Search Documents

By J. Brian Eby

The Gulf Coast of southern Louisiana during the year of 1940 was subjected to an extensive exploration and development campaign, as a result of which 16 oil fields and about 38 new producing sands were found. Although this record of discovery appears in keeping with the rate of 1939 actually in amount of new proven reserves, it may fall short of that of the previous year. Only five or six of the discoveries rated as first-class or important fields at the close of the year. The most prominent new fields opened during the year were Neale field in Beaure-gard Parish, the West Cote Blanche field in St. Mary Parish, the Stella field and the West Bay field in Plaquemines Parish, and the Lake Salvador field in St. Charles Parish. There were many important oil-sand discoveries in proven fields, such as in the Bayou Perot field, the Golden Meadows field, the Iowa field, West Lake Verrett field, and the Venice field. During the year, 1047 weUs were drilled in southern Louisiana, of which 768 were completed as oil-producing wells, 17 as gas wells and 262 as dry holes. The Neale field in northwest Beauregard Parish is considered one of the most important discoveries of the year. The f~eld centers around the north half of sec. 26, 'Y.3 S., R.I I W., just north of the town of Neale. It was discovered by the Atlantic Refining Co., using reflection seismograph to locate the structure. Production was found in the second well drilled in the Wilcox sand on the downthrown side of a fault. The structure is known as the "Tepetate" type, being similar to that of the well-known Tepetate field. There were 12 oil wells and 3 dry holes drilled during the year. The Wilcox sand in this field occurs between 8350 and 8400 ft. and averages 30 ft. in thickness. The West Cote Blanche Bay field, in West Cote Blanche Bay, St. Mary Parish, is a 1940 discovery by the Texas Company, credited to reflection seismograph exploration. The oil is from two sands occurring at 3110 to 3140 ft. and from 4950 to 5020 it. Four wells were drilled during the year, three oil wells and one dry hole. The deepest hole drilled reached 9491 ft. without encountering salt or dome material. In Plaquemines Parish, south of New Orleans, the California company has a new field known as the Stella field. The sand was found at a depth of 7485 ft., and 5 ft. of perforations made a well capable of producing 486 bbl. of oil in 24 hr. through a 9.is-in. choke. The oil is 42" gravity. The discovery well was drilled to a total depth of 10,258 ft. and other producing sands were indicated. A good field appears assured, although only one well was completed within the year. The Lake Salvador field, in the center of Lake Salvador, St. Charles Parish, gives promise of being one of the most important discoveries of the year. The discovery well was perforated at 9775 to 9800 ft. making 850 bbl. of 33.7° gravity oil daily through a 1/4-in. choke. Three wells were completed in 1940 but few details have as yet been made available.he Gulf Oil Corporation apparently has a good field in its wildcat discovery in West Bay, Plaquemines Parish. This well found

Jan 1, 1941

By J. Brian Eby

The Gulf Coast of southern Louisiana during the year of 1940 was subjected to an extensive exploration and development campaign, as a result of which 16 oil fields and about 38 new producing sands were found. Although this record of discovery appears in keeping with the rate of 1939 actually in amount of new proven reserves, it may fall short of that of the previous year. Only five or six of the discoveries rated as first-class or important fields at the close of the year. The most prominent new fields opened during the year were Neale field in Beaure-gard Parish, the West Cote Blanche field in St. Mary Parish, the Stella field and the West Bay field in Plaquemines Parish, and the Lake Salvador field in St. Charles Parish. There were many important oil-sand discoveries in proven fields, such as in the Bayou Perot field, the Golden Meadows field, the Iowa field, West Lake Verrett field, and the Venice field. During the year, 1047 weUs were drilled in southern Louisiana, of which 768 were completed as oil-producing wells, 17 as gas wells and 262 as dry holes. The Neale field in northwest Beauregard Parish is considered one of the most important discoveries of the year. The f~eld centers around the north half of sec. 26, 'Y.3 S., R.I I W., just north of the town of Neale. It was discovered by the Atlantic Refining Co., using reflection seismograph to locate the structure. Production was found in the second well drilled in the Wilcox sand on the downthrown side of a fault. The structure is known as the "Tepetate" type, being similar to that of the well-known Tepetate field. There were 12 oil wells and 3 dry holes drilled during the year. The Wilcox sand in this field occurs between 8350 and 8400 ft. and averages 30 ft. in thickness. The West Cote Blanche Bay field, in West Cote Blanche Bay, St. Mary Parish, is a 1940 discovery by the Texas Company, credited to reflection seismograph exploration. The oil is from two sands occurring at 3110 to 3140 ft. and from 4950 to 5020 it. Four wells were drilled during the year, three oil wells and one dry hole. The deepest hole drilled reached 9491 ft. without encountering salt or dome material. In Plaquemines Parish, south of New Orleans, the California company has a new field known as the Stella field. The sand was found at a depth of 7485 ft., and 5 ft. of perforations made a well capable of producing 486 bbl. of oil in 24 hr. through a 9.is-in. choke. The oil is 42" gravity. The discovery well was drilled to a total depth of 10,258 ft. and other producing sands were indicated. A good field appears assured, although only one well was completed within the year. The Lake Salvador field, in the center of Lake Salvador, St. Charles Parish, gives promise of being one of the most important discoveries of the year. The discovery well was perforated at 9775 to 9800 ft. making 850 bbl. of 33.7° gravity oil daily through a 1/4-in. choke. Three wells were completed in 1940 but few details have as yet been made available.he Gulf Oil Corporation apparently has a good field in its wildcat discovery in West Bay, Plaquemines Parish. This well found

Jan 1, 1941

By F. B. Plummer

GEOLOGICAL engineering as applied to oil fields, or production geology as some prefer to designate the profession, is designed to fill in the border line between pure geology and pure petroleum engineering. Therefore the production geologist may, and frequently does, reach out to grasp much in both professions. Where once the oil geologist was content to pick samples out of a mud ditch and try to identify oil formations from the color or appearance of flakes of rock bailed out of a well, now he has to deal with graphic electrical logs obtained by intricate and highly technical electrical apparatus and to make exact determinations to the fraction of an inch of the depth and thickness of an oil sand 2 miles below the surface.

Jan 1, 1944

By Kenneth S. Ritchie

THE discovery well of the world's -deepest oil producing structure, University 1-B of Group No. One Oil Corporation, in the Big Lake oil field, Reagan County, Texas, has had a remarkable record. The well is outstanding for the following reasons: (1) It is the world's pioneer well to produce. oil in commercial quantities from a structure 8500 ft. below the earth's . surface; (2) this well was the only. producer from the 8500-ft. pay for a period of 17 months and 24 days; (3) the flow of the discovery well has been free from-the customary changes at the casinghead, with the exception of putting on a back-pressure of 185 lb.; and, (4) the well's daily production of oil and gas increased rather steadily for 17 months and 18 days from an initial of 40 bbl. per day to a maximum of 2926 bbl. per day, and then six months later, after a period of decline and self-readjustment to subsurface changes caused by six more deep producers, the well set its real record for one day's production of oil at 2950 bbl

Jan 1, 1931

By Sadao Maruyama

INTRODUCTION Since the big discovery of Kuroko deposits in Kosaka mine, Akita Pref., northeastern Japan in 1959, major Japanese mining companies have been engaged in extensive exploration for the deposits expending large amounts of money. Above all their exploration activities have been particularly fruitful in discovering new deposits in northern Akita Pref. It is estimated that the total ore reserves newly found in the area are at least 50 million tons. Kuroko deposits are the most important ore source of copper, lead and zinc in Japan and have been mined since last century in the said area. Kuroko (black ore) is fine, compact aggregates with sphalerite , glena and barite as principal constituents and chalco- pyrite, pyrite and tetrahedrite as subsequent constituents. The name Kuroko comes from its appearance. It is not rare that total grade of copper, lead and zinc reaches 20 - 30% and the gold and silver content is also fairly good. Accordingly the unit value of the ore is much higher than the ore from other types of deposits. Besides the Kuroko ore, the Kuroko deposits consists of Ohko (yellow ore, massive cupriferous pyritic ore), Keikoh (silicious ore, cupriferous network ore) and gypsum ore. This type of deposit is considered to be not only an important source of base metal but also a source of gypsum and barite. Although the importance of this type of deposit had been commonly recognized, sub-surface nature of the occurrence hampered exploration work. In recent years the improved exploration techniques and increased knowledge of the Kuroko deposits have met with remarkable success in the location of new deposits. This outburst of exploration and dis-

Jan 1, 1970

Remarks of Mr. Robert W. Hunt, General, Superintendent, Albany and Rensselaer Iron and Steel Company., Troy N. Y.—In discussing Dr. Dudley's two most interesting papers, I feel a natural hesitancy in disagreeing with conclusions formed after such careful and conscientious work. But I think he has made his deductions from too meagre premises. The analyses of but twenty-five samples are entirely too few to justify the establishment of so important a formula. When we consider that he indirectly proposes to regulate an interest amounting, even at the present low prices, to over $20,000,000 per annum, we may well hesitate before accepting a formula based upon the chemical and physical analyses of but twenty-five steel rails. Dr. Dudley touches the keynote in referring to the proposed labors of the Government Test Commission. They based their hopes of attaining success upon the chemical and physical analyses of a very large number of samples, and in the only branch of investigation which the short-sighted policy of Congress has allowed them to complete, i.e., chain cables, we find that a dozen, twenty-five or one hundred tests gave no satisfactory results. It was only after many hundreds that they were enabled to' draw conclusions. There are so many circumstances hearing upon the life of a rail, that the task of extracting a correct result seems herculean. I presume I am right in stating that in our Northern latitudes early winter and spring months witness the breaking of the greatest number of rails, thus seeming to prove that an unstable road-bed has much to answer for. Then, again, broken and flattened wheels must be taken into account, but I am convinced that more rails have been broken by the treatment which they received before leaving the rolling-mill

Jan 1, 1879

By E. J. Duggan

CLIMAX ore is an altered and highly silicified granite, about half of the gangue being quartz. Molybdenite is the only mineral recovered and most of it is intimately associated with the quartz in fine veinlets. Other minerals are molybdite, pyrite, and chalcopyrite. Although the molybdite may be readily extracted by hydrometallurgical methods, its content is too low to make this profitable. The pyrite ranges from 2 to 5 per cent and the chalcopyrite from 0.03 to 0.05 per cent. There is not enough copper to make its recovery attractive and one of the problems is its elimination, and that of pyrite iron, from the final product. On account of the high degree of dissemination of the molybdenite and the necessity of eliminating the iron and copper, fine-grinding followed by flotation is the only known feasible method of concentration. Two factors, peculiar to Climax ore, have a predominating influence on the metallurgical attack: (1) Molybdenite is one of the most easily floated minerals. High recoveries may be made with pine oil alone if the

Jan 1, 1946

By Robert M. Weidenhammer

For years before the war, Coal had the reputation of being a sick industry. Currently it is operating at peak production and succeeding pretty well in keeping out of the red. But, says Mr. Weidenhammer, it will have a relapse as soon as the war ends unless (1) working capital can be built up; (2) it gets the support of the people and Congress; and (3) a truly long-range national fuel policy is formulated.

Jan 1, 1943

By AIME AIME

AWIDE variety of subjects was discussed at the Wednesday sessions on Non-metallic Minerals. W. M. Weigel as chairman, presided at the morning session, and W. M. Myers, vice-chairman, in the afternoon. In the morning session a paper by W. N. Logan on "Mineral Wool Resources of Indiana" was read by H. H. Hughes. Mr. Logan explained that as Indiana is the principal source of mineral wool, the paper might well he entitled "Mineral Wool Resources of the United States."

Jan 1, 1932

By Andrew Hyslop

IN our never ending search for new and better ways of underground mining, we find that transportation has had its share of new ideas in the past few years. The old and still effective method of track haulage has had some competition from rubber tired cars and belt conveyors, each of which has its own safety hazards which demand close scrutiny in any safety study. The use of shuttle cars, in particular, has introduced clearance hazards caused by the absence of the more or less positive guides formed by the rails of a track sys¬tem; likewise the requirement of greater clearance tends to increase roof hazards which we all know to be great enough with the best of methods. However, the subject of transportation hazards is too broad to be covered entirely in one paper, so I will confine myself to track methods which carry the preponderance of underground tonnage. I am quite sure that to this group it is an evident fact that haulage accidents are of major importance. However, to stress the point, it may be well to look at a few figures. Safety statistics can be quite boring and often are subject to question as to mathematical accuracy because of different

Jan 1, 1948

By C. C. Herrick

The vapor pressure of indium has been measured by the torque-effusion technique, as a function of temperature between 1102o and 1422oK. For liquid indium, the vapor pressure (in atmospheres) can be represented by the equation -R In P = 5.782 x104/T - 25.29from 1000o to 1422oK. Extrapolation yields a calculated normal boiling point of 2329°K and a heat of vaporization at 298 oK of 58.09 kcal per mole by the third-law method and of 58.39 kcal per mole by the second-law method. Calculations indicate that the free-energy functions of Hultgren are to be preferred to those of Guruich. BECAUSE of the potential uses of liquid metals, it is important that convenient experimental methods be developed which will lead to a sufficient body of thermodynamic data so that reasonable estimates of properties of liquid metals can be made. Indium is particularly well-suited to investigation, since it remains liquid over a long temperature interval, it alloys readily, suitable containers for it are easily procured, and relatively few investigations of its thermodynamic properties in the region above 1000°K have been made. PREVIOUS RESEARCH The first determination of the vapor pressure of indium was made by Anderson,' using the Knudsen method and silica-lines stainless-steel cells. Kohlmeyer and spandau2 determined the normal boiling point, and a mass-spectroscopic investigation has been made by Lyubimov and Lyubitov.3 (Unfortunately, only an equation representing the data of the latter investigators has been available to us.) Hultgren et al.4 and Gurvich5 have published discordant tables of the free-energy functions for indium. EXPERIMENTAL METHOD The torsion-effusion principle has been described amply in the literature.8,7 With this method, one observes the angular deflection induced by effusion of vapor from a multihole effusion cell which is suspended from a filament producing a small rotational restoring force. The pressure within the effusion cell can be computed from the relation ziaifiai where k is the torsion constant of the filament, 6 is the observed angular deflection, and ai, fi, and qi are the area, force factor, and moment arm of the ith effusion orifice. The force factor f is analogous to the Clausing factor,' and corrects for the reduction in effusive force attributable to the finite geometry of the effusion orifice. Schultz and Searcy' have tabulated the force factors for various tube geometries. EXPERIMENTAL APPARATUS The physical arrangement employed in this study is shown in Fig. 1. The furnace elements are six Globar heat rods with 15-in. hot zones. Temperature is maintained to * 1°K by a Beck mechanism driving two 26-amp Powerstats in parallel. A Pt (Pt, Rh 10 pct) thermocouple serves as the sensing element. Four inner tubes act as vibration isolators; the air pressure required for maximum isolation was determined empirically, and is maintained by a solenoid valve. The tungsten fiber, 9 by 0.002 in., is joined to an 0.008-in. tungsten wire or graphite rod via a machined lightweight chuck.

Jan 1, 1964

Faulty rock dusting of the New Orient Mine at West Frankfort, Ill. was declared to have been the primary cause of the extent of the blast that killed 119 men on December 21. Walter Eadie, state director of mines and minerals, ascribed the explosion to the ignition of methane in a working place about a mile northwest of the shaft of the mine. The initiation of the combustion was either by a spark from electrical machinery or from men smoking in the mine. It was surmised that a train of empty cars stalled in a ventilation door, had caused sufficient disturbance in the ventilation system to permit accumulation of gases. The Federal Bureau of Mines said that the Illinois explosion was caused by an electrical spark that touched off the clouds of gas present because of the faulty ventilation equipment. The bureau report listed three conditions as primarily responsible: An inadequate ventilating system, operation of faulty electrical equipment and the presence of large accumulations of fine coal dust capable of exploding. "This coal dust, principally along roadways, was not removed from the mine or rendered inert by the application of sufficient rock dust," the report stated. Investigations showed that an even more disastrous blast was averted because the explosion eventually reached areas where it could expand into open workings and where enough rock dust had been applied to retard it.

Jan 1, 1952

By George Frederick Kunz

The manifold inconveniences resulting from the absence of a uniform standard of mass for determining the weight of precious stones have long been obvious. This lack has been keenly felt in commercial transactions, and those who have devoted time and research to the study of historic diamonds and precious stones have had frequent occasion to deplore the absence of such a standard in the past. In a paper read in Chicago in 1893, before the International Congress of Weights and Measures, held in connection with the World's Columbian Exposition, the writer suggested dividing the carat into 100 parts, and constituting a standard international carat of 200 mg.; that is, 5 diamond carats or 20 pearl grains to a French gram, making 5,000 carats or 20,000 pearl grains to a ki1ogram. He also called attention to the fact that while this would depreciate the present diamoiid carat or pearl grain only about 2.5 per cent., it would abolish the troublesome discrepancies between the various carat-weights now in use, and could be easily explained and understood everywhere.' The subject of the various diamond carats, their incongruity, and the resulting confusion as to the correct weights of historic gems when definite records of them are searched for, has been fully treated by me in an extensive study of this subject in The Book of the Pearl2 To the earnest and unremitting efforts of C. E. Guillaume, Director of the Bureau Internationale des Poids et Mesures at Sévres, is largely due the eventual success of this eminently desirable reform, which he has constantly urged both by articles on the subject and by addresses delivered in Paris before the International Committee for Weights and Measures.3 The general adoption of a uniform standard for dealings in pre-

Jan 1, 1914

By James Johnston

Synopsis.—A description of the working of the mills of this company and the metallurgical practice in vogue, by which a remarkably complex silver ore, averaging 54 oz. of silver per ton (run-of-mine ore), is treated to give a 95.66 per cent. extraction. The main features of the processes are: The cyanide amalgamation of the high-grade ore. The cyanide treatment of the low-grade ore, after extremely fine grinding and close classification, in a caustic soda solution. The use of a wet desulphurizing process to break up refractory silver minerals. The substitution of aluminum dust for zinc dust as a precipitant. The recovery and shipment of over 13,000,000 oz. of silver in bullion at 997 to 999 fine since this metallurgy was inaugurated, about 2.5 years ago. On the completion and successful operation of the mill to treat their high-grade ore,' the Nipissing Mining Co., under the general management of R. B. Watson, started a series of investigations of the possible treatment of the low-grade ore by the cyanide process, so that they would be in a position to market only silver bullion. These tests were run in July, 1911, on a large scale, by G. H. Clevenger, on an average mixture of Nipissing ore. The results obtained by a partiai amalgamation followed by cyanide treatment gave an extraction varying from 90 to 93 per cent. and were sufficiently encouraging to warrant Charles Butters, the company's Consulting Metallurgist, in recommending that the new low-grade ore mill under contemplation should be a cyanide mill, instead of a concentrator. The cost of such a mill, capable of treating 200 tons per day, to obtain a 90 per cent. extraction at a working cost of $3 per ton of ore treated, was estimated at $250,000. In coming to a decision as to which type of mill should be erected, the concentrator, with the subsequent shipping of concentrates to a smeltery,

Jan 1, 1915

By Otto Henry

THE purpose of this investigation was to determine the equilibrium diagram of the lithium-magnesium pair as a first step in studying the possible usefulness of these alloys as ultra-light structural materials. REVIEW OF THE LITERATURE The behavior of lithium towards magnesium was first investigated by Masing and Tammann.(I)? In order to prevent oxidation the alloys were made in iron tubes under an atmosphere of hydrogen; temperatures were measured with a glass-protected thermocouple. These investigators found that lithium and magnesium form two series of solid solutions separated by a miscibility gap between 85 and 95 per cent magnesium; that the alloys with 81 and 95 per cent magnesium showed a homogeneous structure under microscopic examination, while the alloy with 89 per cent magnesium contained two distinguishable crystallites; that the curve indicating the beginning of crystallization rises from the melting point of lithium to that of magnesium; and that no compounds of lithium and magnesium are formed. The equilibrium diagram was not plotted because no definite data were obtained for determining the solidus and the posi-tion of the miscibility gap in the solid state. The difficulties encountered in this investigation were: (1) that it was necessary to heat them as high as the melting point of magnesium in order to obtain homogeneous melts; at such temperatures the alloys attacked the glass protecting the thermo-couple; and (2) that at temperatures above 400° C. the lithium united

Jan 1, 1934

An Appreciation of Dr. Douglas by Dr. ALBERT R. LEDOUX The Bulletins of the American Institute of Mining Engineers and the program of the International Engineering Congress, held last September at San Francisco, called attention to an important feature in the pro¬ceedings of the Congress; viz., the public presentation to Dr. James Douglas of the John Fritz Medal, for notable achievements in mining, metallurgy, education. and industrial welfare. Dr. Douglas' health, unfortunately, did not permit of his taking the journey to California. While he had been willing that the bestowal of the medal should be a public ceremony, his natural modesty made him shrink somewhat from what he considered something of an ordeal, and he begged those who were to take part in it to use restraint in anything which they might have to say as to his work and attainments. It was, therefore, with some considerable satisfaction on his side that he learned that the medal would be given him without a public, ceremony in New York, or elsewhere. . On Dec. 5, 1915, the writer of this had the pleasure of handing him the medal, certificate, and official letters of transmittal, at his home at Spuyten Duyvil, where lie was surrounded by his children and grandchildren, with one or two of his most intimate friends. He begged the writer to return his thanks to the Committee of Award; and again to express the feeling that nothing in his career merited so great an honor. On this point all of the members of the Institute will share the writer's feeling that Dr. Douglas is too modest. James Douglas was born at Quebec, Canada, in November, 1837. His father Was a distinguished physician and surgeon, employing his skill in the field of philanthropy: He established the first retreat for the insane in the Dominion, to which lie. devoted himself up to the time of his departure from Canada, when it was taken over by the Government. The son spent 2 years in study at the University of Edinburgh, which lie entered in 1855. Returning to Canada, he graduated from Queens University, at Kingston, Ontario, with the degree of Bachelor of Arts, having also studied medicine, and later theology. After his graduation he traveled extensively with his father in Europe and in the Orient, visiting Egypt several time's. They returned with important archaelogical collections, which Dr. Douglas subsequently donated to the Metropolitan Museum of Art in this city. He then returned to Edinburgh, where he continued his course in medicine, surgery being perhaps his chief interest at that time. He was subsequently licensed to preach and his contemporaries bore testimony to his broad philanthropy and to the sympathy which dominated his every act. His taste was distinctly literary; he had carried off a prize at Edinburgh in English literature.

Jan 1, 1916

By J. B. Newsom

SAFER, cheaper, and faster sinking of mine openings seems to have been realized with the completion of a borehole 5 ½ ft. in diameter and 1208 ft. deep, in Minnesota, during 1938. Moreover, as the opening is to be used solely for ventilation, its circular cross section, smooth walls and freedom from fire hazard recommend it in comparison with the usual timbered shafts of rectilinear cross section. It should be pointed out that a drill hole sunk without the use of explosives frequently will stand open without support, whereas a shaft sunk by standard procedure using dynamite usually must be timbered because of the wall-shattering effect of explosives. The saving in maintenance resulting from the elimination of timber is obvious. The work was done by Pickands Mather & Co. at its Zenith mine, Ely, Minn. This company wanted a ventilation opening capable of delivering 50,000 cu. ft. of air per minute to the fourteenth level, 1200 ft. below the surface. While several general articles1-3 have described the method used, detailed time and performance records have not been presented before. Moreover, with a method as new as this, it is important to compare the results attained under widely varying conditions. Among the new conditions faced at Ely were some extremely hard rock, a series of vertical fractures, seepage water, and some long stretches of sound rock which, combined with excellent equipment, gave a chance to operate without unusual delays. Developments in boring large holes have generally taken the obvious course of increasing the size of the equipment, a line of attack that has resulted in putting down 3-ft. diameter holes at damsites for studying the foundations4 and in drilling ventilation openings between levels at Butte. 5 Such drills operate from the collar of the hole, and the power from the drill is transmitted to the cutting tool through drill rods or pipes. In order to keep down the volume of rock that must be ground to sludge, the cores in large-diameter drilling are made as large in diameter as possible. Their large diameter increases their weight per foot of length, which

Jan 1, 1939

By A. W. Hesse

Twelve years ago, some coal-mine operators, mining engineers, oil and gas operators, Bureau of Mines engineers, geologists and state mine inspectors met in Pittsburgh, Pa. to discuss and solve if possible, the problems in connection with the drilling of oil and gas wells through or near coal mines and through the future coal reserves. Regulations were drafted and presented by O. P. Hood and A. G. Heggem of the Bureau of Mines.' . There was considerable discussion of the various articles, practically all of which appear in Bulletin 65, but the interest aroused at that meeting was short lived. Practically none of the important coal-producing states gave the matter the consideration it should have received. Notwithstanding the marked progress in safety work, coal mines still have an unenviable reputation for mine explosions. Our mining laws have become stricter and the enforcement, especially in Pennsylvania, more rigid, but what good will come from a rigid enforcement of the mining laws if some source of danger exists all around the mines, over which the operators have no control ? It is hardly necessary to recite all the cases of natural-gas explosions published in Bulletin 65, but with some of them I am especially familiar. In 1912, while visiting the Miners' Hospital, at Fairmont, W. Va., my attention was called to a patient swathed in in bandages so that no part of his face and hands were visible. He had not been told that his two sons, mere boys, had died of the burns they had received in the same accident—explosion due to natural gas leaking into a country mine at Peora, Harrison Co., W. Va.

Jan 1, 1925

By C. Richard Tinsley

INTRODUCTION Documentary complications arise from the risk apportionment in project financing which generally means that once the project is up and running and has satisfied the lender's completion test, the loan agreement specifically limits the lender's recourse to the project and its assets. It is the purpose of this paper to describe the special considerations which apply to industrial minerals projects and explore the reasons why so few project financings are negotiated in this industry. SIZE Small projects do not warrant the relatively high costs of negotiating and documenting project financing. The extent of the documentation is directly proportionate to either (a) the degree of risk apportionment, or (b) the amount of control given to lawyers to negotiate the documents. Although one would like to believe that project-finance documentation could be off-the-shelf, it is almost always necessary to tailor the documents to the mine development itself and the individual desires of the borrower. Accordingly, the documentation costs and initial expenses are seldom less than $40,000, and for complex projects can reach $400,000. In addition, banks often charge an up-front fee to partly compensate them for their staff time and partly to increase their yield on what is deemed to be a "riskier" loan asset. Another factor is the generally lower debt:equity ratio when bankers are uncertain of the accuracy of the cash flow projections. The ratio of the amount of cash flow left over after debt service to debt service itself is a key tool for project finance (debt service coverage). Bankers will require a higher coverage ratio for industrial minerals projects because of the relatively higher uncertainties in the following categories: Prices Markets Geology/Quality Transportation Environmental This, in turn, means that lower debt:equity ratios are the norm for new industrial minerals projects. INDUSTRY STRUCTURE It is hardly worthwhile to generalise about a field as diverse as industrial minerals, but there are four other structural reasons why project financing has not been widely applied. 1. The most obvious example is the predominance of small-sized operations, largely a function of transportation economics. Geological conditions also contribute to their dispersion. 2. Often, the product is only a small part of a company's business in contrast to many petroleum, metals, or coal companies whose sole business is the production of the raw material. The construction industry is a good example here for cement, gypsum, crushed stone, sand and gravel, and the drilling-mud services business for barite and bentonite. A company is unlikely to jeopardise its main business through the failure of a project financing on one of its key inputs. The corrollary is that the mined input is often regarded as a cost centre and not run on the sort of economic basis suitable for project financing. 3. There may be a reluctance to reveal key aspects of an industrial minerals venture to an outsider for purely competitive reasons. Unlike the other minerals industries which readily share technical information at plant visits and

Jan 1, 1985

By C. S. Anderson

GEORGIA, since 1829, has produced nearly $18,000,000 from her gold mines, but in late years the output has dwindled to insignificance. In view of present universal efforts to increase gold production, it seems pertinent to record some recent observations in that field, briefly review its past and weigh probabilities of reviving gold mining there. Little in this paper can be claimed as new or original, and it does not present results of a detailed or profound investigation of the whole region. The Allatoona gold mine was reopened in January, 1932, and explored at greater depth during the period from January to June of that year. A number of other abandoned mines were visited, but since the workings, in common with most such mines in Georgia, were flooded or caved, underground conditions could not be examined. For a wider knowl-edge of the subject, a search was made through available pertinent literature and statistics, a bibliography of which is appended hereto. To all the sources obligations are gratefully acknowledged.

Jan 1, 1933