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By Suresh P. Babu, Joseph W. Leonard, Richard Muter, D. P. Sen

OUTLOOK FOR COAL UTILIZATION In 1975, about 650 million tons of bituminous coal and lignite mined in the United States was used to meet 55% of the primary energy input for electric power generation and 26% of the total industrial consumption.1 Even though this amounts to only 21% of the total energy requirements, it is believed that with the declining natural gas resources and uncertainty of liquid fuel imports, coal will assume a more dominant role in suppplying our future energy needs. A regional breakdown of the coal reserves of the United States along with their characteristics is shown in Table I. At present the United Stares Energy Research and Development Administration (ERDA) and the US Bureau of Mines (USBM) are financing extensive research programs in advanced mining methods and energy conversion processes. The increased demand for wal which may result from these research programs may also create large-scale environmental protection problems. As more and more coal is mined the production of undesirable coal fines and dust also increases proportionally. The USBM and the Environmental Protection Agency (EPA) research in this field includes development in the areas of instrumentation for qualitative and quantitative analysis of wal dust, protective devices, and dust collectors. Dust control by water sprays, steam, and foam are also being investigated. Other aspects of safety in mining include developing methane drainage techniques prior to coal mining, fire and explosion prevention, and neutralization and disposal of acid mine waters. It is the belief of coal technologists that when the emphasis shifts to coal as the primary source of energy. the existing methods of mining and preparation of coal must be improved considerably to supply large quantities of quality coal for energy conversion. It is the objective of the present large-scale research financed by ERDA to produce substitute fuels from coal. Large-scale gasification pilot plants are being constructed by Bituminous Coal Research, Consolidation Coal Co., Institute of Gas Technology, and the Pittsburgh Energy Research Center to produce coal gas of natural gas standards at 1,000 psig. The processes being adopted by these pilot plants are oriented towards recovering most of the sulfur from coal by absorbing H2S and its subsequent conversion to elemental sulfur. The environmental protection standards will be strictly followed in using the results of these pilot plants to construct large-scale coal gasification plants in the latter part of the 1970's. With the increasing awareness of the need for air pollution control, considerable research is being done to minimize sulfur dioxide emission from thermal power plants. Utilization of limestone and dolomite scrubbing systems and caustic treatment of stack gases have proved to reduce sulfur and nitric oxide emissions by about 90 to 96%.3 Currently, about 22 scrubbers are in use in the United States to reduce sulfur in stack gas emission. In the long-term, it appears that optimal combinations will be developed involving both advanced coal preparation technology and wet scrubbing. The sulfur compounds are converted either to elemental sulfur of sulfuric acid. Besides the sulfur compounds, the major byproduct of the coal utilization industry is the large amount of coal ash. The Coal Research Bureau at West Virginia University has developed a practical use for coal ash as a structural material. The coal industry will undergo revolutionary changes when coal becomes the primary source of energy. New coal mining and preparation processes will be introduced to meet the ever-increasing per capita energy requirements. 2. BENEFICATION Introduction Coal preparation, like the beneficiation of ores, is also aimed at the separation of values from associated waste. Even though the unit operations involved when enriching ores and coal are similar, there are certain characteristics unique to coal preparation. Unlike the scattered and concentrated veins of underground minera1 ores, coal is distributed uniformly and very much in abundance in the coal mines. Coal occurs as the metamorphosed sedimentary deposits of vegetable matter, while metal and mineral deposits occur in great varieties of forms, structures, and origin-from igneous to sedimentary and metamorphic. The mined coal, being much more friable than mineral ores, is subjected to less intensive size reduction operations. Ores are usually ground to a very fine size for subsequent concentration, while coal is crushed to a coarser size, since considerably less liberation is needed to achieve the desired degree of separation. Since mineral matter is to a great extent discretely distributed in coal, concentration is mainly achieved by taking advantage of differences in specific gravity between clean coal and associated waste. In general, about 90% of coal is concentrated using specific gravity separation and about 10% by froth flotation. In contrast, these operations are frequently reversed in the beneficiation of ores. In coal preparation almost all fractions separated during various stages are made use of. while large amounts of gangue material are rejected in the concentration of ores. Hence, coal generally has a much lower ratio of concentration than ores. Since ore deposits are frequently more variable and mineralogically complex than coal, beneficiation of ore may require more plant flexibility and point-to-point quality control. This characteristic difference between the mineral ores and coal is attributed to the generally used one-step processing in coal as compared to the multiple-step processing of ores. Dewatering to enhance the energy content of coal is usually considered a major unit operation. Even though thickening and filtration are common for dewatering ore concentrates and cleaned coal, vibrating centrifuges and disk filters find unique application in the coal industry for achieving these types of solid-fluid separation. In coal preparation, thermal drying is carried out in separate units at the mine. While ore concentrates are usually dried at the smelter. Although the drying of ores is seldom considered dangerous, volatile matter and combustible dust are reasons why the thermal drying of coal can be hazardous. Open air storage of ores and mined coal results in partial oxidation. Unlike the oxidation of ores, the oxidation of the pyritic and carbonaceous constituents of coal together with the heat of condensation of moisture contribute to spontaneous heating and the subsequent combustion of coal in storage. Among the other significant difference between concentration of ores and coal are the weight and capacity of processing equipment. Coal processing employs less cumbersome, higher capacity units while the beneficiation of ores usually requires much more massive and frequently lower capacity equipment. Properties of Coal Which Influence Design The widely varying and heterogeneous composition of coal, due to metamorphism, determines the preparation design and uses of the resulting products. Petrography serves as a useful system of classification to identify the coal types present and their distribution. Early

Jan 1, 1985

By M. G. Schulz

Mining of molybdenum at Questa, New Mexico has been accomplished by block cave methods since August, 1983. As caving progresses, a periodic geologic evaluation is made of the rock-types present in finger raises on the Grizzly Level of the mine. The production maturity of the cave can be monitored by relating this data to geologic cross-sections through the ore body. The draw point mapping program is a simple and effective tool that is used in making draw control decisions at Questa.

Jan 1, 1985

By R. J. Sweigard

The effects of postmining land use planning are addressed in this paper. These effects may include savings in reclamation costs and increased value of reclaimed land. However, this may result in greater planning costs and possible delays in production. Therefore, an economic analysis was undertaken in an effort to determine the importance of each potential result and to quantify the overall economic impact of postmining land use planning. A discounted cash flow analysis was performed using a surface mine cost model to analyze the sensitivity of selling price to changes in various postmining land use planning parameters. As a result of this analysis it was determined that the profitability of a project is most sensitive to delays in production, particularly, if the delay occurs after major investments have been made. Many methods have been proposed for evaluating postmining land use alternatives (Sweigard and Ramani, 1981). Both quantitative methods, such as benefit-cost analysis (Brock and Brooks, 1968), and nonquantitative methods have been proposed. The application of one specific analytical method is pursued in this paper.

Jan 1, 1985

By D.G. Osborne

Each month abstracts of the papers selected for the Annual Bound TRANSACTIONS Volume will appear on this page. Since the Annual Bound Volume will not be published until the spring of next year, this will give people an opportunity to order copies of the papers earlier. If you would like copies, fill out the coupon below and return it to SME-AIME. Each copy will cost

Jan 1, 1985

By J. D. McKay

The Bureau of Mines devised a column flotation technique using either fine or coarse bubbles and compared it with conventional flotation on a Montana chromite ore. On deslimed ore, fine-bubble column flotation produced a 44.7-pct-Cr203-grade rougher concentrate with 87-pct recovery, compared with 43.8- and 43.5-pct-Cr203-grade rougher concentrates with 85- and 77-pct recovery for coarse-bubble column flotation and conventional flotation, respectively. On undeslimed ore, coarse-and fine-bubble column flotation produced rougher concentrates containing approximately 41.5-pct-Cr203 with 95-pct recovery, exceeding conventional flotation which produced 35.6-pct-Cr203-grade concentrates with 87-pct recovery.

Jan 1, 1985

By David M. Kjos

Large diameter autogenous and semi-autogenous grinding mills represent the primary thrust of the expanding grinding technology. In spite of initial difficulties, large autogenous and semi-autogenous mills have reached an acceptable level of technology which provides the mineral engineer with a reliable, low cost means of ore comminution. A successful milling installation begins during the design stage of the grinding mill and the plant it is to be installed in. This is particularly true in autogenous and semi-autogenous mills. Critical mill and plant design factors should be considered while the mill and installation are still only ?paper.? Various current liner designs will be discussed ranging from lifter bar/plate to integral types. Modes of operation such as "high-low" will be considered. Liner maintenance procedures ranging from laydown area in plant design, proper mill shutdown methods, to installation and bolt tightening complete the equation to yield optimum performance possible for any particular grinding application. The objective of this paper is to discuss trends in wear materials, designs and operating practices, and provide some guidelines for good practice as we move through the 1980's. We will put together concepts that relate to the designs, materials and applications so that higher performance can be obtained by the operator for his specific application. The concepts are shown as being in series because they are dependent on each other to achieve the desired performance.

Jan 1, 1985

By Jonathan M. Pachter

The Bailey mining complex is located in Greene County, PA in the valley of Talley Run, a small stream tributary to the Enlow Fork of Wheeling Creek as shown on the location map insert found on Figure 1. The Bailey complex includes two Pittsburgh No. 8 Seam deep mines (Bailey and Bailey #2), a coal preparation plant, and two refuse areas (for disposal of coarse and fine processing waste). Clean coal is shipped from the complex via a 24.15 km (15 mile) rail spur, which connects to the Monongahela Railroad in Waynesburg, PA. In early 1981, Consolidation Coal Company (Consol) began a permitting effort aimed at beginning construction of Bailey, the largest underground coal mining complex to be built to date in the United States. Construction of the Bailey Mine began in December, 1981, less than six (6) months following the first application submittal. Clean coal was produced by the Bailey Preparation Plant in September, 1984. Effective project planning, including early formulation of a project planning team, identification of "red flag" issues, innovative responses to environmental questions and development of environmentally sound project designs, all contributed to the relatively quick permitting at Bailey.

Jan 1, 1985

By W. J. Miles

Industrial mineral by-products occur as a result of mining and processing a primary mineral product. By-products result from concentration and separation of accessory minerals during processing or from the primary mineral during processing, for example dusts. Many companies have found it rewarding to evaluate mineral by-products from their operations and determine potential products and applications. By-products need to be evaluated for physical and chemical properties to determine possible applications and markets. Market studies are needed to determine application specifications, price structure of the market, competitive products, and to determine marketing regions. The by-products need to be evaluated for beneficiation and processing to meet these market requirements.

Jan 1, 1985

By James S. Goff, Stephen J. Navin, Wesley W. Moulton

The White River Shale Oil Corporation (WRSOC), as agent for Phillips Petroleum Company, Sohio Shale Oil Company, and Sun Shale Oil Company, is developing a prototype oil shale facility on Federal Lease Tracts Ua and Ub, located in northeastern Utah and known as the White River Shale Project (WRSP). The Ralph M. Parsons Company (Parsons) has been retained as the design engineer/constructor for the project. This paper covers the successful pregrouting of the Bird's Nest Aquifer in conjunction with the sinking of a 9.2-m (30-ft)-diameter shaft and driving of a 3.89-m by 5.64-m (18.5-ft by 12.75-ft) decline. The Bird's Nest Aquifer derives its name from the ellipsidal solution cavities caused by leaching of random-size nacholite nodules. The sodium bicarbonate nodules occur as persistent bands within a matrix of siltstone and marlstone. The team, made up of the owner, engineer/contractor, and subcontractor successfully grouted the shaft down to an inflow of less than 0.06 lps (1 gmp) and the decline down to less than 0.12 lps (2 gpm) by injecting a total of 213.190 kg (470,000 lb) of Celtite Terraseal, 113,400 kg (250,000 lb) of limestone dust, and 41,730 kg (92,000 lb) of cement into the formation.

Jan 1, 1985

By I. A. Tinto

Labrador City is located in the southwestern portion of Newfoundland-Labrador, approximately 965 kilometers north-east of Montreal. The mine and beneficiation complex of the Iron Ore Company of Canada, known as the Carol Project, is situated 535 metres above sea level in a climatic region characterized by cold winters and short, cool summers. History The iron Ore Company of Canada commenced work in the area in 1949, however, it was not until 1958 that the decision was made to proceed with mining operations. The ore body consists of Specular Hematite (Fe203) and Magnetite (Fe304) with small quantities of Limonite and Geothite. The average grade of the ore bodies is 39% iron.

Jan 1, 1985

By J. James Eidel

Geological interpretations generally require projections from direct observations at the earth's surface. Crustal projections include mineral deposits as well as the geochemistry of the crust and its fluids, structure and tectonics. Drilling offers opportunities for verification of the required projections, and is thus a required step in furthering crustal understanding. Like any new science, the direct observations that drilling provides commonly generate major surprises and stimulate totally new ideas. Drilling is costly. There are many critically important scientific problems with societal and potential economic benefits in mineral deposits which have not been drilled because the holes are difficult to justify as economically sound risks for private capital. Such holes, however, are highly justifiable research goals for government because of the significant new opportunity for ore deposit insight and exploration that they afford. The earth science community is prepared with excellent drilling projects for research in mineral deposits.

Jan 1, 1985

By Francis X. McCullough

After OSHA published a Notice of Proposed Rulemaking on August 5, 1983, to revise its standards for Underground Construction, many contractors and their representative associations became concerned by the sweeping changes in the proposed rule. After reviewing all of the evidence and testimony on file with OSHA, the contractors presented extensive written and oral testimony to the Department of Labor in Washington, D. C. to help insure that the final published rule would be effective without jeopardizing the economic viability of the industry. The results of those efforts, the entire OSHA rulemaking process, and the opportunity for the construction industry to participate in that process will be discussed.

Jan 1, 1985

By C. P. Boddy

One of the most difficult tasks a project manager will have in pre-mine planning is dealing with the mine site's hydrologic regime. Numerous federal statutes passed by Congress in the last decade have made the coal mining industry more responsive to the environmental impact during all phases of the mining process. Permitting these mines has dictated a cradle to grave approach in dealing with water related issues. This paper will attempt to explore the application of these technology- based laws and their direct application to the unique environment found in Alaska's interior regions.

Jan 1, 1985

By Theodore S. Jordan

The discovery of a major porphyry-type copper deposit on the Papago Indian Reservation in Pinal County, Arizona was announced by El Paso Natural Gas Company in 1968. The deposit, known as the Lakeshore Property, contained an estimated 470 million tons of sulfides and oxides averaging 0.75 percent copper. History and Geology of the area have been described by Harper and Reynolds (1969). El Paso subsequently&apos; entered into the agreement for joint development of the property with Hecla Mining Company, with Hecla as the operator. The ore body consisted of three types of mineralization: 1) Disseminated Oxide Ore, <1% Cu 2) Disseminated Sulfide Ore, <1% Cu 3) Tactite Ore, >1% Cu

Jan 1, 1985

By D. J. Barratt

The application of autogenous and semi-autogenous grinding circuits in recent years has contributed toward substantial savings in capital and operating costs compared to conventional circuits, particularly for large scale copper and molybdenum operations. Such savings have been realized from the deletion of operating, maintenance, equipment purchase and substantial civil/structural costs associated with secondary-/tertiary crushing and screening, fine ore storage and conveying. In spite of the downturn in the copper- moly industry in North America, there is still an interest in autogenous and semi-autogenous grincting for copper-zinc, gold and silver ores and in the overseas market. Both single-stage and two-stage circuits are in operation. Primary circuits operate autogenously or semi-autogenously in either open or closed-circuit. Critical sizes are extracted and crushed for recycle in some cases (e.g. ABC circuit). Secondary grinding is conducted using ball mills or pebble mills.

Jan 1, 1985

By B. J. Vorster

The South African Iron and Steel Company Ltd operates a large Iron Ore Mine in the Cape Province of the Republic of South Africa. The Mine is situated on the farm, Sishen, approximately 600 km west of Johannesburg. The annual capacity of the Mine is 100 million ton of ore and waste and the present production level is 60 million ton. The Mine operates continuously for 6 days a week. The primary equipment used to maintain the above production are 55, 154 t trucks (Wabco and Unit Rig) and 14 P & H shovels. During 1979 an urgent feasibility study into the application of a trolley assist system was launched at the Mine. This was due to the unrealistic escalation in the cost of diesel fuel and the appeal from the South African Government to reduce the use of fossil fuels. Tests and economic evaluations proved the system technical feasible. The estimated discounted cash flow return exceeded 50% and the diesel fuel consumption would be reduced by 120 million litres in the next 10 years. Management subsequently approved the implementation of the system at Sishen. The construction of 7,7 km of line and the conversion of 66, 154 t trucks were completed in March 1982.

Jan 1, 1985

By James W. Stewart, A. C. Colvine

Introduction Precambrian shield terrains the world over are experiencing an unprecedented level of concerted exploration for lode gold deposits. Reasons for this include: • The increase in the price of gold (following 40 years at $1.13/g or $35 per oz) has transformed targets that were once unattractive into viable exploration propositions. • The relatively suppressed market for other metals produced from shields (base metals, nickel, iron, and uranium) has further focused exploration attention on gold. • The preeminence of gold production from rocks of early Precambrian age, as shown in Fig. 1. • The relatively high grade of gold in these mines (averaging about 10 Wt or 0.29 oz per st) permits profitable extraction even under depressed gold prices. A number of these mines have been in continuous operation for more than 50 years. • The recent discovery of the major Hemlo deposit, in well exposed rocks adjacent to the Trans Canada Highway, has had a world-wide impact. This demonstrates that a major new deposit can be found even in an accessible, well exposed area of a shield; gold mineralization is susceptible to rational exploration; and new target types for gold exploration exist. This paper reviews exploration activity for gold in shield terrains worldwide (Fig. 2), excluding Early Proterozoic paleoplacers of the Witwatersrand type. Emphasis is on the Archean, which is traditionally the most productive part of the Precambrian shields. There is also an emphasis on the Canadian shield (Fig. 3) because of its vast areal extent and exceptionally broad range of mineralization styles. Geological Approach A basic problem exists in gold exploration when compared to exploration for base metal massive sulfides that predominated during the 1960s and 1970s. Gold concentrations cannot usually be detected by airborne geophysical instruments. The majority of massive sulfide deposits were detected using airborne electromagnetic detectors and magnetometers. A full 75% of Canadian gold discoveries can be credited to surface prospecting. The percentage is even higher in other countries. This observation allows for great optimism for two reasons: • Large areas of shield terrain are obscured by either surficial deposits (glacial tills, clays, and desert sands) or deep surface weathering. This makes them inaccessible to prospectors. Logic dictates that such obscured areas should have the same potential for gold concentration as has exposed bedrock. • The Hemlo style of mineralization, a roughly tabular ore body where gold is associated with disseminated sulfides, is different from the traditional prospecting target. The gold is hosted by discrete quartz veins. While it is true that limited discoveries were made at Hemlo more than 30 years ago, and this style of mineralization is present elsewhere, recent

Jan 12, 1984

By E. C. Robertson

D.G. Wilder I found the suggestion that the amount of displacement of a fault can be numerically related to the thickness of gouge or breccia to be both intuitively satisfying and intriguing. I have long agreed that there is some type of relationship between the amount of gouge and the amount of displacement of faults. I congratulate the author for developing a numerical relationship between them. However, I am concerned that the limits for applying this relationship be fully understood. An underlying assumption in this approach is that there is either a uniform thickness of gouge or breccia along a given fault or the thickness does not vary widely. Since it is not always possible to confirm this, the displacements derived by this method should be viewed with caution unless significant fault extent can be observed. At the Nevada Test Site, in drifts constructed in granite for test emplacement of spent nuclear reactor fuel, we found a fault with 0.3 to 0.4 m (12 to 16 in.) of clay gouge. Within a few meters of this location, the fault had no clay gouge, but rather consisted of a highly fractured zone with significantly altered rock and some slickensides. Based on Fig. 1, the 0.3 to 0.4 m (12 to 16 in.) thickness of gouge would indicate a displacement in excess of 30 m (98 ft). However, no gouge thickness would indicate essentially no displacement. Based on a quartz vein that terminated on the fault, and is not identified nearby, an estimated displacement of more than a few meters was made. This estimate is consistent with that obtained using the regression line proposed in the paper if the 0.3 to 0.4 m (12 to 16 in.) thickness for the gouge is used. However, using the regression curves with zero thickness would not yield results consistent with what was observed in the field. Therefore, it is important to recognize that the suggested procedure would properly yield a range of probable displacements. ? *Work performed under the auspices of the US Department of Energy by the Lawrence Livermore National Laboratory under Contract W-7405-Eng-48. Reply by E.C. Robertson It is certainly true that the t (thickness) of gg-bx (gouge and breccia) on a fault does vary along the fault. My observations have been that near the termination of a fault, the displacement d is small and the t is also small, whereas the maximum d and t will usually be found in the central part of the fault. The information on gg-bx and t of the fault found in granite in the NTS tunnel by Mr. Wilder could be interpreted somewhat differently than he does. He speaks of the fault changing within a few meters from 0.3 to 0.4 m (12 to 16 in.) of clay gg to "a highly fractured zone with significantly altered rock and some slickensides," but no gg. The highly fractured rock may be taken to be bx, rock not so finely ground as gg but still crushed by the fault movement, equivalent to the gg in my usage, and probably occupying about the same t. Mr. Wilder&apos;s estimates for the fault in the NTS tunnel for t of 0.3 to 0.4 m (12 to 16 in.) and for d of a quartz vein, in excess of "a few meters," would place the point on the low side of the central trend line in my Fig. 1, at the lower limit. There is, of course, a problem with determining d using displacement of only one planar surface. It would be greater or lesser depending on the rake of the movement. Finally, estimating the d of a fault from its t should be made with awareness of our present uncertainties, as pointed out by Mr. Wilder. Although the central trend line in my Fig. 1 has a ratio of d/t of 100, I have put the limiting ratios at 10 and 1000. Understanding of the values of the ratio will be improved only with collection of more data, for which the discussion of Mr. Wilder is much appreciated. G.C. Waterman E.C. Robertson&apos;s paper provides significant information to a geologist attempting to deduce fault offset by noting the products of structural dislocation. However, considerable mapping in underground and open-pit mines, and examination of structures produced in different geological settings, have convinced me that gouge and breccia thickness are controlled by geological conditions and fault movement. The following paragraphs suggest geological variables that control them. 1. Depth of Loading A near-surface fault resulting from tensional stress has more breccia/gouge than is produced by a similar stress at considerable depth. A deep-loaded compressional stress may produce a linear zone of schist, or structural dislocation may occur along an earlier formed belt of schist. Such "shear zones" are common in Canadian mines in precambrian rocks. In neither case can offset be directly deduced by an analysis of the minimal gouge/breccia in the shistose rocks. At greater depth, stress may be partially to wholly relieved by flowage. I vividly recall first noting the regional "Midas Thrust" in the Lark mine, Bingham Mining District, UT (where we called the structure the North Fault). My recorded notes, as I remember them, showed a narrow gouge streak separated the `Jordan" and "Commercial" limestone units from impure, muddy limestone beds of uncertain stratigraphic position. The visible structure did not indicate the great importance of this premineral fault

Jan 12, 1984

By Richard L. Nielsen

Early Models In 1906, Daniel Jackling demonstrated that relatively low-grade disseminated copper deposits could be mined profitably using mass mining technology. The ensuing years saw a gradual increase in activity aimed at defining ore targets for large reserves of disseminated supergene enriched copper ores. Prominent organizations, such as Calumet and Hecla, Phelps Dodge, and Asarco, established teams of geologists. They focused on interpreting oxidized and leached outcrops over supergene chalcocite ore bodies. Techniques to evaluate oxidized cappings and predict the presence of underlying supergene chalcocite enrichment ores were developed and put to practical use by the late 1920s and early 1930s (Locke, 1926; Blanchard 1939, 1968). Oxidized capping evaluation centered on recognizing oxidation products derived from the various sulfide minerals found in disseminated deposits. Chalcopyrite, for example, oxidizes to a characteristic reddish pitch limonite that exhibits characteristic boxworks. Chalcocite is recognized by earthy, powdery, indigenous, hematite-rich limonite. Pyrite weathers to characteristic cavities and yellowish jarositic limonites. Evaluation of cappings is a systematic effort of noting and estimating the preoxidation sulfide mineral content and copper grade in an oxidized outcrop using mineral composition and morphology of oxidation products. Several complications were noted early in this technology&apos;s development. For example, the associated pyrite content of protore greatly influences mobility of copper and iron during oxidation. High-pyrite disseminated sulfide assemblages, upon oxidation, mobilize iron as well as copper. This results in oxidized rock with many leached cavities, poorly developed boxworks, and poorly developed indigenous limonites. This effect was noted and used in a general way to identify possible development of supergene chalcocite. Indeed, strongly leached outcrops could be present over enriched ore. A second complication is the manner in which associated gangue minerals influence the products of sulfide oxidation. Reactive gangue minerals, such as carbonates, neutralize acids formed by sulfide oxidation. Thus, copper cannot be moved from oxidized outcrops. Relatively nonreactive gangue, such as quartz-sericite-altered schist or porphyry, neutralizes supergene acid very slowly. This allows copper to move out of the oxidized outcrop. Recognizing these features was closely allied to an early understanding of the processes involved in oxidation supergene enrichment of disseminated ores. Field observations and mineralogic mapping of oxidized cappings were important in discovering many important porphyry copper ore bodies during the 1920s. These include Silver Bell, Miami-Inspiration, and Morenci in Arizona; Tyrone, NM; and Ely, NV. Capping interpretation like-wise led to discoveries at Mineral Park and Esperanza in Arizona during the exploration surge that accompanied high copper prices in the 1950s. In the 1960s, Kennecott research geologists refined and quantified some aspects of oxide capping appraisal (Anderson, 1982). The ratio of jarosite plus hematite to the total limonite assemblage was shown to be proportional to amount of copper leached from the oxidized outcrop. Thus, if the limonite assemblege in an oxidized capping consists of 40% goethite, 20% jarosite, and 40% hematite, 60% of the original copper is leached. The amount of copper remaining in the capping, together with the limonite mineralogy, can then be used to estimate original copper grade in the outcrop, amount of leaching, and chalcocite enrichment grade (in feet/% copper) in the underlying supergene chalcocite zone (Anderson, 1982). Evaluation of oxidized cappings and prediction of chalcocite blanket ore targets were successfully used in the western US and South America through the 1950s. Discovery of new porphyry copper provinces in other regions during the 1950s and 1960s, however, underscored some limitations of capping evaluation technology. Porphyry copper systems in Australia generally oxidize and weather to hematitic cappings. Presumably, the semiarid monsoon environment and the long time that the sulfide systems have been exposed to oxidation on that continent lead to development of relatively stable hematite. It is now recognized that jarosite and goethite persist metastably in the limonite assemblage in all areas once sulfide oxidation is complete and acid generation ceases (Brown, 1971). The assemblage eventually converts to hematite. But, climatic conditions in arid southwest US allows metastable limonites to persist for a long time, thus providing information on former sulfide assemblages. Another problem occurs when applying capping evaluation techniques in extremely humid re-

Jan 12, 1984

By G. Kemp Williams, Peter H. Dohms, Barry A. Hillman, Laurie A. Williams

Introduction In 1969, the US devalued the dollar. This action, over the ensuing four years, resulted in the deregulation of the price of gold. It also resulted in the rebirth of the US gold mining industry. The extreme inflation of the 1970s led to a dramatic increase in the price of precious metals. Consequently an increased interest in the exploration for and mining of gold has occurred. The enthusiasm began among the few existing producers who had survived on marginal profits during a prolonged period of fixed prices and constantly rising costs. Then came the newcomers. They saw the opportunity to enter an industry that historically had been characterized by small operations with low capital costs. It was not until the late 1970s that large mining companies recognized that investment in gold projects could generate cash flows that previously were associated only with world class deposits. Today, gold mining has tremendous appeal for the entire mining community, despite the dramatic price drop from 1980-81 levels. There are even major firms with no mining experience attempting to gain a foothold. But how easy is it to enter the US gold mining industry? What are the basic factors that influence the economics, and what are they likely to be for the remainder of the decade? How has the industry changed, and what is the composition of the active companies? An examination of the industry will help to answer these questions. US Gold Mining History The current gold rush is actually the fifth in the 208-year history of the US. The first recorded commercial mining of gold occurred in the Southeast in 1799. It produced from small, yet relatively rich placer deposits. The famous California gold rush of 1848 placed the US as a major producer with 62.2 t (2 million oz) of output by 1850. More than 93.3 t (3 million oz) was mined by 1853, equivalent to 63% of world production. But the richest placers were soon depleted. By the end of the Civil War, annual production had declined to well below 62.2 t (2 million oz). The government then relaxed prices and the industry again began to recover. The 1870-80s saw the great mines of the California Mother Lode and Grass Valley brought into production. This was followed by development of Nevada&apos;s Comstock, which later became one of the world&apos;s largest producers. Discovery of gold at Cripple Creek in 1892, coupled with technological advances in the use of large dredges in the California placers, resulted in significant production increases. And, with the expansion of the Homestake mine at Lead, SD, in 1898, US output again surpassed the 93.3-t (3 million-oz) level. By 1905, produc¬tion climbed to 124.4 t (4 million oz) with the addition of the Alaskan deposits, new output at Goldfields, NV, and the introduction of the cyanidation process. During World War I, the government forced the shutdown of gold mines. By 1920, total production had dropped to little more than 62.2 t (2 million oz). Many mines remained closed until the Great Depression. This, combined with the devaluation of the US dollar in 1934, resulted in a gold price increase to about $1.13/g ($35 per oz). Then began the fourth gold rush. By 1937, output had again surpassed 124.4 t (4 million oz). This was due to an increase in primary production and new byproduct production from base metal operations. Unlike the previous period of growth, however, this period was short-lived. The imposition of Executive Order L-208 in 1942 once again forced the shutdown of most mines. At the end of World War II, cumulative US gold production had

Jan 12, 1984