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By P. Müller, W. J. Przybylowicz, V. M. Prozesky, D. de Bruin

"Abstract -The common style of gold mineralization in the Basal Reef and other auriferous conglomerates of the Witwatersrand Supergroup comprises clusters of gold grains occurring interstitially to quartz and pyrite pebbles as well as gold accumulations attached to the surface of and infilling hairline cracks and fractures in round, compact, detrital pyrite. The latter textural association is generally interpreted as a result of remobilization of originally detrital gold during regional metamorphism and related hydrothermal fluid circulation. There is general agreement that, although gold solubility was Iow, ore modification occurred during the metahydrothermal event, but uncertainty exists about the magnitude and scale of gold remobilization .Micro-textural and chemical investigation of compact round pyrite and associated gold accumulation has established that gold is preferentially deposited on chemically heterogeneous pyrite surfaces. Combinations of alternating high- and low-As zones in pyrite result in mixed np-type conductivity accompanied by electron exchange and the reduction-driven deposition of gold at the cathode. This mode] does not explain gold accumulations which are not immediately linked to chemical heterogeneities and it is inferred that an additional control on the deposition of gold was exerted by physical defects which lead to zones of increased charge density and/or areas of focussed conductivity. The inferred precipitation mechanisms suggest that submicrocopic physical and chemical controls are the important factors that determined the sites of gold nucleation and that precipitation mechanisms based on physicochemical changes of the hydrothermal system were not involved. The Basal Reef contains on average close to 5% of round, detrital, chemically zoned pyrite which provides a large number of electrochemically active pyrite surfaces. The extremely effective electrochemical precipitation mechanism together with the low solubility of gold in Witwatersrand fluids is the main reason for the spatially restricted remobilization of gold in the conglomerate reefs."

Jan 1, 1994

I. N. KNAPP, Ardmore, Pa. (written discussion *).-The writer would first call attention to the fact that the mid-Continent field was credited from 1900 to 1915 with a production of about 641,000,000 bbl. of oil with-out any burdensome water troubles being reported. In fact, the authors say the conditions were not acute until about two years ago when the unusual conditions in the deeper oil fields were first encountered. The writer disclaims any personal knowledge of the district mentioned but, from the experience he has gained in directing drilling in various fields by both the cable-tool and the rotary methods and also in plugging and cementing wells, he fails to see how the analysis of water trouble given in the paper under discussion could be of any practical assistance in solving the problems so vaguely outlined. Possibly it might induce academic discussion, if not limited to practical operating conditions. A recent bulletin of the Bureau of Mines gives definite and practical statements that can be easily understood by one skilled in the art of drilling wells and heading off water troubles. From an operating standpoint subsurface knowledge must be based on logs of completed wells. Absolutely no one can have such knowledge as that indicated in Fig. 1 of the paper in question without drilling wells, and no one can question such facts when disclosed by the drill. Under classification of water the paper states "This water (primary) cannot be exhausted from the sands, but its encroachment can often be checked and so directed that wells need not be abandoned, until most of the available oil is secured." This is a live question to the writer. A couple of years ago he had some wells drilled and found the conditions comparable with sands A and D of Fig. 1 with B and C left out; but nothing in the paper, so far as can be found, indicates how this water encroachment is or can be checked or directed particularly under the High heads named.

Jan 5, 1919

By Lynn B. Hales, Randy A. Ynchausti

Introduction There continues to be a large economic opportunity associated with improving process performance through advanced process control systems within the minerals industry. The basis for this opportunity lies in the inherently low efficiencies of many of the unit operations found in mineral processing plants as well as the continual variation that is present in the ores being processed. The ageless target of such control systems is improved recoveries and concentrate grades, higher processing rates and lower unit costs. Many plants are enjoying the benefits of modem, well functioning process control systems but few if any have achieved plant-wide optimization in an economical sense. As new process modeling and control technologies, such as neural networks, continue to evolve and develop, the potential for plant- wide optimization is becoming a closer reality. Neural network technology appears to have a significant potential in the general field of process control and control of mineral processing operations. Neural networks are an emerging technology that have been evolving out of the study of biological systems since the early 1940's. The first software simulation of neural computing networks was reported in 1956 by Nathanial Rochester of IBM Research during the first conference on artificial intelligence which was sponsored by the Rockefeller Foundation. Neural Networks Neural networks can be considered to be a class of computer program that perform their problem solving functions based on a rudimentary model of the human brain and how it solves problems. Traditional computer programs and even computers themselves solve problems or process data sequentially and in a deterministic manner. The human brain, on the other hand, processes data and solves problems in a massively parallel fashion. We think of computers normally in terms of having a single processing unit, sometimes a co-processor to assist in certain activities such as mathematical functions or communications, bytes of memory, processing speed and program/data storage size.

Jan 1, 1992

By J. S. Bowles

DISCUSSION, M. Cohen presiding J. W. Christian (The Inorganic Chemistry Laboratory, oxford, Englandl)—I was very interested in Dr. Bowles' results on the suppression of the transformation by solid films of alcohol or propane. The transformation in cobalt, which is also martensitic, can be explained by a mechanism involving the reflection of "half dislocations" down a series of atomic planes.* This reflection process is similar to that considered by Frank13 for plastic deformation on a single slip plane and, as he pointed out, reflection would be impossible if the metal were immersed in a liquid of higher density. It seems possible that solid films of alcohol have a similar effect on the lithium transformation. Reflection should also be possible at a grain boundary, though a higher kinetic energy of the dislocation, and hence a lower temperature would be required. As Dr. Bowles used coarse grained polycrystalline speci- mens, transformation on cooling should still have occurred in grains which did not form part of the outside (free surface) of the metal. This may account for the X-ray lines of the low temperature phase which were found. There is thus the interesting possibility that in a polycrystalline specimen a liquid, or in some cases a solid, film of material of or or higher density will lower M,, while in a single crystal it should suppress the transformation completely. In the case of cobalt it is necessary to find a dense liquid which will not react with the metal at the transformation temperature. The most promising liquid appears to be pure lead, but it is very difficult to devise a method of investigating whether or not this does suppress the transformation.

Jan 1, 1952

By Mark I. Copeland

The formation of A1203 dispersoids 0,14 and less in size in dilute iron-aluminum alloys by internal oxidation in wet hydrogen and dispersion strengthening of iron by application of the technique to iron powder were found to be feasible by the Bureau of Mines. In flowing H2-1.5 H20 gas, A1203 dispersoids 0.1w and less in size formed (at 650° to 750° C) in Fe-l and 2 Al sheet material but not in Fe-3 or 4 Al alloys. With higher temperatures and/or higher H2O/H2 volume-ratio gases, A1203 and FeA1204 dispersoids >0.14 in size formed in all the sheet materials- Minus 100-mesh Fe 2 Al powders were internally oxidized under conditions that promoted formation of fine A1203 particles in sheet material, and then the oxidized powders were hydrogen reduced, sintered, extruded, and evaluated. During internal oxidation, fine A1203 dispersoids formed within the powder grains, and coarse FeA1204 particles formed on the powder surfaces and grain boundaries. The FeA1204 content was essentially eliminated during sintering by reacting with the unoxidized aluminum that remained in the center of the larger internally oxidized powders. The tensile strength at 800° C depended upon the aluminum-oxygen weight ratio of these elements in the extrusions and reached a maximum of 17,000 psi. The stress-rupture strengths at 800° C of the better alloys were comparable with those of type 310 stainless steel.

Jan 1, 1972

By J. J. B. Rutherford

IT is now well known that troublesome intercrystalline corrosion may occur in austenitic stainless steels following exposure of the metal to a temperature within the range 1000° to 1500° F. (540° to 815° C.). The present paper describes a satisfactory method of estimating the extent of such corrosion, based on the measurement of the electrical resistance of a specimen before and after attack. This new method enabled us to study quantitatively the effect of several factors upon intergranular corrosion in the 18 Cr, 8 Ni type of alloy. The results show that susceptibility to this attack increases with increasing carbon content and grain size and appears to pass through a maximum for certain combinations of temperature of sensitization and period during which the alloy was maintained at that temperature; and are in complete accord with our interpretation of the mechanism of this phenomenon. The method is probably applicable to other metals or alloys subject to intercrystalline attack, such as the aluminum alloys of the duralumin type. The methods hitherto in use for estimating the degree of intergranular attack fall into three types: (1) microscopic examination,1 (2) macroscopic examination of fractures, and (3) determination of the time required for complete failure or disintegration .2 None of these lends itself very well to a measurement of the extent of corrosion. The first two are qualitative in nature and the third provides an arbitrary value largely dependent on individual judgment, since failure is a progressive phenomenon and not a sudden event. Our experience is that weight-loss determinations, although valuable in some types of corrosion investigations, bear no simple relation to intercrystalline corrosion in this type of alloy, as is to be expected since the phenomenon probably involves only the thinnest films between adjacent metallic grains.

Jan 1, 1932

By J. P. Bennett

Based on previous Bureau of Mines research indicating that improved high-temperature properties could be achieved for periclase refractories through chemical additions, the Bureau investigated the properties of full-size bricks produced from chemically modified periclase refractory grains and the suitability of making such chemical additions to Mg(OH)2 slurries prior to production of the periclase grains. In full-size brick testing, strength values, both hot and cold, for the optimized bricks were superior to those for a commercial 98-wt-pct-MgO refractory. The best results were obtained for a natural magnesite with an adjusted CaO:Si02 (C:S) ratio of 3.0 and a 1.0-wt-pct addition of Zr02 and for a seawater periclase with an adjusted C:S ratio of 2.5 and a 0.5-wt-pct addition of Mn02. For samples produced from chemically modified Mg(OH)2 slurries, additions of both Mn02 and Zr02 and an increase in C:S ratios produced significant increases in hot flexural strength, similar to those resulting from chemical additions made to periclase grains. The most effective modifications were additions of Mn02 to brine-derived periclases having a C:S ratio adjusted to 3.0. These results on chemically modified magnesia refractories indicate that such material could potentially substitute for magnesiachrome refractories containing imported chromite.

Jan 1, 1984

By B. A. Kutlin

29% of the total ore mined in the Russian Federation for copper production is finely disseminated copper-zinc-pyrite ores of the Ural Region. Physical and chemical characteristics of pyrite copper-zinc ores make for difficulties in obtaining high indices during processing. At present, the authors have elaborated the technology to improve the quality of copper concentrates up to 20.0% for the ones obtained during pyrite copper-zinc ore processing (based on the example of the ore mining and processing enterprise ?Uchalinsky GOK?, Russian Federation). There are examples of use of fair-sized pneumo-mechanical flotation machines by modernization of processing plants. Keywords: copper-zinc-pyrite ores, Ural region Russian, selective flotation, pneumo- mechanical flotation machines

Sep 1, 2012

By L. R. Burdick, J. F. Barkley

"The agglomerating index of coal is an index based upon the nature of the coke residue left when the standard volatile-matter determination of the well-known proximate analysis is made. In this determination a small amount of coal is heated in a container to about 950° C. (1,742° F.), at which temperature the volatile matter is driven off, leaving a coke formation. The coke residues for various coals are quite different in physical structure: and, for some time past, work has been done on studies of the nature of these residues in connection with the coking of coal. In 1934 Gilmore, Connell, and Nicolls proposed use of the agglomerating index for indicating the dividing line between noncaking coals and those having weakly caking properties. 4/ Its use was adopted in the standard classification of coals by rank as a requisite physical property index to differentiate semianthracite from low-volatile bituminous coal and also high-volatile ""C"" bituminous from subbituminous ""A"" coal, as shown in table 1, the standard coal classification adopted by the American Society for Testing Materials and the American Standards Association. 5./In studying the agglomerating properties of coals based on the coke residue the Bureau of Mines has adopted the notation given in table 2. Coals that in the volatile-matter determination give a coke residue either in the form of an agglomerate button that will support a 500-gram weight without pulverizing or a button that shows swelling or cell structure are considered to be agglomerating."

Nov 1, 1938

By C. D. Elifrits, N. B. Aughenbaugh

Introduction Federal and state laws enacted to regulate coal mining and the accompanying public concern about the adverse effects that mining might have on land use have focused much attention on the subsidence of the land surfaces over underground mines. Some questions asked are • Will abandoned mines subside in the future even though they have exhibited no surface adjustment to date? If so, when will subsidence take place? • Can a specific surface area be affected by subsi¬dence more than once? • What surface form will the subsidence feature take? • Is there any way to predict when subsidence will occur and end? An attempt is made here to address these questions insofar as it is possible with available data and experience of evaluation of subcritical extraction conditions. Mining that results in subsidence features can be classified as supercritical, subcritical, and critical with respect to the minimum span lengths of the worked-out rooms (Fig. 1). A complete basin will not develop fully immediately over subcritical conditions because the span lengths of the entries are less than the critical dimension (Wardell, 1983). Passageways, entries, and room-and-pillar panels are all included in the subcritical category. Because of the short span lengths, subcritical mining conditions tend to be stable over the life of the mine unless adverse geologic conditions exist (Gray et al., 1974; Dunrud, 1976). Various roof control and support procedures are employed to maintain entry stability during mining. Little information exists concerning the time factor of subsidence over areas of subcritical extraction. Data that have been collected relate to longwall mines, whereby the cavity sizes are designed large enough to induce caving behind the working faces so that complete subsidence at the surface occurs within a short period of time. The UK's National Coal Board (1975) has reduced the enormous amount of data it has collected to empirical correlations and has published these correlations in its Subsidence Engineers Handbook. The handbook states that "None of the foregoing remarks applies to pillar and stall working," with respect to the section discussing the time factor of subsidence caused by longwall mining (National Coal Board, 1975, p. 40). To understand and evaluate how time relates to subsidence above room-and-pillar mines, one must first recognize how mine cavities deteriorate and fail. The propagation of failure to the surface must then be studied, and, finally, the failures that are manifest at the surface in the form of depressions accompanied by both compressional and tensional movements must be investigated. Failure of mine cavities Any cavity beneath the earth's surface represents a condition of nonequilibrium and tends to close with time. Failure of cavities in a subcritical mine can be classified as failure of the roof, failure of the floor, failure of the supports (pillars, cribs), and elastic rebound of the rock. One mode of failure may dominate, but generally combinations of the four will occur. Also, initial instability of geologic materials and structural features and in situ stress may be unknown factors that can contribute to cavity failure. Roof failure is the most obvious opening stability problem in most operating mines. The bridging capabilities of the roof rock are dependent on the rock's material strength, geologic discontinuities, and reaction to humidity changes in the air of the mine. This type of failure may vary in magnitude from gradual flaking to massive roof falls. Mine floor instability can be manifest in the form of a general heave over a broad area or of individual pillar punching. The weaker and thicker the immediate floor material, the more prone a mine is to experience floor problems. Water seeping into an area can soften the underclay, reduce its bearing capacity, and precipitate failure of support for the overburden.

Jan 1, 1987

By J. W. Bawden, J. Nantel

"The mine operator has two prime objectives when he operates a mine: (l) the mine must be safe, and (2) the mine must operate with the lowest possible costs. The operator constantly faces a dilemma; if he is over cautious with regard to safety, his costs may be very high, and if he is over-zealous in trying to reduce costs, the safety of his operation may be jeopardized.Modern bulk mining methods rely heavily on high productivity non-entry stoping techniques (e.g. open stoping, VCR, etc.). Such techniques have the advantage of removing the operator from the active and sometimes dangerous mining face and ofminimizing costly development. On the other hand, this generally results in a certain loss of flexibility in following irregular ore-waste contacts. If stopes are opened too large and/or are inadequately supported, severe dilution with resulting escalating costs usually results. If initial access drift support is inadequate for latter mine induced stresses high rehabilitation costs may also be incurred.Optimization of stope dimensions should logically occur as part of a general mine rock engineering program, within the over-all mine planning context. The same program should help highlight those areas where drift rehabilitation may be a problem.Whenever successful mining is performed, rock engineering is being applied, either by design or by chance. The cost implications of planned practical rock engineering as an integral part of mine planning and design can be very significant to the ultimate mining ""bottom line"". At Noranda Minerals Inc. allowable stope dimensions are derived using a combination of numerical stress analysis and empirical design techniques. This paper discusses the use of the above techniques and their limitations as tools for rock mechanics based stope dimension optimization. The potential cost implications of such design efforts within the general mine planning context are also addressed."

Jan 1, 1989

By Jorge Ganoza

Algunos concentrados de plomo contienen contaminantes que afectan la comercialización del concentrado de cobre debido a aspectos ambientales, así como la calidad del producto final. En ese sentido, el presente texto busca la forma de minimizar la presencia del plomo y de bismuto en el concentrado de cobre, a través de la flotaciónpor chalcopirita. De otro lado, dado que el plomo y bismuto son elementos que tienen similar comportamiento durante la flotación, es factible aislar los minerales de plomo y bismuto.

Nov 1, 2012

Discussion of the paper of Herbert F.. Miller, Jr., presented at the New York meeting, February, 1913, and printed in Bulletin No. 75, March, 1913, pp. 409 to 413. HENRY D. HIBBARD, Plainfield, N. J.:-Looking at the illustrations, it seems to me that a furnace made with the width of port that is shown here would not be a good working furnace. The economy of brick and gas might be all right, but I do not think it would melt the steel properly. I should say that the flame would not spread out suitably to fill the whole hearth of the furnace, and there would be undue waste, and it seems to me that it would be an undesirable furnace to adopt. The question as to whether a producer-gas flame would lie down in the furnace, hugging the bottom better than the natural-gas flame, is settled, not so much by the specific gravity of the gases themselves, as by the relative temperatures at which they enter the laboratory of the furnace. We know in that case that producer gas would be lighter than a natural gas which had not been run through a regenerator and expanded four or five volumes in consequence. I would like to hear what Mr. Miller has to say about the action of the flame spreading properly over the charge to give good metallurgical results in the form of furnace which he presents.

Jan 5, 1913

ROBERT PEELE, New York, N. Y. (written discussion *).-This excellent paper is one of a number of recent detailed descriptions of the, methods and plant in use at prominent mines of the country. The publication of such papers cannot be too highly praised. In the past, the interchange of inside information has often been hampered by the disinclination of some mining companies to permit publication of details of their work. These companies apparently have not realized fully that free discussion is of mutual benefit; that members of mine staffs are aided in. keeping up to date, in improving old methods and devising new ones to meet changes in conditions, and, by a wholesome feeling of rivalry, are stimulated to introduce economies and do better work. In writing this paper, Messrs. Haight and Tillson have packed a large amount of information into a relatively small space, and the numerous illustrations, chiefly reductions of working drawings, are valuable. The authors are also to be commended for their highly detailed Table of Contents, which adds to the usefulness of the, subject matter. The method of mining at Franklin does not fall readily into any of the accepted classifications. It is a combination of shrinkage stoping and mining of the pillars by a modified top-slicing method. Attention may be called to the fact that, in the wider parts of the orebody, the stopes, 17 to 18 ft. (5.2 to 5.5 m.) wide are transverse; in the narrower parts, they are longitudinal, that is, in the direction of the' strike. This varia-tion is made necessary by the shape and character of the deposit, and distinguishes practice at Franklin from that in some of the western mines. The direction of the stops is changed from transverse to longitudinal when the orebody narrows sufficiently to make the length of a transverse stope approximately equal to its width. Some of the longitudinal stopes exceed 120 ft. (36 m.) in length, and when the hanging wall is bad, requiring prompt filling, three operations' proceed simul-taneously in the same stope, viz., ore is broken at one end, while drawing down goes on in the middle, and filling at the other end. Each transverse stope or chamber is begun by a crosscut from foot to hanging wall, which is afterward enlarged to the stone width and to a height of 12 or 15 ft. (3.7 or 4.6 m.). This preliminary work is done only once for each stope, because the stope is carried up far enough to continue stoping

Jan 1, 1918

By Matthew S. Sanchez, Richard J. Lee, Matthew D. Zock, Drew R. Van Orden, Yumi Kamiya, Edward B. Ilgren

In many developing countries, asbestos is still used for friction products, insulation, and asbestoscement products. However, there is very limited modern data evaluating the airborne concentrations of asbestos fibers in operating asbestos plants. We have conducted an Industrial Hygiene survey, using state of the art PCM and TEM analysis, of a Bolivian asbestos cement plant that uses crocidolite during the production of roofing shingles and water tanks. The study is the first to use modern analytical measurements in an uncontrolled asbestos environment. Thus, this study offers insight into the historical airborne exposures at asbestos plants operating before modern dust control measures were introduced or airborne fiber levels regulated. The results suggest that fiber concentrations are far in excess of those for which current models would predict the onset of asbestos disease and mesothelioma. Significantly, the plant and community do not have an elevated incidence of asbestos disease or mesothelioma. Airborne fiber levels during comminution and fiber sizing ranged from 100 to as much as 1,000 f/cc. Fiber levels in the mixing, forming and finishing areas ranged from 0.5 to 9 f/cc. Based on the number of overloaded samples and estimates of their concentration, historical estimates of exposure may be underestimated by an order of magnitude. Also, an excellent correlation (1:1) between the PCM and TEM fiber concentrations (for fibers _0.25 um diameter) were obtained, raising questions about the conventional wisdom that the PCM systematically undercounts fibers. The results of this study further indicate that current models may overestimate the risk of asbestos disease and mesothelioma.

Jan 1, 2012

By M. C. Leverett

The behavior of mixtures of immiscible liquids in porous solids is of rapidly increasing interest to those engaged in the production of petroleum. The operation of artificial water-floods and the control of natural ones immediately raise questions concerning the fundamental nature of such processes. Moreover, it is now recognized that often water occurs dispersed throughout the rock from which the oil issues into the well,' and thus tends to move toward the well simultaneously with the oil. The work reported here is a laboratory investigation of the simultaneous, steady-state flow of oil and water through the same column of uncon-solidated sand. It is thus directly related to the situation in which water occurs in oil-producing sands; it may have less direct implications for the displacement of oil from sands by water. However, it is to be clearly understood that the experiments to be described were performed primarily to obtain information of a more or less fundamental nature, and are not an attempt to reproduce, on laboratory scale, any part of an oil field. The dynamic behavior of a system in which oil and water are flowing simultaneously through sand is best described in terms of its "effective permeability" to either phase. For incompressible fluids flowing through a system of uniform cross section, the effective permeabilities to the two phases, in darcys, may be defined by the equations: Ko = PA6A [la] and Ku = Q [lb] In order to put the results obtained on a comparable basis for different sands, the effective permeabilities will be stated as fractions of the normal permeability of the sand; i.e., fractions of its permeability to a homogeneous fluid. Algebraically, these fractions are: KO' = Ko/K, and KWr = K,/X [2a] and [Zb]

Jan 1, 1939

By M. C. Leverett

The behavior of mixtures of immiscible liquids in porous solids is of rapidly increasing interest to those engaged in the production of petroleum. The operation of artificial water-floods and the control of natural ones immediately raise questions concerning the fundamental nature of such processes. Moreover, it is now recognized that often water occurs dispersed throughout the rock from which the oil issues into the well,' and thus tends to move toward the well simultaneously with the oil. The work reported here is a laboratory investigation of the simultaneous, steady-state flow of oil and water through the same column of uncon-solidated sand. It is thus directly related to the situation in which water occurs in oil-producing sands; it may have less direct implications for the displacement of oil from sands by water. However, it is to be clearly understood that the experiments to be described were performed primarily to obtain information of a more or less fundamental nature, and are not an attempt to reproduce, on laboratory scale, any part of an oil field. The dynamic behavior of a system in which oil and water are flowing simultaneously through sand is best described in terms of its "effective permeability" to either phase. For incompressible fluids flowing through a system of uniform cross section, the effective permeabilities to the two phases, in darcys, may be defined by the equations: Ko = PA6A [la] and Ku = Q [lb] In order to put the results obtained on a comparable basis for different sands, the effective permeabilities will be stated as fractions of the normal permeability of the sand; i.e., fractions of its permeability to a homogeneous fluid. Algebraically, these fractions are: KO' = Ko/K, and KWr = K,/X [2a] and [Zb]

Jan 1, 1939

By Stanley F. French, Bruno F. Koch

Although the amount of dust that will be actually recovered in the six main dust-control systems cannot be accurately stated until the tests mentioned previously are carried out, it is estimated that the average air entering the wet collectors will contain around 5 grains of dust particles per cubic foot. This means that the six systems handling a total of about 133,000 cu.ft. of air per minute will return about 68 1/2 tons of dust to the concentrator per day and since the copper in this dust will average around 2 per cent, the total recovery is approximately 1.37 tons of copper every 24 hours. This important copper recovery is not due entirely to the dust-control system since in a plant without control only the duct that is dispersed to the atmosphere represents a loss. A conservative estimate of the recovery of copper solely due to the dust control system would be about half of the total or approximately 0.70 tons of copper per day.

Jan 1, 1942

By L. C. Raymond

Valuations in the mineral industry differ from those of other enterprises because mines and oil wells have a definitive life so cannot be considered a perpetuity. This requires that in any mineral-property evaluation the recovery of invested capital is necessary during the life of the property. Capital writeoffs for nonextractive industries are assumed to be continuously plowed back to sustain the operation and produce yields on the capital invested. The extractive or mineral industry, however, generally attempts to return to the investor both interest and principal during the life of a property. Normally this is done currently and the dividend includes both items. Where the mineral properly possesses large reserves and the life factor approximates a perpetuity, the return on investment is generally comparable to that of industrial stocks. The valuation of a mineral property, at best, is based on educated estimates and judgment factors. This is particularly true as it relates to estimating selling prices over a long term or assessing the quality of management. Also, it is possible to make various assumptions as to rapidity of working out the deposit, varying time for start-up of operations, varying earning rates, so as to obtain different results with the same basic facts. Thus it is not surprising that two engineers, irrespective of their abilities, may not agree exactly even when given the same facts, but their results should be close enough to be used in establishing a fair value for trading purposes. The valuation is no better than the source of basic data and the soundness of judgment factors. Fundamentally the basic principles of mineral valuation are similar for base metals, sulphur, oil, or any other mineral. Each mineral, however, requires an engineer to have a knowledge of such factors as its occurrence, distribution, mining and processing methods, and marketing problems in order to gather and analyze all the facts and data that have a bearing on the earning potential of the property. PRESENTVALUEOFAMINERALPROPERTY In essence the present value of a mineral property is a sum of money in today's dollars that future earnings from the property are worth. It differs

Jan 1, 1959

By L. C. Raymond

Valuations in the mineral industry differ from those of other enterprises because mines and oil wells have a definite life so cannot be considered a perpetuity. This requires that in any mineral-property evaluation the recovery of invested capital is necessary during the life of the property. Capital writeoffs for nonextractive industries are assumed to be continuously plowed back to sustain the operation and produce yields on the capital invested. The extractive or mineral industry, however, generally attempts to return to the investor both interest and principal during the life of a property. Normally this is done currently and the dividend includes both items. Where the mineral properly possesses large reserves and the life factor approximates a perpetuity, the return on investment is generally comparable to that of industrial stocks. The valuation of a mineral property, at best, is based on educated estimates and judgment factors. This is particularly true as it relates to estimating selling prices over a long term or assessing the quality of management. Also, it is possible to make various assumptions as to rapidity of working out the deposit, varying time for start-up of operations, varying earning rates, so as to obtain different results with the same basic facts. Thus it is not surprising that two engineers, irrespective of their abilities, may not agree exactly even when given the same facts, but their results should be close enough to be used in establishing a fair value for trading purposes. The valuation is no better than the source of basic data and the soundness of judgment factors. Fundamentally the basic principles of mineral valuation are similar for base metals, sulphur, oil, or any other mineral. Each mineral, however, requires an engineer to have a knowledge of such factors as its occurrence, distribution, mining and processing methods, and marketing problems in order to gather and analyze all the facts and data that have a bearing on the earning potential of the property. PRESENT VALUE OF A MINERAL PROPERTY In essence the present value of a mineral property is a sum of money in today's dollars that future earnings from the property are worth. It differs

Jan 1, 1964