 31 instead of 30 will cost the executive almost $100,000 by age 65. What if the executive waits until age 35 to get started with his $2000 a year investment? He will then lose nearly $400,000 by age 65. Stated another way, the executive costs himself this $400,000 simply because he did not invest $167 a month for five years. $167 a month - that's less than an inexpensive second car payment. This $400,000 pool of money could provide the executive a $40,000 a year income at age 65, assuming a 10% return on invest-

Jan 11, 1985

M.S. Azun I have many objections to the content of the author's paper. Before discussing it, however, I would like to repeat the property of semivariogram function. Second order stationary properties of regionalized variables (ReV's) such as semivariogram function y(h) are perfectly known in geostatistics. Also, the kriging equations in the language of mathematical statistics using second order stationary properties are well understood. However, the way to use the sample (estimated) semivariogram function in any one of the kriging procedures is vague. The sample semivariogram function is given as follows: [ ] where N is the total number of samples, Xi is the sample value at the i - th location, Xi+h is the sample value at the i + h - th location, and h is the distance among the samples. An estimation variance of sample semivariogram function of first lag is smaller than that of higher order lag. The theoretical semivariogram function reaches the variance of samples asymptotically. But this is not easily observable because of the larger variation involved in the estimate of semivariogram function. In general, an estimation procedure is done for h = 0, 1, 2, up to the greatest integer less than N/2, even though sample semivariogram function can be computable through N-1. After estimating semivariogram function, the critical question of how to model sample semivariogram function arises. As seen in the above equation, sample semivariogram function is discrete and can be smoothed by the model being selected. Therefore, modeling of sample semivariogram function is the most important step in geostatistics. It not only smoothes a discrete function but also affects the results of the kriging procedure. When the only aim is to model the semivariogram function, which is the basic point of the author's paper, one can employ any fitting techniques, such as curve fitting, or any arbitrary functions, which are called submodels in the paper. The term "arbitrary function" is used rather than "submodel" because there is no basic understanding of developing them. The author suggests that the sum of those submodels can also be used for the modeling of sample semivariogram function. The combination of any arbitrary functions brings many problems instead of giving an insight of the domain structure considered. The author used two arbitrary functions and the nugget effect in response to sample semivariogram function (Fig. 10). For the same example, he stated that the parameters involved in the mixed arbitrary function model can be accepted when the discrepancy between sample semivariogram function and the model is small visually. For verifying the fitting behavior of any selected model, one should not be contented with the visual satisfactory. Some statistical measure such as goodness of fit has to be used. The author's practice is no more than an exercise in curve fitting without any fundamental understanding or conceptualization of the underlying physical mechanism. Furthermore, the selection of any model is not an easy task if the purpose is the search for the "best" response to the observed second order properties of ReV's. I suggest that the Markovian model (Azun, 1983), on the basis of a theoretical understanding of underlying mechanism, which gives more information about the occurrence of regionalized variables, is used to respond all properties of ReV's. There are a lot of problems for modeling of one-dimensional sample semivariogram function. Thus, it is not appropriate to go to higher order dimensional sample semivariogram function modeling. In the meantime, I would recommend that one can connect the values of standardized sample semivariogram function rather than simple values of semivariogram function in the two-dimensional estimation. The standardized values can be computed in dividing the semivariogram function value by the number of sample pairs involved in each lag regardless of the directions. In conclusion, geostatistics is an interdisciplinary area in mining that uses the principles of mathematical statistics. Thus, it should not violate any probabilistic and statistical rules. When Matheron was developing the theory of geostatistical study in the early years of geostatistics, many mining people had a reservation accepting the geostatistical tools. However, this does not mean that we, the geostatisticians, might try to convince those people using some "strange" tools or rules as some authors implied (Baafi and Kim, 1984). Instead, we have to develop and explain the geostatistical tools staying only in the framework of statistical concepts and properties. References Azun, M.S., 1983, "Stochastic Process Modeling of Spatially Distributed Geostatistical Data," Columbia University, Ph.D. Thesis. Baafi, E.Y., and Kim, Y.C., 1984, "Discussion - Comparison of Different Ore Reserve Estimation Methods Using Conditional Simulation," Mining Engineering, Vol. 36, No. 3, p. 280. Reply by J.M. Rendu The interactive method proposed by Rendu allows practitioners to develop semivariogram models that take into account not only the numerical information obtained by sampling, but also highly significant additional information that often cannot be quantified. The geology of the deposit - including hypotheses concerning its genesis, sampling methods, assaying methods, and mathematical methods used to calculate the semivariograms - all have an influence on the numerical results obtained and on how these results should be interpreted. If all the information concerning the spatial distribution of values in a mineral deposit was contained in the sample values, it could be argued that statistical techniques alone would produce optimum models. However, this is rarely, if ever, the case. Methods that allow the user to take into account his experience and his geologic understanding of the deposit should not be rejected for the sake of theoretical statistical purity.

Jan 11, 1985