Search Documents

By LOWELL LAWRENCE

MAGNETITE minim and milling in the Eastern States continued at a low rate of production during 1934. The year's output was 50 per cent greater than in 1933, but when one considers that the 1934 output was only 1.5 per cent of the combined plant capacities of the eastern iron ore producers, the far-reaching effect of unrestricted importation of foreign ores and pig iron is apparent. The Chateaugay Ore and Iron Co., at Lyon Mountain, N. Y., produced 1.00,136 gross tons of concentrated and sintered ore up to Nov.1, when operations were closed clown. At Mineville, the Witherbee, Sherman Corp. confined its productivity to part-time operation of its Old Bed and Harmony mines front May 1 Lo Oct. 27. This period of activity was brought about by the use of Mineville ores in the recent blast made by the Green Island furnace at Troy, N. Y. The Forest of Dean property at Fort Montgomery, N, Y., has continued closed down during the year.

Jan 1, 1935

By John Greenawalt

IN view of the increasing importance of sintering in the beneficiation of iron ores preparatory to their reduction in the blast furnace, the writer believes the time is opportune for an up-to-date, though brief, discussion of the general principles of sintering, as well as a discussion of some of the recent improvements and mechanical developments that have been achieved in this industry, its present trend and future possibilities. Sintering may be defined as the agglomeration of fine mineral particles into a porous mass by incipient fusion caused by heat produced by com-bustion within the mass itself. Its first successful application, in connec-tion with the treatment of lead sulphide ores, was known as blast roasting. In this process the lead ore was given a preliminary roasting in a reverber-atory furnace, then the incandescent mass was placed in a pot with a grate and an updraft was applied. It was soon discovered that much better results were obtained by cooling the ore, moistening it, and placing it upon an incandescent layer of fuel previously placed upon a grate, and then applying the updraft blast of air until the charge was converted into a more or less agglomerated mass. The fuel was sulphur and the process one of desulphurization, which was the principal result desired. The application of downdraft to blast roasting brought about tremen-dous results; the principal one of which was that an air blast of high pressure could be passed through a layer of ore deposited on a grate, or on a grate covered by a layer of coarse porous material, without disturbing the particles of which the layer is composed. The air current is compelled to filter through the pores of the charge, whereas if the same pressure applied to the top surface of the charge with downdraft were applied to the bottom of the charge with updraft, the charge would be completely blown off the grate. Another result of reversing the draft was that a flame could readily be applied to the top surface of the charge for ignit-ing purposes.

Jan 1, 1938

By C. W. EICHRODT

NUMEROUS requests for the suspension of publicity make difficult the preparation of the annual review of copper metallurgy for 1934. In the United States, sales allocations indirectly have set restrictions on the scope of activities of producers and refiners, and necessitated closer cooperation between secondary and primary producers. However, the feeling exists that preparations for a return of intense competition should not he neglected, and careful investigations are being conducted for ways and means of improving industrial positions and production methods. In all probability, efficiency in technique and equipment will prove of far greater importance in the near future than production capacity, and many important developments in copper metallurgy later will be found to have been born during the current year.

Jan 1, 1935

G. M. TAYLOR,* Colorado Springs, Co1o.-I do not think the plan outlined in this paper would work at Cripple Creek. Most of our men have had a pretty good education. The Cripple Creek district is a lessee district-I do not think there is one mine operating in Cripple Creek to-day that does not have the leasing system. We have as many men leasing on our property as we have mining and every plan who is working for wages is looking for n lease-everyman has mined for him- self, he has been his on7n boss on n lease, either on our own property or

Jan 1, 1919

By JAMES H. McGRAW

P UBLZCLTY and engineers do not mix. In the very words of my subject, there is an apparent contradiction. In the past, publicity has been abhorrent to the engineer. It seems to be true that the engineer, because of his training or his background, has developed a state of mind which omits publicity. At any rate he has done a poor publicity job for himself. The average engineer is self-conscious; he ought to be class-conscious. If T should ask the men in this hall to get up one by one and tell who they are and what they have done, there would be an instinctive reaction in the mind of each man-a feeling that this was out of place. If I should ask each man to get up and tell something about his neighbor, I should find that each neighbor, once he got acquainted with the man next to him and understood what he was doing, would be as human and as generous-hearted in telling about his brother engineer as is any professional man.

Jan 1, 1920

By W. McA. Johnson

The work of J. E. Johnson, Jr., on the effect of small amounts of oxygen in cast iron in increasing its strength and resistance to shock, is of interest from the technical and scientific standpoints. The following exposition of the theory carries Mr. Johnson's explanation further and, in my opinion, will disclose certain related phenomena and perhaps shed further light on the subject. Some facts, so novel in character as to excite incredulity, have been accepted finally by many metallurgical authorities. One of these is that oxygen to the amount of 0.060 per cent. in cast iron gives it a breaking strength of 3,500 Ib. per square inch, compared with a breaking strength of 2,500 lb. per square inch in cast iron of the same composition with respect to elements other than oxygen, but having only 0.010 per cent, oxygen. The "oxygenated" cast iron, even if made in a coke furnace, has properties equivalent to the best charcoal pig iron. Mr. Johnson has also established the fact that the variations in combined carbon cannot account for the results. By microphotographic evidence he has shown that in oxygenated cast iron the graphite particles are dense and spherical, while in well-deoxidized cast iron the graphite particles are flaky and leaf-like. It is just a matter of common sense that iron of the latter structure is much weaker than the former. The analytical and microscopical work has been done with care and there is no doubt in my mind about the accuracy of the experimental results. In this paper then, we shall consider it as accepted that small amounts (0.060 per cent.) of oxygen increase the strength of cast iron by producing a structure in which the round and solid particles of graphite are surrounded firmly by a principal matrix of ferrite. The purpose of this paper is to show that the reason why the graphite particles are round is founded on the fact that the particles of any precipitate are made denser and harder by the presence of a reagent having a solvent action on the precipitate. This can be stated as a law, although I have never seen it so given in any textbook. Let us then, for purposes of illustration, give a concrete example and develop the theory of such mechanical and chemical actions as occur: It is well known that, by a soluble sulphate, a barium salt in solution is precipitated in a dense and easily filtered body when the solution is

Jan 1, 1916

Frank H. Probert, A.R.S.M., Morenci, Arizona (communication to the Secretary): The management of mines and the system of bookkeeping employed are subjects of great interest to mine-superintendents, and such papers as that of Mr. Davis callnot fail to attract attention. The Institution of Mining and Metallurgy, London, England, has done much within the last three years to promote discussion on the many systems adopted throughout the mining world; and any papers giving individual experience will benefit that class of men who are charged with the cconomical management of mining properties. It is often said that " a good mine shows a good manager," and more often that mismanagement is the chief cause of poor returns; or, as Mr. A. G. Charleton puts it, in his able paper on " Mining Accounts and Cost-Sheets,"* " accident may, and often

Jan 1, 1902

By W. S. Ayres

BACK in the early nineties the old Dickerson iron mine in Morris county, N. J., was operated by a vertical shaft 850 ft. deep and by a continuing slope for more than 1000 ft. more 011 an incline of 65", together making the vertical depth about 1800 ft. I was then the general superintendent there. This mine, named for a former governor of New Jersey, had been worked more or less continuously from long before the American Revolution and up to this particular time. The pumping equipment was of the old-time Cornish type, with its long pump-rods running down the vertical shaft and the slope to the sump at its bottom. It was operated by a large flywheel engine in the engine room and all angles were turned by the usual bobs. Saturday was the day fixed for lowering the "suction" into the deepened sump at the bottom of the advancing slope. The mine foreman had gone down with the morning shift to superintend this very vital and particular work, which consisted not only of lowering the "suction" into the sump immediately after the pump had been stopped, but of securing it to the rock and putting in the added sections of column-pipe and of tightening up the numerous bolts at their joints, all before the water rose to the point of working. At an appointed time during the forenoon I had agreed to go down into the mine and join the mine foreman in consultation over any difficulties that might have arisen. At the time agreed I went down by the cage to the bottom of the vertical 850-ft. shaft, and then by ladders down the slope for over 1000 ft. more.

Jan 1, 1930

By L. F. Mondolfo

An investigation of the relationship between properties of the elements and type of binary diagram formed was conducted. It was found that, for each type of equilibrium diagram, the factors for the size, valence, electronegativity, period, melting point, entropies of fusion, and sublimation calculated for each pair of elements cover a range of values. However, these factors show sufficient relationship to the equilibrium diagram so that the correlation of several of them can be used to predict the type of diagram formed, or at least limit the choice to only a few types. ThE goal of the metallurgist concerned with alloy development has always been to find a method that predicts the properties that can be obtained when a certain metal is added to another one. In most cases a qualitative predictiton of properties can be made if the equilibrium diagram is known. However, this means that for new metals the alloy development has to start with the experimental determination of the equilibrium diagrams. Because this determination is at least as complicated and time-consuming as the determination of the properties themselves, most alloy development has taken place by trial and error, and the study of the equilibrium diagrams has followed rather than preceded the creation of new alloys. Alloy structures and properties depend on the interaction between electrons and a complete knowledge of these interactions would permit prediction of structure and properties of alloys. Unfortunately direct measurement of these interactions is extremely difficult and somewhat doubtful and only properties that depend on them can be measured easily and with certainty. Study of the relationship between properties of the elements and equilibrium diagrams is not new. Besides the well known Hume-Rothery rule of the necessity of an atomic diameter fit within 15 pct for extensive miscibility in the solid, and the wide knowledge of the effect of such factors as size, electronegativity, electron-atom ratio on solid state features,"' work relating to liquid state and liquid-solid reactions can be found in the literature. Of particular interest is the work by Axon,3 who investigated the effect of size and melting point on a selected number of eutectic and monotectic dia-

Jan 1, 1962

By J. P. Morgan, J. R. Dawson

A review of Jones & Laughlin's Vesta coal preparation plant flowsheet in 1959 indicated that, of the three sizes making up the company's metallurgical product, the -48-mesh fraction offered the greatest potential for improvement. Efforts to improve quality and yield were directed toward the use of froth flotation. After laboratory and plant tests were completed, it was decided that treatment of the entire -@-mesh fraction of the coal mix by flotation was a significant step forward in providing better coal quality and recovery. Reduction of ash in the metallurgical coal from 6.75 to 6.25% provided material savings at the coal washer, coke plant and blast furnace. The Vesta preparation plant of the Jones & Laughlin Steel Corp. is located on the Monongahela River, eight miles south of Brownsville, Pa. This plant is capable of cleaning 2400 tph of a mixture of Pittsburgh seam high volatile coals from the Vesta and Shannopin mines to produce a metallurgical coal of 6.75% ash and a steam coal containing 14% ash. Heavy media vessels are utilized to upgrade the coarse coal while launders and tables handle the -1/4-in. fraction of the raw coal feed. Cleaned -1/4-in. coal goes to boot classifiers where the 48 mesh material settles and is removed by bucket elevators. This 1/4x48 mesh material is then sent to centrifugal dryers for dewatering. As designed, the -48 mesh fraction overflows the boot as a 7 to 8% solids slurry and is recovered by cyclones and a thickener and then dewatered by filtration. The products of the heavy media circuit, the launder-table-boot-dryer circuit and the cyclone-thickener-filter circuit, are combined to constitute the shipped metallurgical coal. The Vesta-Shannopin mix is combined at Jones & Laughlin's Pittsburgh and Aliquippa Works with purchased low and medium volatile coals for the production of metallurgical coke. A review of the preparation plant flowsheet in 1959 indicated that of the three sizes making up the metallurgical product, the -48-mesh fraction, containing 16.7% ash, offered the greatest potential for improvement of coal quality. This fraction was considered low, averaging 55%, while the rejects averaged only 33% ash. It was evident that while the boot overflow fraction represented only 6% of the product mix, a reduction in ash to 6 or 7% would reduce the ash of the metallurgical coal by 0.5%. The original plant flowsheet handling the boot overflow (Fig. 1) consisted of ten 14-in. cyclones treating 70% of the overflow and producing a 48x150-mesh underflow and a -150-mesh overflow. The cyclone overflow was combined with the remaining 30% of the boot overflow to constitute the feed to a 150-ft thickener. The cyclone underflow and the 48x325-mesh thickener underflow were fed to vacuum disk filters for dewatering prior to combination with the coarse metallurgical coal. The thickener overflow stream containing the -325-mesh material was split, 40% being recycled directly to the plant water system and 60% being flocculated and clarified in an 85-ft thickener. The underflow of this thickener was pumped to waste. Efforts to improve quality and yield on the -48-mesh coal were directed toward the use of froth flotation early in the investigation. A review of the fine coal flowsheet indicated that three streams should be considered for treatment by froth flotation. These were the -325-mesh thickener overflow, the -150-mesh cyclone overflow and the -48-mesh boot overflow. Flotation of the thickener overflow was considered basically to improve recovery by upgrading the reject stream so that it could be fed to the filters along with the thickener and cyclone underflows. The overflow from the thickener contained 3.7% solids and had an ash analysis of 33%. Flotation of the cyclone overflow and boot overflow were considered to upgrade coal quality as well as yield. Treatment of the cyclone overflow, a 5.4% solids slurry averaging 27% ash, would eliminate the coal thickener and provide a feed of flotation concentrate and cyclone underflow to the filters. Treatment of the boot overflow would eliminate both the cyclones and thickener and feed only flotation concentrates to the filters. Flotation feed in this

Jan 1, 1962

By Joseph D. Weeks

Manganese has, until recently, been most highly esteemed as a good thing to keep out of steel. Its value in the process of mannfacture has been fully recognized, but after it has played its part in the crucible or the converter, then the less of it the better. It is true that the mission of this metal and its influence upon the character of steel has been a source of much controversy. Our own Holley, in one of his special reports on ferromanganese: I, states that ''it has been suspected by some, and believed by a few, while it is still denied by many, that manganese as an ingredient in steel has not only a body-giving and toughening influence, but a positive neutralizing influence upon any excess of hardening or cold-shortening substances, as phosphorus." In another paper on the same subject he states that " it should appear from such facts as we have that manganese toughens" the structural steels, "increases their soundness and prevents red-shortness." Notwithstanding these rather guarded assertions as to its value, the general belief, it will be found, is with Dr. Siemens, that manganese is " merely a cloak to hide impurities," and its presence in steel has been endured, not welcomed. But whatever may have been the difference in opinion as to the

Jan 1, 1885

By Clyde Williams

IF you would allow me some liberties, I would restate the title of this talk as "Scientific Research, Our Greatest Resource," because that title would represent more clearly a present-day conception of the metals and minerals situation. It is a subject worthy of careful consideration. Canada and the United States are so similar and interdependent in their national economies that, in the following discussion, examples of conditions in the United States may be interpreted to apply to Canada as well. Moreover, it is a striking fact that the per capita value of mineral production in Canada and the United States in 1940 was almost the same. Therefore, in the consideration of this subject, I have made no attempt to differentiate between the two countries. Consumption of the world's mineral resources in the last few decades. and particularly during World War II, has been so enormous as to require some form of magic to ensure the continued progress of civilization in the face of a diminishing supply of these resources which are so critically essential. As C. K. Leith pointed out, in 1941, indus-

Jan 1, 1947

By T. L. Johnston

MUCH has been said and written about deep mine shafts and deep drill holes as man in his search for mineral wealth digs deeper into the earth's crust. Each year some new extra depth is heralded as a record, but with unlimited possibilities of going still deeper. In contrast to "digging deep," "mining high" is limited by the height of the mountains (Mt. Everest being the maximum with its 29,000-ft. elevation) and also by the extent of human endurance. An ex- ample of what might be called near- stratosphere mining in what is probably the highest mine worked by compressed air in the world is seen in a recent project in the Andes mountains of southwestern Bolivia.

Jan 1, 1939

By R. A. Corley, W. R. Wilcox, J. R. Teviotdale

Chemical vapor deposition of hafnium carbide yielded whiskers, needles, dendrites, faceted crystals, and adherent coatings. The gas stream compositiom and the mass transfer conditions determined the habit of the deposit. The deposits were obtained at temperatures ranging from 1100" to 1800°C. HAFNIUM carbide has the highest melting point of any binary compound; therefore, its various potential applications are a subject of vital interest to the aerospace industry. The experiments described herein were performed to investigate the chemical vapor deposition of hafnium carbide with particular interest being placed upon the possible production of high-strength single-crystal whiskers for composite materials. In 1931 Moers 1 used a gaseous mixture of HfC14, Hz, and toluene to vapor deposit crystalline hafnium carbide on a tungsten filament heated to 2400°to 2800°C. More recently Lepie 2 deposited hafnium carbide on graphite using HfC14 and methane in a helium gas carrier. The pyrolytic depositions described here were accomplished in graphite tubes by using various gas mixtures and dopants. The resulting crystal habits included whiskers, needles, needle dendrites, bulbous dendrites, faceted crystals, and smooth, adherent poly-crystalline layers. EXPERIMENTAL The depositions were carried out in an induction-heated graphite tube, 1.2 cm ID, which was contained in a vertical 9-cm-ID quartz tube. (A more detailed account of the experimental procedures and results is given in Ref. 3.) Refractory oxide fiber and tubes and graphite felt were utilized jointly and singly for therma1 insulation. A typical temperature distribution is shown in Fig. 1. The reactant gases were introduced at the top and removed at the bottom of the tube. Table I summarizes the experimental conditions and results. Many deposition habits were obtained. X-ray analyses showed that they possessed the hafnium carbide structure. Almost invariably these formed well above the point of maximum temperature in the graphite tube. The habit depended strongly on the gas composition. In a series of runs (e.g., run A) using HfC14 and toluene in H 2, hafnium carbide coatings, Fig. 2, were reproducibly obtained at the position where the tube wall was 1400°C, and bulbous dendrites, Fig. 3, were

Jan 1, 1969

By H. W. Hardinge

DISREGARDING for the present the economic side of a new device, let us turn to that feature of the conical pebble-mill which is of interest from a scientific point of view, and consider the device as a puzzle in which the theories of the cylindrical type of mill have been increased. Many articles have been written on the theory of the tube-mill, and explanations have been made which do not explain.; but these have evolved suggestions of practice which have resulted in changes in the tube as to length, diameter, feed, discharge, speed of rotation, rotation on hollow trunnions, rotation on rings, and changes in the operation as to quantity and size of pebbles, charge of load above or below the axis, crushing by causing the larger pieces of the material of the charge to act as grinders, etc. The practical worker in crushing is first interested in the endeavor to reach an economic means of accomplishing a desired end; but the improvements in crushing-practice have been largely left to the manufacturer of machinery, who, as a rule, has little, if any, knowledge of the specific requirements-such as sizing for concentration without pulverizing the metals, instead of pulverizing the rock or gangue; the metals being the more friable, while the rock is tough and not so easily disintegrated. A reversal of this practice is the aim of sliming direct for cyanidation. In the ordinary cylindrical mill, having a diameter of 4 or 5 ft. and a length of from 15 to 27 ft., it has been found that the maximum size of the particles of the charge must not exceed 1 mm. (about 25 mesh), some of which, upon entering the mill, is immediately reduced to a slime. The work upon the individual particle having been finished, it should be passed out of the mill; but, instead of this, the finely comminuted material

Jan 7, 1908

By Gerard C. Gambs

The electric utility industry is the largest customer of the U.S. coal industry, consuming nearly 50% of present coal production. By 1980, the electric utilities are expected to burn over 500 million tpy of coal or 75% of total coal production. When coal is burned in electric utility plants, ash is produced in one of several forms. These include fly ash, bottom ash and bottom slag. At the present time, approximately 20 million tons of these ashes are produced and must be disposed of by the utilities at a cost of 50[c] to $2 per ton. In 15 years, more than double this quantity will be produced. Only a small quantity of this ash is put to any practical use. Much remains to be done about expanding uses for fly ash and bottom slag.

Jan 1, 1967

By F. R. Milliken

EXPERIMENTS, in what has come to be known as flash roasting began some ten years ago. The principle underlying the operation was not a new one, but the experimental work started at that time was the first that was carried through to a logical conclusion, followed by construction and operation of a pilot plant, and then full-scale production. For a short working definition, flash roasting may he considered the instantaneous and complete oxidation of finely ground sulphide particles, partially suspended in air or gas, the oxidation reaction evolving enough heat to make the reaction self-sustaining, or nearly so.

Jan 1, 1937

By R. F. Miller

DUE to wartime secrecy restrictions a large part of the technical information developed by government and industrial laboratories was withheld from distribution. Much of this information has now been released or "declassified" and reports of technical work carried out during the war in allied and enemy countries are also becoming available. Information on the latter subject has been augmented by the work of the Technical Industrial Intelligence Corps of the U. S. Army. Through the Joint Chiefs of Staff, rep¬resentatives of this Corps co-operated with the British Combined Intelligence Observations Subcommittee, and some of the observations were made by combined personnel of both groups. The U. S. Government has undertaken the indexing and abstracting of all of this information in the Bibliography of Scientific and Industrial Reports, a weekly bulletin which appeared first early in 1946. Other publications, such as the Bulletin of the British Iron and Steel Institute and The Metals Review of the American Society for Metals, provide abstracts of domestic and foreign magazine articles and papers presented to technical societies. However, they do not cover the industrial and government reports recently released by the Government nor the reports of the Army investigators hence the new bibliography is a welcome addition to our metallurgical library.

Jan 1, 1947

By Donald A. Brobst

The minerals barite (BaSO4 barium sulfate) and witherite (BaCO3 barium carbonate) are the chief commercial sources of the element barium and its compounds whose many uses are nearly hidden among the technical complexities of modern industrial processes and products. Barite, the major ore mineral, is extremely vital to the petroleum industry which in 1973 consumed at least 80% of the world's produc¬tion of 4.4 million tons as a major ingredient of the heavy fluid, called mud, that is circulated in rotary drilling of oil and gas wells. The re¬maining 20% of the barite production was consumed chiefly in the manufacture of barium chemicals and glass and as a pigment, filler, and extender. Barite occurs throughout much of the world and is available from three major geologic types of deposits-vein and cavity fill¬ing, residual, and bedded-in sufficient quantity at competitive prices to meet current demands. The world's demand for barite is expected to increase, and geologic circumstances are favor¬able for the discovery of new deposits of com¬mercial value. Witherite is much less common and abun¬dant than barite, although it is more desirable in many ways as a raw material for the pro¬duction of barium chemicals. The United States has not produced witherite since about 1950; England is currently the chief producer of witherite. End Uses Most of the world's barite production since 1926 has been used as a weighting agent for the muds circulated in rotary drilling of oil and gas wells. The muds fundamentally are mixtures of water, clay, and barite in different proportions that vary according to local reservoir condi¬tions. Muds with a specific gravity as great as 2.5 are used. The mud is pumped down the hollow drill stem, passes through the bit at the bottom of the hole, and rises to the surface in the space between the drill stem and the wall of the hole. In the course of this circulation the drill bit is cooled, cuttings are removed, the drill stem is lubricated, the walls of the hole are sealed, and the hydrostatic head of the column of weighted fluid helps to confine high oil and gas pressures. The latter feature aids in prevention of gushers, thus reducing both environmental pollution and waste of oil and gas resources as well as conserving the natural reservoir pressure for greater production and rate of recovery of the products contained in the rocks. Barite is particularly well suited for drilling mud because it is clean, easy to handle, soft (nonabrasive), heavy, virtually inert chemi¬cally, and relatively inexpensive compared to many other available heavy materials. Barite is used in the manufacture of glass in continuous tanks. The addition of barite ho¬mogenizes the melt and gives greater brilliance and clarity to the finished glass. Ground barite, both unbleached and bleached by sulfuric acid, is a common industrial filler, extender, and weighting agent. The rubber in¬dustry is a major consumer of barite as a filler. Barite also is added to bristolboard, heavy printing paper, playing cards, rope finishes, brake linings, clutch facings, plastics, and li¬noleum, to name but a few uses. Bleached barite has long been an extender in white lead paint because of its weight. The low index of refraction of barite, however, makes its ability to cover marks poorer than some other sub¬stances, but its low capacity for absorption of oil is a good feature. Off-color or unbleached barite can be used as a filler in colored paints. In the construction industry, some lump barite is used in concrete aggregate to weight down pipelines buried in marshy areas and to shield nuclear reactors. Because barite absorbs gamma radiation well, its use reduces the amount of expensive lead shielding otherwise

Jan 1, 1975

By Roy C. Kirkman

Dear Editor: It is with great pleasure that I read Mr. Howard M. Wells article in the December 1978 issue of MINING ENGINEERING entitled: "Optimization of Mining Engineering Design in Mineral Valuation." Mr. Wells very adequately presents the case and point that there are a great number of variables which must be analyzed during an economic evaluation of an FUND RESOURCE, such as copper or uranium. I wish to take this opportunity to suggest that, given today's economic climate, decision making takes place under conditions of uncertainty and that this uncertainty justifies our need to examine each one of the parameters entered into the evaluation model. It is my contention that the influence of the tonnages and grades as well as their distributions, have the most profound effect upon the results of an evaluation. Everyone concerned with the evaluation of FUND RESOURCES realizes that as metal prices decline or stagnate with sharply rising direct operating costs, cutoff grades (Gc) must increase according to the equation below which Mr. Wells uses: Gc = Total Operating Cost/(Market Price X 20 X Recovery) However, historically, we have seen cutoffs move dramatically lower in both the copper and uranium industries for the past decade. Henceforth, this established the metals industry most important argument for processing greater tonnages of lower grade materials from disseminated deposits (refer to paper by Kirkman, Roy C.). These disseminated deposits, created by either concentration processes (uranium) or dispersion processes (copper, gold, molybdenum), have log-normal grade distributions (Fig 1). Gross profits are rising, but unit profits are falling. The industry has created longevity through economy of scale, i.e., mining vast tonnages of low grade. In order to develop the great tonnages necessary to prove economic viability, we must examine alternatives at the low-end of the tonnage grade relationship. Notice from [Fig. 2] that as we move further to the right away from line A-B drawn tangential to the average grade curve at 45°, total profits will increase (given fixed annual production capacity) and unit profits decrease. The theoretical optimum operating point is where: [ ] At this point my observation is that slight shifts in production capacity bring about greater changes in profitability due to greater grade changes. Therefore, the best financial risk evaluation is obtained by totally revising the mining engineers methods and fixing the financial parameters such as discount and interest rates. A 10% shift in either of these two parameters will not cause near the same variance in economic viability as will a change on the GRADE-TONNAGE curve [(Fig. 2)].

Jan 1, 1980