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By F. H. Froes, D. H. Warrington

Electron microscope evidence which indicates that TaC may precipitate at random sites in the matrix is presented. Initially the particles are almost spherical and coherent with the matrix. However, as they grow in conditions in which there are insufficient vacancies to relieve lattice strain, the particles rapidly lose coherency in two directions and continue to grow as plates with approximately the full lattice mismatch strain present perpendicular to the plane of the plate. The necessary relief of strain comes from dislocations loops which do not become visible until the later stages of aging. The rapid decrease of apparent strain to low values of appoximately 1 pct at small particle sizes arises not from a complete incoherency but from applying a model wrong for the particle shape and strain distribution. PREVIOUS work has shown that MC-type carbides may precipitate intragranularly in austenitic stainless steel on dislocations,1&apos;2 in association with stacking faults,3&apos;4 and randomly through the matrix,5-7 In investigations of the matrix precipitate by thin-foil electron microscopy, considerable lattice strain has been found to occur around the precipitating phase.7&apos;8 Attempts have been made to evaluate the amount of lattice strain by using the methods developed by Ashby and brown.9,10 Values of the linear strain, much less than the 17 pct theoretical mismatch (for TaC), have been reported; it has been suggested that this is due to either a loss of coherency1&apos; or vacancy absorption which occurs during either the initial nucleation or growth of the precipitate." This report is an extension of earlier work7 that dealt with the precipitation of TaC from an 18Cr/12Ni/ 2Ta/O.lC alloy after it had been quenched from 1300°C and aged between 600" and 840°C. In particular, the shape of the precipitate particles and the amount of strain in the matrix, due to the precipitate, have been studied. The work described here is part of a wider investigation of factors that affect carbide precipitation in austenitic stainless steel," details of which are to appear elsewhere. RESULTS The present investigation can be conveniently split into two aspects of the strain-fields surrounding the matrix particles: 1) information derived from the strain-field which indicates the shape and habit plane of the precipitate particles and 2) the magnitude and sign of the strain-field. The Shape and Habit Plane of the TaC Precipitate. In the early stages of aging twin lobes (normally black F. H. FROES, formerly at the University of Sheffield, Sheffield, England, is Staff Scientist, Colt Industries, Crucible Materials Research Center, Pittsburgh, Pa. D. H. WARRINGTON is Lecturer, Department of Metallurgy, University of Sheffield. Manuscript submitted November 1, 1968. IMD on white background, i.e., for the deviation parameter, S > 0) that indicate the strained region of the matrix define the position of the particles by bright field transmission electron microscopy. The actual particles were not detected until they were approximately 120Å diam; below this size they were too small to be imaged in the electron microscope. This meant that particle growth that had occurred before this stage had to be inferred from the matrix strain-field contrast. In all cases when diffraction effects were observed from the precipitate particles, a cube-cube orientation relationship (i.e., (llO)ppt Il<llO>matrix and {1ll }ppt {III} matrix) existed between the precipitate and the matrix. From the matrix precipitate particles lying along edge-on {111} planes (e.g., at A, Fig. I), the precipitates are seen to be plate-like with their diameter being roughly 18 times their thickness after 5000 hr at 650°C. However, the exact shape of the particles cannot be determined because of the masking effect of the strain-field contrast. If a dark-field micrograph, using a precipitate reflection, is studied, Fig. 2, a number of the projected images of the TaC particles [on the (110) foil surface] apear to have straight edges parallel to projected f111) planes. Thus, it appears that in the later stages of aging the TaC particles are plate-like with some tendency for the edges of the plate to be bounded by the matrix close-packed {ill} planes (though the general shape of the particles in the plane of the plate is circular and thus the "diameter" of the particles has a real physical significance). It should be noted that the bands of fine discrete particles observed in Figs. 1 and 2 are not the matrix precipitate discussed in this paper but are precipitates associated with extrinsic stacking faults3j4 occurring on (111) matrix planes. **£** ****** \ *x 23 Fig. 1—18/12/2~a/0.1~ alloy. Solution treated at 1300°C for 1 hr, water quenched, and aged 5000 hr at 650°C. The (112) directions shown are the traces of the e&e-on (111) planes. Foil normal [110]; operating reflection (331); bright field micrograph.

Jan 1, 1970

By T. Cantwell, N. C. Rasmussen, H. E. Hawkes

Beryl is a mineral that may be difficult to distinguish from quartz by casual field inspection. The easily recognized green color and hexagonal crystal form of coarse-grained beryl are by no means universal, even in beryl from pegmatitic deposits. If it occurred as a fine-grained accessory mineral in an igneous rock, it would almost certainly escape detection unless samples were submitted for petrographic or chemical analysis. There may be substantial deposits of some beryllium mineral, other than beryl, that has been overlooked because that mineral also closely resembles the common rock-forming minerals. A reliable and simple method of identifying beryllium minerals and determining the beryllium content of a rock would be helpful in exploration. This article describes preliminary experiments in applying nuclear reaction to the qualitative identification of beryl and to the semiquantitative determination of the beryllium content of rock samples. Gaudin,1,2 the first to apply a nuclear reaction in detecting beryllium minerals, developed a method that irradiates the sample with gamma rays, which react with beryllium nuclei to produce neutrons. The neutrons are then measured with standard equipment. The cross section for this reaction is about 1 millibarn. The cross section is a measure of the probability that a reaction will take place, for example, between a beryllium nucleus and an incident gamma ray or alpha particles.3-5 At 1-millibarn cross section for the reaction, satisfactory performance required a source strength of the order of 1 curie (3.7 x 10"&apos; disintegrations per sec, where each disintegration releases one or more gamma rays). The reactions will not take place if the gamma radiation is below a minimum energy, in this case 1.63 mev. The size of the source and the energy of the radiation made heavy shielding necessary for these experiments, both to reduce the background count of the neutron counter and to safeguard personnel. The original discovery of the neutron by Chad-wick in 1932 resulted from experiments with another nuclear reaction, induced by bombarding beryllium with alpha particles in which the products are carbon-12 and neutrons. The equation for this reaction is as follows:&apos; " ,Be" + ,He&apos;? 6C12 + 8,n&apos; [1] re-particle neutron In the above nuclear equation (Eq. 1), the sub- script number indicates the number of protons in the nucleus (the atomic number) and the superscript the total number of neutrons and protons (approximately the atomic mass). For the alpha-neutron reaction the cross section is about 250 milli-barns, or 250 times that of the gamma-neutron reaction used by Gaudin. The positively charged alpha particle is repelled by the positive charge of the beryllium nucleus; it must, therefore, have a certain minimum energy in order to approach close enough to the beryllium nucleus to react. For reaction with the beryllium nucleus, the lower limit of the alpha-particle energy is 3.7 mev. The alpha-neutron reaction, with polonium-210 as an alpha source, was selected for the present experiments. Alpha particles are emitted by polonium-210 at 5.30 mev, which is adequate for the reaction with beryllium. Furthermore, this isotope of polonium emits alpha particles with negligible associated gamma radiation, thus eliminating the necessity of shielding. The half-life of polonium-210 is 138 days. Inasmuch as alpha particles carry a possible charge and are large compared with most nuclear particles, their energy is rapidly dissipated in passing through matter. Their range in standard air is 3.66 cm,3 and they penetrate only a few tens of microns into a mineral sample. The short range in air can be minimized by preparation of a flat sample surface that can be brought very close to the alpha source during analysis. On the other hand, short range of alpha particles in air lessens the radiological health hazard and makes it possible to use this method without shielding. It must be emphasized, however, that the alpha emitters are potentially very dangerous if they enter the human body. Polonium must be handled with extreme caution. The literature has reported experiments on the yield of neutrons from reaction of alpha particles with beryllium nuclei. Feld" reports that in intimate mixtures of polonium and beryllium, 3 x 106 eutrons per sec are produced per curie of polonium. Elsewhere in the same reference it is stated that a sandwich-type source yields about one third as many neutrons as an intimate mixture. A table of neutron yields for full energy polonium alpha-particles on thick targets as reported by Anderson7 is the basis of Table I. From Table I it can be deduced that the elements most likely to interfere, i.e., those that also produce neutrons when bombarded by alpha particles, are boron and fluorine. These data also show that it will probably not be possible to determine very small quantities of beryllium in rocks because of the masking effects of the major elements, sodium, magnesium, and aluminum. The neutrons emitted in the alpha reaction are detected by another nuclear reaction. Either of the

Jan 1, 1960

By H. Conrad, V. Damiano, J. Hanafee, N. Inoue

The effects of hydrostatic pressure up to 400 ksi at 25" to 300°C on the mechanical properties of three forms of commercial beryllium (hot-pressed block, extruded rod and cross-rolled sheet) were investigated. Three effects of pressure were studied: mechanical beharior under pressure, the effect of pressure-cycling, and the effect of tensile prestraining under hydrostatic pressure on the subsequent tensile properties at atmospheric pressure. For all three materials the ductility increased with pressure whereas the flow stress did not appear to be significantly influenced by pressure. An increase in the subsequent atmospheric pressure yield strength generally occurred as a result of pressure-cycling or prestraining under pressure, whereas either no change or a decrease in ductility occurred. The only exception to this was sheet material, which exhibited some improvement in ductility following a pressure-cycle treatment of 304 ksi pressure. The effects of pressure-cycling and prestraining were relatively independent of the temperature at which they were conducted. Stabilized cracks of the (0001) type were found in hot-pressed specimens and {1120) type in extruded and sheet specimens following straining under pressure. Also, pyramidal slip with a vector out of the basal plane, presumably c + a, was identified by electron transmission microscopy for extruded rod and for sheet strained under pressure. Small loops similar to those previously reported were found after straining at pressures of the order of 300 ksi. THE use of beryllium in structures is limited because of its poor ductility under certain conditions. Therefore, one objective of the present research was to determine if the ductility of beryllium at atmospheric pressure could be improved by prior pressure-cycling or prestraining under hydrostatic pressure. Another objective was to study the mechanisms associated with the plastic flow and fracture of the polycrystalline form of this metal with pressure as an additional variable. Since the early work of Bridgman,1 it has been recognized that many materials which are brittle at atmospheric pressure exhibit appreciable ductility when strained under high hydrostatic pressure. This effect has been reported for beryllium by Stack and Bob-rowsky2 and by Carpentier et al.3 and has been attributed to the operation of pyramidal slip systems with slip vectors inclined to the basal plane while cleavage or fracture is suppressed.4 That such slip may occur simply by the application of pressure alone without external straining (pressure-cycling) is suggested by the results on polycrystalline zinc5 and polycrystalline beryllium,6 where nonbasal dislocations with a vector (1123) were reported. A significant improvement in the ductility of the bee metal chromium by pressure-cycling has been reported.7 On the other hand, limited studies on the pressure-cycling of the hcp metals zinc67819 and beryllium6 indicated no improvement in ductility; there only occurred an increase in the yield and ultimate strengths. The study on beryllium was limited to hot-pressed material. Consequently, additional studies on the effects of pressure-cycling on other forms of beryllium seemed desirable, especially since for chromium some authors10 have been unable to detect any improvement in ductility while others find a large improvement.7 That the ductility of polycrystalline beryllium at atmospheric pressure might be improved by prior straining under hydrostatic pressure was suggested by the known beneficial effects of cold work on the ductile-to-brittle transition temperature in the bee metals. It was reasoned that, by straining under hydrostatic pressure, fracture would be suppressed, and during the propagation of slip from one grain to its neighbor dislocations with a vector inclined to the basal plane"-&apos;4 would operate. Upon subsequent straining at atmospheric pressure, these dislocations with a nonbasal vector would continue to operate and thereby reduce the tendency for fracture to occur, by assisting in the propagation of slip across grain boundaries and by interacting with any cracks that may develop. It was recognized that maximum improvement in ductility would probably occur at some optimum amount of prestrain under hydrostatic pressure. If the pre-strain was too small, an insufficient number of dislocations with a nonbasal vector would be activated; if it was too large, internal stresses (work hardening) might increase the flow stress more than the fracture stress, or incipient cracks or other damage could develop. EXPERIMENTAL PROCEDURE 1) Materials and Specimen Preparation. The materials employed in this investigation consisted of hot-pressed block (General Astrometals, CR grade), extruded rod (General Astrometals, GB-2 grade with a reduction ratio of 8:1), and cross-rolled sheet (Brush S200, 0.065 in. thick). The analyses of these materials and mechanical properties at room temperature and atmospheric pressure are given in Table I. The grain size of the hot-pressed block was 15 to 16 µ, that of the extruded rod 10 to 11 µ, and that of the sheet 7 to 10 µ in the rolling plane and 5 to 6 µ in the thickness, all determined by the linear intercept method. Al-

Jan 1, 1969

By Stanley L. Lopata, Eric B. Kula

SEVERAL methods are available for determining pole figures by X-ray means.&apos; The earlier film methods have been replaced by techniques in which the intensities are measured by Geiger counters on an X-ray diffractometerZm7. These methods utilize either flat transmission or reflection samples,214°8 cylindrical specimens,3 or spherical specimens.7 A single transmission or reflection sample will not yield information over the complete pole figure. The cylindrical specimens suggested by Nortod and the spherical specimen of Jetter and Borie7 have the advantage of allowing the whole pole figure to be obtained without any corrections to the intensity for absorption, There is a lower limit to the size of sheet which can be conveniently studied, however, and sample preparation can be rather tedious. Probably the most common method today for determining the complete pole figure is that developed by Schulz. A flat reflection sample is used for determining the pole figure from the center out to about 70". Because of the geometry of the system used, little or no correction for absorption or irradiated volume is necessary.4&apos;6 A separate transmission sample is used for the region near the edge of the pole figure. This procedure requires two separate samples, one of which must be a thin carefully-prepared transmission sample. Furthermore, since the reflection and transmission data are in different arbitrary intensity units, a region of overlap must be obtained, and the intensity data from one set of measurements converted to units of the other. These are serious disadvantages of this method, and they point out the need for a simplified procedure. Since the reflection technique can be used for planes whose normals lie up to about 70° from the sample surface normal, it is apparent that a complete pole figure can be obtained by reflection alone if sample surfaces are cut at oblique angles to the rolling plane Specifically, if a rolled sample is cut so that the normal to the surface formed lies equidistant (54" 44&apos;) from the rolling plane normal, rolling direction, and transverse direction, then complete information for one quadrant of the pole figure can be obtained by reflection from the surface. Fig. 1 shows this oblique surface, as well as the position of the pole of this surface in the pole figure. When a surface has been cut oblique to the rolling plane, the standard polar stereographic net is inconvenient to use, and it would be more desirable to have the center of the net coincide with the pole of the oblique plane. Fig. 2 shows such a net, where the center has been offset 54&apos; 44&apos; to correspond to a specimen cut as in Fig. 1. This net was in effect obtained by rotating a standard polar stereographic net 54" 44&apos; with the help of a Wulff net. With the experimental setup used. a sample can be cut from plate of 1/2-in. thickness or br Gen- erally thinner sheet is under investigation, and a composite specimen must be used. A convenient procedure has been to bond together, using epoxy resin, sufficient sheets to form a cube. These are clamped in a vise, and when dry, the whole vise is rotated and a flat surface ground at the required angle. The sample is then mounted inside a larger steel ring using Koldmount, the backside ground flat and parallel to the approximate desired thickness. The sample is then polished and etched to remove any effects of cold working during grinding. With this method only one quadrant of the pole figure is obtained. Often pole figures show symmetry around the rolling and transverse directions, and any slight asymmetry is due to scatter. Should the pole figure not be symmetrical, four oblique surfaces, corresponding to the four quadrants of the pole figure, would have to be examined. In most cases there is symmetry at least around the rolling direction, which reduces to two the number of quadrants to be investigated. For many purposes all that is required is an average polefigure for the four quadrants. This canreadilybe obtained with composite specimens of sheet material, where sheets Corresponding to each of the four quadrants can be intermixed. The four quadrants can be obtained by considering sheet in the normal position, and by rotatiolls of 180" around the sheet normal, the rolling direction, and the transverse direction. If desired, the whole thickness of the sheet can be used, yielding an average of the surface and interior textures; or the surface material can be removed from each sheet, resulting in a pole figure for the center alone. Eugene S. Meieran of the Massachusetts Institute of Technology has independently developed the same method. His results, adapted to a pole figure goniometer with a specimen spiraler, will be described in another publication.

Jan 1, 1962

By J. P. Neumann, L. Raymond

At temperatures near 1000°C, only the (112) (111) slip systems are operatire in tungsten. Therefore, the substructure introduced into the billet upon rleforming a single crystal by rolling at 1000 "C can be controlled by proper selection 01. processing ral&apos;iubles. Using a reduction of 10 pct pel- pass, the (001)[110] and the (110)[001] crystals will deform by duplex slip rip to a 50 pet reduction in thickuess. These rolled single-crystal sheels are characlerized by anisotropic hardening, retention of ductility with warm working, lattice bending which is related to the conlacl (angle, and macroscopic dimensional changecs in the length bid not the width of the billet. When several slip systems become operative, a greater degree of work hardening is itztvoducetl into the crystal. This rolling- condition is characlerized by isotropic hardening, loss of ductilily with warm working, complex lattice distortions, and macro-scopic dimensional changes in both the length rind Width of the billel. IN tungsten, the {1 10}(111) slip systems are operative below room temperature,&apos; while above 700°C only the {112{ (111) slip systems are observed.2,3 In the transition region, i.e., room temperature. both systems appear. It is the purpose of this investigation to show that tungsten single crystals deformed by rolling at a temperature where only one slip system is operative generate dislocation substructure which depends on the crystal orientation. For a specific crystal orientation. the resulting dislocation substructure can be further influenced by modifying the rolling procedure. Crystals oriented for multiple slip display less substructural sensi- tivity to modifications in processing techniques than do single crystals oriented for duplex slip. Under simple slip modes of deformation, very little work hardening is introduced into a rolled single-crystal sheet. Mechanical properties such as room-temperature strength. ductility, and hardness are used to confirm the existence of the different work-hardened conditions generated within the crystal by modified warm-rolling techniques. EXPERIMENTAL PROCEDURE Material. Single-crystal billets of four different crystal orientations. grown by the Arc-Verneuil technique. were ground to a size of 0.25 by 0.375 by 3 in. In terms of their rolling plane and rolling direction, the billets had the following orientations: (1101 [001 ] (110) [110] (001) [110] (001) [100] The actual orientation of all crystals was within 5 deg of the ideal orientations. The typical impurity content of the crystals is given in Table I. Polishing and Etching. Polishing was done elec-trolytically in a 20 g per liter aqueous solution of NaOH at approximately 10 v. It was established by the Laue back-reflection X-ray technique that the surface damage due to grinding and cutting operations with a diamond wheel did not exceed 0.001 in. Therefore after each cutting or grinding operation at least 0.002 in. was removed electrolytically from the surface in order to eliminate surface effects. By lowering the voltage to 3 v, subgrain boundaries and individual dislocations are identified in agreement with Berlec 4 where the etch-pit traces on a cubic plane form a square. The etching time was about 5 sec at room temperature. Rolling. Rolling was carried out on a Loma 2-high mill (Model 600). The peripheral velocity of the 6-in.-diameter rolls was 500 in. per min, with the surface temperature of the rolls about 400° to 450° C The billets were heated before each pass for 30 min in argon to 1000 C. Oxidation of the crystals during rolling in air resulted in a thin layer of greenish-yellow WO 3 This oxide was removed after each pass by immersing the crystals for a few minutes in a boiling NaOH solution. Prior to the initial rolling pass, a surface layer of 0.001 in. was removed by polishing. The crystals were then annealed in vacuum (10-4 torr) at 2400 C for 30 min. All crystals were rolled in the same direction; i.e., the same end was always introduced into the rolls. The rolling program was conducted in

Jan 1, 1965

By B. H. Caudle, L. G. Loncarie

Pilot flooding is one method of evaluating a proposed secondary recovery project. However, the amount and rate of oil recovery from an unconfined pilot area is not usually the same as from an equal area in a large-scale flood. This is true because fluids are free to move across the boundary of a pilot area. The result is that some of the oil produced in a pilot flood may come from outside the designated area and some of the displaced oil may leave the pilot area completely. This paper presents the results of fluid-flow model studies on a five-spot pilot flood. Mobility ratios between 0.1 and to have been studied. The effects of changing the ratio of injection to withdrawal rates are shown. INTRODUCTION A small-scale field test, or pilot flood, is an accepted method for evaluating the applicability of a secondary recovery operation and the economic potential of that operation for a reservoir. The pilot flood is carried on in the same manner, with the same injected materials and at the same pressures as would be used were the secondary recovery program to be expanded to a larger area of the field or to the entire field. If the reservoir fluid and reservoir rock properties are the same in the pilot area as in the rest of the reservoir, the production, injection and other pertinent data associated with the pilot test will represent and measure what should be expected from a full-scale development of this secondary recovery program. There is one major exception which, unfortunately, has been overlooked by many and which has been awaiting quantitative definition. This is the sweep-out pattern the reservoir engineer must use in interpreting the pilot flood and in extrapolating it to the full-scale development. The sweep-out area in a pilot flood is not contained within the five-spot pattern. Further, there is oil flow into and/or out of the five-spot during a pilot test. Thus, production data from pilots must be interpreted with this different flow system and sweep pattern in mind. We have studied the sweep-out pattern that will exist for some conditions of operation of pilot flooding a single five-spot (four injection wells and one producer). In our study, reported here, we have assumed that the reservoir is relatively homogeneous and of uniform thickness in the pilot area. The results of this study en-able the engineer to predict the recovery, injection requirements and project life for a full-scale operation from the pilot flooding data. The effects of various injection to withdrawal-rate ratios and mobility ratios in a relatively gas-free (10 per cent pore volume or less) system are shown. Experimental Method The technique used in this study was the same as that for the X-ray shadowgraph studies of sweep-out pattern efficiencies.&apos; The model of the pilot and surrounding area was made from a uniform packing of round-grain sand consolidated with an epoxy resin. Fig. 1 shows the relation between the model and the pilot area. Only one-eighth of the pilot area had to be represented in the model because we assumed equal injec-

By K. Leutwyler

The key to realistic casing stress analysis in thermal recovery installations is accurate knowledge of the temperatures involved. Much information leading to prediction of heat losses from tubing string to wellbore has been published. This .same information permits calculation of casing temperature under certain conditions. This paper reviews the basis for most of the published work, the line source solution to the diflusivity equation and examines some of its application criteria in the light of unsteady-state conditions. An alternate finite differences method is presented for correlation, and experimental data pertaining to the heat transfer mechanism in the annulus is reported. In the light of the information presented in the paper, it appears that the assumption of a line source for the tubing-wellbore system is valid even for reasonably short periods of heat flow, .such as "steam soak" operations. The empirically modified equation presented earlier matches computer derived results of the finite differences approach lor periods as short as 50 hours. Previously predicted cas ing temperatures and the associated stress levels are thus verified based on these correlative computations and the reported experimental information. Fall out from the computer output resulting in some studies of the influence of insulating cement properties on casing temperature, and experimentally studied effects of nitrogen placed in the annulus at various pressures., are described. INTRODUCTION Generally speaking, predictions of average casing temperatures have been based on an idealized model involving a centralized tubing string at uniform constant temperature radiating energy towards the casing under steady-state conditions.&apos;. &apos; Heat is transferred away from the casing to the formation by unsteady-state conduction across thermal barriers consisting of cement and the mud sheath. Heat balances written on the casing permit prediction of instantaneous casing temperatures. During early periods of injection, casing temperature varies appreciably as a function of time; however, for long injection times this variation decays as heat flow from the wellbore to the formation stabilizes, and it becomes virtually negligible as conditions surrounding the wellbore become quasi-steady-state (Fig. 1). Carslaw and Jaeger -escribe a solution to the diffusivity equation for a line source (Fig. 2). A constant supply of heat is introduced into the medium from the line placed into the origin of the x-y coordinate system and parallel to the z-axis. Heat spreads outward in the infinite cylindrical solid and the temperature increase on a line going through point (x, y) parallel to the z-axis at a distance r can be predicted by: The following criterion must be considered: the Carslaw and Jaeger equation is obtained on the basis of a large

Jan 1, 1967

By W. W. Krech, T. E. Perkins

As fractures are propagated through rocks, energy is absorbed near the extending crack tip. Apparent surface energies for several rocks have been measured by cleavage under dynamic con-ditions. At nominal crack velocities from 0.5 to 500 in (min, measurements showed that fractures propagated in discrete jumps. Calculated surface energies and moduli were relatively insensitive to nominal rate of cleavage. in another set of experiments, rocks were cleaved under high confining stresses. The rocks were submerged in low leak-off fluids which formed a filter cake on the freshly cleaved surfaces (similar to the hydraulic lracturing process). Apparent surface energies were increased substantially as the surrounding fluid pressure was increased. Moduli in bending increased significantly upon application of the first 1,000 psi but were insensitive to stress level at greater pressures. INTRODUCTION For almost 20 years, hydraulic fracturing processes have been utilized effectively to stimulate oil and gas wells. During this period, some process improvements have resulted from studies of fracture orientation, mechanics of fracturing, areas generated, conductivities of cracks, etc. Yet many questions remain concerning the conditions and pressures needed during fracture propagation. In this paper we will report additional studies of the mechanics of fracture extension. It was shown previously3 that large rock samples could be cleaved under controlled conditions so as to measure the apparent surface energy (that amount of energy absorbed per unit area of new surface created). In this paper we consider the effects of two additional factors on surface energies, viz.: (1) effect of cleavage rate and (2) effect of confining stress level. THEORY Cleavage experiments were conducted on rock samples similar to that illustrated in Fig. 1. Blocks of rock several inches wide, 2- to 3-in. thick, and up to 3 ft in length were grooved longitudinally with shallow guide slots. A crack was initiated and allowed to extend along the web as the top of the rock specimen was pulled (or pushed) apart. Auxiliary equipment permits the measurement of (1) force applied at the top, (2) separation at the top and (3) crack length. (Further experimental details will be given in the next section.) The rock beams created by the crack are considered ton be cantilever beams. The deflection (or separation of the rock beams) at any point is calculated 4,5 by the beam Eq. 1.

Jan 1, 1967

By John R. Eckel

A Iaboratory drilling rig has been devised and placed in operation which permits the application of hydrostatic, terrastatic, and formation pore pressures to a rock sample for drilling under controlled conditions. Calibrated rests of this equipment in-dicate qualitative agreerment with field results on the effect of weight on bit, rotary speed, and rate of circ~~lation on drilling rate. Tests under pressure, using water and air as the drilling fluids, indicate that when drilling saturated limestone samples, a pressure differential between hydrostatic and formation pressure is the only pressure which affects drilling rate. A differential in either direction causes a reduction in rate, but the same diflerential from the wellbore into the formation causes the greater reduction. Also, in lime.stone, air favorably affected drilling rote only when compared to water at high hydrostatic pressurre, all other conditions remaining constant. Large increases in drilling rate with air could be obtained in the laboratory only while drilling a shale, which offered a limited permeability to nitrogen and which could be drilled with a differential from the formation into the wellbore. In general, the magnitude of the changes due to the pressure effect were small compared to changes in drilling rate obtainable by changing either bit weight or rotary speed. INTRODUCTION In the course of Humble&apos;s drilling research program, the desirability of investigating several factors which lend themselves to laboratory rather than field study became obvious. Principal reasons for this are the expense involved in field studies and the difficulty of exercising the required degree of control. Of primary importance are investigations of the effect of fluid pressure on rock rate, the effect of pressure on rock drillability, and a study of the fundamental mechanics of rock failure and chip generation. Several years ago some work in the laboratory on the effect of mud properties on drilling rate was re- ported to the API&apos;, but the completion of this work and the investigation of the other variables affecting drilling rate required equipment somewhat more elaborate than that used on these earlier tests. This equipment has been assembled to form Humble&apos;s Drilling Engineering laboratory. To date only the effect of pressure on rock drillability while using water and air has been investigated, and this work is not yet complete. Facilities are available to investigate the effect of fluid properties on rate of penetration, and information is being assembled on a current basis on the mechanics of drilling. The sequence of presentation in this progress report is somewhat different from that in which the data were obtained since the order of ex-

By R. F. Nielsen, R. G. Bentsen

Jan 1, 1966

By A. W. Asman

The problem of balanced design in a belt conveyor has been under constant study. Increased use of this method of transport in recent years has stimulated investigations. Conveyor belt, power transmission and other machinery should be adequate to perform the required service. All components of the belt conveyor should work as an efficient unit moving its load continuously between terminals. As part of a long term research project on belt conveyors, Hewitt-Robins established in 1954 a 2-year grant at Pennsylvania State University. Under terms of the grant, certain fundamental phenomena were to be studied. This work evolved a new concept in belt conveyor power determination based on the principle of belt tension. The Penn State contract furnished the foundation for later more detailed studies. From these most recent investigations, more specific factors were defined. In the final analysis, all of the data collected has been worthwhile in belt conveyor design. Units now operate over long distances at speeds of over 800 fpm. Long high lifts are commonplace. Where vertical or inclined shafts were the rule, belt conveyors receive first consideration. Although belt conveyors have moved forward rapidly, the future will see a tremendous gain in their use. The ideal test belt conveyor would be several thousand feet in length and have a maximum tension of at least 70,000 lb., Also, this conveyor should be horizontai and have a variable feed rate of more than one material. Data from such a field belt conveyor combined with laboratory information would permit accurate analysis. Since this type of conveyor was not available, many field locations were visited: An alternate would have been to erect a closed circuit system in the laboratory. Either method had limitations and the first was selected as having the best possibilities. Manufacturers of conveyor belting and machinery basically have been using the same horsepower formula. As more information became available from field installations, factors in the basic formula were modified. Practically all conveyors are designed today by adding together the horsepowers required to move the empty belt, move the load horizontally, and elevate the load. In selecting size of drive motor, the first two elements are relatively unimportant if the last is large. However, it is the combination of

Jan 1, 1961

By P. C. Hodges

WHILE there is very little romance connected with the operation of a stone quarry, yet to those who have participated in the growth and development of a business that has been a pioneer in its field and that FIG. 1.-LOCATION OF PROPERTY OF MARBLE CLIFF QUARRIES COMPANY. has been in continual operation two-thirds of a century there is bound to be a background of experience, which if properly capitalized, brings progress as well as satisfaction in its accomplishment.

Jan 1, 1936

By J. A. Thompson, M. A. Mayers

IN recent years, the problem of damage to coke-oven walls by expanding coal charges undergoing carbonization has engaged great attention on the part of research workers in this field, and has led to the development of many devices for estimating these pressures.1-14 Only in Russell&apos;s method11 and in the Koppers ovens7 are conditions quite similar to those in commercial ovens. Tests even in these ovens are empirical because no information has been published to permit an evaluation of "scale effects." Owing to the relatively large wall area in these test ovens, the average wall pressure determined may be lower than that existing in localized areas. This factor may be compensated for in part by the testing of coal charged into the test oven at a bulk density that is as high as the highest that is believed to exist in commercial ovens. Both of these lacks might be filled by the development of an adequate gauge for the direct measurement of wall pressure exerted by the charge in commercial coke ovens in normal operation. Previous attempts to elaborate such instruments7,15 have resulted in units which, because they had to be water-cooled, probably produced changes in the conditions of carbonization, and which had to be removed from the oven before carbonization was complete, to avoid their destruction. Late in 1941 the Coal Research Laboratory undertook to develop such a gauge, in which gas pressure was balanced against the charge pressure and which thus would not require water cooling, on a suggestion made in 1937 by one of the present authors and William B. Warren, a former member of the Laboratory staff. The gauge heads themselves were to be simple and cheap enough so that they might be discarded after each run if seriously damaged. This would permit them to be left in place throughout the carbonizing period, when they could be pushed out with the coke. The basis of the design, of which the latest exemplification is shown in Fig. I, was that as the internal gas pressure within a flexible metal envelope was increased, the flexible wall would move away from a stop when the gas pressure just overbalanced the charge pressure. If the stop were an insulated electrical contact, the point of balance could be indicated by the breaking of an electric circuit. It was anticipated that, while the instrument must operate at high temperature, the presence of a strongly reducing atmosphere throughout the carbonizing period would so reduce-the danger of scaling that mild steel could be used for the gauge. This expectation has been justified. Danger of attack on silica oven walls by the steel gauge body can be eliminated by cementing asbestos paper or an alundum or silica plate to the back of the gauge body. The gauge head itself has a relatively heavy mild-steel body, A, into which standard ¼ in. pipe B is screwed to conduct gas and electrical leads. The body is closed by a single bellows C. consisting of two annuli of 0.011-in. (0.28-mm.) cold-rolled shim-steel spot-welded together at their outside edges. The lower one is

Jan 1, 1944

By K. Mukherjee

A quasi-thermodynamic calculation is presented for estirt~ating vacancy Parameters in fcc metals. For fcc metals the equilibrium vacancy concentration at the melting point can be approximated by a constant mole fraction. The Gibbs free energy of formation of the vacancies can then be expressed as a simple function of the absolute melting temperature alone. From this description the formation energy Ef, the vibrational entropy Sv, and the formation volume of a vacancy can be calculated in terms of known thermodynamic parameters. The calculated values are in good agree-rnent with available experimental results. IT appears that many of the physical parameters associated with lattice defects can be empirically related to thermodynamic melting parameters.&apos;-7 Besides the implicit correlations between melting phenomenon and point defects, the melting temperature itself at atmospheric pressure can be used as a reference temperature for the purpose of comparison of vacancy concentrations in a given crystal class. The concentration at the melting point then corresponds to the maximum vacancy super saturation in the crystalline state at a fixed pressure. For pure fcc metals such as Au, Cu, Al, Ag, Pb, and Pt the mole fraction of vacancies at the melting point8 is of the order of 10*"3 to 10"1. The equation expressing the equilibrium vacancy concentration at the melting point contains three parameters: the formation energy, the vibrational entropy, and the absolute melting temperature, see Eq. [2]. Since these three parameters cover a wide range of values8 in the above-mentioned metals, it can be assumed that in other fcc metals, for which no reliable data are available, the mole fraction of vacancies at the melting point most likely lies in the range 10~3 to lO"4. This is then the basis of the calculations described in this article. Within this range the mixing entropy can be linearized and the vibrational entropy, the formation energy, and the vacancy formation volume can be calculated in terms of known thermodynamic constants. 1} LINEARIZATION OF MIXING ENTROPY The Helmholtz free energy of a crystal containing n vacancies at the melting point can be writteng as where Ef, T,, k, and S, are the formation energy of a vacancy, the absolute melting temperature, Boltz-mann&apos;s constant, and the vacancy formation entropy, respectively. After applying Stirling&apos;s approximation in Eq. [l] and minimizing with respect to n where (n/N), is the equilibrium vacancy concentration in mole fraction at the melting temperature at 1 atm pressure. If instead of setting (6~/6n) = 0 immediately after Stirling&apos;s approximation in Eq. [I], the configurational partition function is simplified, then some useful and significant results can be obtained by utilizing the experimental inforrnation After applying Stirling&apos;s approximation and rearranging is plotted as a function of (n/N) in Fig. 1. The points, not all of which are shown, are fitted by a straight line substituting from Eq. [5] into Eq. [I] and minimizing with respect to n combining Eqs. [6] and [2] It must be emphasized that Eq. [7] is only a crude approximation based on an oversimplified model of

Jan 1, 1967

By B. L. Averbach, Morris Cohen, L. L. Seigle

Free energies, enthalpies, and entropies of mixing of Ni-Au solid solutions containing 5 to 95 atomic pct Ni have been determined by the electromotive force method at 700° to 900°C. The thermodynamic activities exhibit large positive deviations from Raoult&apos;s law, and the entropies of mixing are almost twice those of ideal solutions. The enthalpies of mixing are positive (heat is absorbed) and are attributable to the lattice distortional energy resulting from the size difference between the nickel and gold atoms. This factor appears to be responsible for the miscibility gap at lower temperatures. IN the thermodynamic study of metallic solid solutions, most interest has been directed toward systems with negative deviation from Raoult&apos;s law, namely, those exhibiting superlattice or compound formation. The results of previous investigations are summarized in recent publications.&apos;-&apos; Relatively little experimental work has been carried out on solid solutions which manifest a positive deviation, possibly because the range of solubility in such cases is usually quite limited. Nevertheless, the relationship of the thermodynamic properties of these solutions to diffusion, nucleation, and precipitation in the solid state are of considerable importance. The binary Ni-Au alloys are particularly suited to an investigation of these relationships. Despite the presence of a miscibility gap at lower temperatures, Fig. 1, indicating a large positive deviation from Raoult&apos;s law, complete solid solubility is found above 840°C. Moreover, the difference in the atomic scattering powers of nickel and gold is sufficiently great to permit X-ray diffraction studies of atomic arrangements and pre-precipitation phenomena. Radioisotopes of both nickel and gold are available for diffusion work, and finally, a large difference in nobility between the two elements facilitates measurement of the thermodynamic properties. The present paper describes the experimental determination of the free energies, enthalpies, and entropies of mixing of solid Ni-Au alloys. Table I gives a list of the symbols used in the paper. Experimental Method The stability of nickel chloride relative to gold chloride" indicated that the galvanic cell method could be used for determining the thermodynamic properties of Ni-Au alloys. An electrolytic cell (Fig. 2) was constructed, similar to that of Weibke and Matthes,7 in which the electrodes were solid nickel and Ni-Au alloys, and the electrolyte was a fused mixture of alkali chlorides containing NiCl,. The cell electrodes were made from fine gold granules and carbonyl nickel shot melted together under argon, chill cast, swaged to 1/16 in. diam rod, and annealed for one week at 850°C. Commercial reagent and chemically pure grade salts, purified by dehydration, were used for the electrolyte. The cell, operating in an atmosphere of purified argon, was heated in a resistance-wound cylindrical furnace whose temperature was controlled to within ±0.5ºC. The potential developed between the pure nickel and the alloy electrodes, which is related to the thermodynamic properties of the alloys by standard equations to be presented later, was measured with a potentiometer and a mirror galvanometer sensitive to 10-7 v. Dehydration of the electrolyte was carried out in the assembled cell by evacuating at 100°C for about

Jan 1, 1953

SEC. 1. The membership of the Institute shall comprise seven classes, namely: 1. Members; 2. Honorary Members; 3. Senior Members; 4. Associates; 5. Junior Members; 6. Rocky Mountain Members; 7. Junior Foreign Affiliates. All shall be equally entitled to the privileges of membership, excepting that no member of any class whose residence shall be outside of the United States of America, except those residing in Mexico and Canada, shall be entitled to vote. SEC. 2. Members: A person to be eligible for election or transfer into the. class of Member must be at least 27 years of age and must have had at least six years&apos; employment in the practice of engineering, mining, geology, metallurgy, or chemistry, during at least three years of which he must have held positions of responsibility in one or more of these fields. This shall not apply to Rocky Mountain members. SEC. 3. Honorary Members: Each candidate for Honorary Membership must be recommended by at least ten Members and must be elected by ballot at a meeting of the Board of Directors by the unanimous vote of the Directors present; provided, however, that the number of Honorary Members shall at no time exceed twenty. Such election shall automatically act as a transfer of such member from any other class of membership to which he may belong. SEC. 4. Senior Members: The Directors may, at the special request of any Member or Associate who has reached the age of seventy years and who has paid dues for thirty years, transfer such Member or Associate to the class of Senior Member; and in special cases may waive either the requirement as to age or as to the number of years for which dues have been paid. SEC. 5. Junior Members: A person to be eligible for election to the class of Junior Member must be qualified -through education or experience to hold a subordinate position in engineering, mining, metallurgical, geological or chemical work. He shall be not more than 33 years of age at the time of election. .SEC. 8. Associates: A person eligible for election or transfer into the class of Associate shall be one, who, in the opinion of the Committee on Admissions and the Board of Directors, is suitable for such election or transfer by reason of his interest in or connection with mining, geology, metallurgy, or chemistry. SEC. 7. Rocky Mountain Members: Membership in a special class of life memberships without annual or other dues and without right to receive the printed literature distributed to other members or the right and privilege of wearing the official badge of technical members, is given to all members of the Rocky Mountain Club at the time of consolidation. These special Rocky Mountain memberships shall be claimable by any member of the Rocky Mountain Club, not already a member of the Institute, availing himself of the privilege within ninety days after mailing of notice to him, by the Secretary of the Institute. SEC. 8. Junior Foreign Affiliate: Upon appropriate action by the Board of Directors and with its approval, members in good standing of any technical society having its headquarters outside of the United States of America, Canada, or Mexico,

Jan 1, 1940

By P. Chiotti, R. J. Hecht

Vapov pressure data of solid and liquid alloys along with phase diagram data WERE employed in calculating the thermodynamic properties for the Ca-Zn system. The relative excess partial molal free energy for zinc in the liquid alloys was fitted to the relation wnvre i is we tvmpvrutiirc in ucgrees neivtu ana in is the tr~ole fvaction. Relations for the standard free energy of fortnation for the eight cornpounds were developed. ThE phase diagram for the Ca-Zn system as determined by Messing et a1.&apos; is reproduced in Fig. 1. Earlier work on the phase diagram has been summarized by Hansen and Anderko2 and the very limited thermodynamic information for this system has been reviewed by Hultgren et a1.3 The heat of fusion for the compound CaZn2 has recently been determined to be 9260 cal per mole.4 Solubility data for calcium in zinc for the temperature range of 650" to 725°C were fitted by the relation and reported by Johnson and Dilloon5 In the present investigation zinc vapor pressure data were obtained by both the dewpoint and Knudsen methods in order to calculate the thermodynamic properties for liquid and solid alloys. The dewpoint method as employed in this work requires that only one of the components be significantly volatile, in this case zinc, and that the vapor pressure of pure zinc be known. For calculation purposes the vapor pressure data for pure zinc3 were fitted to the relations; for temperatures below 692.7K, the melting point of zinc. The corresponding free-energy relations for vaporization and sublimation of pure zinc are respectively. Some of the calculations also required knowledge of the free energy of fusion of zinc and calcium and the free energy for the 721°K allotropic transformation of calcium. The free energy of fusion of zinc was taken to be the difference between Eqs. [4] and [5], or The free energy of fusion and transition for calcium were based on the enthalpy values of 2040 and 222 cal per g-atom, respectively, as reported by Chiotti et al. 4 and the heat capacity data given by Hultgren et a1.3 and are represented by the relations, In the latter expression the difference in heat capacity between the a and 0 forms of calcium was neglected. MATERIALS AND EXPERIMENTAL PROCEDURES The metals used in preparing the alloys were Bunker Hill slab zinc, 99.99 pct pure, and Ames Laboratory calcium. The average impurities in the calcium in parts per million by weight, ppm, were N-17, H—77, Ba—216, Mg-15, Si—7, C—157, and Fe—9. The zinc was cleaned in dilute nitric acid and the calcium was used as received. The calcium was stored and handled in an argon-filled glove box and when removed from the dry box it was kept in an argon-filled desiccator. Tantalum was found to be a suitable alloy container. The alloy components were contained in a 1-in.-diam cylindri-

Jan 1, 1968

By T. H. Ramsey, Richard Shield

A process has been developed for fabricating thin-film resistors that are compatible with integrated circuits. Films are produced by evaporation of single refractory metals using an electron beam heating source. Resistor paths are then made using standard photoresist etching techniques. A low-temperature coefficient of resistance is obtained by control of nucleation during deposition of the film. One application of the process has been the development of a discrete resistor used for current setting in linear integrated circuits. Multiple thin-film resistors were formed on oxidized silicon substrates using molybdenum metal as a source. An evaporated protective layer of SiO2 over the resistor prevents resistance changes which might occur during subsequent high-temperature processing. Properties of a typical resistor are as follows: R = 15.7 ohm per sq, tolerance surface dimensions = 0.028 by 0.028 in., stable after 4000 hr at 0. 75 w without heat sink. THIN-FILM resistors have been investigated for many years with a large selection of usable resistors resulting from a wide variety of materials. Many of the processes necessitate a high degree of complexity but in nearly all cases the conclusions have been that the materials used in each case were acceptable provided the deposition process was reproducible and could be controlled sufficiently to give the required tolerances. It is our opinion that simplicity is still the key to thin-film resistor fabrication. In this regard, the single metal is obviously the simplest process to control, provided all the necessary properties can be obtained. The idea is not original in this laboratory by any means. Others have taken this approach.&apos; It has been demonstrated that a fairly wide range of resistivities can be obtained by careful control of deposition parameters for any given metal, and by selection of several single metals a very broad range of stable resistors can be obtained. The transition from one metal to the next is made when a film becomes too thin for adequate process control or long-term stability. A great deal of emphasis is once again being placed on the thin-film resistor. Although they have been thoroughly studied in the past, new applications have been found that require the properties obtainable only from thin-film resistors. Integrated circuits, in general, are advancing toward higher speeds and radiation environments which require replacement of the present diffused resistors. Linear circuits in particular are requiring high-power, high-precision resistors for the more advanced applications. The particular requirements of some linear circuits are such that a discrete resistor is required. The resistor described in this paper was developed as a 15.7-ohm precision discrete resistor for use in a current regulating circuit requiring a +2 pct end of life overall tolerance, a dissipation of 750 mw, and the ability to operate over a fairly broad temperature range (i.e., a low temperature coefficient of resistance, TCR). State-of-the-art integrated circuit and silicon processing technology lends itself well to the fabrication of thin-film resistors. Not only is the resistor thin film well-suited to integration on individual circuits, but the oxidized silicon surface provides one of

Jan 1, 1969

By D. Weinstein

Yieldilzg in annealed arc-cast molybdenunz in torsion was studied as a function of strain rate and tem-perature. The temperature dependence of the yield point for different strain rates was used to calculate a heat of activation for the yield point. The heat of activation was not a constant but was approximately a linear function of the stress at yield. It is proposed that the rate effect in yielding is determined in part by a site place-change of C (or other interstitial atom) in the metal. THE low-temperature embrittlement phenomenon in metals and alloys has been known to exist for a long time. Although a transition from ductile to brit-tle behavior has been observed in some close-packed hexagonal metals1 and a face-centered cubic alloy, the most common class of metals exhibiting this be-havior has a body-centered cubic lattice structure. For example, a ductile to brittle transition has been observed in iron,3 molybdenum,4 chromium,5 colum-bium,6 and tungsten.7 In the present investigation, molybdenum specimens were tested in torsion over a wide range of temperatures at three widely separated strain rates, and the temperature for onset of embrittlement was determined. Characteristic of body-centered cubic metals and closely associated with plastic deformation is the appearance of a sharp upper and lower yield point. Theoretical explanation of the yield point in iron and low-carbon steel is due to Cottrell,8 who attributes the phenomenon to the pinning of dislocations by the formation of impurity atmospheres around the dislocations. These atmospheres tend to lock the dislocations and make them more difficult to move. The stress required to move a dislocation and thereby cause plastic deformation is greatly increased, and thus an upper yield point is observed. In addition, theoretical analysis,9 as well as experimental observations, show that the upper yield point is strongly a function of temperature. The upper yield point is observed to decrease with an increase in testing temperature, and above a certain temperature (-700° K in iron) it no longer appears. This is consistent with the concept that thermal vibrations will help free a dislocation from its atmosphere, so that the external stress required to free a dislocation from its pinning atmosphere decreases with increasing temperature. Furthermore, with increasing temperature the equilibrium concentration of impurity atoms around a dislocation decreases exponentially with the result that the dislocation is less firmly pinned. In Cottrell&apos;s theory of yield point a static model is visualized in which the pinning atmospheres, particularly interstitial atoms, are immobile, and the dislocations are anchored to stationary positions in the lattice. However, experiments1,7 show the upper yield point to be time-dependent or a function of the rate of straining, a high strain rate causing a high upper yield point. Present theory does not adequately account for the rate dependence of the yield point, and the exact function of the interstitial atom is not under stood. Nevertheless, observation of the temperature dependence and rate dependence strongly suggests that the upper yield point phenomenon is due to the interaction between dislocations and pinning atoms, and that a diffusion mechanism is important in determining the yield point.

Jan 1, 1962

By Henry J. Sandri

ACQUISITION JUSTIFICATION There are many reasons why companies consider acquisitions as a means to expand their operations. Some wish to reduce the impact of business cycles on their businesses. Others seek firms within the same industry for expansion and increased market share. Still others diversify in order to avoid takeovers. Whatever the reasons or justification, an evaluation of an acquisition candidate should be systematic and thorough. To many financial managers the concept of a systematic acquisition evaluation indicates the need for a regular set of evaluation criteria. While these are available from numerous sources, one basic parameter frequently overlooked is the application of these criteria to an industry which is different from the acquirer. This becomes particularly important when evaluating firms within the mineral industry. The mineral industry is significantly different from other industries to require different valuing techniques. • This paper will present a number of reasons why an acquisition candidate in the mineral industry should be evaluated differently from other acquisitions, including by other mineral firms. Additionally, this paper will review the most appropriate means of valuing a mineral firm. • Firms considering the acquisition of a mineral firm should understand the nature of the industry before ever making a tender offer. Some of the general considerations include the following: • Level of Capital Intensity: In the mid-1980&apos;s the start up cost for a gold mine has been between 20-200 million dollars and 500-1,500 million dollars for a bauxite operation. • Global Nature of Competition: Except for certain industrial minerals, most minerals and metals are traded worldwide and many on national exchanges, such as COMEX. • Start-Up Time: Many mining operations in developed and developing countries have long lead times, 7 to 10 years in some cases, prior to the start-up of production. • Long Term Nature of Investment: For most mineral operations payback usually occurs at least 7 years after production has started. Additionally, many mining operations will continue producing for 80-100 years. • High Level of Risk: The number of factors that a mining firm cannot control such as grade, volume, world supply and demand, plus the long payback periods tend to classify mineral firms at a higher than average risk compared to other investments. • Cyclical Nature: The mineral industry is cyclical in nature, experiencing long troughs and explosive peaks, thus making timing a critical issue. • Labor Intensive: Even with the large capital requirements needed to operate a mine, most mines are labor intensive in proportion to their capital equipment. • Location: Obviously, the nature of this industry requires operators to work in difficult locations, frequently far from civilized localities, in poor weather conditions and without proper supply and distribution infrastructure. One of the most important considerations is an understanding of asset replacement and asset value. Unlike manufacturing concerns, firms in the mineral industry are working toward the elimination, through depletion, of their asset base. Product flexibility is not available to a mining operation. A mineral firm basically has two options as its resource base is depleted: 1) replace the asset with new production, or 2) deplete the asset and close down operation, as in the South African gold mining model referred to later in this paper. An understanding of the

Jan 1, 1985