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By NORMAN EBBLEY

NUMEROUS references have been made recently to "Alaska's oil reserves," and in view of the wartime petroleum situation sober thinking demands a dispassionate and scientific study and investigation of these reserves or supposed reserves. The question naturally arises, "Is there actually oil in Alaska, or are the reserves there a supposition?" True, in 1923 President Harding established Naval Petroleum Reserve No. 4 in Alaska, certainly implying that oil was there. This reserve, embracing about 35,000 sq. mi., was set aside on the advice of the Bureau of Engineering of the Navy Department and was based upon the existence of known petroleum seepages at Cape Simpson on the Arctic coast. The Cape Simpson seepages have been known for more than fifty years, but in spite of persistent rumors of other seepages in northern Alaska no definite evidence of their existence has been available.

Jan 1, 1944

By Gregory L. Gullord

In September, 1975, production was begun at the new milling facility of ASARCO Incorporated, the Young Mill. The mill is located adjacent to the Young Mine 35 km (22 miles) east of Knoxville, Tennessee. The Young Mill replaced the obsolete Mascot Mill which had been operating since 1913. The basic flow sheet of Mascot was retained for the construction of the Young Mill, with a 20% increase in capacity included in the design. The Young Mill is capable of processing 7710 - t/d (8500 stpd) of crude ore from three underground mines (Young, Immel and Coy) yielding 300 - t/d (330 stpd) of 63% zinc concentrate. The Young Mill is unique in that 92.5% of the ore milled is recovered as saleable products, including zinc concentrate, construction aggregate, sand and agricultural limestone. Processing at the Young Mill is divided into five basic stages: two-stage crushing, heavy media separation, grinding-flotation, concentrate filtering and drying, and limestone by-products recovery. The ore bodies are located in the Knox formation, which consists of primary dolomite, secondary dolomite and limestone with silicas in the form of chert and jasperoid. The zinc mineralization occurs as an exceptionally pure sphalerite. The ore contains an occasional abundance of pyrite and traces of fluorite and barite. TWO STAGE CRUSHING Ore enters the crushing section from two points. The Young Mine ore is hoisted into a 816 ton (900 st) bin which feeds a 1.52m (60 in) conveyor via a 1.52 m (60 in) vibrating feeder. The Immel ore is trucked 10 km (6 miles) by an independent contractor and weighed on automatic recording truck scales at the entrance to the property.

Jan 1, 1977

THE great development of the mines and metallurgical works of this country during the last few years, accompanied as it has been by the investment of enormous sums of money in purchasing lands, and in the erection of improvements, requires that advantage should be taken of the accumulated knowledge of engineers, superintendents, and' others, in mastering &he problems which are constantly presenting themselves for our action. Among those may be mentioned the consideration of more economical systems of mining in our coal and metal-liferous mines, improved methods of transportation above and below ground, unwatering and ventilating mines, the mechanical preparation of coal and other minerals, the various metallurgical processes, and, in fact, every question tending to the attainment of two great objects : 1st. The more economical production of the useful minerals and metals. 2d. The greater safety and welfare of those employed in these industries. In European countries, where the arts of mining and metallurgy have long been the subject of the most careful study, no means have been found so effectual in attaining the end above proposed as the free interchange of experience among those actually engaged in these industries, and this object has been accomplished, mainly, through the medium of institutes, associations or societies, composed of those engaged in these occupations, and by the periodical publication of essays or papers, communicated to such societies by their members. I t must be evident to all practical men that the interchange of the varied experience of those engaged in such occupation in this country could not fail to advance very materially the desired objects; it is, therefore, proposed to establish an American Institute of Mining Engineers, which will hold its meetings periodically in the great mining and metallurgical centers, where works of interest, such as mines, machine shops, furnaces, and other metallurgical works, can be inspected, and the members exchange their views, and consult for mutual advantage upon the difficulties encountered by each; these transactions or proceedings, when published, would form a most valuable and greatly-needed addition to our professional literature. I t is proposed that a meeting of those sympathizing with the object above mentioned shall be called for the purpose of organizing such an association, the place and time of meeting being Wilkes-Barre, Pa., and the month of April or May. Communications indicating the opinion and wishes of all, both as to these points, and also as to the organization and objects of the Institute, will be gladly received by any of the undersigned, and a notice of the date of meeting, which will be arranged to suit the greater number, will be duly communicated. Any

By J. French Robinson

A review of production in the Eastern District for 1930 is necessarily brief. Drilling operations were curtailed, due to economic conditions, which in turn reduced production. However, in spite of these conditions, there have been a few outstanding developments which surpass any of recent years. The development of a field in Chautauqua and Cattaraugus counties, New York, has been rapid and probably reached its peak of production in 1930. The gas in this field comes from the White Medina Sand (Silurian), at an average depth of 2600 ft. Some of the wells had an open flow of 20,000,000 cu. ft. of gas per day,' with an original rock pressure of 965 pounds2 per square inch. Another area developed during 1930 was the Tyrone field, in Tyrone Township, Schuyler County, New York. This field was discovered 2nd is practically controlled by the Belmont Quadrangle Drilling Corpn. of New York. The production is from the Oriskany Sand (Devonian), which is found at an average depth of 2100 ft. The field covers approximately 2000 acres, and to date has 14 producing gas wells. The largest well had an open flow of 15,000,000 cu. ft. and an original rock pressure of 740 Ib. The gas from this field is impregnated with sulfur, and requires washing before it is marketed. Because little is known of the Oriskany Sand, a brief description may be of interest. This sand outcrops at Oriskany Falls, New York, and has a thickness of 10 to 12 ft. Its texture is coarse grained, it is composed mostly of quartz and is a regularly bedded sandstone. At Yauger's Wood, in Cayuga County, New York, it is exposed and shows a thickness of 26 feet. The discovery of the Tyrone field led to much prospecting in the New York and the northern part of Pennsylvania, and as a result of this search, the Allegany Gas Co. struck a large gas well in Farmington Township, Tioga County, Pennsylvania, which created considerable excitement through the Eastern District. The gas was encountered at a depth of 4010 ft., and tested 20,000,000 cu. ft. open flow, with a shut-in pressure

Jan 1, 1931

By D. L. Katz, M. J. Rzasa

The derivations of three methods of computing the static pressure gradients in natural gas wells have been presented to show the assumptions made. Charts were developed from which the pressure gradients may be read when the well-head pressure, the well fluid gravity, depth, and the average well temperature are given. A chart for estimating the well fluid gravity from the condensate content and separator gas gravity is included. The effect of the increased average well temperature after flow on the calculation of the static pressure gradient is discussed. Introduction Reservoir pressures have been calculated from well-head pressures for gas wells for many years. As the pressure measurements become more accurate, the need for a reliable calculation of the static pressure gradient often arises. This paper will develop the several methods for computing the pressure gradient in gas wells and make a comparison between them. The method of calculating static pressure gradients in common use is Eq. I (ref. I) or its counterpart which includes a factor for the deviation of the gas from the ideal gas law. P2 - P1 = P1(e0.0000347GX _ I) Eq. [I] in which P1 = pressure at well head, lb. per sq. in. abs. PP = pressure at bottom of well, Ib. per sq. in. abs. G = gas gravity X = depth of well, ft. An alternate method is to compute the average density of the gas in the well and multiply by the well depth in a manner similar to that used for liquid gradients. Derivation of Formulas A static pressure gradient is a special case of the general fluid-flow equation. Consider a pound of fluid flowing in a vertical column from point I to point 2, Fig. I. By an energy balance for fluid flowing from I to 2: U1 + P1V1 + u12/2g + X1 + q = U2 + P2V2+ u22/2g+X2 +W [2] in which U = internal energy, ft-lb. per lb. P = pressure, lb. per sq. ft. V = volume, cu. ft. per lb. u = average linear velocity, ft. per sec. X = height above datum, fl. q = heat absorbed by fluid, ft-Ib. pcr lb. W = work done by system, ft-lb. per lb. An energy balance on the fluid itself gives: U = ?TdS - ?PdV + etc. [3] in which T = temperature, deg- R- S = entropy, ft-lb. per deg. R. per lb.

Jan 1, 1945

By Larry Dale

An approach for predicting the development of mineral resources on public lands has been developed as an aid to resource agencies. It consists of new techniques for evaluating the economic potential of the resource, the uncertainty about mine cost estimates, and the uncertainty about the occurrance of mineral deposits. New mineral sup- plies from inferred and hypothetical resources can be predicted by using these techniques. A case study illustrates their application in predicting development of copper resources in western Montana.

Jan 1, 1982

By WILLIAM SLOAN

B RITISH COLUMBIA in its mining activities is going ahead by leaps and bounds both in development and production. Mineral production for 1925 was $61,492,242 in value as compared to $48,704,- 604 in 1924, or an increase of about 26.2 per cent. This is a new record. It is the first time in the history of mining in British Columbia that we have gone over the fifty million mark. But we have got in the habit of making new records. The year 1924, with its mineral production of almost forty-nine million was a new record. And I am confident that when the mining history of 1926 is written it will be found that we have established yet another new record and that we can report another 25 per cent increase over 1925. What is the explanation? It is not only that the world is settling down, and settling up, after the war. It is not only that in the rebuilding, the refashioning in which all nations are busily engaged, the metals that come from our mines are needed. More than anything else, at least as far as we are concerned, it is because British Columbia has the resources and the fact that the province has been fortunate in recent years in finding men with the enterprise and the vision required to push ahead the labor of their development. From the ranks of our own people in Canada we have prospectors who have faith, energy and requisite knowledge. They are combing our hills season after season and they are of the type of manhood that does not know the meaning of the word quit. More and more these men are learning the importance of the guidance furnished by geological reports, and to an ever increasing extent such reports, thanks to the valuable work of the Canadian Geological Survey, covering areas little known to man, are made available to them-but it is recognized that in the opening up of our Province, containing within itself 372,000 square miles, it is essential that we should have the cooperation of our cousins on this side of the line as well as of our fellow citizens of the Dominion and of the Mother Country.

Jan 1, 1926

By A. C. Fieldner

IN the Wall Street journal for March 1, 1941, was a tabulation of the construction under way or under negotiation by thirteen iron and steel companies for a predicted increase in annual coke production of 3,165,600 tons. That even this figure was short of the mark is indicated by other plans, then being considered, for a later expansion of 2,610,000 tons additional. Considerable progress has already been made on thin program, for approximately 500 new ovens were put in operation in 1941. and well over 200 should be completed in 1942. These figures include a number of units that replace older and obsolete equipment.

Jan 1, 1942

By Wilson B. Emery

The Hidden Dome gas field, situated in Washakie County, Wyoming, was discovered Sept. 26, 1917. Subsequently five additional gas wells were completed and a large reserve was developed. For a number of years this field completely supplied the domestic market at Basin and Greybull, as well as the refinery at the latter town, and it is still supplying gas in small amounts to this market. Production is obtained from the sands of the Frontier formation at depths ranging from 1000 to 1500 ft. The original rock pressure was 725 Ib. and initial production ranged from 4,000,000 to 28,000,000 cu. ft. per day per well. Porosity of the sand, determined from the size of the productive area and the amount of gas recovered, is over 18 per cent. Area and Management It is estimated that the productive area is about 640 acres. Its outline is indicated on Fig. 5, on which are also shown the locations of holes drilled on the structure and the area of unit operation. The unit area is owned by the Ohio Oil Co. and development and operation have been by this company. No productive well has been completed outside this area. The entire area was Government land filed on under the placer mining law. Results of Unit Operation With six producing wells, or an average of one to each 160 acres, the pool is completely developed. Location of the wells was made with respect to structural conditions plus the requirement that at least one well be drilled on each 160-acre placer claim. Perhaps a somewhat more uniform spacing of the wells might have been accomplished and one well eliminated, but it must be borne in mind that the holes, on account of their shallow depth, were not expensive and that the object was to develop as reliable a reserve as possible. There is no cause to suspect that these holes have not adequately drained the reservoir and there is every reason to think that any additional wells, which might have been drilled under diversified ownership and operation, would have been an economic waste. Unit operation by a competent company has not only resulted in the elimination of loss of gas through careless development and operation

Jan 1, 1930

By HORACE H. EJIRICH

(New York Meeting, February, 1912.) PREFATORY NOTE.-The first part of this paper was sent to me by Mr. Emrich nearly nine months ago ; and. I held it, waiting for the second part, which he had promised to forward soon, so that I might submit the whole to some of his former professional associates, and advise him of their criticisms and suggestions before offering his work to the Institute. But, five days before the second part reached me, I received by telegraph the news of Mr. Emrich's sudden death. The paper has therefore not had the benefit of such a revision by the author as might have made it in some respects clearer and more complete. Nevertheless, I believe that experts in the branch of metallurgy with which it deals will find it both original and suggestive.-A. EILERS. I. PARTIAL REFINING IN THE ANODE-FURNACE. During my connection with one of the large New Jersey copper-refineries, and probably before that period, from 15 to 20 per cent. of the copper-bullion received was the very foul, leady blister-copper produced from lead blast-furnace matte. It had been customary to mix a small part of this blister with each charge of purer pig-copper, in the effort to dilute it as much as possible before casting into anodes; but tank-house conditions were such that I was led to try making entire furnace-charges of this blister, and refining it as much as possible in the furnace-afterwards casting to anodes and refining electrolytically, in tanks and solution separate from the main bulk of the purer copper. In making this experiment, notes were made, for several furnace-charges, of everything thought to have a bearing on the question, and some interesting facts were brought out, both in the furnace-working and afterwards in the tanks.

Jun 1, 1912

By Charles Catlett

(Chattanooga Meeting, October, 1M.) THE terms " developed " and " undeveloped " are necessarily relative and cover a wide range; but the latter is here applied to cases in which the information at hand falls short of a clear demonstration of values, and conclusions must be reached from a study of the geological conditions of the particular deposit, interpreted in the light of similar and closely related deposits. Such an inquiry might be characterized as an effort to reach reliable conclusions from insufficient data. But the engineer engaged in commercial work finds himself often face to face with apparently such problems; and while he may realize with regret that a small amount of intelligent development would add enormously to the value of his conclusions, he is compelled to recognize the demand of a business situation for a prompt decision as the basis of immediate action. In a case within my knowledge, the question involved was the purchase of 50,000 acres of coal-land, and 10 days was the limit within which this question must be decided. Of course, it was impossible to make a satisfactory examination within that time; but the 'instructions were "to make the most complete examination and the most positive recommendation possible." Such instructions are often given; for, no matter how much time an investor may have, he is likely to put of his decision until the last moment, and then discover that he needs more light and advice. It does not follow that engineers, after full explanation and mutual understanding of the situation, should decline to undertake examinations thus limited. In the case just mentioned, while only the broadest view was possible, half the time available was sufficient to show that the property was a good purchase. The timber alone was subsequently resold for more than the entire purchase-price of the

Mar 1, 1909

By AIME AIME

PURSUANT to a recommendation made by the Section delegates at their conference at the Annual Meeting of the A.I.M.E. last February, the Directors, at their meeting on March 15, 1944, appointed a committee charged with the duty of investigating the present status of licensing and registration of engineers, and to make a report on the whole subject for the information of the mining fraternity. The committee consisted of E. W. Ellis, chairman, H. D. Keiser, Henry T. Mudd, J. J. Croston, and Simon Strauss. Messrs. Keiser and Strauss were unable to assist in the work of the committee, and Mr. Mudd was forced to resign in July, his place being taken by A. F. Greaves-Walker. Able assistance was given the committee by T. Keith Legare, executive secretary of the National Council of State Boards of Engineering Examiners, and by Ed. ward Larson, executive secretary of the National Society of Professional Engineers. The accompanying somewhat condensed version of the report of Mr. Ellis's committee, dated Oct. 15, 1944, is confined to facts rather than to recommendations. The "Model Law" to which reference is made was first drafted by repre¬sentatives of six national engineering societies in 1911. It has since been amended many times, the latest version dated June 1943 is recommended to the State Licensing Boards as a pattern for formulating or amending state laws. A copy of the "Model Law" in pamphlet form will be sent to any member on request from A.I.M.E. headquarters while the supply lasts. The report:

Jan 1, 1945

By Fitterer, G. R.

The impact of the work of Herty "et al" on modern liquid steel technology can only be evaluated by first setting the stage as it existed in 1926. It is important to briefly review not only the steel making process and viewpoints regarding methods of refining, but also to describe the tools which were available for research at the time. One must recall that only 15 years before the beginning of this program, the open hearth production exceeded that of the Bessemer in the United States. Many open hearths were still operating on producer gas (a very inefficient fuel), although some plants were converting to the use of natural gas and very few to oil. Continuous rolling of wide strip started this year. The Faraday Society in England held a World Conference on Physical Chemistry in Steel Making in 1925 and the contributions to this work created considerable interest throughout the world and it appeared that physical chemistry might convert the art of steel making into a science. These papers, however, attempted to solve the problems through the use of the older physical chemical concepts such as Nernst's numbers, etc. and considerable data were missing. In 1923, Lewis and Randall had published their book Thermodynanzicsl and this was later to establish and standardize the steps which are now accepted for the calculation of physico-chemical equations. At the time this research work was started, there were no small high frequency induction furnaces. Northrup had just invented his high frequency furnace and a few large units had been instilled in plants. The vacuum fusion method lor the determination of oxygen in steel was

Jan 1, 1957

By H. L. Teicliman, E. M. Sipprelle

ENACTMENT of Public Law 290 by the 78th Congress authorized the U. S. Department of the Interior, Bureau of Mines, to conduct an experimental program to develop the technology for obtaining oil from oil shale. In adopting and later extending this legislation, the Congress recognized the impending necessity of supplementing ground petroleum reserves with synthetic fuels. Under the provisions of this legislation, the Bureau of Mines, among other things, was charged with the responsibility of developing mining techniques, methods, and equipment for mining the oil shales of the Green River formation of Colorado, Utah, and Wyoming.

Jan 1, 1950

By J. D. Price, W. M. Bertholf

In preparing a paper on coal washing in Colorado and New Mexico, it is difficult to refrain from entering into a discussion of the historical aspects of this subject, for the story of coal washing in these states goes hack well into the last century. This phase of the subject could well make a complete paper in itself, and of necessity this present discussion must be limited to current operations. Therefore, we are taking into consideration only those washing plants which have operated for some period during the years of 1947 and 1948. Summary Of the eight million tons of coal mined in the two states in 1947. ap- proximately two million tons were washed in wet washing plants, using concentrating tables or jigs. The one table plant accounted for 70 pct of the output of washed coal, and two large Baum jig plants accounted for an additional 26 pct, leaving only a small residual tonnage to be accounted for by other types of jigs The necessity for washing coal is occasioned by the desire or necessity of reducing the ash content of the coals— sulphur is not a problem in this area. All washeries, except the table plant, are at or near the tipple, hence wash only one kind of coal. At the table plant a large number of different coals are washed. Only at the table plant is there any occasion for drying any considerable quantity of fine coal— other plants size and/or dewater on shaking screens. The results of washing at the smaller plants are judged by the number (or lack) of complaints about the quality of the washed coal. This is probably as good a system as can he devised for small, intermittent operations. The efficiency of the Baum jig ap-pears to be quite high. This is to be expected as long as the automatic control of the refuse gate operates properly. The efficiency of the concentrating table is not as high as that of the Baum jig, especially when the "difficulty" of washing is taken into consideration. When dealing with coals in which the "bone" is larger than the "coal," the table appears to be at a definite disadvantage, because of its sizing action.

Jan 1, 1950

By W. E. C. Eustis

During the last year I had occasion, on behalf of our New York copper works, to send to various chemists samples, intended to he accurate, of material which we were buying and selling, and I was astonished to find what differences were reported. After talking over the probable reasons for this with a number of chemists and metallurgists, it was suggested that it would be of real use and some scientific interest to send samples to the different chemists, and take such care in making up the samples that we could feel sure that each chemist had as nearly identical a sample as it was possible to make. After some consideration it was determined to send a mixture which should carry about 50 per cent. copper, and

Jan 1, 1883

By P. F. MINISTER

AT Lime Spur, Mont., the East Butte Copper Mining Co. has been quarrying limestone for twenty years. The quarry is beside the Northern Pacific R. R. in the Jefferson River canyon, 4 ½ miles east of Cardwell, at Lime Spur, Montana. HISTORY This quarry was opened early in 1900 by Dan Morrison of Whitehall, the discoverer of the Morrison cave, to supply a demand for smelter flux. Limestone was sold to the Pittsmont smelter of The East Butte Copper Mining Co. and to the Butte Reduction Works. As no particular effort was made at the quarry to select the rock that delivered to the smelters was unduly high in magnesia and impurities. The East Butte com¬pany, therefore. Bought the quarry. in 1909 and confined operations to the high-grade beds in order to supply rock of the desired purity for its own smelter and the Butte Reduction Works until the latter shut down. It also developed a market for some of its rock with the sugar factories. The latter market increased until in later years all rock, larger than 4 in. in size over a bar grizzly, was being shipped to the sugar factories, and the rock smaller than 4 in. was being used as a flux in the blast furnaces at the Pittsmont smelter. In 1924, the East Butte concluded a contract with the Anaconda company for the treatment of its ores, and the Pittsmont -smelter -was shut down: which made the minus 4-in. rock a useless by-product. Since there was not enough revenue in the sugar rock alone and also because of limited waste room it became necessary, if Lime Spur was to continue to operate, to increase- the proportion of plus 4-in. rock and to develop a market for the minus 4-in.

Jan 1, 1930

By William B. Plank

NEVER before have so many men chosen the mineral technology field for their college training. In the college year 1936-'37, 7190 such students were enrolled in the 53 schools of the United States. My last study of the mineral technology schools of the United States and Canada was made for the year -1934-'35, and the current study, as the previous one was made for the A.I.M.E. under the auspices of the Division of Mineral Industry Education. Altogether, four studies of enrollment have been made. The first three were for successive college years beginning with 1932-'33. This present one covers a two-year period, for the purpose of these studies may he served satisfactorily if they are made biannually. The data on the schools were collected in the same way as for former studies, 'namely, by questionnaire, dated in this case Nov. 18, 1936. The figures reported are therefore comparable with those of former cars.

Jan 1, 1937

By LESTER W. STRAUSS

OUR early knowledge of history and geography attracted most of us to the mineral resources of South America. The romantic tales of the Spanish activities, which were curiously alluring, and Prescott's exceptional bi-Conquest histories-Mexico and Peru-no doubt fired our minds with the .then metallic wealth of the Spanish colonies. Later developments, intensified within the past eighty years, have, however, changed its fame which now rests on such metallics as copper and tin, and among the non-metallics on nitrate of soda and petroleum. South America proper, excluding Panama, is made up of thirteen countries, a coincident parity with our original thirteen States. Its area is given as 7,231,300 square miles, or slightly less than North America (8,037,000 square miles), is made up as follows:

Jan 1, 1930

By W. S. Cavender

The Round Mountain mining district, Nye County, Ne- vada, was discovered in 1906 on claims owned by Lewis D. Gordon. Initial mining operations uncovered gold veins of spectacular richness, and within a few days of discovery, Gordon sold his controlling interest for some $87,000. From this sale emerged the Round Mountain Mining Co., predecessor of Nevada Porphyry Gold Mines, Inc., the latter destined to become the major property owner in the area. Vein mining in the district continued sporadically into the early 1930s, yielding 9.3 Mg (330,000 oz) of gold plus substantial silver credits from approximately 626 kt (690,000 st) of ore. In addition to the lode deposits, the early miners recognized the placer potential in the alluvial fan material accumulated around the west and north sides of Round Mountain itself. Intermittent placer operations were carried out for a number of years, and in the 1940s and 1950s, Round Mountain Gold Dredging Co. worked the placers under a lease from Nevada Porphyry Gold Mines. The last placer operation terminated in 1959 when it, like some of its predecessors, proved uneconomic. Total placer production for the district is estimated at 3657 km (4 million yd) of gravel containing 59 Mg (210,000 oz) of gold and possibly 2.0 to 2.3 Mg (70,000 to 80,000 oz) of silver. Round Mountain is a small hill situated on the east flank of the Toquima Range in central Nevada. The hill is com- posed of relatively flat-lying Tertiary rhyolitic ash flow tuffs, which overlie Paleozoic metasediments and Cretaceous granites. Throughout the surrounding Round Mountain mining district, most of the known gold ores occur in the tuffs, although the metasediments and granites are also mineralized. Mineralization is structurally controlled, principally by a series of northwest-trending shears and shattered zones. Vein, stockwork, and disseminated ores occur, usually containing simple quartz-pyrite-gold mineral assemblages. The gold itself is electrum, having a silver content of 30% to 40%. In September, 1967, Elwood Dietrich, a prospector and mine promoter, obtained a purchase option on the 4452 ha (1 1,000 acres) of mineral rights held at Round Mountain by Nevada Porphyry Gold Mines. The original option had a buy-out price of $1 million and was established through Dietrich's friendship with officers of Nevada Porphyry. In April, 1968, Dietrich conveyed his option to Ordrich Gold Reserves Co., a partnership created by a group of west coast investors, mostly employees of the airline industry. There- after, Ordrich invested considerable funds in trying to test and develop the property, but soon recognized the need to seek financial and technical support from the mining industry. In December, 1968, Dietrich contacted Wayne Cavender, then Regional Geologist, Southwest, for Copper Range Exploration Company (CRX) in Tucson, Arizona, and made a data presentation. Shortly thereafter, Cavender was appointed Manager of Exploration and Chief Geologist for Copper Range Co. (parent company of CRX), New York City, and he asked C. Phillips Purdy, CRX Regional Geologist, Northwest, to make an initial property examination. Purdy's one-week field study took place in March, 1969, and resulted in a recommendation that CRX pursue its investigation of the property. The presence of low-grade gold mineralization in both the alluvial gravels and in the bedrock was verifiable, but the placer was deemed to have the greater immediate economic mining potential. At that time, gold was in the $1.41/g ($40 per oz) price range. Working from Purdy's information, Cavender decided to attempt acquisition of the property, and the first in a long series of negotiations was initiated with Ordrich. Basically, CRX felt that the placer had a promising potential for several reasons, including (I) past operators had recovered free gold but not the gold contained in the pebble fraction of the gravels; (2) past operations appeared to have been ineffectively designed or managed and not costefficient; and (3) the price of gold appeared to be poised for an upward move. Negotiations with Ordrich were prolonged and difficult, with CRX competing against several ma* mining companies, but finally an agreement was reached, effective June I, 1970. Gold was then back to $35. It is believed that, in

Jan 1, 1985