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US 4,181,703-Removal of magnesium impurity from phosphate rock. Crushed screened ore containing more than 0.3% by weight of magnesium is slurried with sea water, acidified with sulfuric acid to a pH value not lower than 2 5, and filtered and washed before the neutralization point is reached. W. Wengeler, F. Wolstein, and E. Hoffman, assigned to Uhde G.m.b.H. Jan. 1, 1980 4 pp (423-167) Filed: 11-18-77 (852,918)

Jan 1, 1982

By M. J. Ferrante

The Bureau of Mines determined the enthalpies of Ni3S2 relative to 298.15 K to provide new thermodynamic data for advancement of mineral science and technology. Enthalpies were measured with a copper-block calorimeter from 298.15 to 1,197 K. A solid-solid transition was found at 834±1 K, with an isothermal heat absorption of 13.32 kcal/mol. The temperature of this solid-solid transition was accurately measured by differential scanning calorimetry. Because Ni3S2 does not melt congruently, the heat of fusion of 4.70 kcal/mol was obtained by extrapolation of enthalpy measurements from the solid and liquid phases to approximately 1,064 K. Tabulated values are given for the relative standard enthalpy, heat capacity, entropy, and Gibbs energy function between 298.15 and 1,800 K. Enthalpies are also given in equation form and combined with data from the literature to derive values of standard enthalpies of formation and Gibbs energies of formation. Similar calculations were made for the reaction of crystalline and liquid nickel with gaseous diatomic sulfur for Ni3S-2(c, l).

Jan 1, 1982

Determine the minimum waterflow rate needed for effective control of dust produced by cutting machines used to mine water-soluble ores. Approach Conventional wet-bar cutting techniques were studied to evaluate their dust control performance, and the optimum water flow needed for dust suppression was determined. Wet-bar type cutting techniques are used to help control mine dust by keeping the cutting chain wet. As the chain cuts the kerf, it dampens the dust produced by the cutting action at the point of generation. The Bureau, under contract, evaluated three basic wet-bar techniques, as shown in the diagram: water-trickle system A uses a gravity-feed or low-pressure (less than 50 psi) pump to send water through the bar and to discharge it at the bar tip. Water-spray system B uses a low-pressure spray nozzle located at the front of the cutter head. For protection the nozzle can be located within the cutter

Jan 1, 1982

By Bernard F. Anderson

INTRODUCTION In this chapter, the term "down-the-hole drill" (DTH drill) is used as a generic name that encompasses the various trade names and other references such as "downhole drill," "in-the-hole drill," etc. This chapter is limited to a description of DTH drills used in stoping large underground ore bodies. DTH drills differ from conventional drills by virtue of the placement of the drill in the drill string. The DTH drill follows immediately behind the bit into the hole, rather than remaining on the feed as with ordinary drifters. Thus, no energy is dissipated through the steel or couplings, and the penetration rate is nearly constant, regardless of the depth of the hole. Since the drill must operate on compressed air and tolerates only small amounts of water, cuttings are flushed either by air with water-mist injection or by standard mine air with a dust collector at the collar. HISTORICAL DEVELOPMENT Mine managers have long known the economies enjoyed by quarry and open-pit operators in producing large quantities of ore. The savings are due primarily to the availability of massive equipment, capable of drilling large blastholes to reduce the amount of drilling, increase the fragmentation, reduce secondary blasting, and im¬prove the flow of the product. In an attempt to reduce underground mining costs, various methods are used for long-hole drilling, includ¬ing standard pneumatic percussion drifters and diamond drills. These systems have their shortcomings; percus¬sion drills are limited to small hole sizes and they ex¬perience excessive deviation and significant loss of energy with increased depth. The diamond drills provide deeper and straighter holes, but only at high cost. Both systems suffer from high noise levels, low penetration rates, and poor explosives distribution, among other problems. When the mining companies approached the drill manufacturers for a compact and portable large-hole jumbo for underground use, they specified not more than 1 % deviation on 60 m (200 ft) of vertical hole and a penetration rate of 15 m/h (50 fph). On Dec. 23, 1960, a test unit was placed in service in Montana and met the performance criteria. Though lacking the so¬phisticated features available today, the economies of surface blasting were brought underground. Unfortunately, the first system did not gain immedi¬ate acceptance in the industry. Among the factors con¬tributing to its demise were resistance to change, the need to alter development methods for the ore bodies, and a lack of flexibility in moving the rig from setup to setup and from level to level. In 1972, the mining industry again challenged the drill manufacturers to provide a workable jumbo that would combine compactness, ease of maintenance, relia¬bility, and efficiency, all on a self-propelled chassis. The manufacturers responded by providing improved jumbos, which have been accepted with enthusiasm throughout the mining industry. Today's DTH jumbos are capable of drilling from 100 to 200 mm (4 to 8 in.) diam holes that can be reamed to even larger diameters. The holes can be drilled to depths of 150 m (500 ft), depending upon ground conditions and the capability of the jumbo to retrieve the steel and drill. Fig. 1 illustrates a typical DTH jumbo. APPLICATIONS The uses to which DTH drill jumbos have been put are quite numerous, with new uses being found regularly. For convenience, these uses may be classified as primary blastholes and nonblasting holes. Primary Blastholes The original purpose for the development of the DTH jumbo was for drilling primary blastholes that could be mined by open-stope methods. Prior to the advent of the DTH jumbo, extensive development was required before production drilling could begin. Sub¬levels were required to allow access for column-and-arm stopers or ring/fan jumbos, to the extent necessary based on the effective penetration of the chosen machine. With the DTH jumbo, the mine engineer is able to reduce preproduction time and development costs. How¬ever, the most significant saving results from an im¬proved cost per ton of broken ore in the production phase. To utilize a DTH system, only a top heading and drawpoints are necessary. The top heading can be the width of the ore body with a 3.7-m (12-ft) back. A drop-raise pattern is drilled and shot to begin the stoping operation, providing a free face for subsequent blasting. A typical layout is illustrated in Fig. 2. The advantages of this system include: 1) Drilling and blasting are independent operations, and blasting can be performed at a rate congruous with the mine's ton-per-day capacity. 2) The development layout is simplified. 3) Good explosive distribution is achieved, provid¬ing more uniform fragmentation. 4) Environmental conditions for operators are im¬proved, including improved safety with all work directed downward (not overhead), lower noise levels, little fog, and a reduced dust count. 5) Improved production per manshift. 6) Simplified and easier operator work cycles. 7) Reduced cost per ton of product. 8) Fewer holes lost due to ground shifts. Nonblasting Holes With the introduction of the compact DTH jumbos, other practical uses became apparent, including the drilling of: 1) Holes for sand fill, from level to level and from level to stope. 2) Drain and dewatering holes. 3) Power and communications cable holes.

Jan 1, 1982

Provide a coalbed methane data source for industry use in mine planning. Approach Coalbed methane data have keen collected and formatted into a computer implemented data base with software developed for storage, retrieval, and generating files of selected data in response to information requests and for statistical analysis of relationships among various coal parameters. How It Works Coalbed methane data is obtained by the Bureau's direct method test on exploration coal cores. The test involves sealing fresh coal cores in desorption canisters and periodically bleeding the gas into a water-filled, graduated cylinder to measure the volume of gas released. Coalbed methane data collected over the past 9 years have been entered into a computer-implemented data base for efficient retrieval and statistical analysis. Data base processing is accomplished with a commercially available storage, sorting, retrieval, and report writing software package (Datatrieve 11). Information requests from the coal industry are processed with the system, and the data in the desired output format am printed and forwarded to the requestor. Information such as coalbed name, location (state and county), depth of sample, gas content, and coal rank are available from the system. The data can be used for

Jan 1, 1982

By R. D. Studer

"The Snow Lake massive sulphide deposits are hosted by Aphebian volcanic rocks of the Flin Flon - Snow Lake greenstone belt, which in this area were deformed and metamorphosed to the amphibolite facies during the Hudsonian orogeny. All the known deposits occur in felsic rocks a short distance below the contact with an overlying mafic rock unit.The Stall Lake copper deposit occurs close to the top of an explosive felsic volcanic sequence. Rocks stratigraphically underlying the deposit have been hydrothermally altered by the mineralizing fluids. The sulphides were probably deposited from submarine volcanic vent(s) on the flanks of a felsic dome. The ore has been tightly folded, flattened and elongated parallel to the northerly trending lineation of the surrounding rocks during the several periods of deformation. Strike lengths of the lenses range from 60 to 300 feet and plunge-to-strike ratios are as much as 15:1.Ore lenses I to 4 typically consist of massive coarse-grained pyrrhotite, chalcopyrite and pyrite. A stratigraphically higher lens differs in that it contains fine-grained pyrite and chalcopyrite, with an increase in sphalerite toward its hanging wall. The No.4 orebody has a distinct footwall alteration zone characterized by brecciation and abundant chlorite-staurolite- garnet schist, with minor kyanite, anthophyllite, cordierite and anhydrite, as well as sulphide minerals. Chemically, the alteration zone is distinguished from the unaltered felsic rocks by Na20 depletion and Mg-Fe enrichment"

Jan 1, 1982

By David S. Bolin, Bruce Kennedy, Leigh A. Readdy, Graham Mathieson

INTRODUCTION The estimation of ore reserves is a process that begins with the earliest exploration stages on a property and continues throughout any subsequent evaluation and exploitation of the deposit. During exploration and preliminary evaluation, the results of these reserve estimates constitute the basic data for prefeasibility studies and economic analysis. The decision to continue exploration and development or to abandon a prospect is often based upon these studies. During the active life of a mine, reserve computations are continuously revised to assist in development planning, cost and efficiency analyses, quality control, and improvement of extraction and processing methods. Accurate reserve estimates are also required when financing a project, purchasing or selling a property, and for accounting purposes such as depletion and tax calculation. It is important to remember that the reliability of ore reserve estimates varies progressively through time as more and more information becomes available. The lowest order of reliability of estimation of reserves exists at the time of discovery. The maximum level of certainty concerning the ore reserves within a deposit is reached when the deposit is completely mined out. Between these two extremes are variable levels of certainty as to the tonnage and grade of the resource. This is particularly true of that portion of the mineral resource that constitutes the "minable reserve," as this portion is dependent upon economic as well as geological and technological factors. In the following discussion, several of the factors affecting ore reserve computation and some of the commonly used methods of calculation are presented. The first part of the discussion is confined to classical methods of hand calculation utilizing level maps and sections. The second part of the discussion presents an overview of somewhat more sophisticated methods of geostatistics which have been developed within recent Years. Geostatistical methods frequently provide the best ore re- serve estimates for many deposits. However, a digital computer is required for such geostatistically derived estimates due to the number and complexity of the cornputations involved. For many properties the classical nongeostatistical methods are adequate, particularly in the early exploration stages. In fact, it is the author's contention that even at those properties where the geostatistical approach is employed for reserve estimation, the geological and engineering staffs should prepare an estimate by traditional means. This provides an internal audit for the reserves and at the same time requires a continuing close appraisal of geologic problems that influence the presently known geostatistically estimated reserves and production at the mine.

Jan 1, 1982

By M. N. Rubin

This report summarizes the work performed under USBM contract J0100018. The purpose of this work was to document the currently available noise control techniques that can be incorporated into new coal preparation plants during the design stage. This was accomplished by reviewing the related experience of the contractor and subcontractor (Bolt Beranek and Newman Inc.), conducting an extensive literature search, visiting operating coal preparation plants, and contacting various equipment manufacturers. The treatments addressed include equipment substitution, changes in plant layout, and retrofit treatments for existing equipment.

Jan 1, 1982

MR. MARGOLF: Our final speaker this afternoon before we have an opportunity for some questions for the members of the panel, is a gentleman who has spent more than 40 years in the newspaper industry. He started out as an office boy while he was still in high school. He worked his way through college working for a newspaper in Lexington, Kentucky where he graduated from the University. He has a long association with the Albuquerque Tribune but what brings him here today is in his position as editor of The Rocky Mountain News which is certainly one of our largest circulations. I think it is the largest circulation newspaper in the Rocky Mountain states. Ralph Looney, in that

Jan 1, 1982

By Peter J. Conroy, Julianne H. Gyarmaty

INTRODUCTION The current study is part of the U.S. Department of Energy's (DOE) on-going subsidence research program. The long-term objective of the DOE program is to develop analytical methods of subsidence prediction applicable over a broad range of geologic and mining conditions encountered in the United States. The DOE currently has several contracts in progress to develop a sound data base that can be used in the development of predictive models. Dames & Moore is currently under contract to DOE to collect and analyze detailed subsidence and hydrologic data from a coal mine employing longwall mining methods in the Eastern Coal Province. Work under Contract No. DE-AC22-80PC 30335 began in October of 1980 and will continue through September of 1984. The contract includes monitoring of two adjacent longwall panels. This paper summarizes the surface monitoring work that was performed through February of 1982. Mining of the first of the two panels (3 off 3 north) was completed on February 3, 1982. Results of the surface monitoring through completion of this panel are presented and discussed. SITE DESCRIPTION The mine being studied is located in eastern Ohio. The site is west of the Ohio River, approximately 56 km (35 miles) south of Wheeling, West Virginia. The topography of the unglaciated region

Jan 1, 1982

By Paul T. Alexander

After evaluating preceding studies and designs of lightweight supports, ESD selected the all-hydraulic and the hydromechanical concepts for detailed design and fabrication. Further analysis and testing showed that the all-hydraulic design was economically justified and met all the crucial engineering, manufacturing, and design criteria identified during the evaluation phase. Following Bureau of Mines approval of the detailed design, four all-hydraulic support models were fabricated. Once functional and structural testing was successfully completed, 40 additional units were constructed and distributed for in-mine testing. The units were very well-liked by all three demonstration mines. The wide- spread interest in supports for seam heights greater than 8 feet led to expansion of the design data package. ESD designed four basic models to cover the new height range, but no hardware has yet been fabricated for the new design.

Jan 1, 1982

By Welby G. Courtney

The Bureau of Mines conducted an exploratory field survey to determine the amount of airborne coal dust, the size distribution of the dust, and the rate of dust deposition in coal mine airways. The survey was taken at eight underground locations in operating coal mines. The rate of dust deposition in the airways depended upon the concentration of air-borne dust and decreased exponentially with distance from the dust source. The rate was seemingly independent of the size of the airborne dust particles. The rate of deposition, along a return, for the coal dust from a fade being mined with a continuous mining machine closely matched the rate for the rock dust from a trickle duster. A sample rock-dusting schedule for that return is presented; that is, the trickle duster should be operated for 3-112 hours after every five shifts to protect the average deposit of new float coal dust in the return, but operation after every three shifts is preferred, to protect an occasional heavier deposit.

Jan 1, 1982

By Edward D. Thimons, Richard J. Kline

Converting the energy of falling water into useful work is a well developed engineering concept. Much of the electric power consumed in the United States is generated in this manner. It is easy to conceive that the water which flows down long vertical pipelines into deep nines could be utilized in a similar manner by allowing it to operate a turbine at the bottom of the pipelines. The mines in the United States are continually descending to greater depths in search of mineable deposits. Large quantities of water are carried down long vertical pipelines in order to be used for dust suppression, motor cooling, and refrigeration. Pumping the used water back to the surface is also required. The electrical costs associated with mining are also constantly escalating due to both increased demand and rising kilowatt hour costs. To help deal with this problem, the United States Bureau of Mines (USBM) has awarded a contract to Foster-Miller, Inc. of Waltham, MA, to investigate, evaluate, and demonstrate commercially available means of energy recovery for the deep mining industry. In other words, it demonstrates an efficient system for converting the energy of water flowing down vertical pipelines into useful mechanical or electrical energy.

Jan 1, 1982

By John R. Benham

In 1979 and 1980, the U.S. Bureau of Mines and U.S. Geological Survey conducted a mineral survey of the 20,500 acre Black Butte RARE II area (No. 5102) in the Los Padres National Forest (fig. 1). The work by the Bureau of Mines indicates that the potential tor mineral resources in the area is low. Samples of outcrops and stream channels contained no economic minerals. A mercury deposit near a granodiorite-sedimentary rock contact occurs 2 mi northeast of the study area, but similar deposits have not been discovered within the area. Geothermal potential exists near Tassajara Hot Springs, but no thermal springs occur in the area; nor have oil, gas, or coal resources been found.

Jan 1, 1982

By A. Fiszer

One of the major problems with deep Polish hard coal mines are deformations of close-to-wall galleries since they are necessary and must he kept open for emergency situations and are largely responsible for work disturbances. In order to ensure safe and effective working operations, it is necessary to often rebuild galleries which, apart from the inevitable stoppage of operations, is greatly disadvantageous for the operation of a mine. The largest problems with maintaining the galleries open occur in Lower Silesian Coal Field mines where sometimes it is necessary to reconstruct the galleries several times [(Fig. 1)]. In light of what has been said above, the aim of this article is to present the reader with methods and ways of determining deformations occurring in close-to-wall galleries. Squeezing or convergence of headings is only a portion of the entire process of ground movement caused by ground disturbance due to workings. The term "squeezing of headings" is to be understood as a shortening of the distance between a point set on the roof of a heading and the corresponding one on the floor. It is very important to know the rules governing the process of squeezing in a particular mining system since it affords possibilities to define changes of the process and its parameters at any moment for a given system. This is of utmost importance because convergence of a heading is one of the most significant manifestations of ground pressure which has already been proved by studies performed by Everling (1). On the basis of those studies it has been observed that there exists an almost linear relation between the rate of convergence and loading [(Fig. 2)]. This, in turn, means that the deformations of the already exploited portion of heading are proportional to the pressure changes.

Jan 1, 1982

The Broken Hill orebodies have 'traditionally been mined by cut and fill trethods. In the mid-1950's New Broken Hill Consolidated Limited experimented with sublevel longhole open stoping but did not pursue the method due to inefficient loading and poor fragmentation. The introduction of longhole open stoping in 1968 was a radical change and was necessary to enable the profitable extraction of lower grade orebodies and this method is now used for 55% of the production from The Zinc Corporation, Limited and New Broken Hill Consolidated Limited mines.

Jan 1, 1982

By Richard L. Bullock

OPEN STOPING An open stope is an underground cavity from which the initial ore has been mined. Caving of the opening is prevented (at least temporarily) by support from the unmined ore or waste left in the stope, in the form of pillars, and the stope walls (also called ribs or abutments). In addition to this primary support system of open stoping, some secondary support may also be required using rockbolts, reinforcing rods, split pipes, or shotcrete to stabilize the rock surface immediately adjacent to the opening. The secondary reinforcement procedure does not preclude the method classified as open stoping. There are many forms of open-stope mining used to extract the initial material from a mine. Having once established that the mineral and waste rock are competent enough to use an open-stoping method, and assuming that the reserve is not classified as gassy, the Form which the method will take is primarily determined by the dip and thickness of the reserve. How these two factors affect the selection of the open-stope mining is discussed in a later chapter. At this point it will suffice to say that the classification of the open-stopes mining system which follows is based on whether dry' broken materials flows by gravity or whether it must be moved by nongravity methods where energy must be supplied to move the material. Room-and Pillar-Mining Room-and-pillar mining is an open-stoping method where mining progresses in a nearly horizontal or low angle direction by opening multiple stopes or rooms, leaving solid material to act as pillars to support the vertical load. Since the direction of excavation (angle of dip) is below that which would cause the dry material to flow by gravity to a drawpoint or gathering point, the material must be loaded in the room where it was extracted and transported to a point where it will flow, either by gravity or mechanical means, to a central gathering point to be taken out of the mine. This is an important aspect of room-and-pillar mining which differentiates the system from other open-stope mining methods which rely heavily upon gravity to transport ore from where it was broken to a lower elevation, usually through a drawpoint. There are many variations of the method which go by a number of names in local districts: breast stoping, breast-and-bench stoping, board-and-pillar, stall-and-pillar, and panel-and-pillar are all basically open-stope room-and-pillar mining. In some instances detailed stope planning is almost nonexistent; i.e., the operator simply follows the visual pay values, leaves pillars only where necessary, and tries to locate them in the zones of lower value. This method of mining is as old as the beginning of underground mining itself, dating back thousands of years. Early in the history of mining in this country, the term "gophering" was used to describe this method (Peek 1941). The term is appropriate, for it brings to mind the exact results of this type of system-a random and irregular room-and-pillar mine. In other instances where the mineral values are consistent both in physical dimensions and quality, the mine layout can be planned to the last detail, resulting in a uniform room-and-pillar mine. Coal, trona, gilsonite, potash, oil shale, salt, limestone, and sandstone mines can usually follow such a system. Today, most metal mines using a room-and-pillar operation try to mine as regular a pattern as possible but deviation in height, width, thickness, dip, and grade of the ore results in comparable deviation in the mine plan. Variations of the Room-and-pillar System It is necessary to briefly describe some of the many variations of the room-and-pillar system of mining, enabling the reader to fully explore the concepts and become familiar with the terminology used before going on to the details of mine design. Full-Face Slicing: If in the process of opening the rooms the total vertical extent of the mineral values of the particular seam or strata are extracted from the advance of one vertical face, the term used to describe this is full-face slicing. This face is also known as the "breast." There is no mineral of economic value intentionally left either in the floor or the roof (back) to be mined later. To be able to extract the full-face height in one pass, the mining equipment must obviously be designed to reach as high as the back. In an Appalachian coal mine, this may be all of 660.4 mm (26 in.); for a future oil shale property it might be 15.24 m (50 ft). Normally, however, in a majority of mines where the mining face gets over 6.09 to 6.7 m (20 to 22 ft), the tendency is to divide the face into more than one pass. Over this height, it becomes difficult to properly see and remove loose rock from the back with a hand "mining bar." Where the process of taking down loose rock has become mechanized, higher full-face mining can be safely practiced. Most eastern and midwestern coal seams and western uranium, trona, and potash seams in the United States are easily reached in a single face; many limestone, lead, and zinc mines must resort, at least in part, to "multiple-slicing" to remove all the minerals of value. Multiple Slicing (also known as multiple-pass mining): In many cases it is not practical to carry the full vertical height of the mining horizon as a full face. The face is divided into parts known as the breast, bench, and/or brow. Ideally, if the operator knows the vertical extent of the mineralized zone, he will drill and blast the first pass at the top of the zone, thereby

Jan 1, 1982

The use of econometric models to assess the effects of a Government's policy on an industry is gaining momentum. This is particularly so for the Mineral Industry and it is important that mineral industry management understands the techniques involved in developing econometric models. Models are usually constructed outside the industry by either government departments or their consultants and used by the policy makers to investigate artificially the implementation and ramifications of new policies. This paper discusses the application of econometric models in Governmental policy determination, highlights the use of various models in Australia and gives an overview of the techniques involved using Australian examples.

Jan 1, 1982

By Reaves. M. J.

The title of my talk, "What Happened to the Uranium Boom?" is old news. Certainly it is for this group. All of us that make our living in uranium know that the boom of the last half of the 1970's is over. U.S. production has been exceeding consumption by more than two to one. Mines and mills are closing and yellowcake prices have been dropping for over 20 months. The gloomy outlook for the industry in the near term has been well documented by soothsayers of various descriptions, your daily newspapers, and in the Nuexco Monthly Reports. I'd like to attempt to describe the next upturn in the market (speculate, really) based upon the clues we're seeing now. In order to do that, I'd first like to go over briefly, some of the market factors that contributed to the recent price drop and resultant production cutbacks, and then hypothesize on the way these factors are changing and will change. Market prices are greatly affected (maybe even entirely determined) by buyer perceptions. This is particularly true with uranium, because of the long lead times associated with nuclear plant construction and also with conventional mine/mill development. Before the price rise (say, 1975) utility uranium buyers believed that: 1) U.S. producers would have difficulty expanding to meet U.S. demand. 2) Australian and Canadian production was essential to avoid shortages in the early 1980's. 3) Uranlum prices would continue to rise as demand exceeded supply. 4) Enrichment capacity would become inadequate. It was thought necessary, therefore, to build enriched inventory in the early 1980's for use in the late 1980's. Artificially accelerated expansion of the uranium producer industry was necessary to accommodate anticipated enrichment demand. Current perceptions are largely the opposite. These are the beliefs that were held most of this year and late last year as prices dropped. 1) U.S. production is far in excess of domestic need. Contraction of the U.S. production lndustry is necessary. 2) Canadian and Australian supply is optional and not essential. Producers in those countries are expanding mainly by displacing higher cost production and not because they fill a void, 3) Prices may be essentially stable for some time. 4) Enriched uranium is in excess supply. That is 1981. 1982 is shaping up to look like this: 1) Prices will have bottomed out. (That is not Nuexco's opinion necessarily, by the way, but it is my opinion.) 2) There will still be substantial utility inventories, but fewer spot sales. 3) Canadian and perhaps Australian sellers will have made substantial sales in the U.S. and will be aggressively seeking more. 4) U.S. production will have been dramatically curtailed. U.S. utilities that wish to con- tract long term will have difficulty in finding domestic sellers. Concern will develop about the availability of U.S. production capability. Virtually all long term con- tracts signed will be with non-U.S. sellers. 5) An awareness will begin to develop among U.S. buyers that we are approaching a period of dependence upon foreign uranium (which will be true). The history of the uranium market has been one of dramatic changes and overreaction to those changes. The rapid price rise of a few years ago generated excess U.S. production capacity and the rapid price drop of the last two years will almost certainly result in too little capacity. It will soon be difficult for U.S. buyers to buy domestic material except on the spot market. The question is, "will they care?" The lack of demand, of course, is the underlying reason for the current poor health of the uranium industry. In 1972, 1973 and 1974 collectively, there were 105 nuclear reactors ordered in the U.S. That ordering rate was expected to continue and accelerate throughout this century. In 1975, 1976, 1977, 1978, 1979, and 1980 altogether, there were 56 more reactors cancelled than ordered. The net growth of our only customer since 1974 has been a negative 56. TO put this in perspective, if these 56 reactors were operating now it would more than double present U.S. uranium consumption. Underlying lack of demand is something that is simply not going to change in this decade. Time is going to be required. The NRC indicates that the maximum feasible number of new reactors that can be licensed each year is six. That would increase uranium consumption by only 10% per year. New reactors, if ordered tomorrow, would not generate new uranium demand until after 1990. Even so, United States' consumption of uranium will rise from the 1980 level of 18 million pounds per year, to

Jan 1, 1982

By Georges Caraghiaur

INTRODUCTION A small, independent mining enterprise (SIME) is an independently owned and operated business concern engaged primarily in mineral development, from the exploration to the production stage. A SIME may or may not be listed on stock exchanges. By definition, a SIME is not dominant in its field and has no long-term financial backing. As such, it is not a major producer of minerals, nor is it a petroleum company, a government organization or a subsidiary of such organizations. The survival and growth of a SIME is most often controlled by an independently minded entrepreneur, who not only conceives and carries out new projects, but is materially affected by the success or failure of these projects. Usually, a SIME does not have a large or constant cash flow. Such a lack of long-term financial backing forces the SIME to meet the challenge of finding capital for its activities on a step-by-step basis. Its survival strategy is thus based on finding funds at the right time, of the right type and in the right quantities. The purpose of this paper is to show that the type of venture in which a SIME is involved affects the difficulty of raising new capital and the choice of possible sources of funds. The Small, Independent Mining Enterprise The SIME, also called small miner, junior mining company, speculative mining company, and pennystock mining company, is not a figment of the imagination of financial speculators. In Canada, there are more than 1,800 small mineral enterprises which spend on the average less than $1,000,000 per year on activity which is directed at bringing forth new mineral supply. In the United States, 64 percent of the non-fuel mining operations are conducted by nine or fewer men, and the coal industry is characterized by several thousand smaller independent producers, still predominantly family-owned or controlled. In Chile, 80 percent of the mines can be classified as small mines. In the Philipines, approximately 60 percent of metal mining operations are classified as small mines. The SIME is actively engaged in mining all over the world, and very much so in the Pacific Rim. The Mineral Supply Process The whole process of bringing forth new mineral supply involves a dynamic sequence of activities, ranging from the initial exploration for a mineral occurrence to the production of a marketable product. A typical sequence is outlined in Figure 1. At the grass-roots exploration stage, a series of geological, geophysical and geochemical tests is aimed at locating a mineral occurrence. Especially in the early phases of such activities, the uncertainty (risk) surrounding a venture is high, since only general geological information exists on which to base a judgement of the economic viability of the venture. Such risk is attractive to few investors.

Jan 1, 1982