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By R. W. Raymond

Edward Cooper was born in New York City, Oct. 26, 1824. His father, Peter Cooper, to say nothing of manifold reasoils for fame as an inventor and philanthropist, deserves to be remembered as a pioneer in the establishment .of public schools ; and it is not surprising that. he sent his son to one of the democratic institutions in which he was himself so ardently interested. From the public school Edward Cooper went to Columbia College, where he made the acquaintance of Abram S. Hewitt, who was first his tutor, afterwards his traveling companion, brother-in-law, business partner and life-long friend.' For twenty years I was the consulting engineer of the firm of Cooper & Hewitt, and also connected with the work of the Cooper Union, in which they were both deeply interested and faithfully active. On the basis of the intimate knowledge thus gained, I venture an estimate of Edward Cooper's character and career which, if not fully comprehensive, may facilitate a juster estimate than would be reached by the student of those data which the modesty of the man permitted to be placed upon public record.

Jan 1, 1907

By C. T. Young, J. L. Lytton

In recent investigations,1,2 the strength and thermal stability of dislocation substructures prepared by 5 to 25 pct room temperature tensile straining and recovery annealing at 120°, 160°, and 200°C have been studied in randomly oriented polycrystalline high purity aluminum. The techniques of transmission electron microscopy revealed that a major source of the strength and stability of dislocation substructures was the formation, during room temperature straining, of well-defined cells bounded by dislocation tangles which rearranged into nearly perfect dislocation networks during recovery, forming the boundaries of subgrains. The strength of such substructures increases with decreasing cell or subgrain size,2"6 and the formation of fine subgrain structures can provide thermally metastable strength at low temperatures and can favorably alter the course of primary creep at elevated temperatures.7'8 For maximum benefit, however, sub-grain growth should be reduced or eliminated. It was, therefore, decided to investigate the use of heterogeneous precipitation on dislocation networks as a means of imparting increased strength and thermal stability to subgrain structures through effective pinning. C.T. YOUNG, STUDENT MEMBER AIME, and J. L. LYTTON, Member

Jan 1, 1970

By Persifor Frazer

CONTENTS. PAGE 1. Committee House of Commons Report (1843).......521 2. Clark (1880).............521 3. Schröder and Schertel (1884).... . 521 4. Committee House of Lords Report (1887).......523 5. Vita (1890).............524 6. Irvine (1890-1)............524 i. Cramer (1891)............525 8. Bailey. Cohen. Tatham and Hartog (1891))......525 9. Morrison (1891)............525 10. Brunner (1891)............525 11. Bell (1892).............585 12. Oades (1892).............526 12a. Purcell (1892)............526 13. Sennett (1892)............526 14. Bulier (1892).............526 1.7. Wiesner (1892))...........526 16. Thomson (1892)............530 17. Fletcher (1892)............530 18. Committee Engineers' Club Report (1892).......530 19. Cohen and Hefford (1892)..........531 20. Discussion Soc. Chem. Ind. (1893). ..532 21. Reuss (1893).............532 22. Thomson (1894—5) ...........535 23. Clowes and Feilmann (1895). ...536 24. Callan (1895)...........536 2.5. Wright (1895)............536 25A. Mabery (1895)............536 26. Re- (1896). ..........536 27. Herman (1896)............ 537 28. Cohen and Russell (1896).......... 537 29. Dennstedt and A hrens (1896). ..537 30. Cohen (1897). ...........537 31. Drehschmidt (1897)........... 538 32. Pfeiffer (1898). .........538 33. Fritzche (1898)............ 540 34. Ost and Wehmer (1899)........... 540 35. Donkin (1899). .........541 36. Beilby (1899)............. 643 37. Berthelot (1900)............ 544

Jan 1, 1908

THOSE NOT MARKED ARE MEMBERS; MARKED THUS t ARE ASSOCIATES. HEAVY-FACED TYPE SIGNIFIES HONORARY MEMBERSHIP. JUNIOR MEMBERS ARE MARKED II. THE FIGURES AT THE END OF THE ADDRESS INDICATE THE YEAR OF ELECTION. AARONS, J. BOYD, Genl. Mgr., Chaffers G. M. Co., Boulder City, West. Australia. '05 ABADIE, EMILE R., Min. Engr Box 291, Porterville, Tulare Co., Cal. '76 ABBOTT, CLARENCE E., Genl. Supt., Iron Mines Div., 1405 Minnesota Ave., Bessemer, Ala. '04 ABBOTT, J. W., Min. Engr., "St. Omer," 123 N. Grand Ave., Los Angeles, Cal. '94 ABBOTT, Louis BENJAMIN, Chief Engr., Consolidation Coal Co., Elkhorn Div., Jenkins, Ky. '15 ABBOTT, ROBERT R., Met. Engr., Peerless Motor Car Co., Cleveland, Ohio. '12 ABE, ASAKA Yamagano G. M., Satsuma-Gori, Satsuma, Japan. '14 || ABRAHAMS, A. I., Student 1391 Madison Ave., New York, N. Y. '14 tACKER, E. O'C., Met Bethlehem Steel Co., Bethlehem, Pa. '86 ACKER, Louis K., JR., Min. Engr 565 Highland Place, Bellevue, Pa. '08

Jan 1, 1917

By HENRY M. PARKS

THE total production of all metals in Oregon to date is estimated at $160,000,000; ~115,000,000 from eastern Oregon and $45,000,000 from the western part of the state. In 1916 the metal production of the state was approximately $4,000,000, while the present annual production has dwindled to a little less than $1,000,000. Western Oregon The state of Oregon contains several metal-bearing areas, widely scattered in different regions. More than half of its coast is fringed with a belt of auriferous sands which sometimes are rich in fine gold. A second mining field, the chief producing one of western Oregon, is situated in the southwestern part of the, state and includes Jackson, Josephine, Douglas, Coos and Curry counties. It may be considered as the northern extension of the gold and copper belt of California. A third region in western Oregon is that on the western slope of the great Cascade range in the Bohemia, Blue River, Quartzville, North Santiam and Ogle Creek districts-from the Siskiyous on the south almost to the base of Mt. Hood near the Columbia River on the north.

Jan 1, 1925

By M. W. BERNEWITZ

IT is 27 years since I last visited Broken Hill, New South Wales, one of the world's greatest lead-silver-zinc districts. Then, the flota¬tion of ores was in its infancy. The Minerals Separation process had its birth as a practicability in the Central Mill, which is still operating and yielding high recoveries. The average Australian knows that Broken Hill is an important mining center in a "corner" of New South Wales, but he does not know what a factor it is in the lead, silver, and zinc production of the world. Nor does he realize that among the ramifications arising from metal production at Broken Hill are the great lead smelter at Port Pirie, South Australia, 254 miles southeast; the electrolytic zinc works at Risdon, and the limestone mine at Davenport, Tasmania; the acid works at Cockle Creek, New

Jan 1, 1935

By F. C. NINNIS

AT THE Belmont mill, the pregnant solution is de¬livered to a 30 by 10-ft. tank, from which it is pumped to three Merrill clarifying presses of the sluice-bar type, whence it flows through the meter to the precipitation supply tank. ?The solution for precipitation is pumped by a 10 by 10-in. Aldrich triplex pump and delivered through a 6-in. line to the forty-eight triangular frame Merrill presses at the head of the mill. Zinc dust is fed in at the pump suction and the solution precipitated to 0.01 to 0.02 oz. silver. The solution flowing from the presses is tested at 1-hr. intervals with sodium sulfide. All solution is precipitated to the same value; 4J tons of solution are precipitated for each ton of ore treated and the presses are cleaned every 15 days. The product from the presses' is dumped into steel cars having steam-jacketed bottoms, in which they are dried until the moisture content is between 15 and 17 per cent. when 8. per cent. of soda and .3 per cent. of borax are added and the contents thoroughly mixed. In the case of special clean-ups, the precipitate is tested and the flux is added to meet the requirements.

Jan 1, 1921

By G. A. Vissac

MOISTURE in coal must be considered as an impurity, just the same as ash, from the standpoint of utilization of the coal. Being incombustible, it reduces directly the heating value of the coal, and in addition absorbs heat for its evaporation. Its presence means useless expenditures in handling and transportation. In coke plants, extra moisture reduces capacity and may cause damage to brick work and equipment. Accordingly, the removal of extra moisture can be considered just as important as the removal of other impurities, such as ashes, in the modern coal preparation plant. Moisture, which can be removed by heating the coal up to a temperature of 100°C, may be retained in various forms: 1. As a film, on the surface of each coal particle, and in the interstices between particles, retained by capillary forces. 2. Or "occluded" inside the coal particles. This occluded moisture may be either free moisture (as in a sponge), or hygroscopic moisture which varies with atmospheric conditions, (also called "regain").

Jan 1, 1949

By Gordon MacVean

THE adoption of rock dusting, as a safety measure, has made notable progress in the West Virginia coal mines since May, 1925. At that time there were but two mines in the State that were thoroughly rock dusted, mines No. 2 and No. 12 of the Boone County Coal Corp., at Sharpless. Since then it is probable that 75 per cent of the coal operators in the State have given consideration at one time or another to rock dusting. This growth of interest followed the meetings of the various mining institutes all over the country, during the summer of 1925, at which papers were presented, drawing the attention of the coal mining operators to the merits of this safety measure. Yet outside of the experience with rock dusting at the Old Ben Coal Corp., of Southern Illinois, and the Carbon Fuel Co., of Rains, Utah, there had been no actual occurrence in the coal mines of the United States, which could be taken as positive evidence of the efficacy of rock dusting in the prevention of the propagation of coal dust explosions. The U. S. Bureau of Mines, however, had run innumerable tests under conditions which closely approximated actual coal mining conditions and had clearly shown that rock dusting was effective.

Jan 1, 1926

By Robert B Sosman

The relative temperature distribution within a coke oven and among the ovens in a battery can be obtained automatically for the operator's guidance by sighting a total-radiation pyrometer on the face of the coke as it is pushed out, and recording the surface temperature. Keeping the instrument clean and keeping its view of the coke unobstructed by smoke and dust are the principal problems. Typical records from three plants are presented in this paper, showing that the temperature patterns are reproducible. Development OF Method The method of coke pyrometry described in this paper was introduced in 1936 by E. A. Lee, then Assistant Superintendent, now Superintendent, of the Coke Plant at Lorain Works, National Tube Co., Lorain, Ohio. At the request of the Coke Committee of the United States Steel Corporation, the Research Laboratory of the Corporation undertook to adapt the method to the somewhat different conditions met with at the Gary Works of the Carnegie-Illinois Steel Corporation, Gary, Ind., and at the Clairton Works of the same Corporation at Clairton, Pa. This work was done in cooperation with the Leeds and Northrup Co. of Philadelphia and later with the Brown Instrument Co. Division of Minneapolis-Honeywell Regulator Co., Philadelphia. We of the Research Laboratory wish to express our appreci- ation of the courtesies extended by Mr. Lee, by A. N. Cole, Superintendent of the Gary coke plant, and by D. P. Finney, Assistant General Superintendent in charge of coke-plant operations at Clairton. We are also indebted to the instrument companies for the loan of a part of the equipment. At Gary and Clairton the instruments were installed and various experiments were made by J. W. Bain, of the Research Laboratory of the United States Steel Corporation. Pyrometry of Coke The coke inside a by-product oven is almost completely inaccessible to pyro-metric instruments. The temperature in the walls can conceivably be measured with thermocouples, but the atmosphere is usually strongly reducing, a condition well known to be destructive to the accuracy of the customary high-temperature couples. In some plants, periodic readings are taken with an optical pyrometer sighted into the top of the combustion flues. This is a useful measure for safety and general control, as it tends to prevent the damage that would result from overheating of the ovens. It does not, however, tell much about the temperature of the coke itself, because of the continually changing gradient in the wall between the coke and the combustion chamber. The best indication of the temperature of the coke itself must therefore be obtained by observation of the product as it is pushed out of the oven. The human eye is very sensitive to variations in brightness of a surface, and particularly to differences in brightness over a continuous hot surface.

Jan 1, 1943

By Robert B. Sosman

The relative temperature distribution within a coke oven and among the ovens in a battery can be obtained automatically for the operator's guidance by sighting a total-radiation pyrometer on the face of the coke as it is pushed out, and recording the surface temperature. Keeping the instrument clean and keeping its view of the coke unobstructed by smoke and dust are the principal problems. Typical records from three plants are presented in this paper, showing that the temperature patterns are reproducible. Development OF Method The method of coke pyrometry described in this paper was introduced in 1936 by E. A. Lee, then Assistant Superintendent, now Superintendent, of the Coke Plant at Lorain Works, National Tube Co., Lorain, Ohio. At the request of the Coke Committee of the United States Steel Corporation, the Research Laboratory of the Corporation undertook to adapt the method to the somewhat different conditions met with at the Gary Works of the Carnegie-Illinois Steel Corporation, Gary, Ind., and at the Clairton Works of the same Corporation at Clairton, Pa. This work was done in cooperation with the Leeds and Northrup Co. of Philadelphia and later with the Brown Instrument Co. Division of Minneapolis-Honeywell Regulator Co., Philadelphia. We of the Research Laboratory wish to express our appreci- ation of the courtesies extended by Mr. Lee, by A. N. Cole, Superintendent of the Gary coke plant, and by D. P. Finney, Assistant General Superintendent in charge of coke-plant operations at Clairton. We are also indebted to the instrument companies for the loan of a part of the equipment. At Gary and Clairton the instruments were installed and various experiments were made by J. W. Bain, of the Research Laboratory of the United States Steel Corporation. Pyrometry of Coke The coke inside a by-product oven is almost completely inaccessible to pyro-metric instruments. The temperature in the walls can conceivably be measured with thermocouples, but the atmosphere is usually strongly reducing, a condition well known to be destructive to the accuracy of the customary high-temperature couples. In some plants, periodic readings are taken with an optical pyrometer sighted into the top of the combustion flues. This is a useful measure for safety and general control, as it tends to prevent the damage that would result from overheating of the ovens. It does not, however, tell much about the temperature of the coke itself, because of the continually changing gradient in the wall between the coke and the combustion chamber. The best indication of the temperature of the coke itself must therefore be obtained by observation of the product as it is pushed out of the oven. The human eye is very sensitive to variations in brightness of a surface, and particularly to differences in brightness over a continuous hot surface.

Jan 1, 1943

By C. L. Clark

EVERY user of steel should ask himself whether or not he is taking full advantage of the discoveries of the steel metallurgists during the last few years, or is merely buying grades that looked to be the best five or ten years ago for various specific purposes and have since proved perfectly satisfactory in his plant. If he has not kept abreast of the times, then it is probable that something better has been developed, or something just as good that costs less. Though this article will have to do with steel for high-temperature applications primarily, marked advances have been made in steels for other purposes as well.

Jan 1, 1940

By Frank L. Nason

(New York meeting, February, 1912) IN the year 1904 an eminent Swedish geologist prepared a report on the iron-ore reserves of the world. His estimates follow: Countries. Tons. United States, 1,100,000,000 Great Britain, . 1,000,000,000 Germany, 2,200, 000, 000 Spain, 500,000,000 Russia and Finland, 1,500,000,000 France, 1.500, 000, 000 Sweden, . 1,000,000,000 Austria-Hungary, . 1,000,000,000 Other countries, 1,200,000,000 Total, . 10,000, 000, 000 The iron-ore allotted to the United States by the Swedish geologist is barely sufficient to last 20 years at the present rate of consumption. On the other hand (according to Edwin C. Eckel,1 from whom the above and following statistics are quoted), there is hardly need for worry on the part of our iron industries for the, next two centuries or more. Upon the basis of careful work by the U. S. Geological Survey, in which Mr. Eckel has taken an important part, the following estimates arc definitely, but by no means finally, given for the United States District. Tons. Lake Superior District, . . 1,500,000,000 to 2,000,000,000 Alabama, red hematite. . . 1,000,000,000 brown hematite, 725,000,000 Georgia, red hematite, 200,000,000 brown hematite, 125,000,000 Tennessee red hematite, . 6110,000,000 I brown hematite, 225,000,000 Virginia., red hematite, 50,000,000 brown hematite, 300,000,000 Total, . . 4,725,000,000 to :5,225,000,000

Jul 1, 1912

Aamot, Olav Crone, (Member '29) Met , Det Norske Aktieselskab for Elektrokemisk, Industry, Inc , Oslo, Norway Aase, Glenn D , (Junior Member '40) Met Engr , Western Research Dyv , American Smelt & Refin Co , Selby, Calif Abadye, Henry G., (Member '43) Petr Engr , Sr Prod Engr , Long Beach Oil Development Co, 255 So Santa Clara Ave, Long Beach, Calif Abbott, Clarence E , (Member '04) Civil Engr , 'P , Tennessee Coal, Iron & R R Co , 1542 Brown Marx Bldg Birmingham, Ala Abbott, Fred E , Jr , (Member '44) Petr Engr , c/o Arabian American Oil Co , A P 0 816, c/o Postmaster, New York, N Y Abbott, John H , (Member '46) Resident Mgr , Hickman, Williams & Co, 230 No Michigan Ave, Chicago 1, Ill Abbott, R W R., (Member '47) Asst Power Supt, Cananea Consolidated Copper Co , Cananea, Son , Mexico Abbott, Robert H? Jr., (Junior Member '47) Petr Engr, Producing Dept, The Texas Cc, P 0 Box 951, Houma, La Abel, Raymond L., (Member '28) Chem Engr, Prof of Chem Engrg, Univ of Pittsburgh, Pitts¬burgh Pa Abel, Walter D , (Member '32) Min Engr, Div of Corporations, 403 State Bldg , Los Angeles 12, Cal if

Jan 1, 1952

By G. Sachs, C. C. Chow, L. J. Klingler

Most structural parts which are heat treated are designed using strength properties which have been determined in the principal direction of the wrought material. For example, for rolled or drawn materials, properties are given for the rolling or drawing direction. The structures, however, may be loaded so that the critical stress is in some direction other than that for which the properties of the material are known. Investigations of forged products,123 have shown that while the yield strength and tensile strength of carbon steel billets and bars vary little with the direction of the test specimen in relation to the fiber, the contraction in area in tension tests and the impact strength in notched bar impact tests decrease in the transverse direction. The contraction in area and, consequently, the fracture stress of hard aluminum and magnesium alloy forg-ings have also been found to be lower in the transverse direction. An investigation on aluminum alloy plate4 likewise has shown the dependence of the fracturing characteristics upon the direction* of the test specimens, the longitudinal direction being considerably stronger than the transverse direction and the normal direction, with the normal direction being the least strong. The variation of properties with direction has been explained by a type of anisotropy called mechanical anisot-ropy. This anisotropy results from the elongation, in the direction of the principal strain, of certain phases, inclusions, and/or cavities in the metal during working. A mechanical fibering is thus produced which seems to persist through annealing and heat treatment. This investigation was initiated to determine the flow stress and fracture stress, at high hardness levels, at 90° to the rolling direction in a round steel bar. It is this direction which receives the critical stress in drawing dies machined from round bars. Preliminary tests showed a large difference in properties between the 0° and 90° directions. Consequently, it was felt that a more complete investigation, utilizing several types of tests, was warranted to determine the flow and fracture characteristics of a steel at various orientations, for a number of hardness levels. This investigation was conducted on an air hardening nondeform-ing die steel. Material and Procedure The distribution of properties was made on a 3-in. round bar of annealed high-carbon, high chromium steel of the following analysis: Pct Carbon................... 1.53 Manganese................ 0.39 Silicon.................... 0.27 Chromium................ 11.76 Vanadium................. 0.25 Molybdenum.............. 0.81 The 3-in. bar was produced from an 8-in. ingot, which was annealed and forged to a 4-in. square billet. The billet was annealed and rolled to a 3-in. round which was then annealed and straightened. This steel is an air hardening die steel which has very good dimensional stability on hardening; therefore, the residual stresses resulting from hardening would be expected to be low. A hardness survey across the diameter of the annealed bar showed no difference in hardness from the center to the outside. However, the test sections of all the specimens were taken approximately half way between the center of the bar and the surface to avoid any surface effect or possible porosity at the center. Tension, compression and bend tests were made on specimens hardened and tempered at six different temperatures. The tension test specimens, Fig 1, were machined from the bar at orientations of 0, 22.5, 45, 67.5 and 90° from the axis of the steel bar. The specimens were rough machined, heat treated and then ground to size. The test section on each specimen was lapped in a direction parallel to the axis of the specimen to remove any transverse scratches which might act as stress raisers. The specimens were tested in fixtures which insured concentricity of loading of less than 0.001 in.5 The transverse strains were measured with a radial strain gauge,5 the least count of which was 0.0001 in. change in diam. The compression specimens, Fig 1, were machined from the bar at ori-

Jan 1, 1950

By ALBERT P. J. BORDEAUX

THIS paper briefly describes the general outline of cyaniding silver-ores in Mexico, with special reference to personal experiments made in the Temascaltepec district. The most important papers on the subject deal with cyaniding gold-silver-ores, the gold predominating in value, so that the treatment is nearly the same as for gold-ores, the losses of silver being considered of little importance. I describe here the treatment of silver-gold-ores containing very little gold, which is more general in Mexico than elsewhere. The cyanide treatment, which was so successfully applied to gold-ores, did not succeed immediately with silver-ores on account of their varying composition. Gold occurs in nature usually in the native state, while silver occurs generally in combination with sulphur (argentite), and various combinations of sulphur, antimony, and arsenic. In former times there was a complete difference in the treatment of gold-ores and silver-ores. Amalgamation, which was successful with gold-ores, was generally inadequate with silver-ores. The usual treatment in Mexico for silver was the patio process, the theory of which was satisfactorily explained only quite recently by Mr. Ortega and others. GENERAL OUTLINE OP THE CYANIDE TREATMENT. The general tendency of the present practice is to slime the silver-ore as much as possible, and in order to obtain a higher efficiency, with less loss of cyanide, and greater speed, the following lines are observed 1. Crushing by stamps with 30- or 40-mesh screens, then crushing by Huntington or Chilean mills, through 60- or 80-mesh screens. 2. Concentration upon vanners.

Jan 1, 1910

By AIME AIME

THE Board of Directors of the Institute has authorized the appointment of a committee to draw up rules of procedure under which awards can be made from time to time to petroleum engineers for outstanding contributions to the art of finding and producing oil and gas. These awards will 11e sponsored by the Petroleum Division and are the first recognition by any professional society of outstanding achievement in "oil mining." They will be in the form of either a gold medal, scholar- ship, or other suitable prize. The awards will be financed from the income of the Anthony F. Lucas Memorial Fund, which was started about fifteen years ago, shortly after' his death, by admirers of Captain Lucas.

Jan 1, 1936

By W. R. Barclay

IN MY general contact with industry I have become more and more impressed with the need for the closest possible co-operation between engineers and metallurgists, and particularly with the need for appreciation of the work that each group is doing to assist the other. Also, I am convinced that from time to time it. is vitally important to a true perspective of human progress in all its branches, and certainly a salutary corrective of undue optimism and pessimism to endeavor to carry the mind hack over certain periods in the advance of technical knowledge, and form some kind of broad estimate of what has been accomplished in the application of science to industry in the fields with which we, as individuals or groups, may for the time being be concerned. We cannot without some appreciable mental effort realize what our forerunners have dine For us. If the young engineer or metallurgist entering industry today could be suddenly transported to a quarter of a century ago, and be compelled to work with the materials then available and within the limitations of knowledge then attained, he would, on his return to present-day life, have a much greater appreciation of what has been accomplished before lie arrived on the scene, and, what is even more important, a far more acute sense of its inherent value to his profession. I propose here merely to indulge in a general summary of the subject of improved engineering metals and alloys rather than in details, and to deal exclusively with developments within my own experience.

Jan 1, 1938

By WALTER B. JONES

PIG iron was first produced in Alabama in 1818 from limonite or brown ore and since then much of this ore has come from the so-called mineral district of northern Alabama, especially along the Cretaceous-Paleozoic contact. For many years the Russellville district in Franklin County, where the first blast furnace was erected, produced more than 100,000 tons of brown ore annually. Limonite has been reported at many places in the Coastal Plain region, where the formations are of Mesozoic and Cenozoic age, but these scattered deposits were never considered to be of much commercial importance. However, in the last three years a considerable quantity of this ore has been scraped up and shipped, particularly from the city of Greenville in Butler County.

Jan 1, 1938

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 write-offs 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 property 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, sulfur, 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 income from the property are worth. It differs from the total anticipated earnings by the amount of the interest that the unrecouped investment could be expected to earn during the period of recoupment. Thus, if one could accurately estimate what a mineral property will earn during its life, after deducting all operating, administrative, capital, interest, and tax charges, the determination of present value would be a relatively simple mathematical calculation. Normally, where the expected life of the mineral property extends beyond 20 or 25 years, the discounted value of earnings beyond this period is relatively small. The petroleum industry generally discounts the annual cash flow of an operation rather than earnings since, for tax-saving purposes, earnings are kept

Jan 1, 1976