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By Michael Chender

INTRODUCTION The project financing described elsewhere in this book is available to major mining companies on the basis of a strong balance sheet, a significant equity position in a project of proven feasibility, and a demonstrated ability to bring ore deposits into production. "Junior" mining companies, which are most active in Canada, Australia, the US, and South Africa, by definition do not meet these criteria. In many cases, junior companies will need to raise money simply to cover the costs of acquiring and exploring potential deposits. In what follows we will look primarily at junior financing practices in the US and Canada, although the same general principles will apply in Australia and South Africa. The principal vehicles for junior mine company financing are limited partnerships, the private placement of securities and debentures, and public offering of securities, and property deals with stronger companies, in the form of leases, earn-ins and co-ventures. The cost (in terms of dollars or equity) and, to some extent, the applicability of using these difficult approaches varies with the stage of development of the property and with the corresponding degree of risk to the investor. Much junior company fund raising is, in fact, "interim" financing in that it allows the company to improve its properties and develop its assets to the stage where more favorable financing arrangements may become available. Companies will therefore often use several of the approaches described above during the development life of a specific property. LIMITED PARTNERSHIPS Limited partnerships and syndications are a popular way of structuring the initial private financing of mine developments because of their attractive tax consequences for the well-to-do investor. Costs of exploration and development can in many countries be passed through as deductions to the limited partners, who are thus able to gamble on a possible windfall at little real cost. In addition to private Canadian funds, much German money flowed into Canadian exploration ventures on this basis, but stopped in 1982 due to economic conditions in West Germany. In the US, recent regulations have, in the great majority of cases, taken away the ability to "shelter" income in mining limited partnerships. Deductions taken by the individual investor cannot exceed the amount of money he actually has at risk. Nevertheless, the allowable deductions are still attractive and some of the major mining companies are now beginning to look at limited partnerships as a vehicle for attracting additional exploration funding. Ranchers Exploration and Development has successfully put together several drilling funds on this basis. THE PRIVATE PLACEMENT Initial funding for the acquisition and preliminary exploration of prospects is often accomplished through a private placement of unregistered securities or, where it is not a problem to carry debt on the statement, by a private placement sale of debentures. A fledgling company wishing to do a public offering may well be advised by an underwriter to accomplish a small private placement as a precondition of the larger offering. In this way, the sale of the registered securities is not inhibited by the company starting out with a debt-ridden balance sheet and no demonstrated ability to secure the additional financing generally necessary beyond the proceeds of that offering. In the US, the securities offered in a private placement are not registered with the Securities and Exchange Commission (S.E.C.) but are restricted as to their resale, and could be further restricted by a underwriting agreement

Jan 1, 1985

By William W. Aljoe

This report summarizes the Bureau of Mines noise-control research program from 1972 to 1982. Each segment of the mining industry--under- ground coal, underground hardrock, surface mining, and processing plants--has different noise-control problems because of vast differences in working procedures, equipment, and workplace design. The Bureau has identified the most serious noise problems in each segment and has developed strategies for attacking these problems. This publication points out the need for noise control in the mining industry, discusses Federal regulations governing worker exposure to noise, and describes the Bureau's overall approach to mining noise- control research. It traces the history of noise overexposure in each segment of the mining industry and discusses the major noise sources. It provides detailed information on noise-control research efforts in the Bureau's major areas of emphasis, including the results of these efforts. Finally, the report discusses the Bureau's future role in research on mining noise control, emphasizing the need to expend more effort on long term in-house investigations into the noise problems that have been identified in past programs as the most serious ones.

Jan 1, 1985

By W. L. Cooley

A significantly different method of evaluating mine ground system safety is investigated. The method measures touch and step potentials around ground beds and grounded equipment resulting from a series of extremely small simulated faults. The values are then scaled for a full-scale fault. The method should be particularly useful for large ground beds and under conditions where the ground bed cannot be isolated from the rest of the ground system in order to make traditional ground bed resistance measurements. Instrumentation for making the alternative measurements is evaluated under rigorous field conditions. A step-by-step procedure is proposed for evaluating a surface mine ground system. This procedure was subject to several field tests at eastern metal/non-metal mines. The final evaluation procedure is written as a stand-alone document for use by MSHA inspectors and mine operating personnel, and is included as an appendix to the report. The authors conclude that the procedure is effective in evaluating ground system safety and recommend that it be further evaluated in the field.

Jan 1, 1985

By N. T. Lowe

This Bureau of Mines publication presents salient deposit information in abstract form on 119 principal mineral deposits in the State of Nevada. Commodity coverage addresses 17 critical and strategic commodities that appear to have commercial production potential in the State. The core of the deposits described is taken from those properties evaluated d under the Bureau of Mines Minerals Availability Program (MAP); additional deposits are included to provide a more complete coverage. Institutional and infrastructural factors affecting mineral development are also discussed.

Jan 1, 1985

By Michael R. Yenchek

Contacts with energized conductors are a major cause of electrocutions in underground coal mines. Sensitive ground fault interrupters (GFI's) installed on in-mine three-phase ac utilization circuits would probably prevent the majority of these deaths. A sensitive GFI is a protective device that detects and interrupts small deadly ground currents in the milliampere range before those currents can cause ventricular fibrillation in humans. Commercially available three-phase sensitive GFI's have not been specifically designed for application in coal mines. The Bureau of Mines therefore tested three commercial GFI models to determine their worthiness for mine power systems. GFI design and construction, transient immunity, reliability, and time-current characteristics were evaluated in laboratory tests. No commercial device was found suitable for mine use without design modifications. The tests results will serve as a basis for the development of a mineworthy sensitive GFI in ongoing Bureau research.

Jan 1, 1985

By Robert L. Virta

The Bureau of Mines examined a fibrous talc sample from the Gouverneur talc district in New York by transmission electron microscopy (TEM) and polarized light microscopy to determine the mineralogical relationship of the fibrous talc to the amphiboles present in the sample. Two am-phiboles, anthophyllite and tremolite, were present in the sample. Tremolite occurred as a separate mineral phase, which was blocky in habit. Only a few composite tremolite-talc grains were observed. An-thophyllite, however, was present only in the fibrous talc grains. Mi-crodiffraction study of the fibrous talc grains containing anthophyllite showed that the anthophyllite was intermixed with the talc on a fine scale and that there was a crystallographic relationship between the talc and anthophyllite lattices in the fibrous talc grains. A mechanism similar to the process that forms biopyriboles could explain the structural defects, the fibrous habit of the talc, and the structural relationship between the talc and anthophyllite in the fibrous talc grains. Because of these characteristics, phase contrast microscopy and a provisional TEM technique for monitoring asbestos exposure would not distinguish between fibrous talc and fibrous amphiboles. TEM techniques employing electron diffraction and energy-dispersive X-ray analysis are recommended to positively identify the fibrous phases for regulatory purposes.

Jan 1, 1985

By David S. Young

All pigments and extenders or fillers whether organic or inorganic fall into the following broad general classes: I. Colored II.-White III. Black IV. Metallic A pigment- is any particulate matter that is essentially insoluble and chemically unaffected by the media into which it is dispersed. According to this very broad definition, colored pigments, white pigments, fillers, extenders, and functional pigments would all be included. The particulate size range would also be quite broad ranging from very fine colloidal particles (~0.01µ) to relatively coarse particles (~100.0µ). This broad definition is usually subdivided into more practical divisions which tend to relate the classification of the pigment to its primary function in the system in which it is used. Hence, the word extender implies that its major purpose may be to extend the system.

Jan 1, 1985

By Bonn J. Macy, David A. Gulley, William A. Vogely

INTRODUCTION Some of the most famous and graphic environmental incidents have arisen from mineral extraction, including oil spills, the Reserve Mining asbestos tailings case, Kaiparowitts surface mining and coal combustion, and other environmental causes celebre. The remote location of much of the mining industry to some extent reduces the human health hazards from pollution, but often times the pristine locale in which mining is conducted provides a sharp contrast to the impacting industry. This prompts questions as to what the research literature says about the true costs and benefits of environmental compliance. We survey the state of this knowledge. Where possible, we discuss studies focused on mining and related industries, such as primary metals production. In many cases, how- ever, the studies pertain to the economy as a whole. For present purposes, the mining industry is defined as companies engaged in the production and refinement of minerals, including metals, fuels, and nonmetallics (e.g., phosphate, sand and gravel). There are several stages in mining, with environmental effects occuring at every stage. The exploration stage comprises the period from initial prospecting to the point where the deposit has been located and delineated in sufficient detail to permit development decisions to be made. Geophysical and geochemical surveys, diamond drilling programs, and exploratory stripping and excavation are activities that may be employed during this stage. Some forms of prospecting are relatively benign, al- though even airborne surveys and motor vehicles generate noise pollution. Roads and the passage of vehicles and equipment affect land surfaces and vegetation, and attract heavier backcountry use. Clearings, stream crossings, and borrow pits can lead to increased erosion and sedimentation of streams. Geological survey grids disrupt vegetation and appearance. Moreover, prospecting can involve the excavation and stripping of overburden, resulting in soil and vegetation disruption as well as in- creased sedimentation of streams and lakes. The effects of exploration are often temporary, and frequently less severe than for other activities. Nevertheless, exploration-related impacts vary with the intensity and type of exploration effort, and can be significant. During the development stage of mining, shafts are sunk, pits excavated, buildings erected, and transportation facilities established. Dust, noise, and other socioeconomic and environmental impacts are generated by the relatively large and sudden influx of people, equipment, and activity. Surface disturbance and solid waste are generated by development, and liquid wastes form when mines are dewatered. The extraction phase is associated with a variety of environmental impacts. These impacts may differ for surface and underground mines. In surface mining, surface disturbance is obviously a major consequence. Piles of overburden and waste accumulation mar land surfaces. Wind and water erosion tend to spread the dis-

Jan 1, 1985

By William G. Pariseau

The research reported here concerns a four year study of the rock mechanics aspects of two underground hardrock mine study stopes. The first study was conducted at Anaconda Minerals Company's Carr Fork Mine near Tooele, Utah. The second study was conducted at the Homestake Mining Company's Homestake Mine In Lead, South Dakota. Both case studies were cooperative efforts of mining company personnel, the Spokane Research Center of the Bureau of Mines and the Department of Mining Engineering, University of Utah. Large diameter (6 1/2 In.) blastholes were an integral part of the stoplng method at each mine. A true vertical crater retreat (VCR) method was used at the Homestake Mine, while a vertical bench mining method (VBM) was used at the Carr Fork Mine. VCR and VBM methods were developed In the 1970's; they offer significant productivity gain and are now used throughout the world. The new technology, however, brings with It a requirement for more sophisticated engineering design and control. Since there are no personnel in a VCR or VBM stope, all ground control Including dimensioning of stopes and pillars and the layout of cable bolt assays or other artificial support must be done in advance of production blasting. Accordingly, the objective of the research study was the establishment of a procedure for optimizing stops and pillar sizes. The approach taken was In each case a combination of mine measurements of the study stope response to mining, laboratory testing for rock properties and In situ stress measurements of the premining stress field, and theoretical calculations of the study stope response to mining. All calculations were done with the UTAH-II finite element computer program. Simulation of the blasting sequence gave a correlation of 0.88 between measured and calculated extensometer readings (Incremental relative displacements) at the Carr Fork Mine where other 30 Instrumentation boreholes were used to monitor the test stope response. A correlation of 0.84 was obtained at the Homestake Mine where 19 instrumented boreholes were used for monitoring purposes. These high correlations validated the computer mode and calibrated It for rock mass properties. The calibrated model was then used In parametric studies of alternative design layouts.

Jan 1, 1985

1. Domestic Production and Use: In 1984, 12 companies operated 27 primary aluminum reduction plants, with 3 firms accounting for 57% of production. Washington, Oregon, and Montana accounted for 35% of the production; Indiana, Kentucky, Missouri, and Tennessee 25%; Alabama, Arkansas, Texas, South Carolina, and North Carolina 20%; other States 20%. Based on published producer prices, output of primary metal in 1984 was valued at $7.2 billion. Aluminum consumption by 25,000 firms was centered in the east-central United States. Packaging accounted for an estimated 35% of domestic consumption in 1984, transportation, 20%; building, 18%; electrical, 9%; consumer durables, 8%; and other uses, 10%.

Jan 1, 1985

By R. E. Chaney

This report summarizes the research on the Strategic and Critical Materials Program tasks conducted at the Idaho National Engineering Laboratory (INEL) between May 1984 and April 1985. The work is divided into two areas: 1. Production Technologies - Tasks directed at developing advanced extraction technologies ? Biologically-Assisted Minerals Processing ? Metal/Gas Reactions and Thermal Plasmas ? Dehydration of Aluminum Chloride Hexahydrate (completed). 2. Conservation/Substitution Technologies - Tasks directed toward establishing the technical processing base which will permit the use of advanced materials ? Joining of Rapidly Solidified Alloys (RSA) ? Joining of Silicon Nitride-Based Ceramics ? Nondestructive Evaluation of Ceramic and RSA Joints and Materials ? Substitute Catalytic Materials for Platinum.

Jan 1, 1985

By C. E. Brechtel

A testing program was conducted to design a cemented backfill fur hydraulic placement in underhand cut and fill mining of a steeply dipping coal seam. The testing evaluated the use of three different backfill aggregates, locally available at the coal mine, with Portland cement and five different pozzolans, including a Class F fly ash, a Class C fly ash, a cement kiln dust and ground smelter slag. Both viscosity and uniaxial compressive strength of backfill mixtures with different pozzolan and Portland cement contents were used to evaluate their suitability. Based upon the results of preliminary testing, an optimum mixture of alluvial sand with six percent Portland cement and ten percent Class F pozzolan was chosen for further compression testing.

Jan 1, 1985

By H. P. Cole

Methods for increasing compliance to medical and health regimens were reviewed along with similar research in industrial and mine safety. Principles abstracted from both areas suggest that compliance with health and safety practices is improved when: (1) Workers are cooperatively involved with management in setting safety goals and planning for their achievement, (2) the program has the support of workers, supervisors, and management, (3) specific tasks responsible for injuries are targeted, (4) company organizational policy, educational, and behavioral programs work together toward the same goals, (5) workers and supervisors are frequently informed about their degree of correct task performance, and (6) programs are monitored by the frequency of correct performance of targeted tasks, (the means to lowered accident rates) rather than by lowered accident and injury rates themselves (the goals for safety programs.) Safety programs that incorporate these principles increase persons' adherence to specified health and safety practices and subsequently decrease injury rates. It is recommended that: (1) a group of experts be convened to study the application of these principles to coal mine safety programs, and (2) a short course for safety trainers be developed to demonstrate how these principles can be used to strengthen existing mine safety programs.

Jan 1, 1985

By Glenn A. Shirey

The objective of this contract as to prepare a detailed, readily usable handbook on dust control techniques for longwall mining operations. Information was gathered from available literature, and through contacts with industry and government personnel. The handbook describes those methods of dust control applicable to today's longwall mining systems, and contains sufficient design elements to assist operators with problems in testing or implementing new control procedures. Complete reference lists are presented at the end of each chapter to direct the reader to additional information.

Jan 1, 1985

By Robert S. Schechter

A minitest of the new potassium chloride-potassium carbonate two-stage in-situ uranium leach process has been carried out at the Intercontinental Energy Corporation (IEC) Zamzow project site in South Texas. Substantial quantities of high concentration uranium were produced indicating the viability of the leach solution. The test results yield information regarding the reservoir dispersivity, the average cation-exchange capacity of the formation, and the distribution coefficients describing cation-exchange reactions. The test also indicates permeability anisotropy and the existence of disturbed flow fields.

Jan 1, 1985

By James W. Reil

A test series of small, precisely-controlled and thoroughly-monitored production blasts was conducted at two quarries. In each series, all variables except delay were kept constant, as much as practically possible. The first aim of the study was to determine the effect of local geology on ground vibration. The second aim was to test several hypotheses relating the effect of millisecond delay intervals to fragmentation and ground vibration. A resonant frequency of ground vibration was shown to be related to the thickness of the overburden, in accord with a model proposed by Gupta (1961). Since the overburden geology creating this resonant vibration cannot usually be changed, two methods were tested to choose delays such that blast vibrations would destructively interfere. These were shown to be effective in modifying both the peak particle velocity and response spectra of ground vibration. The delay interval chosen also affects fragmentation, primarily in massive rock, with an optimum relief between holes of 2 ms/ft. Strain gage records indicate a possible mechanism consistent with this information.

Jan 1, 1985

Greater mining productivity requires a more efficient cutting process. The cutting force available from today?s mining machines has been optimized with respect to machine size and weight. Researchers have shown that when employing water-jet-assisted cutting, bit forces and drum torques can be reduced significantly, which may allow mining machines to become lighter and more efficient. The Bureau of Mines has initiated a program to develop a water- jet-assisted rotary cutting system using the conventional bit assisted by a directed water jet operating at moderate pressures (3,000 to 10,000 psi). This water-jet-assisted cutting system has the potential to improve cutting efficiency without increasing machine horsepower or water usage (beyond what is presently used for dust control) or requiring fundamental changes in mining practice. IR addition to improvements in productivity, other anticipated benefits of water-jet cutting include reduced generation of respirable dust, elimination of frictional ignitions, increased bit life, reduced fines, and fewer machine vibrations. The papers presented at this open industry meeting discuss the development of water-jet-assisted cutting technology and future application of this technology to a variety of mining techniques including roof drilling and longwall mining.

Jan 1, 1985

By Catherine C. Kilgore

The Bureau of Mines investigated the availability of fluorspar (CaF2) from 36 U.S. and 50 foreign mires and deposits in 13 countries. Only 6 U.S. properties are considered to be economic, as 29 domestic deposits were found to have an average total cost of production that was uneconomical at a breakeven (0-pct) discounted-cash-flow rate of return (DCFROR). The 50 foreign properties evaluated represent at least 55 pot of demonstrated fluorspar resources located in market economy countries and China. Al I evaluated foreign operations were found to be economic to marginally economic in January 1984 dollars when compared against published prices for each country. Reserves for 56 properties totaled 97 million metric tons (mt) (recoverable Ca F,) from demonstrated ore resources of 344 million mt that contained 123 million mt CaF2. The average total cost needed to cover all costs over the life of each operation was determined for all recoverable fluorspar products. Comparisons of ruining, beneficiation, and transportation costs per metric ton of fluorspar concentrate illustrate advantages between countries. Of the three countries with the greatest fluorspar production, China, with its high-grade, low-cost operations had the lowest weighted-average total cost of production ($38/mt concentrate), Mexico was next, at $54/mt concentrate, and benefited in U. S. dollar terms from the devaluation of the peso. The Republic of South Africa needed an average of $90/mt of concentrate to cover all costs of production at its large low-grade deposits.

Jan 1, 1985

This publication contains eight papers presented at a Bureau of Mines Technology Transfer Symposium in Charleston, W, on June 22, 1983, Five of the papers describe the results of Bureau-sponsored research on cabs and canopies for low-coal underground mining equipment. The other papers describe the efforts of three underground coal mining equipment manufacturers (FMC, Joy, and Lee-Norse) in the area of cab and canopy design.

Jan 1, 1985

By W. I. Nissen

As part of its program to provide technology for reducing undesirable environmental impacts of mineral processing operations, the Bureau of Mines developed the citrate process for desulfurizing industrial stack gases that contain from 0.1 to 2 vol pet S02. In this regenerable flue gas desulfurization (FGD) process, S02 is absorbed from cleaned and cooled industrial flue gas with a citric acid-sodium citrate solution. The absorbed S02 is subsequently reacted with H2S to precipitate marketable elemental sulfur and regenerate the solution for recycle. Laboratory investigations of process parameters provided information for designing larger scale continuous operations. Information gathered from operation of two pilot plants, one at a copper smelter and one at a lead smelter, confirmed the laboratory results. Data were obtained for design and construction of a commercial-sized demonstration plant at the George F. Weaton Power Station, Monaca, PA. A preliminary operation of the plant was demonstrated, under a cost-sharing Bureau-industry contract. This bulletin describes the citrate process and gives results of the laboratory, pilot plant, and demonstration plant studies, as well as corrosion investigations.

Jan 1, 1985