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By B. S. Butler, H. D. McCaskey

The New London copper mine, about 8 1/2 miles east of Frederick, Md., was visited by the writers for a few hours in the spring of 1909 and the following brief notes on ore specimens collected are presented as a contribution to studies in chalcocite ores. For certain data on the structural and areal geology of this portion of Maryland the writers are under obligation to the unpublished notes and maps of Arthur Keith. The detailed study of the ores is the work of B. S. Butler. The deposit here discussed has many similarities to those of the Virginia district of Virginia and North Carolina, which have been described by Gratonl and Laney,2 except that in the deposits of the New London mine chalcocite is by far the most important ore mineral, while in the Virginia deposits bornite is commonly the most important sulphide. In the New London occurrence calcite is the most important gangue mineral. Field relations The -town of Frederick lies in the center of a narrow belt of limestone ranging in age from Ordovician on the east to Cambrian on the west. This belt is about + mile wide at Noland's Ferry, on the Potomac, and broadens to a width of 3 miles at Frederick. The general direction is east of north. The eastern boundary is, in places, a fault plane along which a series of metamorphic rocks of presumptive pre-Cambrian age have been thrust up. These ancient rocks, for several miles east and west of New London, are phyllites in the main, but closely inter-folded near the New London mine are long, narrow lenses of epidote

Jan 1, 1915

By J. H. Hensley

The mine of the Miami Copper Co. is in the Miami district, Gila County, Ariz., approximately 7 miles west of Globe. In 1906, the General Development Co. secured the ground now owned by the Miami Copper Co., and about a year later discovered ore in a prospect shaft at a depth of 220 ft. The Miami Copper Co. was organized in 1907, the claims held by the General Development Co. were transferred to it, and an active development campaign was inaugurated. The railroad was extended from Globe to Miami in 1909, a concentrating plant was constructed, and the company began producing early in 1911. The unit size of mineral tract in the district is the standard lode claim 600 ft. in width by 1500 ft. in length. Ownerships of land are held in fee. The geology of the district has been described by F. L. Ransome.' The formations of local importance are: The pre-Cambrian Pinal schist, which consists mainly of metamorphosed sedimentary rocks and is commonly of a thinly laminated sericitic variety; the diabase, which is thought to have been intruded in late Paleozoic or early Mesozoic times; the Schultze granite and granite porphyry, considered early Tertiary; the dacite of late Tertiary time; and the Gila conglomerate of early Quaternary. General Items Influencing Mining Methods The bodies of disseminated ore in the district are flat lying masses of irregular outline and variable thickness. As a rule, these masses lack definite boundaries; the orebody follows a curve along one of the main ridges, approximately 5500 ft. in length with a maximum width of 1600 ft. The minerals occur as finely divided and uniformly disseminated chal-cocite in the Pinal schist and Schultze granite. The typical overburden or capping is a barren rusty brown, very friable, highly siliceous, leached schist, or granite-porphyry. The topography of the district is fairly rugged and irregular; the altitude ranges from 3400 ft. above sea level, at the town of Miami, to 3900 ft. on the hills above the Miami orebody. The climate is mild; the mean annual temperature is 63.°F.

Jan 1, 1925

By C. D. Dolman

Since the outbreak of the war we have discovered in the united States minerals of which there was no general knowledge, and which compared very favorably with anything that could be found in any foreign country. One of these was magnesite, or the carbonate of magnesium as it occurs in nature. This mineral crystallizes in the rhombohedra1 form, has a specific gravity of 3.00, molecular weight of 84.4, molecular volume of 28.1, and a hardness of 3.5 to 4.5.1 Had it not been for the development of the California deposits of this mineral and the discovery of immense new deposits in Stevens County, Wash., the production of steel during the war would have been more seriously handicapped than it was. Now that the war is over, we face the possibility of competition with the cheap Austro-Hungarian magnesite; and while that may not be so cheap as it was before the war, adequate protection should be given the producers in this country to insure the full development of our own resources. The consumption of magnesite in the United States in 1913, the year preceding the war, was 172,591 tons of calcined and 22,872 tons of crude magnesite. Less than 3 per cent. of this amount was produced at home. At the present time, practically all of the magnesite used in the United States is produced at home. Expensive plants have been constructed, extensive exploration work done, and production pushed to the utmost to supply the necessary requirements of the war. Thus a considerable industry has been built up within our borders. Some magnesite has been imported from Canada and Mexico, but the Canadian ore was of an inferior grade and could not be used satisfactorily. During the year 1918, production decreased in both the United States and Canada; the production in the United States was 225,000 tons in 1918 as against 315,000 in 1917, and in Canada 39,365 tons in 1918 as against 58,090 in 1917. This decrease was mainly due to over-production during 1917, the domestic demand being only 300,000 tons. The material produced and sold in the United States must contain, in the crude form, not more than 3.5 per cent. silica and 2 per cent. lime;

Jan 1, 1920

By F. F. Frick, Frederick Laist

In a leaching process, having obtained the copper in solution, the choice of the precipitation method is influenced by the following factors: 1. Availability of precipitant. 2. Adaptability to the leaching process. 3. Final product desired. 4. Regeneration of leaching solutions. 5. Fouling of solutions. There are three general classes of precipitation methods: 1. The use of iron, scrap or sponge. 2. Electrolytic deposition. 3. The use of some gas or reagent by which the copper is obtained, usually in the form of an intermediate precipitate which requires further treatment. For example, the precipitation of, the copper as Cu2Cl2 from chloride solutions; with SO2 gas. The use of iron is adapted to almost any process. It has the great advantage of extreme simplicity, and the recovery of the copper and any values present in a highly concentrated, easily treatable form. The disadvantages are the cost in isolated places, the uncertainty of the scrap-iron market, and the fouling of the leaching solutions. The latter is a serious factor, when a reagent such as salt is used in them, which makes necessary their re-use. Where applicable, electrolytic deposition is very attractive. The copper is obtained in a form directly marketable, there is a regeneration of acid and no fouling of solutions. Unfortunately, chloride solutions do not lend themselves to electrolysis. An entirely satisfactory anode material has not yet been discovered, although magnetite, apart from being rather brittle, seems to answer the requirements fairly well. The use of a method of the. third class is involved in many special

Jan 1, 1915

By H. H. Stoek

A study of Americarf coal-mine practice shows two of its distinctive features to be: A greater number of accidents per thousand employees than in any of the other leading coal-producing countries; a much greater percentage of the coal lost than in any of the other leading coal-producing countries. Although our subject is mainly concerned with the second feature, any consideration of mining methods should include safety, efficiency, and economy or costs. If the argument could be offered that our wasteful mining was necessary on account of safety, and that it is carried out with less loss of life than in other countries, the plea for conservation of coal could not he so strongly urged. But when we are wasteful of both life and property, the subject merits more: consideration than it has received. Some coal operators will doubtless say that the unit of accidents should be the number per million tons produced rather than per thousand employees, for by adopting this unit America probably stands in the lead rather than the lowest among the countries. However, vital statistics are not usually so expressed by other governments, by life and accident insurance companies, or in other industries, and it is merely begging the question and attempting to bolster up a bad condition to adopt a peculiar unit for the statement of our accidents. For many years the statement was made by various agencies, and was unchallenged, that "For every ton of bituminous coal mined in the United States a ton had been lost in the way of pillars left in the mines." This statement was undoubtedly true for many years, and although in the past decade some progress has been made toward obtaining a higher extraction, and in some districts very decided progress, the loss is still great; and, although no exact data can be given, it is probable that for the United States as a whole at least one ton is lost for every two mined.

Jan 1, 1923

By R. Stefanko, Y. J. Wang, H. R. Hardy, R. Y. Kim

Since 1964, the Dept. of Mining at The Pennsylvania State University has been carrying out extensive studies associated with the phenomena of microseismic activity and inelastic behavior in geologic materials. Briefly, the program to date has involved the following stages 1) Study of the microseismic noise and energy rates for selected geologic materials under incremental, uniaxial tension.1,2 2) Investigation of the frequency spectra of microseismic activity of selected geologic materials under incremental, uniaxial tension.3,4 3) Investigation of the time-dependent inelastic deformation of geologic materials and the analysis of such deformation in terms of mechanical models.5, 6 4) Simultaneous study of microseismic activity and time-dependent inelastic deformation in geologic materials under incremental, uniaxial compression.7,8 Details of the research involved in stage 4 of the program constitute the subject of this chapter. It should be noted that the majority of the experimental data quoted in this chapter forms part of a thesis to be presented by one of the authors (Kim) in partial fulfillment of the requirements for the Ph.D. degree in mining engineering at The Pennsylvania State University. During the last two or three years, a number of important papers have been published which deal primarily with the fundamental structure and mechanical behavior of geologic materials. Recent papers 9,10 have provided research workers in the rock mechanics field with a meaningful overall picture of rock as a structural material. The concept that many

Jan 1, 1970

By J. B. Davis

This paper has been prepared at the suggestion of Mr. Dunbar D. Scott, to supplement his " Evolution of Mine-Surveying Instruments."† Before entering into a detailed history of solar instruments, a few remarks will be made touching upon land-surveys in general, and on what has led to the development of these instruments.The oxidation of metals melted in contact with air takes place with dissimilar results. Tin, lead or zinc are examples of a class, the oxides of which float on the surface of the melted metal. First a film is produced, which covers the surface; then, if agitation from any cause exposes new metal to the action of the air, additional oxidation takes place, and the film is increased in volume. This change goes on until a considerable quantity of oxide (or " dross," as it is technically called) is formed; depending, of course, upon the duration of the exposure of the metal to the atmosphere. When such metals are poured, the dross may be skimmed off; and clean metal will be left underneath. The removal of such oxides is, therefore, merely a mechanical process. In the case of copper, however, the result is quite different. The sub-oxide of copper (Cu2O) is readily soluble in molten copper; and therefore, instead of the formation of a film of oxide, to be finally removed as dross, the surface of the metal remains bright and clear, because the oxide has been dissolved as soon as it was produced. It is customary in the process of copper-refining to leave a small quantity of oxide in the metal, in order to oxidize any traces of bismuth, arsenic or antimony which have not been entirely removed. As a result, these metals exist in the commercial product as oxides, and not as metals, which would form an

Jan 1, 1901

By R. H. Foley

It is difficult to consider any seam as unsuitable for longwall mining operation for something like 95% of British coal is produced by this system. The following is a brief report on how they do it-their techniques and equipment. Depth of working in British mines varies from about 150 ft to more than 3000 ft, with the average being about 1300 ft. Average seam thickness is approximately 40 in., but working seams vary from 16 in. to as much as 14 ft.

Jan 8, 1965

By Augustus Locke

Jan 1, 1923

By Augustus Locke

Jan 1, 1923

By Eugene Guccione

For at least 10 years, various industry people had warned about the alarming decline in the nation's oil and gas reserves. Then, in October 1973, the Organization of Petroleum Exporting Countries launched an oil embargo and sharply increased crude oil prices. Suddenly, everybody discovered the "energy crisis." In November 1973, former President Nixon advocated a Project Independence program so that ". . . by 1980 we shall be able to meet America's energy needs from America's own energy resources."

Jan 5, 1975

By T. Saburi, C. M. Wayman

The massive and martensitic transformations in ß Cu-Ga alloys were studied by optical microscopy and by transmission electron microscopy and diffraction. These types of transformation are distinct and do not merge into one another. An internal fine structure due to stacking faults was found in both the massive phase (m) and the martensite, but the origin of the faults is believed to be different in each case. The faults in the martensite are due to the lattice invariant or "second" shear of the phenom-enological theory, while those in the are probably growth faults and deformation faults arising from the transformation volume change. Evidence is presented for ordering in the ß phase prior to transformation into martensite, and the crystal structures of and ß' and ßi martensites are discussed. THE results from some previous investigations1,2 have led to the suggestion that martensitic and massive transformations have certain common characteristics. It presently seems established that massive transformations like martensitic transformations are essentially diffusionless,1,2 but unlike martensitic transformations, when a new phase forms massively there is no shape change or surface relief.= If the massive-type transformation is crystallographically similar to martensitic transformations, one would expect a fine structure as a result of the lattice invariant shear4 which is a part of the transformation mechanism. The existence of such a fine structure (i.e., slip, twinning, or faulting), if any, can be verified by transmission electron microscopy, and thus the present investigation was undertaken to compare the internal structure of massively and martensitically formed phases in Cu-Ga alloys which were derived from a parent of the same composition. The transformation characteristics of ß Cu-Ga alloys were also studied. The bcc ß phase in the Cu-Ga system, Fig. 1, is stable above 616oc.' Depending upon the cooling rate, ß Cu-Ga alloys can undergo three different types of phase transformations. The ß phase of eutectoid composition (23.7 at. pct Ga) decomposes into the ? phase (hcp) and the phase (complex cubic) by means of a eutectoid reaction. When the cooling rate is increased so that the decomposition of 0 into [ and ? is suppressed, the ß phase transforms into a nonequilibrium hcp phase, herein denoted ?m by a process of very rapid growth called a "massive" transformation. At even faster quenching rates the massive transformation can be suppressed and the ß transforms martensitically. Massive transformations, apparently similar to those in the Cu-Ga system, have also been studied in the Cu-Zn2,6-8 and Ag-Cd systems.9 Definitive characteristics if the Massive Transformations in 0 Cu-Ga Alloys1 1) The most remarkable feature of the massive transformation in Cu-Ga is that there is no bulk composition change on transformation. According to Massalski,1 the resulting [, phase is a supersaturated extension of the equilibrium [ phase. The lattice parameters continue the trend exhibited

Jan 1, 1965

By W. J. Millard

It is well known that the excellent mica from Brazil played a most vital role in World War 11. Increased production from Brazil was necessary and with the assent of the Brazilian Government engineers from the united' States went down to study the problem. One of the means advocated by a former Chief of Metals and Minerals Branch of the Board of Economic Warfare, Mr. Carl Schwegler, was the use of stripping machinery. On a pegmatite dike favorable for stripping, a small number of miners could produce as much mica per day as an underground mine employing many times the same number of men. Type of Deposit Favorable The most favorable type of pegmatite for stripping is that which lies more or less parallel to the surface of the slope of a hill. Pegmatite dikes that cut directly into a hill are not suitable for stripping except where a long outcrop extends along the slope. Then just the outcrop could be stripped to some advantage. The ratio at no time should be greater than 1: 3; i.e., I cu. m. of pegmatite to 3 cu. m. of waste, unless the pegmatite was extremely rich throughout the dike. The Economics of Stripping When a mineral is badly needed to win a war, not too much heed can be paid to costs. The object is to produce rapidly and in quantity. Again, a deposit containing a superior grade of mica may be worked although the pegmatite is more costly to work than another deposit containing a considerably greater amount of poor-grade mica. For example: one deposit may have a little mica that will run 11 per cent good stain and better when trimmed and contain 2 kg, of crude mica per cubic meter of pegmatite, while another may run 0.2 per cent of good stain and better, and have a mica content of 10 kg. per cubic meter. A number of stripping projects were found in the vicinity of Raul Soares, Minas Gerais. These were sampled in the various old workings by cutting out a cubic meter of pegmatite and saving the usable mica. Because of the proximity to the surface of most stripping projects, about 34 per cent only of the mica is good for trimming. The other 66 per cent is too badly weathered to be of use. In Table I are given data collected on five properties near Raul Soares. In Table I, "value per cubic meter of pegmatite" means the value of the qualified mica obtainable. This does not include the half trimmed and splittings. By "value per cubic meter of matter" is meant the value of the qualified mica per cubic meter of material excavated; i.e. both waste and pegmatite. This is the figure that should be used to determine whether the operation will be profitable or not, as the cost of stripping is about $0.14 per cubic meter. With new machinery not subject to breakdowns, the cost per cubic meter should be around $0.10 to $0.15. To this should be

Jan 1, 1948

By Andrew Mayer

EARLY in 1942 National Lead Co. was requested by the War Production Board to construct and operate a plant for the Government to produce magnesium by the ferrosilicon process which had been developed by Dr. L. M. Pidgeon in the laboratories of the Canadian National Research Council. A contract with the Defense Plant Corporation was concluded in May 1942 and Magnesium Reduction Co., a wholly owned subsidiary of National Lead Co., was formed to carry out this project. The capacity of the plant was rated at 10,000,000 lb. of magnesium per year, equivalent to an average production of about 14 tons per day. THE PROCESS The process, in brief, is as follows: The raw materials are dolomite and ferrosilicon, 75 per cent grade. The dolomite is calcined, the calcine and ferrosilicon are ground and mixed and the mixture is briquetted. The briquets are charged into tubular retorts of chrome-nickel steel set horizontally in a furnace with the open ends projecting outside the front wall. The retorts are then closed and evacuated. Magnesium is liberated according to the reaction 2(MgO, CaO) + Si = 2Mg + 2CaO, SiO2 It is distilled from the charge and condensed on a removable sleeve in the throat of the retort. Sodium and potassium, if present, are also liberated, distilled and condensed on a "sodium condenser" in the end of the retort. At the expiration of the distillation period the retorts are discharged and the cycle of operations is repeated. For the rated daily capacity of ±. tons of magnesium there are required approximately 170 tons of dolomite, equivalent to about 85 tons of calcine, and 16.5 tons of ferrosilicon. The retort residue, a bulky powder which at present is waste, amounts to about 87 tons. CHOOSING THE SITE The investigation to select the location of the plant was conducted by the Research Laboratories of National Lead Co. This work included geologic and economic surveys of a number of districts, examination of dolomite samples by chemical, spectrographic and petrographic methods and large-scale tests of dolomite from several of the more promising localities. In the last-named tests 2-ton samples were put through the ferrosilicon process in the pilot plant of the Canadian National Research Council, under the guidance of Dr. Pidgeon. The conclusions drawn from the investigation, in regard to the quality of dolomite to be used in the ferrosilicon process, were: First, the dolomite should contain not less than 21 per cent MgO

Jan 1, 1944

By Waldemar Lindgren, Clyde P. Ross

To the miner, as well as to the geologist, the eastern part of Cuba is a most interesting region. Here we find, in contrast to the moderate relief predominating elsewhere in the island, an imposing mountain range, the Sierra Maestra, extending east and west parallel to the coast, its precipitous front facing the blue Caribbean Sea. In a geological sense this range is largely an unknown land, the only well-explored region being that in the vicinity of Santiago. The range also contains the most important mineral deposits of the island. They comprise, first, a series of iron deposits yielding a partly hematitized magnetite with low content of phosphorus; second, a remarkable copper-bearing vein at El Cobre; and third, various manganese deposits. Probably more deposits will be found, for the larger and western part of the range is as yet little explored and its slopes are covered by a thick tropical jungle. The following notes are based on a short visit by the senior author in January and February of 1914 to the mines at Daiquiri, El Cobre, and Mayari. For many courtesies and great assistance he is deeply obliged to Charles F. Rand, President of the Spanish-American Iron CO.; to George W. Pfeiffer, General Manager, and to the several members of his staff. Geological Features of the Sierra Maestra For our knowledge of the geology of the Sierra Maestra we are indebted to reconnaissance work by Fernandez de Castro, R. T. Hill, Mr. C. Hayes, T. W. Vaughan, and A. C. Spencer. The summary by the latter three geologists furnishes the best guide to the region.' The range is undoubtedly outlined by a great east-west dislocation. Its southern slope drops abruptly to the sea, while on the north side a much gentler declivity leads down to the rolling plateau of Tertiary limestone which occupies much of the adjacent part of the island. Viewed

Jan 1, 1916

By C. E. Mills

The Verde mining district is in Yavapai County, in north-central Arizona. Jerome, the principal town, has a population of 6000 and the two important mines of the district—the United Verde and the United Verde Extension—lie almost within its limits. Perched high on the southwest side of the Verde valley, at elevations of 4800 and 5500 ft. (1463 and 1676 m.) respectively, both mines have long tunnels from their lower levels through which the ore is hauled to the smelters. Clarkdale, the smelter town for the United Verde mines, lies in the Verde valley 4.1 miles (6.5 km.) distant in an air line from Jerome and at an elevation of 3560 ft. The two towns are connected by the standard-gage railroad of the Verde Tunnel and Smelter R. R., a subsidiary of the United Verde Copper Co. This road is 11 miles long and has a compensated grade of 4 per cent. At Clarkdale it connects with the Verde valley branch of the Santa Fe railroad. Clemenceau, the smelter town for the United Verde Extension mine, lies 3.5 miles (5.8 km.) in a southeasterly direction from Clarkdale, at an elevation of 3420 ft. It is connected to the Verde Valley branch of the Santa Fe railroad at Clarkdale by the Arizona Extension R. R., a subsidiary of the United Verde Extension Mining Co. The portal of the haulage tunnel, at an elevation of 3757.5 ft., is also connected with the smelter town by 4 miles of standard-gage track belonging to the same company. In the vicinity of Jerome, the great southern escarpment of the Arizona plateau forms the northeast side of the Verde valley. The general level of this escarpment, or "rim" as it is called, is about 4000 ft. above the Verde River. A corresponding elevation is reached only by the highest peaks of the Black Hills, which bound the valley to the southwest. Two lava-capped mesas, known as "Mingus" and "Woodchute mountains," form the culmination of the Black Hills. That part of the Old Black Hills mining district which lies between their crests and the Verde River is now known as the Jerome, or Verde, mining district. If the smelter towns are not included, a strip about 7 miles long by 3 miles (11 by 5 km.) wide, embraces practically all of the properties belonging to the Jerome district. T-bis strip lies parallel to and along the side of the Verde valley from First View, 2 miles northwest from Jerome, to the

Jan 1, 1925

By W. J. Millard

It is well known that the excellent mica from Brazil played a most vital role in World War 11. Increased production from Brazil was necessary and with the assent of the Brazilian Government engineers from the united' States went down to study the problem. One of the means advocated by a former Chief of Metals and Minerals Branch of the Board of Economic Warfare, Mr. Carl Schwegler, was the use of stripping machinery. On a pegmatite dike favorable for stripping, a small number of miners could produce as much mica per day as an underground mine employing many times the same number of men. Type of Deposit Favorable The most favorable type of pegmatite for stripping is that which lies more or less parallel to the surface of the slope of a hill. Pegmatite dikes that cut directly into a hill are not suitable for stripping except where a long outcrop extends along the slope. Then just the outcrop could be stripped to some advantage. The ratio at no time should be greater than 1: 3; i.e., I cu. m. of pegmatite to 3 cu. m. of waste, unless the pegmatite was extremely rich throughout the dike. The Economics of Stripping When a mineral is badly needed to win a war, not too much heed can be paid to costs. The object is to produce rapidly and in quantity. Again, a deposit containing a superior grade of mica may be worked although the pegmatite is more costly to work than another deposit containing a considerably greater amount of poor-grade mica. For example: one deposit may have a little mica that will run 11 per cent good stain and better when trimmed and contain 2 kg, of crude mica per cubic meter of pegmatite, while another may run 0.2 per cent of good stain and better, and have a mica content of 10 kg. per cubic meter. A number of stripping projects were found in the vicinity of Raul Soares, Minas Gerais. These were sampled in the various old workings by cutting out a cubic meter of pegmatite and saving the usable mica. Because of the proximity to the surface of most stripping projects, about 34 per cent only of the mica is good for trimming. The other 66 per cent is too badly weathered to be of use. In Table I are given data collected on five properties near Raul Soares. In Table I, "value per cubic meter of pegmatite" means the value of the qualified mica obtainable. This does not include the half trimmed and splittings. By "value per cubic meter of matter" is meant the value of the qualified mica per cubic meter of material excavated; i.e. both waste and pegmatite. This is the figure that should be used to determine whether the operation will be profitable or not, as the cost of stripping is about $0.14 per cubic meter. With new machinery not subject to breakdowns, the cost per cubic meter should be around $0.10 to $0.15. To this should be

Jan 1, 1948

By C. S. Smith

It is the policy of The Metallurgical Society to provide, in the TRANSACTIONS OF THE METALLURGICAL SOCIETY OF AIME, a prompt and accurate medium for publication of reports of significant new research in both the scientific and engineering aspects of metallurgy. Papers submitted to the Society are judged by competent reviewers according to established criteria for technical merit, accuracy, originality, and presentation. STAFF: Editor, Dr. Gerhard Derge; Editorial Assistant, M. A. Redmyrski; Staff Coordinator, James J. Burke. THE METALLURGICAL SOCIETY: W. R. Hibbard, Jr., President; J. C. Kinnear, Jr., Post-President; John Chipman, Vice President; T. D. Jones, Treasurer; R. W. Shearman, Secretory. PUBLICATIONS COMMITTEE OF THE METALLURGICAL SOCIETY: A. W. Thornton, Chairman- Dennis Carney John Chipman J. C. Fulton J. H. Hollomon H. H. Kellogg, A. E. Lee, R. Moddin, J. D. sullivan, and D.' Swan. Review and selection of manuscripts is under the supervision of the following Publications Committees: Extractive Metallurgy Division: T. B. King, Chairman; S. J. Dickenson, R. P. Hermsdorf, R. Schuhmann, Jr., and P. T. Stroup. lnstitute of Metals DM lion: Robert Maddin, Chairman. F. Lincoln Vogel, Jr.. Vice chairman. W. A. Backofen R. W. Boliuffi J. H. Bechtold' M. B. Bever R: S. Busk C 6. Goetzel poul Gordon C. D. Grobom, Jr., Robert F. Hehe-mann R. I. Joffee F. i. Joumot Jr. lrvin R. Kromer, A. J. Leno. Horold Morgolfn, C. J. McHargue, Russell A. Meussner, J. B. Newkirk, H. W. Paxton, G. E. Pellissier, I. S. Servi, Alon U. Seybolt, A. J. Shaler, and Jack Washburn. Iron and Steel Division: J. C. Fulton, Chairman. T. B. King, F. C. Laogenberg, W. O. Philbrook, and T. 0. Winkler. Publishod bimonthl by the American Institute of Mining Metollurgicol and Petroleum Engineers Inc., 29 West 39th Street, New York 16, N. Y. Telephone: PEonylvanie 6-9220. Subscription $20 par yew for non-AIME members in United States and North, South and Control Americo $25 foreign; $5 for AIME members. Single copies, $4.00, single copios foreign $5,00. The AIME is 1958 by the Amarican mode or opinion axpressed in it* publications ... Copyright by the Amarican lnstitute of Mining, MataIlurgicol, and Petrolum Engineers, Inc,. . . Reg. istered cable address AIME New Yark ... Indexed in Engineering Inderx, Industrial Arts ...Index and Chemicol Number5. Absrtracis . . . Second class postage paid at New York,Indor. N. Y., Industrialond Ann Arbor, Mich.

Jan 1, 1959

By AIME AIME

To accompanying photograph of the plant of the Beattie Gold Miner Limited, at Duparquet,. Quebec, is taken from the east and shows the open-pit from which the ore is taken during the summer. The buildings on the level ground above the open-pit are the change rooms, steel shop hoist building, compressor building, machine shop, warehouse, carpenter shop, and oil house. The main five-compartment shaft is shown west of the hoist building. The crusher plant adjoins the headframe and a long conveyor transports the fine ore

Jan 1, 1936

By L. D. Clark

Pay-out, the ratio of capital expenditure to annual cash return can be very revealing when employed to gage the merits of a proposed mining venture. It is a quantity, numerically but not physically equal to a factor, by which cash return may be discounted to equal required investment. The fewer the pay-out years, the greater the average annual earning power of the project. Considerable material has been written in the past about the most important and difficult problem mining management faces in evaluation of a property: the optimum production rate for the venture. What daily capacity should be adopted for the proposed operation that it may be the most rewarding to those underwriting it? H.C. Hoover has said, "The most important objective is the least cost per ton mined; and minimum working costs can only be gained by the most intensive production." Theoretically and practically, the quicker the ore is removed, the more profitable should be the venture because of the saving in fixed charges, the consequent lower unit costs and the interest unearned by the profit from the unmined ore. Yet, such performance will be tempered by policy and a restraint imposed by the ratio of capital expenditure to annual cash return. * The 'Annual net profit after taxes but including depreciation and depletion allowances. former will be based upon an analysis of the economic climate anticipated, with its many ramifications including the demand for the product, prices, tax laws, the conduct of labor and related wage scales. The variables and intangibles involved in estimating the optimum production rate for a mine do not readily lend themselves to mathematical relationships or equations and the problem can become complex indeed. The more readily applicable and relatively faster appraisal method will be used which, in addition to being reasonably adequate in most cases, will serve as a guide, should a more expanded and detailed estimate be desired. The first question is what is company policy with respect to the rate of investment return? This will depend on that significant period of time referred to as the pay-out, which can be defined as the estimated interval during which capital investment is returned through application of annual cash return to its recovery. Expressed another way, it is the ratio of capital expenditure to the annual cash return. For example, if the capital investment is $C and the annual cash return is $A (after Federal tax), then $C/$A = the pay-out period in years. That is to say, if $C = $1,500,000 and $A = $214,000, then which is the mathematical expression for the period of time it takes to recover the funds originally invested in a mining enterprise. The relationship yp = $C/$A can be useful — an expression which requires only the significant tern yp to be fixed; in other words, the long range investment policy. For what is the pay-out period but an expression of that policy in terms of the speed, within practical limits, with which an individual or company may want to recover capital expenditure? A policy by which pay-out will be fixed is imperative. This ratio must lie within relatively narrow limits governed by what is economically feasible. It cannot be too low, rendering the ratio impractical or absurd, nor too great, delaying the return of capital for reinvestment beyond a commensurate interval. What pay-out will govern this policy? Federal corporate taxes would seem to present the best measure. Consider mining in Canada where new mines are exempt from Federal income tax for 3½ yr from date of first production. This exemption expressly allows The Act states: "A corporation . . . i s not required to include the profits . . . for the period of 36 months commencing with the day on which the mine came into production in reasonable commercial quantites." a company to recover capital expenditure during the early stages of production. With such an incentive, it is logical to strive for as much capital redemption as possible during this period. Thus, 3½ yr would be a major contribution to the pay-out in Canada. Furthermore, it generally takes from 1½ to 3 yr to develop

Jan 1, 1963