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By Forest Mintz

Many oil and gas producers find it advantageous to borrow against the value of their hydrocarbon re- serves. This paper considers the requirements for a reserve based loan and the calculations that a bank would perform to arrive at a loan amount. Three of the most common loan structures, i.e. a term loan, a production payment, and a revolving credit/term loan will be discussed. A typical outline for each type of loan is presented. Finally, a comparison of major considerations in the three financing techniques is shown.

Jan 1, 1982

By Norman C. Stines

Russia's mineral potential is a secret that has been effectively kept by the Iron Curtain. There is no conclusive data and because of its extreme importance to the Free World, the subject is greatly discussed. Opinions range from those presented by Paul Tyler in his article "Russia's Mineral Potential," June issue of MINING ENGINEERING to those of Norman C. Stines, presented herewith. Mr. Stines is a consulting mining engineer of Los Gatos, Calif. He was in Russia, China, and Manchuria from 1909 to 1918 as a mining executive. From 1917 to 1919 he served as assistant military attache Intelligence Branch U. S. Army in Petrograd, Russia.

Jan 11, 1951

By Charles W. Perry

The options of enhanced oil recovery, coal syncrude, and shale syncrude are compared by approximately equivalent economics. The physical constraints for the major enhanced oil recovery processes are described, followed by new estimates of cost. The range for all three options in terms of light syncrude equivalent are $22 to $40 per barrel in 1980 dollars.

Jan 1, 1982

By Michael S. Koleda

Less than two years ago, the, Congress, with broad bipartisan support, passed the Energy Security Act of 1980. A decade marked by ten- fold increases in world oil prices and two major interruptions in oil flows from the Middle East had ended. An all-out national commitment to transform America's vast tar sands, oil shale and coal resources into conventional fuels had begun. The national synfuels effort was to be public-private cooperation at a scale unmatched in peace time. Private industry would own and operate the synthetic fuels facilities. Government would reduce market uncertainties to acceptable levels. The potential government commitment was substantial. Up to $88 billion would be available through the Synthetic Fuels Corporation, principally in the form of contingent financing. Billions more would be spent through Department of Energy programs. Additional incentives for alternate energy development were contained in the Energy Tax Act of 1978. The Energy Security Act clearly specified national synthetic fuels production objectives: 500,000 barrels per day by 1987 -- 2 million barrels per day by 1992. Finally, said Congress, Uncle Sam was going to do something about rapidly rising oil prices, uncertainties of energy supply, and the resulting disruption to the U. S. economy. Simply put, the purpose of the Energy Security Act of 1980 was to provide government guarantees sufficient to get synthetic fuels projects off the private sector drawing boards and into commercial production. Because of their huge cost, technological uncertainty, and lengthy pay-out period, these projects were always second place to projects of smaller size, known technology and more rapid pay-out. The Energy Security Act was the legal expression of public policy to bring the free-market synfuels timetable into line with the faster paced political timetable in the interest of national energy security.

Jan 1, 1982

By Frank G. Snyder

The Precambrian of Midcontinent United States includes a metamorphic belt of probable Middle Precambrian age, a belt of Keweenawan volcanics and sediments, and widespread igneous activity that extended from Iowa to Texas. Most of the present structural configuration of the Midcontinent was developed by epeirogenic movements during the Paleozoic. The dominant elements are basins and arches. Three major metallogenic provinces occur in the Midcontinent. They include the Missouri Precambrian iron ores, the Lake Superior copper ores, and the Mississippi Valley lead-zincbarite- fluorite deposits. Several large iron deposits, occurring in rhyolite and andesite host rocks, are known. Both discordant massive bodies and replacement- type bodies occur. The iron deposits are believed to have been formed during the period of igneous activity. They are essentially the same age as the volcanics and older than the granites that intrude the volcanics. The Lake Superior copper ores include two established districts, the Keweenawan district and White Pine, and the copper-nickel deposits in the Duluth gabbro. The lead-zinc-barite-fluorite deposits include four major districts, Southeast Missouri, Upper Mississippi Valley, Tri-State, and Illinois-Kentucky, and at least eight minor districts. Ore may occur in stratiform deposits and in veins. The major districts all contain stratiform deposits, but several have produced appreciable quantities of vein ore. Only vein deposits are known in some of the smaller districts. The major features of all districts can be catalogued in terms of host rocks, structural patterns of districts, types of ore-bearing structures, and mineralogical characteristics. From these features, a Mississippi Valley type ore body, in its type area, can be defined.

Jan 1, 1968

By AIME AIME

CERTAINLY in point of attendance, and doubtless in several other ways as well, the 147th meeting of the A.I.M.E. was the best ever held. In times of depression, mining engineers and metallurgists have plenty of time to come to the Annual Meeting but money is scarce; at the height of industrial activity they have plenty of money but no time. "The current period of transition seemed to provide ideal conditions for' both the preparation of papers and attendance at their presentation. The weather made even the Californians present envious though the weather man gets no credit, for rain and snow was what he willed. Among the elevator men, the miners have the reputation of being the toughest crowd to handle, though the best natured, withal, of all the engineering groups that meet in the Engineering Societies Building. This year Your inquiring reporter was told, "it was the damnedest meeting I ever saw; they

Jan 1, 1937

By Walter S. White

The Michigan native-copper district has produced about 5,400,000 tons of copper since mining began in 1845. The copper occurs primarily as open-space fillings and replacements in amygdaloidal flow tops and conglomerate beds of the Portage Lake Lava Series, of middle Keweenawan age. Secondary minerals with which the copper is associated include microcline, chlorite, epidote, pumpellyite, prehnite, quartz, and calcite; zeolites, other than laumontite, are not abundant. A zonal pattern of the secondary minerals transects bedding and suggests regional metamorphism mainly to the grade of the prehnite-pumpellyite graywacke facies of Coombs. Most of the major copper deposits are near the upper limit of abundant quartz in this zonal pattern. The distribution of copper in both amygdaloid and conglomerate deposits is controlled partly by primary permeability of the rocks and partly by later tectonic fracturing that was concentrated in the mechanically weak flow tops and sedimentary beds. Ore shoots and deposits are therefore controlled partly by primary structural features, such as areas of thick and thin fragmental amygdaloid or the boundaries of conglomerate lenses, and partly by regional structure: a number of ore deposits are in synclinal downwarps. The copper-bearing solutions that formed the deposits were ascending. They may have come from a large concealed intrusive, or may have been driven out of the porous tops of lava flows when the rocks were compacted and metamorphosed at great depth in the central part of the Lake Superior syncline. The second hypothesis seems more consistent with the widespread distribution of the copper, its relation to mineral zoning that represents truly regional metamorphism, its native state, and the likelihood that copper deposition was later than most or all of Keweenawan volcanism.

Jan 1, 1968

By Frank G. Snyder, Paul E. Gerdemann

The Southeast Missouri lead district, located about 70 miles south of St. Louis, embraces four important sub-districts and several minor ones. The important sub-districts, in order of discovery, are Mine La Motte, the Old Lead Belt, Indian Creek, and the Viburnum Lead Belt. Descriptions that follow are of geology and ore deposits of the Old Lead Belt. The ore deposits are stratiform in character and are localized in a narrow carbonate bar and algal reef environment on the flanks of exposed Precambrian of the St. Francois Mountains. Ore structures include a variety of primary depositional features such as pinchout zones, disconformities, ridge structures, reefs, and submarine gravity slides. Faulting, prior to and during ore deposition, "prepared" the host rock and strongly fractured areas are mineralized much more intensively and extensively than unfractured parts of the same sedimentary structures. The deposits are epigenetic in character. Mineralization is believed to have occurred at the time that post-lower Ordovician faulting took place. The mineralizing solutions are believed to be concentrated brines from adjacent basins that moved out of the basins during faulting, uplift, and erosion of the St. Francois positive area.

Jan 1, 1968

By Kirtley F. Mather

FROM almost every point of view, petroleum was "strategic mineral number one" during the World War that ended in 1945. Even the spectacular advent of the atomic bomb in the final days of the conflict did not displace it from its position of prime importance, although within a few years uranium will almost certainly be the "number one" material in the minds of military strategists, if it is not even now in that position. But both as fuel and as raw material for chemical industries, petroleum will hold the center of the stage for many years to come. Hardly any other substance illustrates so fully the manner in which science and technology may be combined to achieve the utmost success in contributing to human efficiency and comfort. Fundamental to any understanding of the problems implied by my topic

Jan 1, 1948

By David B. Dill, Edgar R. Lea

The zinc deposits of the Balmat-Edwards Division of the St. Joseph Lead Company in northern New York State provide some 10 per cent of the domestic zinc produced annually within the United States. These complex ore deposits are contained within marbles of the Precambrian Grenville series, in a repetitive sequence of dolomites and silicated units. The Balmat ore bodies are localized at various intervals throughout some 1800 feet of the stratigraphic column on the northwest side of a band of gneiss that has continuity to the Edwards area, some 10 miles to the northeast. The Edwards ore bodies are located to the southeast of this gneiss. The marble formations are thought to have included repetitive intervals of marine sedimentation that provided mineralized source "beds" and were subsequently folded, flooded, and injected with melts at great depth and were sheared, recrystallized, and reconstituted. Detailed structural and stratigraphic studies throughout the northwestern Adirondacks, in the Balmat-Edwards district, and at each mine in particular indicate the close dependence of the ore deposits on the enveloping structure whether it be local, district-wide, or regional in scope. Primary folding has developed a northeast regional trend with northwest dips. Secondary folding has been developed by an almost horizontal northeast-southwest-oriented shear couple in the plane of the regional trend. The secondary folding has produced crossfolds that intersect the regional northeast trend and plunge north to northwest at various angles. The ore bodies are found within certain stratigraphic horizons where repeated alternation of competent and incompetent beds encouraged unusually complex folding. Analysis of individual mine structures indicates that the location of each deposit is controlled by structural crossing of primary and secondary folding. The ore bodies, which are tabular, lenticular, or pod-like in form, have features that suggest parallelism to true bedding or modified flow banding, developed by northeast-southwest shearing stresses related to the development of the crossfolds. The ore deposits in general follow both structural and recrystallization trends within the wall rocks. Mobilization of the pre-metamorphic ore minerals is believed to have involved a combination of plastic flow under stress and solution of the sphalerite, minor galena, and pyrite. The ore fluids are thought to have been guided by secondary shearing and microbrecciation into structurally prepared areas where reprecipitation took place. The presumed premetamorphic mineralization now exhibits epigenetic high-temperature features related to late-stage metamorphism.

Jan 1, 1968

By Paul R. Dingess, Edward H. Hare, Douglas C. Brockie

Mining in the Tri-State district of Missouri, Kansas, and Oklahoma has been nearly continuous from about 1848 until the present day, although the major activity was from about 1880 to 1955. The district, which has produced over $2 billion in zinc and lead concentrates, ranks as one of the greatest mining districts in the world. Unlike other Mississippi Valleytype deposits in the United States, which occur in Cambrian and Ordovician limestones and dolomites, the Tri-State district ores occur in Mississippian limestones containing abundant chert. Zinc is 5 to 6 times more abundant than lead. In the Picher Field, the principal sub-district which has accounted for 61 percent of the total district production, most of the ore has been mined from the single horizon, M bed. Most ore bodies, other than those of the "Sheet Ground" or blanket-type, are in large, essentially flat-lying breccia zones and have a definite mineral zonal pattern. An irregular, generally elongated central dolomitic core is surrounded progressively outward by the main ore run, the jasperoid zone, the muddy or shaly and bouldery zone, the sparry calcite limestone zone, and the fossiliferous, dominantly crinoidal, limestone zone. Some of the zones may be absent or nearly so and may overlap to some extent with an adjacent zone. Although the district has been studied by many authors, much controversy still exists about such items as genesis, paragenesis, and time of emplacement. These subjects are discussed in the paper.

Jan 1, 1968

By Allen V. Heyl

This old district is a major zinc and lead source and minor copper and barite source. Ores are chiefly in the Galena Dolomite and in limestones and dolomites of the Decorah and Platteville Formations, all of Middle Ordovician age. Locally, deposits have been mined from Lower Ordovician dolomites and Upper Cambrian sandstones. Small deposits of lead, zinc, and iron sulfides have been found in Upper Ordovician Maquoketa Shale and in Lower and Middle Silurian Edgewood, Kankakee, and Hopkinton Formations. No post-Precambrian igneous rocks are known in the region, and the granitic and metasedimentary Precambrian basement rocks unconformably underlie the district at depths of 1500 to 2000 feet. The strata are gently flexed and faulted, probably largely the result of gentle compressive and rotational adjustments in the underlying crystalline basement, especially along lineaments between basement blocks. Folds of three orders ·of magnitude are recognized, and many related reverse, strike-slip, and normal faults of small to moderate displacements are present. Zinc-lead deposits are commonly linear, arcuate, or elliptical in plan. Most ore occurs as vein fillings in fractures and as breccia fillings and lining vugs, but some is in bedded replacements and impregnations of wall rocks. The ore is in shears, small reverse and bedding- plant faults, joints, and solution-slump structures related to intermediate and small folds. The main primary minerals in their general sequence of deposition are quartz, illite, dolomite, pyrite, marcasite, cobaltite(?), sphalerite, galena, chalcopyrite, millerite, barite, and calcite. Wall-rock alterations include solution of the carbonate rocks, silicification, dolomitization, clay alteration, and sanded dolomite. Oxygenisotope, trace-element, lead-isotope, and sphalerite- stratigraphy studies are in progress. Fluid inclusions in sulfide and gangue minerals are filled with concentrated brines at 120° to 40°C. Sulfides are directly replaced by supergene minerals above the water table at 50 to 100 feet in depth. In this relatively cool climate and limestone environment, smithsonite is in pseudomorphs after sphalerite; solution transport and redeposition of supergene minerals are rare. Ore genesis is postulated by rising hot-water solutions-a mixture of heated connate, magmatic, and meteoric waters.

Jan 1, 1968

By Ralph W. Marsden

The natural iron ores of the Lake Superior Region in the United States are being replaced by iron-ore concentrates produced from magnetite- or hematite-rich horizons in the Precambrian cherty iron formations. The production of natural ores will soon be less than one-half of the total ore shipped annually. The tonnage of natural ore produced will continue to decline until it is a minor percentage of the ore shipped. The natural ores include (1) soft ore, (2) hard ore, ( 3) conglomerate ore and ( 4) siliceous ore. The soft ores are the important ore type and are sometimes termed "Lake Superior type ore". These ores are in situ deposits of hematite and limonite formed by the leaching of silica and other gangue materials in the iron formations. The leaching is believed to have been done by downward moving surface waters. In deep ore deposits, generally over 1000 feet below the present surface, circulation and leaching action may have been assisted by hydrothermal activity. Hard ore deposits occur on the Vermilion and Marquette ranges where hematite or magnetite has replaced the silica (and possibly some silicates) in cherty iron formation. These ores commonly occur in structural situations favorable for the movement of hydrothermal waters. The ores are believed to be the result of hydrothermal action with iron, possibly from the iron formation, transported by hydrothermal waters to areas favorable for the replacement of silica by iron oxides. Certain stratigraphic horizons of the Lake Superior Precambrian cherty iron formations contain sufficient iron as magnetite or hematite, with a grain size and texture that will give adequate mineral liberation, to yield an ore-quality product after grinding and concentration. The magnetite-rich deposits are termed magnetite taconites. These ores occur on the Mesabi, Gogebic, and Marquette ranges. Magnetite taconite ores are unenriched cherty iron formation and are the result of the sedimentary deposition of the iron formation and the metamorphic history of the rock. The commercial quality hematite-rich iron formations in Michigan are termed jasper ores. The jasper ores are being mined on the Marquette and Menominee ranges. These ores are composed of specular or granular hematite associated with quartz and iron silicates. The jasper ores appear to be recrystallized iron formations in which iron, prior to recrystallization, occurred as hematite.

Jan 1, 1968

By Paul W. Zimmer, Carl E. Dutton

Iron ore in the Menominee district is mined from two iron-formations of middle Precambrian age. The older formation is present in the northeastern part; is composed mainly of hematite, magnetite, quartz, and minor silicates; and contains about 34 per cent iron. The rock has been so coarsened by meta- morphism that concentration of magnetite and hematite is feasib!e, and pellets containing more than 60 per cent iron are being produced. The older formation is also present in the southeastern part where it has 1:een only slightly metamorphosed. Ore containing more than 50 per cent iron was formerly mined from local residual concentrations of iron oxides from which silica had been sufficiently leached, or replaced by iron oxide, or affected by combinations of these processes. The younger iron-formation occurs in the western part of the district and, if unaltered, is interlayered siderite and chert. The ore in this area also contains more than 50 per cent iron and formed as local residual concentrations but in two stages. The siderite was converted to iron oxides (hematite and "limonite"), and silica was contemporaneously or subsequently removed by leaching, or replacement, or combinations of these processes.

Jan 1, 1968

By Ogden Tweto

The classes of ore deposits in the mountain province of Colorado that have been the most productive in the past and that offer the greatest promise for the future are: (1) disseminated or stockwork molybdenum deposits associated with Tertiary stocks; (2) combination precious- and base-metal veins in Tertiary volcanic rocks; and (3) base-metal replacement deposits and veins in Paleozoic sedimentary rocks. Veins in Precambrian rocks, including precious metal-bearing sulfide veins, gold-silver telluride veins, and tungsten veins, have been mined extensively in the past, but their aggregate output has been far subordinate to that of the groups named above, and the outlook for major output from them in the future is poor. Principal ore deposits of south-central Wyoming are sedimentary iron ores of Precambrian age and uranium deposits in Tertiary sedimentary rocks. Precambrian deposits of several kinds are scattered through the mountains of both states. The most promising of these, based on present indications, are vanadiferous titaniferous magnetite in southern Wyoming and southwestern Colorado and thorium-niobium rare-earth deposits associated with alkalic intrusive complexes in Colorado. Most of the mining districts of Colorado are in the Colorado mineral belt, a generally narrow but somewhat irregular belt that extends northeastward across the north-trending mountain ranges and the north-northwest trending geologic grain of the state. The belt is characterized by intrusive rocks of Laramide and younger age and by ore deposits, and it occupies environments ranging from Precambrian crystalline rocks through Paleozoic and Mesozoic sedimentary rocks to Tertiary volcanic rocks. Two ages of intrusion and ore deposition recently have been recognized in the mineral belt. One is Laramide (late Cretaceous and early Tertiary), and the other is Oligocene. As interpreted herein, the major replacement deposits and most of the sulfide vein deposits in Precambrian and sedimentary rocks are Laramide in age, and the molybdenum deposits, the tungsten and the gold telluride veins in Precambrian rocks, and the precious- and base-metal veins in volcanic rocks are Oligocene in age. In general, the Laramide deposits are mesothermal in aspect, and the Oligocene deposits are principally epithermal. The existence of two mineralization stages, in considerable part characterized by different suites of metals, has many applications in exploration.

Jan 1, 1968

By David C. Jonson, W. Bruce MacKenzie, Arthur A. Bookstrom, Vaughn E. Surface, Neil K. Muncaster, Stewart R. Wallace

In mid-Tertiary time a wet silici-alkalic magma penetrated the Precambrian rocks of what is now the Tenmile Range of Central Colorado and formed the Climax Stock. The stock is a composite one and was intruded in four separate irruptions, each giving rise to a major hydrothermal event. The first three of these produced large stockwork ore bodies that cap and flank the tops of their respective source intrusives; the fourth, and last, yielded almost no commercial mineralization. The ore bodies and their related zones of alteration are circular to ring-shaped in plan and arcuate in section. The different phases of the stock are so positioned with respect to each other that many of the circular and arcuate zones of mineralization and alteration overlap or are juxtaposed. Evidence of a time separation between the different ore bodies is found in certain dikes that were intruded between periods of mineralization and are well mineralized in one ore body but are barren in another. If it is assumed that the parent magma at Climax contained 10 per cent "water," that the "water" contained 0.1 grams per liter of molybdenum, and that the processes of extraction were 100 per cent efficient, then approximately 10 cubic miles of magma would be required for the formation of each ore body. The volume requirements, taken in conjunction with the cross-sectional areas of the different phases of the stock to explored depths, suggest to the authors that each magma chamber was columnar, extended to a depth of thousands of feet, and was connected with a much larger master reservoir. The repetition of similar intrusive, structural, and hydrothermal events, indicates periodic tapping of this reservoir. A regular chemical evolution of the parent magma is suggested by the systematic change in metal ratios and differences in the sites of deposition, relative to the source intrusive, in each of the four separate igneous hydrothermal stages. The preparation of ground was due to changes in magmatic and/ or hydrothermal pressures within the igneous-hydrothermal columns; small, repeated, up and down movements of the rock enclosing the tops of the columns formed the stockwork fractures into which the mineralizers penetrated. The forceful emplacement of each successive phase of the Climax Stock resulted in a slight doming and rotation to the westward of the earlier-formed geologic features. Postore normal displacement along the Mosquito fault is estimated at about 9000 feet. Part of one ore body was cut by the fault and lies at depth below the Paleozoic sedimentary strata on the hanging wall. On the footwall side of the fault, subaerial erosion and glaciation removed a large part of one ore body and uncovered the top of a second.

Jan 1, 1968

By Arthur F. Hagner

The titaniferous magnetite deposit at Iron Mountain, Wyoming, is in Precambrian anorthosite. Individual ore bodies are lenses, commonly arranged en echelon, conformable to the platy crystal structure and compositional layering of the anorthosite; a few transect these features at various angles. The ore bodies are on the east flank of the principal anticline in the anorthosite mass. Magnetite and ilmenite, accompanied by spine!, are the ore minerals. The principal gangue minerals are olivine, which was introduced with the ore, and plagioclase, the chief constituent of the anorthosite. The anticlinal region appears to have been a structurally weak zone, and westward-bowing curves of the axis were especially favorable sites for localization of the two largest massive ore bodies. These bodies are synclinal and plunge southeast. The proportion of magnetite-ilmenite to olivine and to anorthosite appears to be related to structural features. Where magnetite-ilmenite is present with olivine, the magnetite-ilmenite is encountered along the most pronounced parts of a fold where anorthite content is highest, whereas olivine is associated principally with more gently folded portions. During granulation and recrystallization of the anorthosite mass, temperature and pressure changes furnished the energy required to release and mobilize iron and other elements that migrated to areas of low pressure, the ore zone. Some iron and magnesium may have combined with silica from partly dissociated plagioclase to form olivine. The ore formed by replacement of anorthosite as indicated by: (1) the marked changes in mineralogy along strike, dip, and plunge of an ore body; (2) the concentration of massive ore in folds and olivine on limbs; ( 3) the halo of low-grade mineralized rock that transects the structure of the anorthosite in the hanging wall; and ( 4) the layering in the large southern ore body, that strikes more easterly than the trend of the body.

Jan 1, 1968

By Ogden Tweto

The Leadville district, on the west flank of the Mosquito Range in central Colorado, has produced silver, zinc, lead, gold, and minor metals valued at $512,000,000. The ore deposits are in a sequence of dolomites and quartzites, Cambrian through Mississippian in age and about 500 feet thick, which is extensively intruded by porphyry sills, dikes, and plugs of Tertiary age. The sedimentary rocks and sills dip about 15°E and are broken by many faults, which are predominantly of nearnorth trend and downthrown to the west. The ore deposits are principally blanket or manto replacement deposits, but in the eastern part of the district many veins occur also. The replacement deposits are largely confined to three dolomite units in the stratigraphic sequence. Of these, the uppermost or Leadville Dolomite is the most productive. Most ore bodies are on the underside of porphyry sills and, particularly, beneath sills that occupy unconformities. Many replacement bodies have vein roots or branch from veins. The veins occupy faults and are productive mainly in the section of quartzites and dolomites and included sills. The primary ores consist principally of pyrite, marmatitic sphalerite, and galena but locally contain chalcopyrite, silver minerals, bismuth minerals, and gold. Principal gangue minerals are manganosiderite and jasperoid. The ore deposits have a crude zonal pattern centered around an intrusive center at Breece Hill, which evidently influenced ore deposition thermally. The ore deposits were oxidized to depths of several hundred feet in Miocene time. Bonanza ores mined in the early days were characterized by cerussite, cerargyrite, and embolite. Later, zinc carbonate ores were identified and mined on a large scale. The Leadville district is a complexly faulted and intruded area at the intersection of major fault systems trending N20°W and N15°E in the Mosquito Range. The intensely fractured area evidently localized igneous intrusion and subsequent mineralization. Ore solutions rose on many of the faults in the area, presumably from the same source as the porphyry magmas. Movement on these faults continued into the Pleistocene, displacing ore bodies, oxidation zones, Pliocene sediments, and glacial deposits.

Jan 1, 1968

By Wilbur S. Burbank, Robert G. Leudke

The impressive western San Juan Mountains of Colorado were carved by Pleistocene and Recent erosion from a thick blanket of Tertiary volcanic rocks that rests upon a basement of metamorphic, sedimentary, and igneous rocks ranging in age from Precambrian to Tertiary. These rocks record a long, complex, and fairly complete sequence of geologic events that have affected the region through much of geologic time. The geologic history of the region includes several periods of deformation, erosion, and igneous activity; closely associated with two of these periods were two periods of mineralization. The older of these was related to Late Cretaceous-early Tertiary (Laramide) intrusive activity, and its deposits occur in the older sedimentary units. The younger, of later Tertiary age and related to the widespread middle Tertiary extrusive and intrusive activity, is the chief concern of this paper. Tertiary volcanism built a great plateau surrounding the San Juan volcanic depression, a complex of subsided crustal blocks in the vent areas. The Silverton and Lake City cauldrons, nested within the larger depression, were domed by resurgent magma that created keystone grabens along the distended crests of the domed floors and many postcauldron radial and concentric fractures, dikes, and intrusive plutons within and marginal to the cauldron sites. The postvolcanic evolution of large quantities of gases, chiefly carbon dioxide and water, propylitically altered the rocks in and around the volcanic depression prior to the younger period of ore deposition. The ore deposits, localized mainly in the radial and concentric fractures about the cauldrons and in the associated graben faults, include fissure veins, chimneys, replacements, and disseminations in volcanic and underlying basement rocks. Fissure veins, constituting the major economic source, yielded precious- and basemetal ores. Most veins are compound with sphalerite, galena, and chalcopyrite; some veins contain silver-bearing arsenical sulfosalts and free gold. These minerals occur in predominantly quartz gangue. However, gangues composed of several manganese silicates and carbonates and relatively· barren of metals are abundant locally and probably originated by alteration of rocks at roots of faults and fissures during evolution of carbonatic solutions. The bulk of the ores are hypogene and probably had their source in deep parent magmas of the shallow eruptive rocks. Total production since the early 1870's has exceeded half a billion dollars in recovered metals, with a ratio of precious- to base-metal values of about 3 to 2. Since 1930, improvements in metallurgical treatment and mining techniques have increased the base-metal yield.

Jan 1, 1968

By E. Motica

Ores containing uranium and vanadium minerals have been mined from the Salt Wash Member of the Morrison Formation from many localities in the Colorado Plateau region since about 1900. The most productive deposits are in a relatively small area in Southwestern Colorado referred to as the Uravan mineral belt. The mineral belt is a narrow elongate area in which uranium-vanadium deposits in the Salt Wash have a closer spacing, larger size, and higher grade than those in adjoining areas. Pre- 1948 ore production from the mineral belt was 655,000 tons averaging 1.91 per cent V2O5 and 0.28 per cent U3O8. Production during the 1948 to 1964 period was 7,900,000 tons of ore averaging 1.46 per cent V2O5 and 0.27 per cent U3O8. The ore deposits occur principally in the uppermost sandstone unit of the Salt Wash. This unit consists of sandstone lenses formed by a system of aggrading braided streams flowing in an easterly direction generally normal to the mineral belt. These lenses, referred to as channels, are as much as one mile in width and average about 50 feet in thickness and can be traced for several miles along their courses. Areas favorable for one deposits are recognized principally by the following criteria: ( 1) a host sandstone thickness of over 30 feet, (2) the presence of carbonaceous material in the host sandstone, and ( 3) gray mudstones and clays associated with the ore-bearing sandstone. The ore minerals are believed to have been precipitated from laterally migrating solutions; there is no apparent genetic relationship between ore deposits and tectonic structural features. Exploratory and development drilling from the surface is conducted in three phases: first, wide-spaced drilling to find and outline favorable channels; second, moderate-spaced drilling in favorable ground to locate ore deposits; and third, close-spaced drilling to block-out ore. Long-hole drilling from underground stations is used to find and delineate extensions of ore bodies being mined. Due to intense production since 1948 from shallow deposits, best potential for new deposits exists in areas where the ore-bearing unit is 600 to 800 feet deep.

Jan 1, 1968