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By J. Brian Eby

The Gulf Coast area of Louisiana enjoyed a particularly active and profitable year in 1939. Fifteen new producing structures were located and approximately sixty new producing sand horizons in old fields were opened in that period of time. The most important new discoveries are the Eola field, Avoyelles Parish, and the Paradis, St. Charles Parish. The Eola strike was indicated during December 1938, but the well was not placed on production until January 1939. Eola is particularly important because it was the first discovery of oil in a commercial quantity in the Wilcox formation in that area. Sid Richardson, of Ft. Worth, Texas, drilled the first well on the Haas Investment Company's property, which encountered the producing sand at a little below 8500 ft. Within the year 48 wells were drilled, 42 being commercial producers and 6 dry holes. The second most favorable discovery was the Paradis field, which was discovered by The Texas Company's Louisiana Land and Exploration Company's Paradis No. 1 well, in St. Charles Parish, just west of New Orleans. Detailed information concerning this field has not yet been made available but it is reported that the oil sand is as much as 175 ft. thick. The initial production indicated was 1750 bbl. daily and reports suggest a very large structure. In Calcasieu Parish the Humble Oil and Refining Company's Edge-wood Land No. 1 discovered gas in the Oligocene at a total depth of 7042 ft., in the Perkins area. Although two additional dry holes have been drilled in this prospect, it is still believed to have some merit. A new discovery is credited to Cameron Parish with the finding of Miocene oil in the Superior Oil Company's State No. 1 well in Grand Lake. The Chalkley field, Cameron Parish, is credited as a 1938 discovery but was largely developed in 1939 into one of the more important new fields. During the year 13 wells were drilled, 8 being oil wells and 5 dry holes. The oil is found in the Oligocene at depths of approximately 9000 feet.

Jan 1, 1940

By J. Brian Eby

The Gulf Coast area of Louisiana enjoyed a particularly active and profitable year in 1939. Fifteen new producing structures were located and approximately sixty new producing sand horizons in old fields were opened in that period of time. The most important new discoveries are the Eola field, Avoyelles Parish, and the Paradis, St. Charles Parish. The Eola strike was indicated during December 1938, but the well was not placed on production until January 1939. Eola is particularly important because it was the first discovery of oil in a commercial quantity in the Wilcox formation in that area. Sid Richardson, of Ft. Worth, Texas, drilled the first well on the Haas Investment Company's property, which encountered the producing sand at a little below 8500 ft. Within the year 48 wells were drilled, 42 being commercial producers and 6 dry holes. The second most favorable discovery was the Paradis field, which was discovered by The Texas Company's Louisiana Land and Exploration Company's Paradis No. 1 well, in St. Charles Parish, just west of New Orleans. Detailed information concerning this field has not yet been made available but it is reported that the oil sand is as much as 175 ft. thick. The initial production indicated was 1750 bbl. daily and reports suggest a very large structure. In Calcasieu Parish the Humble Oil and Refining Company's Edge-wood Land No. 1 discovered gas in the Oligocene at a total depth of 7042 ft., in the Perkins area. Although two additional dry holes have been drilled in this prospect, it is still believed to have some merit. A new discovery is credited to Cameron Parish with the finding of Miocene oil in the Superior Oil Company's State No. 1 well in Grand Lake. The Chalkley field, Cameron Parish, is credited as a 1938 discovery but was largely developed in 1939 into one of the more important new fields. During the year 13 wells were drilled, 8 being oil wells and 5 dry holes. The oil is found in the Oligocene at depths of approximately 9000 feet.

Jan 1, 1940

By George E. Roberts

The maintenance of the common gold standard is the most important cooperative undertaking in the world. The war broke up this relationship and brought about a state of great disorder in the currencies and exchanges. After the war the countries all began to grope their way back to the gold standard as the best means of establishing trade and financial relations with each other. With this movement began a general decline in commodity prices. The question has been raised whether the world's return to the gold standard was not forcing prices back to the prewar level. Also, the question is raised whether the world has not outgrown the supply of gold as the basis of credit. Because Europe readjusted its monetary units to conform to the higher level of prices there is no pressure on prices on this account. Furthermore, a large amount of gold formerly in hand-to-hand circulation passed out of circulation and has been added to the central bank reserves. The gold reserves of 36 countries increased approximately 100 per cent from the outbreak of the war to June 30,1930. The increase is much larger than the average increase of prices in any of the important countries, at any time since 192.5. As gold in the central banks of issue is far more effective for all business purposes than gold in circulation, the gold scarcity argument has little basis as applied to this time. The abnormal distribution due to the war was to the disadvantage of business everywhere. Credit was scarcer and dearer in some countries. The inflation in this country might have been greater had the production of gold been greater. The argument supporting the theory of a scarcity of gold assumes as fundamental that general price changes must be accounted for by changes in the price equation on the side of money. This is disproved in every period of business depression. A downward price movement is characteristic of every period of business recession. Important discoveries of gold must be made even to maintain present gold production, in the face of which the world's business is bound to continue increasing. It cannot be doubted that some way will be found

Jan 1, 1931

By Rossiter Raymond

This regiment, originally known as the First Engineer Reserve, will be remembered as the one recruited in New York City through the efforts of the Joint Military Committee of the National Engineering Societies. It was sent to England in August, 1917, and, after a few clays, forwarded to France and attached for immediate service to the British Expeditionary Force, without any opportunity for further field-training. This circumstance has led in some quarters to the impression that the regiment was one of engineers and mechanics merely, and had never been drilled under arms; whereas, in fact, it had received such instruction at Fort Totten for some time previous to its embarkation. It is true that in the famous affair of the German counter-attack after Byng's victory near Cambrai, the men of the Eleventh Engineers fought with pick-axes and tools, as well as with rifles borrowed from dead or wounded soldiers; but that was because they had left their own arms in camp, while doing the railroad-building work to which they had been detailed. The accomplishment of that work is really more remarkable than the behavior of the men under a German surprise-attack. It was before that counter-attack, and immediately after Byng's advance, that Field-Marshal Haig issued his despatch, announcing that the engineers deserved as much credit for that victory as the infantry, having performed miracles in keeping the railway transportation up to the fighting line. Indeed, the subsequent scrimmage, of which so much has been said, was ?Date possible only by the extraordinary position of the engineers at the very front, instead of in the rear, as might have been expected of them. A letter recently received from an officer of the regiment says: We have only recently been receiving the New York papers of early December, in which our regiment seems to have received much favorable mention. The stories were, in the main, true. Our men behaved themselves creditably, and certain of the officers received special mention for valor. Two of our 2d lieutenants were pro-moted to 1st lieutenant rank by special orders of General Pershing for "gallant con-duct in action," and about four others would have been decorated by the British,

Jan 4, 1918

Undoubtedly other members have given their lives in the Service of the United States and the Allies during the past four years, but the following biographical notices are all that have reached us as yet. Lewis Newton Bailey Lewis Newton Bailey died of pneumonia at Camp Merritt, N. J., Apr. 30, 1918, at the age of 34 years. He was Master Engineer, Senior Grade, in the Fourth Regiment, U. S. Engineers, and although he was offered a commission as First Lieutenant shortly after enlisting, he preferred not to accept it until he had reached France. By those who knew him well, this lack of eagerness for promotion will be recognized as consistent with his whole character. Mr. Bailey was born at San Diego, Cal., May 28,1884, and graduated from the University of California, College of Mines, in 1906. He joined the American Institute of Mining Engineers in 1916. During 1904 he was employed at the cyanide plant of the Buckeye mines, Forest Hills, Cal. In the autumn of 1909 he went to the Coeur d'Alene District, Idaho, and was first employed on construction work of the Bunker Hill & Sullivan Mining & Concentrating Co'., with a short intermission at the Hercules mill, after which. he was sampler and assayer for the Bunker Hill & Sullivan Co. until May, 1910, when he was obliged to return to California to attend to family interests. Returning to the Coeur d'Alene district in November, 1911, he was given charge of remodelling and operating the mill of the Coeur d'Alene Development Co., treating the output of the Ontario mine; this work he performed with credit and complete success. In December, 1914, he returned to the Bunker Hill & Sullivan Co., as assistant metallurgist and mill superintendent, his work consisting mainly in the testing and improvement of concentrator practice, which he continued with great credit until August, 1915, when family considerations required that he again return to the home of his parents at San Diego. Mr. Bailey was characterized by energy, both physical and mental, by devotion to his friends, associates and employer. He was particularly successful in his relations with the men under him and, in fact, was thoroughly well likcd by everybody with whom he came in contact.

Jan 1, 1920

By Harrison Schmitt

The definitions of the terms commonly used in connection with metamorphism at elevated temperature near igneous contacts are re-examined. As the study of tactite zones associated with igneous contacts progresses, more and more emphasis is put on the localization of the ore by structural forms. The generally early age of the silicates and late age of the sulphides is well established. Postsilicate structural deformation is likely to localize ore bodies. The silicates are often replaced by the ore minerals. we may not be far from proving that the elements involved in the formation of silicate aureoles are merely normal "volcanic" emanations, that silica, lime, magnesia, and alumina, and probably soda and potash, are likely to undergo local transfers only. The work of Newhouse suggests the agents of the formation of sulphides in deposits of various classifications are the volcanic emanations. Introduction The purpose of this paper is to define the terms commonly used in connection with the subject, to briefly review and discuss the broad features of the aureoles, to indicate some of the features lately recognized: to discuss the genesis, and to suggest how the associated ore deposits can best be studied and developed. When developing a subject in mining geology one is soon conscious of the vast amount of pertinent literature and that most relevant ideas, no matter how obscure, have been considered. One can only hope to make some small contribution in point of view, a few confirmatory observations, or, perhaps, suggest a small new idea indebted to the most recent data. It is nearly impossible, also, to give specific credit, and adequate credit, to all the contributors to a given subject. This study, furthermore, was not intended to cover the field exhaustively, nor is the bibliography complete. Definition OF Terms There is much confusion in the use of the broad terms concerned. Needless to say, metamorphism means change of form; metasomatism, change of substance. The term contact metamorphism, however, has been widely misused possibly by a majority of economic geologists and engineers. As originally adopted by European investigators it meant changes effected largely by heat (thermal effects) in the rocks invaded by plutonic intrusives, but did not include those local changes usually at the immediate contact brought about by the addition of substance, i.e., by metasomatism. The term has become clouded. In Europe it has

Jan 1, 1949

By Harrison Schmitt

The definitions of the terms commonly used in connection with metamorphism at elevated temperature near igneous contacts are re-examined. As the study of tactite zones associated with igneous contacts progresses, more and more emphasis is put on the localization of the ore by structural forms. The generally early age of the silicates and late age of the sulphides is well established. Postsilicate structural deformation is likely to localize ore bodies. The silicates are often replaced by the ore minerals. we may not be far from proving that the elements involved in the formation of silicate aureoles are merely normal "volcanic" emanations, that silica, lime, magnesia, and alumina, and probably soda and potash, are likely to undergo local transfers only. The work of Newhouse suggests the agents of the formation of sulphides in deposits of various classifications are the volcanic emanations. Introduction The purpose of this paper is to define the terms commonly used in connection with the subject, to briefly review and discuss the broad features of the aureoles, to indicate some of the features lately recognized: to discuss the genesis, and to suggest how the associated ore deposits can best be studied and developed. When developing a subject in mining geology one is soon conscious of the vast amount of pertinent literature and that most relevant ideas, no matter how obscure, have been considered. One can only hope to make some small contribution in point of view, a few confirmatory observations, or, perhaps, suggest a small new idea indebted to the most recent data. It is nearly impossible, also, to give specific credit, and adequate credit, to all the contributors to a given subject. This study, furthermore, was not intended to cover the field exhaustively, nor is the bibliography complete. Definition OF Terms There is much confusion in the use of the broad terms concerned. Needless to say, metamorphism means change of form; metasomatism, change of substance. The term contact metamorphism, however, has been widely misused possibly by a majority of economic geologists and engineers. As originally adopted by European investigators it meant changes effected largely by heat (thermal effects) in the rocks invaded by plutonic intrusives, but did not include those local changes usually at the immediate contact brought about by the addition of substance, i.e., by metasomatism. The term has become clouded. In Europe it has

Jan 1, 1949

By F. M. Lewis, J. F. Meyers

This second progress report of grinding presents comments regarding ball consumption and data pertaining to the hydroscillator, which is closed circuited with the tricone mill. A study and postulate of how balls function is presented. The paper summarizes cost reduction obtained by the method of "grinding for the tail race" rather than for "mesh tons." AT the Regional meeting in Columbus, Ohio, in September 1949, the authors presented a progress report of the first year's operation with a Hardinge tricone mill in closed circuit with a Dorr hydroscillator. The present report covers our findings on this grinding circuit to January, 1950. In order to clarify our position, the authors wish to state that no invention or discovery is claimed. The Tennessee grinding circuit is simply an engineered arrangement of known equipment arranged to incorporate all of the recognized efficiency factors of comminution as they are known today. As we concluded our first report, it was not clear how effective the Tennessee mode of operation would be on harder ores. The only information we had at that time was that the Bond grindability test at 48-mesh gave 6.04 g of undersize per revolution. A later test on the same sample at 100-mesh reduced this to 2.04 g, which is definitely in the harder ore class, and which makes the reported 8.80 kw-hr per ton of —200-mesh produced a very creditable figure. Hydroscillator Operation The machine as now developed has proved dependable and easy to operate. It starts easily under full load and responds quickly to operating adjustments. The hydraulic holes in the oscillating plate do not plug when shut down under full load. Absolutely clean hydraulic water is essential. An Elliott water screen or similar device should be an essential part of the machine to keep all scale and trash of all kinds from the hydraulic compartment. The shift operators have expressed approval of the machine. In table I we show a typical screen analysis of the hydroscillator rake sand as compared to conventional classifier rake sand on our ore. We have previously reported that of the 28.7 pct reduction in power, the hydroscillator contributed 6 pct, on a —200-mesh basis. This is a conservative figure. Some of our test runs indicated that the saving was as high as 10 pct. Laboratory studies by the Dorr Co. engineers indicate that still greater efficiency is possible. Nevertheless, the 10-ft plate is overflowing 2100 tons per day at 3 to 4 pct + 65-mesh, which is a very creditable performance by

Jan 1, 1951

By F. M. Lewis, J. F. Meyers

This second progress report of grinding presents comments regarding ball consumption and data pertaining to the hydroscillator, which is closed circuited with the tricone mill. A study and postulate of how balls function is presented. The paper summarizes cost reduction obtained by the method of "grinding for the tail race" rather than for "mesh tons." AT the Regional meeting in Columbus, Ohio, in September 1949, the authors presented a progress report of the first year's operation with a Hardinge tricone mill in closed circuit with a Dorr hydroscillator. The present report covers our findings on this grinding circuit to January, 1950. In order to clarify our position, the authors wish to state that no invention or discovery is claimed. The Tennessee grinding circuit is simply an engineered arrangement of known equipment arranged to incorporate all of the recognized efficiency factors of comminution as they are known today. As we concluded our first report, it was not clear how effective the Tennessee mode of operation would be on harder ores. The only information we had at that time was that the Bond grindability test at 48-mesh gave 6.04 g of undersize per revolution. A later test on the same sample at 100-mesh reduced this to 2.04 g, which is definitely in the harder ore class, and which makes the reported 8.80 kw-hr per ton of —200-mesh produced a very creditable figure. Hydroscillator Operation The machine as now developed has proved dependable and easy to operate. It starts easily under full load and responds quickly to operating adjustments. The hydraulic holes in the oscillating plate do not plug when shut down under full load. Absolutely clean hydraulic water is essential. An Elliott water screen or similar device should be an essential part of the machine to keep all scale and trash of all kinds from the hydraulic compartment. The shift operators have expressed approval of the machine. In table I we show a typical screen analysis of the hydroscillator rake sand as compared to conventional classifier rake sand on our ore. We have previously reported that of the 28.7 pct reduction in power, the hydroscillator contributed 6 pct, on a —200-mesh basis. This is a conservative figure. Some of our test runs indicated that the saving was as high as 10 pct. Laboratory studies by the Dorr Co. engineers indicate that still greater efficiency is possible. Nevertheless, the 10-ft plate is overflowing 2100 tons per day at 3 to 4 pct + 65-mesh, which is a very creditable performance by

Jan 1, 1951

By A. B. Wilder

We study the past Because it is a guide to the present and a promise for the future. The struggle for a better world is strengthened By the hopes, ambitions, and deeds Of those who were before us. As we look backward Our attention is directed forward. ONE hundred years ago, the manufacture of steel from molten pig iron without the use of fuel first began. In the earlier part of the nineteenth century the crucible process was the principal steelmaking method. It was a costly process, producing only a few pounds of steel at a time; so, most of the ferrous metal output was in the form of wrought or pig iron. With the perfection of the converter technique it became possible to produce low cost steel by the ton, thereby completely changing the structure, not only of the ferrous metal industry, but also of industrial production in general. This was the turning point from the Iron Age to the Age of Steel. William Kelly (Fig. 2), Sir Henry Bessemer (Fig. 1), and Joseph G. Martien experimented with the process before 1856. William Kelly began in Eddyville, Ky., in 1847 and has been given credit for first discovering the principle of the pneumatic converter process. Several years later in England Henry Bessemer independently conceived a steelmaking process similar to Kelly's. Bessemer made public his invention at the annual meeting of the British Association for the Advancement of Science held at Cheltenham, England, August 1856. As a result of his paper, "On the Manufacture of Malleable Iron and Steel Without Fuel," and his progressive leadership in the years to follow, the process became permanently identified with the name, Bessemer. Credit for the commercial adaptation of the process must be given two additional persons. Robert Mushet (Fig. 3) in 1856 in England recognized the necessity of deoxidation and recarburization of the converter product and evolved the technique for adding high manganese iron following the blow. In Sweden, in July 1858, G_ F. Göranson [ ]

Jan 1, 1961

By J. T. Shimmin

THE past twenty-five years has been a period of unparalleled improvement in all lines of mining and metallurgical equipment, but probably none has undergone greater refinement and development than the vacuum filter. Beginning a quarter of a century ago, there has been steady advancement in the art of vacu-um filtration until today its use has become virtually standard practice for dewatering throughout the entire metallurgical industry as well as in important parts of the chemical and industrial processing fields. The credit for the first successful application of vacuum filtration 'at the Consolidated Mercury mines in Utah in 1902 undoubtedly belongs to George Moore. There, it is said, his filter reduced the loss of gold in the slime and sand from $1.25 to 40c. per ton. Successful applications were subsequently made by Mr. Moore at the Liberty Bell mines, Telluride, Colo., the Lundberg, Dorr &Wilson mill at Terry, S. D., and elsewhere. E. L. Oliver is generally credited with, having done the most to work out the necessary continuity of op-eration exemplified in the well-known continuous vacu-um filter which bears his name. Others made improve-ments also, but in my opinion all the new ideas advanced in recent years are modifications of the fundamental principles originated by the two pioneers, Moore and Oliver. Considerable interest has been shown recently in the new type of continuous internal-type vacuum filter which is associated with my own name1. In response to frequent inquiries regarding it and the steps which led up to its invention, I am giving herewith a brief account of the early history of this development and some of the more important installations which have been made during the last year or so. A. M. Nicholas (now deceased), an Australian engi-neer, conceived the idea, several years ago, of manu-facturing a continuous vacuum filter with the filter medium applied upon the inside of the drum, as con-trasted with existing drum filters in which the medium is applied externally. Nicholas recognized that a ma-chine of this type would be simpler than one with a tank and would overcome some of the difficulties en-countered with tank filters on certain classes of pulps, and he appreciated the value of having filtration take place in the same direction as the gravitational settle-ment of the solid particles in the pulp, the pulp being retained within the drum instead of being held against the outside surface. The ease of starting up after a shut down was likewise realized by Nicholas. It was tried in the United States, but was not entirely success-ful primarily due to mechanical defects.

Jan 5, 1928

By Edward Steidle

Those who have followed the rapid progress in rock-dusting bituminous-coal mines must admit that opinion crystallized during the year just closed in support of this preventive of coal-dust explosions. Up to 1924 only one mining company in America practiced rock-dusting on a large scale, but during 1924 forty-two companies had adopted this safety measure, and the "boom" is expected to extend over the next two or three years. Alabama is represented by 1 company, Colorado by 3, Illinois by 4, Kentucky by 1, New Mexico by 4, Pennsylvania by 20, Utah by 8, and Wyoming by 1. A total of about 500 miles of entry has been dusted. Illinois leads with 275 miles of dusted entries and Pennsylvania holds second place with about 175 miles. In each case there is a sense of great security, not only on the part of the operator but by the miner as well. It is also interesting to note that during 1924 the compensation rating or inspection bureaus in twelve of our coal-producing states revised their rating schedules so that a credit would be given for rock-dusting. This credit ranges from 10 to 20 cents per $100 payroll. Recent drastic federal and state regulations approved by mine operators made rock-dusting compulsory in bituminous coal mines in Utah, beginning July 1, 1924. Legislative action favorable to rock-dusting may be expected in other states. Colorado has already proposed a change in its laws, and Pennsylvania, Maryland, Washington, and West Virginia are giving the matter consideration. If the rock-dusting problem is handled properly and proves to be entirely successful, no mining man of any standing will delay applying it in his mine. State legislation regarding this matter may or may not solve the problem. At present, the mining companies that are rock-dusting of their own choice are doing it carefully and thoroughly. In Utah, some are doing it conscientiously, trying to get what benefits can be obtained while others are reported to be doing it only to keep within state regulations. In any event, if we are to have new legislation, it is essential that the various states know what they are about and then, if possible, work for uniform regulations.

Jan 1, 1925

By Benjamin L. Miller

The essential differences expressed by the different speakers participating in this symposium concern merely the relative emphasis placed on the subjects that are commonly included under the term "geophysics" and the branches of science that form the basis for investigations in this field. In order to appreciate the present situation it may be profitable to briefly refer to a few historical matters. One can find almost countless descriptions of geological phenomena long antedating the introduction of the title of "geology," which has been credited to Richard de Bury in the fourteenth century. Interpretations, when they were offered, were generally pure speculation. Only toward the close of the eighteenth century do we find theories developed as the result of observations and tested by additional observations. It is difficult to select and give proper credit to the individual who was particularly responsible for turning geology into a distinctly observational science. william Smith, who has been called the "Father of English Geology," certainly represents the period when observation was the only method used. As he traveled through the British Isles, "sometimes 10,000 miles in a year," he was continually making notes of his observations. Geikie says: "His plain, solid, matter of fact intellect never branched into theory or speculation, but occupied itself wholly in the observation of facts." William Smith, with others of his time, definitely laid firmly the foundations on which modern geology has been built. Field and laboratory observations can no longer be said to constitute the sole basis for geologic contributions but we have not laid aside the methods of Smith and his followers. It is folly to underestimate the fundamental value of the observational part of geology in the present. The objection to purely observational geology is that it is mainly qualitative and not quantitative, general and not specific. No one can deny this charge and probably there are few who do not welcome every method or process whereby we can put aside generalities for definite established values. Physics is the science that has particularly come to the aid of the geologist in this respect. Contributions of PhYsics It is not the intent of the writer to enumerate or to evaluate all of the contributions to geologic advance in the field of. physics. A few only are used for the purpose of illustration, When Clarence King, Director of the United States Geological Exploration of the Fortieth Parallel, invited Ferdinand Zirkel to study 2500 thin sections of rocks collected from the western United States, the use of the microscope came into general use. Zirkel's report was published in 1876. He was not the first to use transmitted light for microscopic rock determination, some work having been done by Henry Clifton Sorby and others some years earlier, but he was the first to put into general use this method. We may well daim that this

Jan 1, 1946

By Benjamin L. Miller

The essential differences expressed by the different speakers participating in this symposium concern merely the relative emphasis placed on the subjects that are commonly included under the term "geophysics" and the branches of science that form the basis for investigations in this field. In order to appreciate the present situation it may be profitable to briefly refer to a few historical matters. One can find almost countless descriptions of geological phenomena long antedating the introduction of the title of "geology," which has been credited to Richard de Bury in the fourteenth century. Interpretations, when they were offered, were generally pure speculation. Only toward the close of the eighteenth century do we find theories developed as the result of observations and tested by additional observations. It is difficult to select and give proper credit to the individual who was particularly responsible for turning geology into a distinctly observational science. william Smith, who has been called the "Father of English Geology," certainly represents the period when observation was the only method used. As he traveled through the British Isles, "sometimes 10,000 miles in a year," he was continually making notes of his observations. Geikie says: "His plain, solid, matter of fact intellect never branched into theory or speculation, but occupied itself wholly in the observation of facts." William Smith, with others of his time, definitely laid firmly the foundations on which modern geology has been built. Field and laboratory observations can no longer be said to constitute the sole basis for geologic contributions but we have not laid aside the methods of Smith and his followers. It is folly to underestimate the fundamental value of the observational part of geology in the present. The objection to purely observational geology is that it is mainly qualitative and not quantitative, general and not specific. No one can deny this charge and probably there are few who do not welcome every method or process whereby we can put aside generalities for definite established values. Physics is the science that has particularly come to the aid of the geologist in this respect. Contributions of PhYsics It is not the intent of the writer to enumerate or to evaluate all of the contributions to geologic advance in the field of. physics. A few only are used for the purpose of illustration, When Clarence King, Director of the United States Geological Exploration of the Fortieth Parallel, invited Ferdinand Zirkel to study 2500 thin sections of rocks collected from the western United States, the use of the microscope came into general use. Zirkel's report was published in 1876. He was not the first to use transmitted light for microscopic rock determination, some work having been done by Henry Clifton Sorby and others some years earlier, but he was the first to put into general use this method. We may well daim that this

Jan 1, 1946

By Benjamin L. Miller

THE essential differences expressed by the different speakers participating in this symposium concern merely the relative emphasis placed on the subjects that are commonly included under the term "geophysics" and the branches of science that form the basis for investigations in this field. In order to appreciate the present situation it may be profitable to briefly refer to a few historical matters. One can find almost countless descriptions of geological phenomena long antedating the introduction of the title of "geology," which has been credited to Richard de Bury in the fourteenth century. Interpretations, when they were offered, were generally pure speculation. Only toward the close of the eighteenth century do we find theories developed as the result of observations and tested by additional observations. It is difficult to select and give proper credit to the individual who was particularly responsible for turning geology into a distinctly observational science. William Smith, who has been called the "Father of English Geology," certainly represents the period when observation was the only method used. As he traveled through the British Isles, "sometimes 10,000 miles in a year," he was continually making notes of his observations. Geikie says: "His plain, solid, matter of fact intellect never branched into theory or speculation, but occupied itself wholly in the observation of facts." William Smith, with others of his time, definitely laid firmly the foundations on which modern geology has been built. Field and laboratory observations can no longer be said to constitute the sole basis for geologic contributions but we have not laid aside the methods of Smith and his followers. It is folly to underestimate the fundamental value of the observational part of geology in the present. The objection to purely observational geology is that it is mainly qualitative and not quantitative, general and not specific. No one can deny this charge and probably there are few who do not welcome every method or process whereby we can put aside generalities for definite established values. Physics is the science that has particularly come to the aid of the geologist in this respect. CONTRIBUTIONS OF PHYSICS It is not the intent of the writer to enumerate or to evaluate all of the contributions to geologic advance in the field of physics. A few only are used for the purpose of illustration. When Clarence King, Director of the United States Geological Exploration of the Fortieth Parallel, invited Ferdinand Zirkel to study 2500 thin sections of rocks collected from the western United States, the use of the microscope came into general use. Zirkel's report was published in 1876. He was not the first to use transmitted light for microscopic rock determination, some work having been done by Henry Clifton Sorby and others some years earlier, but he was the first to put into general use this method. We may well claim that this

Jan 1, 1941

By C. Richard Tinsley

INTRODUCTION Project financing has been defined by various authors in this book. It is founded on reliance upon the project's own future cash flows and secondarily on the collateral value of the asset base developed. It is chiefly provided by the banking community who, after an assessment of the risks involved (See Chapter 9) analyse the company's presentation (See Chapter 10) in order to structure a financing package often at a leverage of up to 80% debt. This paper describes the various support and structuring techniques used to delimit and abate the risk components perceived from the banks' experience on project development especially for the period before cash flow is generated (pre completion). ADVANTAGES The advantages of project financing extend beyond the offloading of risks to banks. Among the advantages are the following: 1. Longer loan maturity than conventional, unsecured financing; 2. Loan disbursement and repayment tailored to specific mine; 3. Ability of a joint venture without a "track record" to raise financing; 4. Obtain financing where further direct borrowing (corporate credit) limited by existing indentures; 5. Possibility of arranging finance off-balance sheets; 6. Leverage return on equity; 7. Obtain tax savings with certain project financing structures; and 8. Obtain flexible loan repayment conditions. It can also be said that from the point of view of the company, project financing has certain disadvantages which can be summarised as follows: 1. Perceived higher cost (risk premium) compared with straight corporate credit; 2. More documentation; and 3. Need to negotiate risk-sharing aspects. The main attraction of project financing is the ability to pass certain risks on to the lenders within a flexibly funded transaction. (For a more detailed description of the specific risks see the author's paper at the beginning of Chapter 9. The same risk system is followed here.) The typical project financing has corporate support prior to completion and will usually carefully control the resultant cashflow after completion to ensure the bank does not unnecessarily assume further risks of an equity nature. WITHIN THE COMPANY'S CONTROL Operating Risk This is broken into three interrelated segments for ease of description. Technical Component: This must be specifically addressed if new technology or unproven adaptations are to be used. The banks will have scrutinized the sampling and bulk testing work, perhaps grilling the geological, mineral processing, metallurgical, and mining engineering staff or consultants directly. A number of supports are available such as: TECHNOLOGY GUARANTEE: Either the company itself or the process developer will guarantee that the technology will work for a period of, say, six months to two years after startup. If not, then financial penalties will apply although these are rarely sufficient to repay the loan. Many process developers are weak financially and may have little substance to back such a guarantee.

Jan 1, 1985

By Dennis J. McCarthy

TAX TREATMENT OF EXPLORATION AND DEVELOPMENT EXPENSES Exploration Expenditures General Principles. Exploration expenditures are expenses incurred within the United States or the Outer Continental Shelf for the purpose of ascertaining the existence, location, extent or quality of any deposit of ore or other mineral. Section 617 of the Internal Revenue Code permits a taxpayer to elect to deduct these expenditures currently. In default of election, exploration expenditures must be capitalized and included in the basis of the mineral property for purposes of determining cost depletion. Entitlement to Deduction. In order to qualify for current deduction, exploration expenditures must be incurred prior to the commencement of the development stage, i.e., when mineral deposits are shown to exist in sufficient quantity and quality to reasonably justify commercial exploitation. Generally, expenditures for geological and geophysical investigations, reconnaissance, surveying, testpitting, trenching, drilling, driving of exploration tunnels and adits and similar types of work constitute exploration expenditures if incurred prior to the commencement of development. However, expenditures to further delineate the extent and location of an existing commercially marketable deposit are not exploration expenditures. Exploration expenditures may be incurred from within a producing mine to ascertain the existence of what appears to be a different ore deposit. Expenditures for property which is subject to an allowance for depreciation are not deductible under §617. However, depreciation properly allowable on assets used in exploration is an exploration expenditure. Election to Deduct Exploration Expenditures. The election to deduct exploration expenditures is made by deducting these expenditures in the return for the first taxable year for which such treatment is desired. The election applies to all properties of the taxpayer. Once the election is made all exploration expenditures, in the year of election and thereafter, must be deducted, unless the election is revoked with the prior consent of the Commissioner. The Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) made substantial changes in the treatment of exploration expenditures. For exploration expenses incurred after 1982 and before 1984 by a corporation, the amount currently deductible is limited to 85% of the expenditure. The remaining 15% must be capitalized and recovered over a five-year period. Although exploration costs capitalized under this provision are not part of the basis of the property for cost depletion purposes, investment credit may be claimed with respect to these expenditures. Further changes have been added by the Tax Reform Act of 1984 with respect to expenditures made after 1984. The Act reduces the amount of otherwise currently deductible costs from 85% to 80%. Additionally, it limits the availability of the investment credit for capitalized mineral exploration costs to deposits located in the United States. TEFRA also allows individuals a special method of recovery under which exploration expenditures may, at the election of the taxpayer, be amortized ratably over a 10-year period beginning with the year in which the costs are paid or incurred. If taxpayer does not use this method, the excess of the exploration expenditures actually deducted over the amount that would have been deducted if 10 year amortization had been elected is an item of tax preference subject to the alternative minimum tax.

Jan 1, 1985

By Grover R. Castle

INTRODUCTION "Project Financing" or "Project Loans" have become increasingly popular in recent years, and commercial banks are being asked to consider more and more of such financing. However, the analysis of this type of loan is quite different from the analysis of a loan to a financially sound corporation based on the company's balance sheet. For this reason Chemical Bank did a study of project loans in an attempt to be more sophisticated in our approach to them. As part of this study, we examined 29 project financings for which information was available. In this article I shall describe project loans and set forth the guidelines we developed, as an aid to credit officers who might have occasion to analyse this type of financing. DEFINITION OF "PROJECT FINANCING" OR "PROJECT LOAN" The terms "project financing" and "project loan" commonly describe the various methods that banks and institutional lenders use to finance the construction of new projects on a basis whereby payout is anticipated from the revenue stream generated by the project. A project financing often involves a loan to a new entity formed specifically to own the project. The analysis of a project loan proposal is quite different from the analysis of other term-loan proposals since it involves a credit decision based on the review of a projection or forecast rather than of historical earnings and/or it involves the reliance on contractual obligations of third parties. Lenders are asked to assume the added risks associated with project loans because: 1. Project financing may permit a company to obtain additional leverage. It is possible for companies to arrange financing on a project basis that could not be arranged as a direct borrowing. For example, a company may not be permitted to borrow more money directly, due to a limitation in a bond indenture. However, a project financing can sometimes be negotiated on a basis not prohibited by the indenture. 2. Often the sponsors of, or the stockholders in, the project are seeking an off-balance-sheet financing. For example, 11 of the 29 projects in our study were arranged on an off-balance-sheet basis and one showed on the balance sheet as a deferred income item. An off-balance-sheet financing, for the purpose of this article, is a financing which does not show as a direct liability on the balance sheet of the sponsors of or stockholders in a project. 3. Projects are often located in a foreign country. The financing is arranged so that the lenders assume the political risk on the loan because many companies rightly believe that this arrangement affords a degree of insulation from political risk not otherwise obtainable. 4. Many projects are jointly owned by several sponsors. This form of financing lends itself well to a situation where a new entity is formed to own a project and do the borrowing. Project loans can be used to finance a variety of activities including development of iron-ore deposits and associated pelletizing plants; development of coal reserves; construction of pipelines, alumina plants, fertilizer plants and refineries; etc. The specific areas of analysis can be quite different, depending upon the type of project being financed. It is important, therefore, to classify the proposal according to the type of project, and also by the nature of the financing - nonrecourse financing, financing covered by a guarantee of completion and financing supported by an undertaking lasting for the life of the financing. I will discuss each of these types in more detail later, but first, I should like to make some

Jan 1, 1985

By J. D. Forrester

Many have been prone to credit the decline of professional interest in some branches of mineral industry education to the industrialists and other agencies who use our graduates. We hear the cry that industrial salaries are too low, opportunities for advancement do not exist, and the mineral industry specifically and generally is not interested in the engineer's efforts. Perhaps the time now has come when we should "dress-ranks," examine our practices, and publicize and encourage advanced technical training instead of laying all our troubles elsewhere. There can be no doubt but that industry is interested and stands ready and willing to co-operate. This is demonstrated by the numerous grants-in-aid and co-operative industrial projects which have been made available to those relatively few schools which have been encouraging graduate study and research. There is no dearth of research problems in any of the mineral industry fields and the sooner we realize the great opportunities for constructive, technical research in all areas of our profession the sooner we will reap the benefits of our engineering enterprises by closer liaison and broader understanding with industry. An analysis is offered here of the status of graduate work and research in various phases of mineral industry education in the United States. It is

Jan 1, 1949

By William J. Potter, Roger N. Pyle

Introduction The primary ingredient for survival of mining companies during a recessionary period is to be innovative and resourceful in the structuring and financing of operations. Over the past decade, many mining companies have had to retrench and restructure their operations and to redeploy their assets just to survive. During the same period, traditional sources of financing for mining companies -- commercial banks, subsidized export credit loans and long term straight debt financing in the public markets -- became less available and more expensive. Meanwhile, new markets and new financing instruments provided new alternatives for mining companies. Those companies which exploited these alternatives greatly enhanced their capacity for survival and even for profitability. This article considers the strategies adopted by some companies to adapt to changes in this recessionary environment; the inadequacy of traditional sources of financing; certain of the new financing instruments, structures and markets which have become available; and how several mining companies have utilized these new instruments, structures and financial markets to improve their competitive positions. THE IMPACT OF RECESSION ON MINING COMPANIES AND TRADITIONAL FINANCING SOURCES In its 1983 year-end article "The New Economic Order" Mining Journal characterized many of the large private sector mining companies with operations in the industrialized countries as being "gripped between the jaws of high working costs and stagnating metal commodity prices." The article went on to characterize the Canadian mining industry in particular as being "in the difficult position of having to seek to sell the bulk of its output in a world market characterized by over-capacity, where production costs were determined by internal political and economic factors while prices were set by external competitive forces of supply and demand." Miners of a wide range of commodities in the industrialized countries have come to realize that their domestic mineral resources are in many cases no longer competitive with global sources of supply. To compete and survive they would have to rely on their technical and financial expertise in mineral exploration and development and in mining and processing. Strategies For Survival Global competition has compelled management in the extractive industries to improve their worldwide cost position. This is the only means whereby a mining company can differentiate its product and attain a substantial competitive advantage. During the past decade, for example, ASARCO Inc. and Inco Ltd. chopped their payrolls, postponed expansion plans and otherwise retrenched. ASARCO reduced its capital expenditures and cash requirements for operations in 1984 to a level almost equal to its internally generated cash. The company's finances were also strengthened by increasing total lines of credit from outside sources, by selling common stock, and by reducing annual pension funding through a change in actuarial assumptions. Other companies returned to their traditional organizational structure where they had a demonstrated competitive strength. Consolidated Gold Fields, for instance, resumed its operation as a mining finance house. Its capital investment programs are now devoted solely to resource development. In mid-1984, at a time of firming zinc prices, Union Miniere S.A. used the opportunity to integrate its smelting capacity and to direct investment to certain subsidiaries at the expense of less viable operations. Smaller corporations realized that it was not enough just to be the low-cost producer. For example, Drummond Coal Company in Alabama, which dominates its regional market due to its low-costs, has also developed a world-wide trading capability and has placed incremental tonnage from its own mines as well as brokered coal produced by others, thereby minimizing capital risk. In Canada, Campbell Resources has exploited difficult times by acquiring assets cheaply. In the process it improved its capacity to withstand cyclical economic swings by diversifying from solely a copper and gold producer to a company based upon asbestos, coal, copper, gold and natural gas.

Jan 1, 1985