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By Timothy Collins

There was once a speculative period of interest in small mining companies that is commonly referred to as "the uranium boom of the 50's." In the late 60's, there was a second mining stock boom: it centered around uranium and silver, when silver had reached a new high of $3.60. In the mid 1970Js, there may be a new boom in the making, and it appears that substantial public and institutional interest in mining equities will finally result in a viable long-term capital market rather than the boom-or-bust pattern of the 50's and 60's. The reason for Wall Street's renewed interest in mining is understandable: most mineral commodities have recently gone up in price. Domestically, these price increases have come in the wake of the inflationary spiral unleashed by years of unbridled government deficit spending and erratic fiscal and monetary policies. Internationally, of course, the biggest push for higher prices has come from third-world countries whose primary income derives from indigenous natural resources. Many of these countries-whose fiscal and monetary policies haven't been models of excellence either-have attempted to cope with the worldwide economic mess by forming cartels that could control the price of commodities. What's happened to petroleum is well-known; what's happened to copper, bauxite, phosphate, and uranium is part and parcel of the same syndrome.

Jan 9, 1975

By Barry S. Epstein

Financing the acquisition of a going coal mine operation has not had the exposure other finance-oriented projects have had. Therefore, C.I.T. feels that coal mining people and financial people should improve their understanding of the factors involved in this important type of acquisition. The discussion consists of two major subjects: analysis of the acquisition of the property, and sources and terms of funding the acquisition. Source and Terms of Funding There is a need to keep the competent medium-sized independent operator in the coal business, especially in these times of energy shortage. The creation of a resale market for coal mines encourages new investment in the coal mining business by medium-sized operators and their financial backers. Who provides debt and equity financing to acquire going coal mine operations and on what terms?

Jan 9, 1975

By Donald W. Gentry

Many firms in the minerals industry are facing enormous capital-equipment requirements for existing operations, planned expansion programs, pollution control systems, etc. Yet, because of existing economic conditions, mining companies find it increasingly difficult to obtain reasonable financing for the acquisition of large, high-cost capital equipment. One way of obtaining the use of mining and other major pieces of high-cost capital equipment is through leasing. The popularity of this approach is evidenced by the growing number of leasing companies, equipment manufacturers, and financial institutions now offering this service to their customers. Indeed, leasing has become a billion-dollar industry, and many commercial banks have developed sizeable portfolios in this area. "Should we buy or lease?" This question eventually comes up whenever a mining company needs additional major capital assets. Unfortunately, many buy-or-lease decisions are made on an emotional basis-rather than on a proper financial evaluation that would yield the…

Jan 9, 1975

By A. W. Bryson

Electrolytic precipitation of ammonium diuranate by A. W. BRYSON. Ph.D. (Member) Continuous precipitation of ammonium diuranate from a solution of uranyl sulphate and ammonium sulphate in the cathode compartment of an electrolytic cell has been investigated. It is found that the rate of precipitation and the settling rate of the precipitate can be correlated with the current consumed per unit volume of catholyte solution. The weight fraction of uranium in the dried solid product appears to be constant over the range of operating conditions used.

Jan 9, 1975

By Robert M. McGeorge, Edward S. Frohling

Most mining engineers and metallurgists who get out of school usually wind up working for a large or medium-sized company and are seldom heard of again. The enterprising few who decide to go into business for themselves soon discover that while they can adequately tackle the various technical problems involved in developing a new ore body, they know little about putting together a feasibility study-and even less about financing their project. If you are in that predicament, you'll probably tend to view the financing problem as insurmountable, especially when the economy is in a slump, capital is scarce or seemingly non-existent, the equity market is in the doldrums, labor and equipment costs keep going up relentlessly-and, to make things worse, you must operate within the competitive context created by large mining firms that seem to have in abundance all the capital and managerial expertise you feel you lack. If it's any consolation, many potentially successful properties, whether owned by big companies or small firms like yours, never reach the production stage either because of illogical expenditures made in the early phases of development or because of inefficient management. And inefficient management is a common plague in big and small companies

Jan 9, 1975

By Eugene Guccione

FOREWORD-Back in October of last year, I approached three of the largest commercial banks in the country to solicit an article about the role of commercial banks in mine financing. "We'll be delighted to cooperate with you in any way we can," was the stock response. As the September 1975 deadline approached, however, every bank officer I had contacted almost a year earlier informed me that he couldn't write such an article be- cause of "prior commitments," "an excessive workload," or "vacation schedule," etc. This was not a total surprise. Any commercial banker will be truly delighted in talking with you, if you have a good mining prospect, a good reputation, a good batting average in your business-and if he has the capital you want to borrow. But what happens when banks themselves are illiquid? Much as they would like to help you, they simply can't. And most of them clam up.

Jan 9, 1975

By Alan K. Burton

An industry-wide demand for bigger and more efficient trucks, with their supposed economies of scale, is well established. Some trucks have been, and often are brought "off the shelf," with the manufacturer offering only certain minor options, much as in the private automobile industry. The market is well established; there is keen competition; in recent years there have been few significant changes, and few are expected. With large trucks (100-ton-capacity and over), however, the situation is different. Here, with an individual truck costing several hundred thousand dollars, there is an ever in- creasing trend to engineer a truck for a specific application. The body will be designed and sized for the material that the truck will carry; the engine and transmission will be geared to the haul profile, and tires will be designed to suit road conditions and work requirements. Early Truck Development Haulage trucks designed expressly for open-pit mine service were introduced during the 1930's. The first models to arrive on the scene hauled about 15 tons, and easily outperformed the modified highway trucks that had been used for mine haulage up to that time.

Jan 8, 1975

By J. M. Stewart, C. H. Wyndham

Suggested thermal stress limits for safe physiological strain in underground environments by J. M. STEW ART M.Sc. (Eng) (Witwatersrand) (Visitor) and C. H. WYNDHAM M.B., D.Sc. (Witwatersrand), F.R.C.P. (Land) (Fellow) A comparison of safe temperature limits, based on Mitchell and Whillier's equations for specific cooling power (SCP), with similar limits determined experimentally shows the SCP-based limits to be unnecessarily conservative. It is argued that, while a small part of this conservatism may be attributed to an erroneous extrapolation of the heat transfer dependence on wind speed, the major part is probably due to the use of too Iowa limiting mean skin temperature in the calculation of SCP. A combination of Mitche/l's basic data with results available in the literature permits the derivation of modified heat transfer equations based on data that fully cover the range of wind speeds of interest. These equations, using a mean skin temperature of 36°C as the basis for the calculation of safe temperature limits, are then shown to agree favourably with those determined empirically. Furthermore, values of SCP based on these equations are shown to correlate reasonably well with wet kata readings, giving positive support to the wet kata thermometer as a heat stress meter.

Jan 8, 1975

By A. J. S. Benade, N. B. Strydom, W. H. Van Der Walt

The performance of the improved microclimate suit by N. B. STRYDOM M.Sc., Ph.D. (Illinois) (Fellow), A. J. S. BENADE, B.Sc. (Potch.) (Visitor), and W. H. VAN DERWALT, M.Sc. (Potch.) (Visitor) An assessment has been made of a new improved microclimate jacket when worn by men working for four hours in a hot environment (wet-bulb temperature of 33,9°C and an air speed of 0,4 m/s) and at work rates of 35 Wand 70W. At the lower rate of work in heat, the use of microclimate suits maintained the rectal temperatures of the men at almost the same level as when they worked without that protection at normal room temperature (20°C). At the greater rate of work without protection, the men's rectal temperatures rose to 40°C within two to three hours, so that they could not complete four hours of work. When they wore microclimate suits, they easily completed four hours of work, and their rectal temperatures were lower than when they worked at the lower rate without protection.

Jan 8, 1975

By Raphael G. Kazmann

Is electricity from nuclear-fueled power plants a partial solution to the energy shortage? According to various public and private institutions, the answer is an emphatic "yes." According to various other groups, the answer is an equally emphatic "no." I believe that a true and scientifically valid "yes" or "no" answer at this stage is premature because of conflicting claims and inadequate data regarding these two fundamental aspects: (a) the duty of uranium, i.e., the actual number of kilowatt-hours that can be generated from a ton of natural uranium through the use of light water reactors; and (b) the availability of uranium in the US to meet the lifetime requirements of the reactors scheduled for construction in the 1975-1985 period, as well as to supply the requirements of those reactors now in operation.

Jan 8, 1975

"Minerals in Transition" is the timely theme of this year's SME-AIME Fall Meeting and Exhibit, to be held September 10-12 at the Salt Palace, Salt Lake City, Utah. Approximately 2000 members and guests are expected to attend the meeting, which will include 117 technical papers, presented during 27 sessions. To complement the technical program, a record number of mining manufacturers and suppliers will be on hand to exhibit the latest in equipment innovation and professional services.

Jan 8, 1975

Improvement of drilling operations through the development of new, unconventional drill bits is a prime research target at Sandia Laboratories, Albuquerque, N.M. Sandia is currently focusing efforts on four new bit designs which its engineers believe may eventually improve penetration and reduce operating costs. The Energy Research and Development Administration (ERDA) has budgeted $500,000 in support of this program to date. Two of the drill bits-one that chips rock with high voltage spark discharges, and another which fires small projectiles into the rock ahead of a regular roller bit-are designed to increase both penetration rates and downhole bit life.

Jan 8, 1975

By R. Kok, N. B. Strydom, P. L. Jooste, W. H. Van Der Walt

Intermittent exposures to heat, and the retention of heat acclimatization by N. B. STRYDOM, M.Sc., Ph.D. (Illinois) (Fellow), R. KOK, M.Sc. (Potch.) (Visitor), P. L. jOOSTE, M.Sc. (Stell.) (Visitor), and W. H. VAN DER WALT, B.Sc. (Potch.) (Visitor) Twenty-one heat acclimatized subjects were assessed for the degree of acclimatization attained with respect to heart rate, rectal temperature, and sweat rate during a standard four-hour heat-stress test. Thereafter, they were put on light duties in cool environm ents for four weeks, except for four hours of exposure to heat every seventh day. Their state of heat acclimatization was again assessed two days after the final week's exposure. Although heart rates and body temperatures showed significant increases over the initial values, no differences were observed in sweat rates and, in general, the subjects were rated as still adequately acclimatized to heat.

Jan 7, 1975

US underground mine production of nonfuel minerals was 153 million tons of crude ore in 1971, according to a recent US Bureau of Mines report compiled by Dravo Corp. Underground capacity includes all nonfuel mineral commodities and is distributed into three general categories: (1) metallic ores; (2) nonmetallic ores; and (3) construction materials, such as clay, sandstone, and limestone. All three categories are produced by a combination of open-pit and underground methods. While US underground mining represents only 5.9% of total domestic capacity, it is significant in the types of products produced. Domestic supplies of potash, trona, A lead, zinc, sulfur, and fluorspar are almost exclusively recovered from underground mines, as well as a significant portion of the gold, silver, molybdenum, and salt supply.

Jan 7, 1975

By A. J. S. Benade, N. B. Strydom, W. H. Van Der Walt

The influence of two weeks of microclimate cooling on the state of heat acclimatization by N. B. STRYDOM, M.Sc., Ph.D. (Illinois) (Fellow), A. J. S. BENADE, M.Sc. (Potch.) (Visitor), and W. H. VAN DER WALT, B.Sc. (Potch.) (Visitor) Five volunteer Black subjects were acclimatized according to the climatic-room acclimatization procedure, and their states of heat acclimatization were determined by the usual heat-stress test. The subjects thereafter wore pre-frozen jackets in a somewhat higher environmental temperature (33,9/35,6 °C). stepping at the same rate as before for four hours a day for fourteen days. The heat-stress test was repeated and followed by a similar test at the higher environmental temperature. It was found that fourteen days of microclimate cooling in a very hot environment had no adverse effect on the degree of heat acclimatization. The sweat rates during microclimate cooling remained high, even though no sweating is possible beneath the pre-frozen ice-jacket. which indicates that there is an increase in sweat rate from the areas of exposed skin.

Jan 7, 1975

By Glenn C. Waterman

The use of stream sediment and soil sampling as an aid in exploration has markedly increased in recent years as more and more attention has been directed to areas that are generally geologically favorable for mineralization but show little outcrop. Numerous ore deposits and many hundreds of mineral deposits that have no surface exposure have been found associated with anomalous geochemical patterns. Sophisticated techniques have been developed to "wring out" of geochemical data subtle information that is pertinent in defining areas of exploration interest. Variations in metal patterns in soils and sediments as they are affected by pH, Eh, weather, topography, etc., are pretty well known. Field studies have determined the variations and controls of metal ion distribution in the several soil horizons and the contributions to metal concentrations made by different types of vegetation. Less well known is how to interpret geochemical data since thickness of soils over bedrock varies in an unknown fashion and, particularly, where glacial debris of unknown thickness is piled on top of soils or scoured bedrock.

Jan 7, 1975

By E. Shavartz, N. B. Strydom

The incorporation of individual cooling in a compressed-oxygen closed-circuit breathing apparatus by E. SHVARTZ, M.Sc. (U.C.L.A.), Ph.D. (U.S.C.) (Visitor) and N. B. STRYDOM, M.Sc., Ph.D. (Illinois) (Fellow) A conventional compressed-oxygen breathing apparatus, which did not include provisions for dehumidification of the inspired air at high environmental temperatures, was tested at these temperatures with and without conductive cooling in the form of 2 kg of pre-frozen ice placed inside the breathing bag of the apparatus. The pre-frozen ice provided conductive cooling of the soda lime and of the chest and abdomen of the subject, who performed moderate work at 50,1 "c. Without cooling, the subject was exhausted after 35 minutes because of a wet-bulb temperature of the inspired air of 46"c. With cooling, the subject finished 2 hours of work. This was possible by keeping the soda lime at a relatively Iow temperature, which resulted in a wet-bulb temperature of the inspired air of only 42 °C after 2 hours, and by conductive cooling of the chest, which resulted in the maintenance of a relatively Iow heart rate and rectal temperature.

Jan 7, 1975

By Richard H. Spencer, Warren G. Bender

Since the passage of the Coal Mine Health and Safety Act of 1969, the Bureau of Mines has made many advances in mine communications. These efforts have resulted in the following developments and demonstrations: • Surface-to-surface electromagnetic transmission of baseband voice signals through overburdens as deep as 600 feet. This transmission was achieved with equipment from the Interim Mine Rescue and Survival System Program, and demonstrated that baseband voice communications could be obtained through these overburdens in the absence of mine-generated noise; that is, when the mine power system was shut off. However, during mine operational conditions, the mine-generated noise proved to be so large that effective baseband voice communications to the desired depths could not be effected. • The development of beacon transmitters for locating trapped miners. This work was again the outgrowth of the Interim Mine Rescue and Survival System. Extensions of this work have led to reliable detection and location of trapped miners to depths of 1000 feet. The system, which makes use of a loop antenna deployed where the trapped miner is located, uses low-duty-cycle, tone-burst transmission. Portable tuned receivers and loop antennas are used on the surface to determine the location of the trapped miner. An extension of this work has led to a call-alert paging system concept, wherein a transmitter, similar to that used in the trapped miner system, is used to audibly and/or visually alert key mine personnel carrying pocket receivers that they are wanted at the nearest mine telephone. In addition, a roof-bolt paging system has been developed, wherein commercial paging and mine carrier phone equipment are used in conjunction with a long-wire "roof bolt" antenna to page individuals and relay to them short voice messages.

Jan 7, 1975

By John F. Havard, Armine F. Banfield

Sooner or later, we all get involved in the economic study and valuation of a mineral deposit. To communicate clearly the necessary information, we must scrupulously use various terms with specific meaning. All these terms-such as ore, exploration, development, production, reserves, proven ore, probable ore, possible reserves, resources, as well as similar terms applying to coal-are continually on the lips of anyone who reports on the economic aspects of a mineral deposit at the exploration, development, and production stages. The meaning of these terms is even more important in feasibility studies to determine whether a deposit should be put into production. Finally, careless use of these terms in reports published for public financing may, and sometimes does, lead to prosecution of the writer for misleading information.

Jan 7, 1975

By A. Tobey Yu

Despite its inherent low Btu content, western coal's low sulfur content may provide a near-ideal answer to satisfy US goals for clean air and energy self-sufficiency. Vast reserves, amenable to low-cost strip mining, serve as a powerful economic basis for its viability as a primary and dependable source of energy for the coming decades. A major consideration, the solution of which may not be obvious, is the transportation cost. These deposits are remote from the utilities of the heavily populated eastern regions of the US (Fig. 1). A coal mine in Montana is likely to be more than 1500 miles from its utility market, while an eastern coal mine may be situated only 200 miles away. Thus, the question raised is: how can the haulage cost of western coal be substantially reduced to an acceptable level?

Jan 7, 1975