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By John Tyssowski

In 1925, Harry Howard Stout, then metallurgist for Phelps Dodge Corporation, while investigating the cleaning of cathode copper by various gases at elevated temperatures below the melting point of the metal, observed in the laboratory that particles of pure copper heated in a closed tube filled with hydrogen seemingly "stuck together." By further investigation he found that there was actual crystal growth across the boundaries of the particles of pure metal; in other words, there was a complete new crystal realignment and growth throughout the newly formed copper mass. It was coalescence, not adhesion; the several particles had become one unit. From this discovery has been developed the coalescence process, whereby copper of cathode purity is squirted out in semifabricated form from an extrusion press, by the application of about 3000 tons pressure on a 10-in. piston. Stout decided that cathode copper produced by electrolytic deposition was the logical source of the pure copper required for the coalescence process, but as there was no way of reducing the ordinary tough commercial cathodes to the small particles required he was confronted by a serious problem at the outset. Under his direction, this problem was solved by William H. Osborn and Harry Howard Stout, Jr. They developed the process and technique for producing cathode copper in brittle, friable form, and to them must be given the greater part of the credit for this phase of the development program as well as for that relating to the gas cleaning of the cathode particles. Concurrently, the three metallurgists worked on the problem of effecting a complete union of the cathode particles. Adequate washing was all that was needed to free the particles from electrolyte solution and slimes. A press was designed to produce briquettes of the proper porosity and density, and a method was devised of removing surface oxidation from the particles of cathode, by treatment in an atmosphere of deoxidizing gas at an elevated temperature. The temperature was determined at which the surface cleansing and preheating could be done in one operation, and for this a charging and preheating furnace in which there is maintained a positive pressure of deoxidizing gas atmosphere was designed. And finally, a method of feeding the heated briquettes of deoxidized cathode copper into an extrusion press without contamination from the air was evolved. For the final stage, a press was required because not only heat but pressure was required to obtain complete growth of the new crystals between the cathode particles as well as the elimination of all voids or non-coalesced areas. All essential stages of the process are protected by patents or patent applications in the United States and principal foreign countries, and the copper is produced on a commercial scale.

Jan 1, 1941

By A. A. Jr. Smith, J. S. Smart

Numerous investigations of the effects of the various impurities common to commercial coppers have been published, and the data have found wide use in industry. Naturally, emphasis has been placed on the oxygen-bearing coppers of the tough-pitch variety, but need is now evident for data covering the oxygen-free condition as well. Furthermore, relatively few of the important reactions between oxygen and the various impurities are well understood, and often the data at hand are not applicable to the low concentrations encountered in commercial coppers. This paper presents the changes in conductivity and softening temperature derived from individual additions of the group VIII triad, iron, cobalt and nickel, to high-purity copper, and constitutes a portion of the copper-research program being conducted at the Central Research Laboratory of the American Smelting and Refining Co. The method of preparation of high-purity copper and its alloys in either the oxygen-free or oxygen-bearing form has been described previous1y.l The purity of this material, and the methods developed to produce it, provide the means for direct investigation of the very low concentration range in which the various impurities generally exist in commercial coppers. The usual necessity for extrapolation to this range using the results obtained from higher concentrations, and the interfering effects of extraneous impurities, are thus simultaneously circumvented. Since previously published data have adequately presented the effects of higher concentrations of iron, cobalt and nickel, the present investigation has been confined to the composition range o to 0.05 per cent. All alloys were initially prepared in the form of oxygen-free continuous cast rod, the weighed alloying additions in suitable form being charged with the pure copper to the continuous casting crucible. The best of the available high-purity alloying materials were used, and spectrographic analyses confirmed the absence of interfering elements from the alloys formed. Each series was compounded in the direction of increasing concentration, starting with pure copper in a new crucible and finishing with the 0.05 per cent alloy. Composition was closely controlled by adding the alloying element in the form of a carefully compounded and analyzed master alloy rendered uniform by continuous casting. The accuracy of this method of synihesis was proved by chemical analysis of the more concentrated alloys, and, accordingly, there is every reason to credit the stated composition of the very dilute alloys in the range where chemical analysis becomes highly uncertain. Oxygen-free samples for measurements of conductivity and softening temperature Were obtained by drawing the continuous cast rod to wire of 0.08I-in. diameter. employing a number of intermediate anneals to refine the grain structure. The

Jan 1, 1942

The Golden Grove Project area is located 220 km (137 miles) east of Geraldton in Western Australia (Fig. 1). The project is a joint venture involving Amax Exploration (Australia) Inc. (Amax), Electrolytic Zinc Co. of Australasia Ltd. (EZ), and Esso Exploration & Production Australia Inc. (Esso), each with 31 116% interest, and Aztec Exploration Pty., Ltd. (Aztec), with a 3 1/2% carried and a 3% contributing interest. The venture covers two significant volcanogenic massive sulfide deposits and some 40 km (25 miles) of highly prospective Archean volcanics. During the course of the past 12 years (to 1983), all four companies were responsible for operating the project at one time or another and all influenced the discoveries. The Gossan Hill and Scuddles deposits are typical examples of volcanogenic massive sulfide deposits associated with Archean explosive submarine acid to intermediate volcanic complexes. They are located in the northwesterly trending Yalgoo greenstone belt of the West Australian Archean Shield. Gossan Hill, located in 1972, is essentially a copper deposit with minor zinc lenses; to date, 97 diamond holes have delineated a geological resource* estimated to contain 13 Mt (14.3 million st) of of 3.4% Cu and 13 g/t (0.38 oz per ton) Ag in the main lenses with minor lenses totaling 2 Mt (2.2 million st) of 3.7% Cu and 17 g/t (0.49 oz per ton) Ag and 1.7 Mt (1.9 million st) grading 1.5% Pb, 14% Zn, and 87 g/t (2.8 oz per ton) Ag. Scuddles is a zinc-copper deposit with gold and silver credits. It *Resource estimate provided by Esso for inclusion in Aztec Exploration Pty. Ltd. 1982 Annual Report was discovered in 1979 and, to the end of 198 1, had been delineated with 42 diamond holes. On the basis of this drilling, a geological resource* of 26 Mt (28.7 million st) has been estimated in three coalescing lenses. The lenses comprise 7.5 Mt (8.3 million st) of 2.1 % Cu, 12 g/t (0.35 oz per ton) Ag, and 0.3 g/t (0.009 oz per ton) Au; 7.6 Mt (8.4 million st) of 0.4% Cu, 9.9% Zn, 73 g/t (2.3 oz per ton) Ag, and 0.7 g/t (0.02 oz per ton) Au; and 1 1.0 Mt (1 2.1 mil lion st) of 1.1 % Cu, 9.3% Zn, 8 1 g/t (2.6 oz per ton) Ag, and 1.5 g/t (0.044 oz per ton) Au. Readers are referred to Frater (1978) and Harris et a). (1982) for a more detailed geological account of these deposits.

Jan 1, 1991

By John Tyssowski

In 1925, Harry Howard Stout, then metallurgist for Phelps Dodge Corporation, while investigating the cleaning of cathode copper by various gases at elevated temperatures below the melting point of the metal, observed in the laboratory that particles of pure copper heated in a closed tube filled with hydrogen seemingly "stuck together." By further investigation he found that there was actual crystal growth across the boundaries of the particles of pure metal; in other words, there was a complete new crystal realignment and growth throughout the newly formed copper mass. It was coalescence, not adhesion; the several particles had become one unit. From this discovery has been developed the coalescence process, whereby copper of cathode purity is squirted out in semifabricated form from an extrusion press, by the application of about 3000 tons pressure on a 10-in. piston. Stout decided that cathode copper produced by electrolytic deposition was the logical source of the pure copper required for the coalescence process, but as there was no way of reducing the ordinary tough commercial cathodes to the small particles required he was confronted by a serious problem at the outset. Under his direction, this problem was solved by William H. Osborn and Harry Howard Stout, Jr. They developed the process and technique for producing cathode copper in brittle, friable form, and to them must be given the greater part of the credit for this phase of the development program as well as for that relating to the gas cleaning of the cathode particles. Concurrently, the three metallurgists worked on the problem of effecting a complete union of the cathode particles. Adequate washing was all that was needed to free the particles from electrolyte solution and slimes. A press was designed to produce briquettes of the proper porosity and density, and a method was devised of removing surface oxidation from the particles of cathode, by treatment in an atmosphere of deoxidizing gas at an elevated temperature. The temperature was determined at which the surface cleansing and preheating could be done in one operation, and for this a charging and preheating furnace in which there is maintained a positive pressure of deoxidizing gas atmosphere was designed. And finally, a method of feeding the heated briquettes of deoxidized cathode copper into an extrusion press without contamination from the air was evolved. For the final stage, a press was required because not only heat but pressure was required to obtain complete growth of the new crystals between the cathode particles as well as the elimination of all voids or non-coalesced areas. All essential stages of the process are protected by patents or patent applications in the United States and principal foreign countries, and the copper is produced on a commercial scale.

Jan 1, 1941

By H. B. Goodrich

Anthony I?. Lucas died suddenly at his home in Washington, D. C., on Sept. 2, 1921. Captain Lucas, as he was known to us, was born in Dalmatia, Austria, in 1855, of Montenegrin ancestry. He was graduated as an engineer at the Polytechnic of Grate and served in the Austrian Navy as second lieutenant. In 1879, he obtained leave of absence and visited an uncle in the United States. After an extension of this leave of absence, in order to undertake an engineering engagement in the lumber district of Michigan, where he resided, he decided to become an American citizen. He was naturalized in May, 1885. His name was Luchich, but as his uncle had adopted the name of Lucas, which was more easily pronounced by Americans, from his entrance to this country, he used this Anglo-Saxon form. Without knowing this fact, upon first meeting him a person was sometimes surprised to note the rather Germanic pronunciation of the Captain. Although he subsequently revisited Austria with Mrs. Lucas, he made his permanent home at Washington, D. C. His son served with distinction in the A. E. F. during the World War. His activities in this country as a mining engineer were at first in Colorado and later in salt mining at Petit Anse and Belle Isle, La. During his salt investigations, his attention was directed toward the possibility of oil in the Gulf Coast region and in January, 1901, his well, the "Lucas Gusher," on Spindle Top, Tex., started a new era in the oil business and his reputation as discoverer made him famous throughout the world. Captain Lucas became a member of the A. I. M. E. in 1895. During 1914, 1915, 1918, and 1919, he was chairman of the Petroleum and Gas Committee of the Institute and was at all times prominent in Institute affairs. As to the personality of Captain Lucas, the lasting impression is of a courteous hospitable gentleman, genial, affable, obliging, and helpful with his advice br assistance to any colleague. He was sincere, honest, firm against all obstacles, backing his judgment with his own hard work along any course which he had determined to be correct. His value in the engineering world lies mainly in the petroleum industry. In the oil business all wild-catters are pioneers that deserve credit and gratitude upon their success. There are, however, names that particularly stand out in our history. Drake conquered such obstacles as ridicule, lack of finances, and started the oil business. In 1901, Captain Lucas had the conviction that Spindle Top, a dome rising about 12 ft. above the coastal prairie south of Beaumont, Tex., contained commercial oil. He was scoffed at by practical oil men of the East. Noted geologists

Jan 1, 1921

By Harlod Washburn, Herbert Hoover

This paper is in the nature of a rough preliminary report on the progress that has been made in the application of the mass spectrometer to various problems arising in the petroleum industry. A few years ago the authors considered a number of the problems that were arising in the qualitative and quantitative measurement of small amounts of hydrocarbons. The methods available of making analyses by chemical techniques appeared to leave much room for improvement. Without going into the reasons at this point, attention was turned to the possibility of employing physical instead of chemical methods of accomplishing the desired results. A preliminary investigation disclosed that the mass spectrometer presented a possibility of solving many problems which could not easily be accomplished by other methods. Work was begun in developing the necessary apparatus and technique. A great deal of encouragement and many valuable suggestions were received from Dr. Robert A. Millikan, Dr. W. R. Smythe, and Dr. W. N. Lacey, of the California Institute of Technology, and from Dr. E. 0. Lawrence, who recently received the Nobel Prize, of the University of California. The authors particularly wish to acknowledge the very great willingness of these outstanding scientists to be helpful in solving many of the problems that were involved. So far as the authors are aware, this was the first application of the mass spectrometer to commercial work. The results were considerably better than had at first been anticipated. Briefly, it is possible to run a qualitative and quantitative analysis of an unknown mixture of hydrocarbon gases, with an accuracy of better than plus or minus 5 per cent of each of the various constituents. An exceedingly high degree of sensitivity has been obtained, and a relatively short time is required to complete an analysis. Furthermore, it is unnecessary to separate a mixture of gases into its various components in order to complete the analysis. The Mass Spectrometer The mass spectrometer should not be confused in any way with the optical 01 grating type of spectrograph now in general use. The operation of the mass spectrometer is entirely different in principle and bears practically no resemblance to the optical or grating instruments. The original conception and development of the mass spectrometer dates from and is generally credited to Aston, of Cambridge, England. An early accomplishment of his research, about 20 years ago, was the discovery that the inert gas neon was actually a mixture of two kinds of atoms, one of the atomic weight 20 and the other of atomic weight 22. These two components occurred mixed in such proportion as to yield the usual atomic weight of 20.2. The study was continued and most of the elements were shown to be mixtures of components whose atomic weights can, to in

Jan 1, 1941

By George Smith

IN discussing present-day business and industrial troubles we easily drop into the habit of clinical diagnosis. Talk of this kind, with its emphasis on suspicious symptoms and abnormal tendencies, makes us all morbid. As an English essayist has put it, we may thus induce a melancholy, temper that simply in-vites the ministrations of social and political quacks. It is far better-because nearer the truth-for us to recognize that our condition is in no sense diseased, that our body politic, social and economic, is suffering merely from growing pains; that America is not de-cadent-indeed, that any lapses from staid normality are traceable to the, excesses of youth. Our chief .trouble, then, is only that our industrial state is still young; it may be that we have been growing too fast. The growth in the industrial development of our country from pioneer days to the present time has been marvelous. Too many of us, however, take all this as a matter of course-we credit this record of American progress to our American genius alone. Too often we overlook the fundamental relationship between resources and progress-that man is aided and even guided by Nature. The fact is, social advance, indus-trial progress, national prosperity all have their ma-terial basis in natural resources. In furnishing the needed mineral raw materials to the great manufac-turing industries of the United States there has been no halt, but rather a general acceleration. No other phase of American activity can show-equal advance. As the decades have passed, the winning of mineral wealth has progressed from the role of a stimulus for western exploration to that of the foundation for nation-wide business. In 1890 the Sherman law was passed; since then the population of the United States has about doubled. Since then, too, thevalue of the annual product of the mines of this country has increased better than eight-fold-from 650 millions to 51/ billions of dollars. Since then the four largest branches of the mineral industry, which supply the iron and copper, the bituminous coal and petroleum-the bone and sinew and the energy of all other American industries-have increased their annual output nearly ten-fold as to value and six-fold as to quantity. Such a growth in the volume of mineral output must be taken as a true measure of the ex-ceptional service rendered by the mines of the United States. Not only is this a much larger country than it was 38 years ago, but its growing mineral industry has met demands that have been out of all proportion to the growth of the population.

Jan 8, 1928

By R. A. Pallanch

Probably one of the most perplexing problems with which a mill operator contends is the proper evaluation of his mill results. True, he accurately determines his recoveries of metals and grades of products monthly, weekly, and often daily. These figures do not of themselves directly translate to mill economics. When one figure is unusually good there may be an offsetting circumstance. The advantage of high lead or zinc concentrate grade may be offset by poorer recovery; high lead recovery may be offset by poorer zinc recovery, or vice versa; and so on. Besides, grades or recoveries may not of themselves mean more than a reflection of the grade and character of the ore during the period under study. What the operator sorely needs is some one measuring stick that tells him when he has achieved his greatest return, regardless of grades or recoveries—for if he knows his methods and practices are yielding the optimum return he need no longer concern himself with the assays of products and tailings, or the corresponding distribution of metal values. At first blush it would appear that the obvious answer to this is the actual money return to the mill. Paradoxical as it may seem, however, money return does not make a dependable yardstick any more than do grades and recoveries, as ore condi- tions would vary enough to bring about greater money return during periods when the actual metallurgical work is not as good. The mill operator, of course, should always aim for the greatest return on the ore, once it is in the mill bins, with proper attention always to mill treatment cost. The need of a proper yardstick becomes more imperative with the increasing complexity of the problem. In the case of a simple, single-product operation on a fairly uniform ore, in which only one metal is of significant importance, the need is not great, as grade and recovery pretty well tell their own story. At the other extreme is the operation that makes three or four separate marketable products from a complex mixture of heterogeneous ores that vary tremendously in individual metal contents and ratios, degree of oxidation, and other characteristics, and in which gold, silver, copper, lead and zinc are all significant values. Economic Recovery The first attempt at obtaining a proper single yardstick for a fairly complex ore with which I am familiar is the use of the ''Economic Recovery" term at the lead-zinc flotation mill of the Sunnyside Mining and Milling Co., Eureka, Colorado. This method had been applied there early in Sunnyside flotation-mill history (not later than 1920) and credit for the innovation I believe belongs to Messrs. Kuryla and Marquand. The term "Economic Re-

Jan 1, 1949

By A. A. Smith, J. S. Smart

NUMEROUS investigations of the effects of the various impurities common to commercial coppers have been published, and the data have found wide use in industry. Naturally, emphasis has been placed on the oxygen-bearing coppers of the tough-pitch variety, but need is now evident for data covering the oxygen-free condition as well. Furthermore, relatively few of the important reactions between oxygen and the various impurities are well understood, and often the data at hand are not applicable to the low concentrations encountered in commercial coppers. This paper presents the changes in conductivity and softening temperature derived from individual additions of the group VIII triad, iron, cobalt and nickel, to high-purity copper, and constitutes a portion of the copper-research program being conducted at the Central Research Laboratory of the American Smelting and Refining Co. The method of preparation of high-purity copper and its alloys in either the oxygen-free or oxygen-bearing form has been described previously.1 The purity of this material, and the methods developed to produce it, provide the means for direct investigation of the very low concentration range in which the various impurities generally exist in commercial coppers. The usual necessity for extrapolation to this range using the results obtained from higher concentrations, and the interfering effects of extraneous impurities, are thus simultaneously circumvented. Since previously published data have adequately presented the effects of higher concentrations of iron, cobalt and nickel, the present investigation has been confined to the composition range 0 to 0.05 per cent. All alloys were initially prepared in the form of oxygen-free continuous cast rod, the weighed alloying additions in suitable form being charged with the pure copper to the continuous casting crucible. The best of the available high-purity alloying materials were used, and spectrographic analyses confirmed the absence of interfering elements from the alloys formed. Each series was compounded in the direction of increasing concentration, starting with pure copper in a new crucible and finishing with the 0.05 per cent alloy. Composition was closely controlled by adding the alloying element in the form of a carefully compounded and analyzed master alloy rendered uniform by continuous casting. The accuracy of this method of synthesis was proved by chemical analysis of the more concentrated alloys, and, accordingly, there is every reason to credit the stated composition of the very dilute alloys in the range where chemical analysis becomes highly uncertain. Oxygen-free samples for measurements of conductivity and softening temperature were obtained by drawing the continuous cast rod to wire of 0.081-in. diameter, employing a number of intermediate anneals to refine the grain structure. The

Jan 1, 1942

By A. A. Jr. Smith, J. S. Smart

Numerous investigations of the effects of the various impurities common to commercial coppers have been published, and the data have found wide use in industry. Naturally, emphasis has been placed on the oxygen-bearing coppers of the tough-pitch variety, but need is now evident for data covering the oxygen-free condition as well. Furthermore, relatively few of the important reactions between oxygen and the various impurities are well understood, and often the data at hand are not applicable to the low concentrations encountered in commercial coppers. This paper presents the changes in conductivity and softening temperature derived from individual additions of the group VIII triad, iron, cobalt and nickel, to high-purity copper, and constitutes a portion of the copper-research program being conducted at the Central Research Laboratory of the American Smelting and Refining Co. The method of preparation of high-purity copper and its alloys in either the oxygen-free or oxygen-bearing form has been described previous1y.l The purity of this material, and the methods developed to produce it, provide the means for direct investigation of the very low concentration range in which the various impurities generally exist in commercial coppers. The usual necessity for extrapolation to this range using the results obtained from higher concentrations, and the interfering effects of extraneous impurities, are thus simultaneously circumvented. Since previously published data have adequately presented the effects of higher concentrations of iron, cobalt and nickel, the present investigation has been confined to the composition range o to 0.05 per cent. All alloys were initially prepared in the form of oxygen-free continuous cast rod, the weighed alloying additions in suitable form being charged with the pure copper to the continuous casting crucible. The best of the available high-purity alloying materials were used, and spectrographic analyses confirmed the absence of interfering elements from the alloys formed. Each series was compounded in the direction of increasing concentration, starting with pure copper in a new crucible and finishing with the 0.05 per cent alloy. Composition was closely controlled by adding the alloying element in the form of a carefully compounded and analyzed master alloy rendered uniform by continuous casting. The accuracy of this method of synihesis was proved by chemical analysis of the more concentrated alloys, and, accordingly, there is every reason to credit the stated composition of the very dilute alloys in the range where chemical analysis becomes highly uncertain. Oxygen-free samples for measurements of conductivity and softening temperature Were obtained by drawing the continuous cast rod to wire of 0.08I-in. diameter. employing a number of intermediate anneals to refine the grain structure. The

Jan 1, 1942

By S. N. Kesten, Richard Murphy, A. H. Land, W. F. James

Introduction—by W. F. James and A. H. Lang This paper describes the geology and present state of development of uranium and thorium deposits in Canada. It is expected that this information will be added to that now being assembled from available American and British data to provide a background for engineers and others who may be called upon in the future to examine or search for radioactive deposits. Some generaliza- tions regarding the Canadian deposits are included, but many of these are necessarily tentative. The information contained in the paper is up to date for the end of 1948. The information contained in this paper has been derived from many sources. Much of it is from the records of the Canadian government-owned Eldorado Mining and Refining (1944) Limited and from examinations of government and private properties made by officers of the Geological Survey of Canada. Some information on privately-owned properties has been quoted from other sources mentioned in the text. The information has been assembled by W. F. James of Eldorado Mining and Refining (1944) Limited and A. H. Lang of the Geological Survey of Canada, who have written the sections for which they are credited. The description of the Eldorado mine is based on reports by Richard Murphy, formerly chief geologist for Eldorado; the report by Mr. Murphy was published previously by the Canadian Institute of Mining and Metallurgy,' to whom the writers are indebted for permission to repub-lish. The section dealing with the geology of and development work in the Goldfields area, where Eldorado has important holdings, is by S. N. Kesten, field geologist for Eldorado. The geological diagram of the Goldfields area (fig. 2) was kindly supplied by A. M. Christie of the Geological Survey of Can-

Jan 1, 1951

By W. F. James, Richard Murphy, S. N. Kesten, A. H. Land

Introduction—by W. F. James and A. H. Lang This paper describes the geology and present state of development of uranium and thorium deposits in Canada. It is expected that this information will be added to that now being assembled from available American and British data to provide a background for engineers and others who may be called upon in the future to examine or search for radioactive deposits. Some generaliza- tions regarding the Canadian deposits are included, but many of these are necessarily tentative. The information contained in the paper is up to date for the end of 1948. The information contained in this paper has been derived from many sources. Much of it is from the records of the Canadian government-owned Eldorado Mining and Refining (1944) Limited and from examinations of government and private properties made by officers of the Geological Survey of Canada. Some information on privately-owned properties has been quoted from other sources mentioned in the text. The information has been assembled by W. F. James of Eldorado Mining and Refining (1944) Limited and A. H. Lang of the Geological Survey of Canada, who have written the sections for which they are credited. The description of the Eldorado mine is based on reports by Richard Murphy, formerly chief geologist for Eldorado; the report by Mr. Murphy was published previously by the Canadian Institute of Mining and Metallurgy,' to whom the writers are indebted for permission to repub-lish. The section dealing with the geology of and development work in the Goldfields area, where Eldorado has important holdings, is by S. N. Kesten, field geologist for Eldorado. The geological diagram of the Goldfields area (fig. 2) was kindly supplied by A. M. Christie of the Geological Survey of Can-

Jan 1, 1951

By G. L. Oldright

THE development of the reverberatory furnace for smelting copper ores up to 1912 was described by E. P. Mathewson1 with details concerning the great changes in dimensions of the furnace. Hayward2 tabulated similar data, giving developments up to about 1924, in his revision of Hofman's Metallurgy of Copper. DEVELOPMENT OF PRESENT SMELTING PRACTICE Dimensions of Furnace Very great changes were made in the dimensions of the smelting hearths of the furnaces in the period from about 1800 to 1906, the length increasing from about 11 to 116 ft., and the width from 8 to 19 ft. During this time the tonnage smelted increased from about 9 to 250 tons per 24 hr., and the tons of charge smelted per ton of coal increased from 0.77 to 4.3. Dr. Mathewson3 noted no great difference in the "fuel ratio" (i. e., the amount of charge smelted per ton of coal) as the furnace at Anaconda was increased in length by stages from 85 to 116 ft. (The percentage of copper in the slag, however, was lowered from 0.42 to 0.36 per cent. The other components of the slag were not given.) Lump coal fired on grates was the fuel used during this period. The practice in operating the furnaces over such a length of time naturally varied considerably, and there were differences in composition and nature of the charge, yet it may be considered that the improvements made were due largely to increases in the size of the furnace used. Doubt-less some credit should be given to improvements in operating technique, like changes in the methods of firing the lump coal. However, the greater part of the advance was probably due to factors influencing the

Jan 1, 1928

By William H. Spice

The fault zone of south central Texas showed renewed activity during I940 along a trend roughly paralleling the old established Balcones fault-line group of producing fields. This was a result of the new discoveries in the Wilcox (Eocene) formation in southeastern Texas and Louisiana. As of the end of the year, one new field producing from the Wilcox formation had been discovered on the Washburn ranch in La Salle County, along the southwestern limits of the district, and several projected tests into that formation were under way. In the western part of the district, par-titularly in the part of the Rio Grande embayment that is in Dimmit, Webb and Zavala Counties, there has been renewed leasing activity with the shallower sands in the Navarro-Taylor formations (Upper Cretaceous) as the objective in several projected tests for the early part of 1941. Three new fields have been discovered along the old fault-line trend, but these have been comparatively small, producing either from Dale lime, Austin chalk or Buda lime. No new fields were discovered during the Year in the Edwards (Lower Cretaceous) lime horizon. Approximately 260 wells were drilled in the district during 1940, which resulted in four new oil fields. Twenty-seven new wells were completed in the Proven Edwards lime fields of Darst Creek, Luling and Salt Flat and seven were added to production in the Pearsall field. Approximately 160 wells in 18 counties were completed as failures during the year. The district produced 7,659,634 bbl. during 1940, which was a 9 per cent decrease under production for 1939. In all, 3559 wells were producing at the end of I940, compared with 3562 wells producing at the end of the previous year; 104 new producing wells were completed and 163 wells were abandoned in the producing fields of the district. During 1940 considerable exploratory work was carried on along the Wilcox trend within the district, particularly by major companies employing various types of geophysical methods, and leasing activity increased considerably. At the end of the year, the total number of acres of nonproducing leases held by major companies in the district increased about 10 per cent. It is anticipated that this activity will continue into the first part of 1941 and will be supplemented by several exploratory test wells. New Fields B,, Creek, Caldwett County.— . R. Ogden NO. 2 Talley, discovery well of the Bee Creek field, in the northeastern part of Caldwell County, was completed on March 16, I940, in Dale lime from 2091 to 2238 ft., pumping 85 bbl. per day, 39° A.P.1. gravity. The discovery of this field can be credited to a combination of subsurface geology and magnetometer work, which indicated the presence of a serpentine intrusion. At the end of the year, ,3 producing oil wells had been completed and the field has produced a total of 47,050 barrels.

Jan 1, 1941

By Walter Miller

A surprising development during the year was the continued high demand for petroleum products and the high level of crude oil charges to the stills. Generally speaking, the petroleum industry during 1946 succeeded in producing a greater quantity of crude oil and petroleum products than in any of the war years, and considerably exceeded the production of any prewar year. Daily crude still charges averaged between 4,700,000 and 4,800,000 bbl per day for 1946 and about equaled the 1945 record, although most pessimistic 1945 guesses, predictions, or fears ranged, for 1946, from only 3,900,000 to 4,400,000 bbl per day. In spite of the high crude charge to the stills, total stock of crude oil was higher at the end of the year by some 7,000,000 to 8,000,000 bbl. A similar story holds regarding stocks of the principal refined products. Gasoline on hand at year's end was two to three million barrels lower, and was considered low for the expected demand during the coming high consuming season, while stocks of light and heavy fuel oils, although some higher than a year previous, hardly reached a comfortable level. The trend in gasoline of high octane number, which has resulted in a marked rise in. the antiknock quality by the end of 1945 (five or six numbers higher than during the war and one number higher than the prewar quality of civilian motor gasoline of 1941) was abruptly arrested by an acute shortage of metallic lead for manufacturing tetraethyl lead. Government action in the form of lead price control, rationing, and the setting of octane ceiling specifications to conform to the reduced ethyl lead compound available were enforced until abrogated at the end of the year. It will be interesting to see how rapidly the octane levels will resume the rising trend, as more metallic lead slowly becomes available for making greater quantities of ethyl lead compound. As octane quality rises over present levels the disadvantage of the refiner without catalytic cracking equipment will increase. Gasoline made by catalytic cracking, without addition of ethyl lead, approximates 77 octane by the official ASTM Motor Method test, compared with 66 for gasoline generally similar in volatility made by the older thermal cracking operation. Catalytic gasoline shows an even greater improvement in the Research octane number, the comparison being roughly 86 Research versus 71 Research octane for the thermal cracked product. This higher differential in Research octane is credited by many, although not universally so, as contributing to better road performance, and consequently resulting in a more desirable product marketwise. In some parts of the country a premium of roughly one fourth cent per gallon is now being paid for gasoline with higher Research octane made possible by including catalytic cracked product in the final blends. If such price differentials in favor of catalytic gaso-

Jan 1, 1947

By Walter Miller

A surprising development during the year was the continued high demand for petroleum products and the high level of crude oil charges to the stills. Generally speaking, the petroleum industry during 1946 succeeded in producing a greater quantity of crude oil and petroleum products than in any of the war years, and considerably exceeded the production of any prewar year. Daily crude still charges averaged between 4,700,000 and 4,800,000 bbl per day for 1946 and about equaled the 1945 record, although most pessimistic 1945 guesses, predictions, or fears ranged, for 1946, from only 3,900,000 to 4,400,000 bbl per day. In spite of the high crude charge to the stills, total stock of crude oil was higher at the end of the year by some 7,000,000 to 8,000,000 bbl. A similar story holds regarding stocks of the principal refined products. Gasoline on hand at year's end was two to three million barrels lower, and was considered low for the expected demand during the coming high consuming season, while stocks of light and heavy fuel oils, although some higher than a year previous, hardly reached a comfortable level. The trend in gasoline of high octane number, which has resulted in a marked rise in. the antiknock quality by the end of 1945 (five or six numbers higher than during the war and one number higher than the prewar quality of civilian motor gasoline of 1941) was abruptly arrested by an acute shortage of metallic lead for manufacturing tetraethyl lead. Government action in the form of lead price control, rationing, and the setting of octane ceiling specifications to conform to the reduced ethyl lead compound available were enforced until abrogated at the end of the year. It will be interesting to see how rapidly the octane levels will resume the rising trend, as more metallic lead slowly becomes available for making greater quantities of ethyl lead compound. As octane quality rises over present levels the disadvantage of the refiner without catalytic cracking equipment will increase. Gasoline made by catalytic cracking, without addition of ethyl lead, approximates 77 octane by the official ASTM Motor Method test, compared with 66 for gasoline generally similar in volatility made by the older thermal cracking operation. Catalytic gasoline shows an even greater improvement in the Research octane number, the comparison being roughly 86 Research versus 71 Research octane for the thermal cracked product. This higher differential in Research octane is credited by many, although not universally so, as contributing to better road performance, and consequently resulting in a more desirable product marketwise. In some parts of the country a premium of roughly one fourth cent per gallon is now being paid for gasoline with higher Research octane made possible by including catalytic cracked product in the final blends. If such price differentials in favor of catalytic gaso-

Jan 1, 1947

By John C. Robison

INTRODUCTION Sensitivity analysis is a means of gauging the impact of individual risks on a financing. Key risks can occur in three time periods: - Feasibility, engineering and construction phase; - Start up phase (usually through completion); - Operating phase (post completion). If a company has agreed to cover these risks prior to completion, then less attention will be paid to the sensitivity of the project in the first two time periods. Since the operating phase of the project generates cash for both operations and debt service and generally does not begin until two to six years after the loan is signed, it is wise to look at scenarios other than the projected "base-case" scenario in order to determine the project's capability to operate successfully under a broad range of probable future events. Lenders are compensated at a fixed spread over their borrowing base and generally are not compensated if the project is successful beyond expectation. They are also subject to the loss of principal plus funding costs if the project performs below expectation. Because of this, lenders establish sensitivities around the parameters of conservative projections developed in the project feasibility studies and the cash flows resulting from these projections. The initial cash flow projections should demonstrate the project's ability to meet cash costs, debt service requirements (principal and interest), and still have sufficient cushion to cover contingencies such as strikes, price fluctuations, force majeur situations, etc. (See Schreiber, Chapter 10). The selection of the level of sensitivity analysis to be performed is the result of both objective criteria, including probabilistic analysis applied to the technical parameters, and, of equal importance, subjective criteria applied by the analysts, especially with regard to the economic and financial parameters impacting the project cash flows. RISK SENSITIVITY Assumptions used in the cash flow projections should be realistic. Risks identified by the lenders should be identified and cash flows prepared to assess whether these project risks are acceptable. Typical project risks include the following (see also Chapter 9): - Sufficient reserves - quantity and quality - Product price - Production level - Operating costs - Availability of energy and supplies - Transportation and infrastructure requirements and costs - Interest rate - Completion risks - Tax level - Political risks - Cost over-run risks - Operator experience - Management - Technological risks - Environmental permits and risks - Foreign exchange risks - Insurance coverage - Equity of sponsors - Inflation rate - Capital expenditure during project life In order to see the effect on the cash flow projections, each risk should be analyzed for its impact on the cash flow generating capacity of the project. Sensitivities can be examined to see if the resultant cash flow projection will meet the lenders minimum credit standards. 1.Reserve Sensitivity In general, lenders will not assume the reserve risk. However, it should also be noted that lenders receive loan proposals in which reserves range anywhere from proven to possible. Sensitivities are not generally run for various reserve levels and reserve estimates are either considered acceptable or not acceptable by the lenders.

Jan 1, 1985

By William H. Spice

The fault zone of south central Texas showed renewed activity during I940 along a trend roughly paralleling the old established Balcones fault-line group of producing fields. This was a result of the new discoveries in the Wilcox (Eocene) formation in southeastern Texas and Louisiana. As of the end of the year, one new field producing from the Wilcox formation had been discovered on the Washburn ranch in La Salle County, along the southwestern limits of the district, and several projected tests into that formation were under way. In the western part of the district, par-titularly in the part of the Rio Grande embayment that is in Dimmit, Webb and Zavala Counties, there has been renewed leasing activity with the shallower sands in the Navarro-Taylor formations (Upper Cretaceous) as the objective in several projected tests for the early part of 1941. Three new fields have been discovered along the old fault-line trend, but these have been comparatively small, producing either from Dale lime, Austin chalk or Buda lime. No new fields were discovered during the Year in the Edwards (Lower Cretaceous) lime horizon. Approximately 260 wells were drilled in the district during 1940, which resulted in four new oil fields. Twenty-seven new wells were completed in the Proven Edwards lime fields of Darst Creek, Luling and Salt Flat and seven were added to production in the Pearsall field. Approximately 160 wells in 18 counties were completed as failures during the year. The district produced 7,659,634 bbl. during 1940, which was a 9 per cent decrease under production for 1939. In all, 3559 wells were producing at the end of I940, compared with 3562 wells producing at the end of the previous year; 104 new producing wells were completed and 163 wells were abandoned in the producing fields of the district. During 1940 considerable exploratory work was carried on along the Wilcox trend within the district, particularly by major companies employing various types of geophysical methods, and leasing activity increased considerably. At the end of the year, the total number of acres of nonproducing leases held by major companies in the district increased about 10 per cent. It is anticipated that this activity will continue into the first part of 1941 and will be supplemented by several exploratory test wells. New Fields B,, Creek, Caldwett County.— . R. Ogden NO. 2 Talley, discovery well of the Bee Creek field, in the northeastern part of Caldwell County, was completed on March 16, I940, in Dale lime from 2091 to 2238 ft., pumping 85 bbl. per day, 39° A.P.1. gravity. The discovery of this field can be credited to a combination of subsurface geology and magnetometer work, which indicated the presence of a serpentine intrusion. At the end of the year, ,3 producing oil wells had been completed and the field has produced a total of 47,050 barrels.

Jan 1, 1941

By Lawson P. Entwistle

One of the important reserves of mangani-ferous iron ore is at Boston Hill, near Silver City, New Mexico. The area consists of a faulted block of gently dipping Lower Paleozoic shale, dolomite, limestone and sandstone, which has been intruded by a roughly circular mass of quartz-bearing monzonite porphyry and subordinate dikes. Prom a noselike protuherance of the intrusion radiate many premineral faults, which have localized much of the hypogene mineralization. Three important stages of hypogene mineralization can be recognized: (I) mesitite, a manganiferous iron magnesite, (2) quartz sulphides, and (3) barite-galena The carbonate stage is widespread but stronger near the intrusion. The quartz may have been derived from hydrothermal alteration of the igneous rocks. Barite-galena is most important in the Chloride Flat mining district, about one mile north, where argentiferous galena provided silver for the supergene ore. The hypogene carbonate, lean in iron and manganese, has been oxidized and consequently enriched by meteoric waters containing an excess of oxygen and carbon dioxide to form ore bodies of intimately mixed hematite and pyrolusite. The ore bodies, at one place attaining a length of 1600 ft., a width of 300 ft., and a thickness of 25 ft., are largely confined to areas of brecciation and to spreads from faults in Silurian dolomite beneath soft Devonian shale. Boston Hill comprises three rolling hills southwest of and adjoining the town of Silver City (pop. 5044), Grant County, N. Mex. The mining district covers less than 2 sq. miles. Silver City, on a branch line of the Atchison, Topeka, and Santa Fe Railway, is a supply point for the important mining communities at Santa Rita, Hurley, Hanover, Tyrone, and Mogollon. The Chloride Flat mining district adjoins Boston Hill on the north. History and Production Bonanza-type silver ores were discovered in the Chloride Flat mining district during the silver boom of the seventies and eighties, at which period it has been credited with as much as $5,000,000 production. In 1916 manganiferous iron ore was first shipped from the Boston Hill mining district to Pueblo, Colo., where it was mixed with manganese ore from Lead-ville and smelted into spiegeleisen. During 1926 and 1927 the Colorado Fuel and Iron Co. mined and churn-drilled part of the district. Mining operations ceased during the depression of the thirties, but production was resumed in 1937. Since 1916 the Boston Hill mining district has produced about 600,000 long tons of ore averaging about 12 per cent manganese and 35 to 40 per cent iron.

Jan 1, 1949

By Lawson P. Entwistle

One of the important reserves of mangani-ferous iron ore is at Boston Hill, near Silver City, New Mexico. The area consists of a faulted block of gently dipping Lower Paleozoic shale, dolomite, limestone and sandstone, which has been intruded by a roughly circular mass of quartz-bearing monzonite porphyry and subordinate dikes. Prom a noselike protuherance of the intrusion radiate many premineral faults, which have localized much of the hypogene mineralization. Three important stages of hypogene mineralization can be recognized: (I) mesitite, a manganiferous iron magnesite, (2) quartz sulphides, and (3) barite-galena The carbonate stage is widespread but stronger near the intrusion. The quartz may have been derived from hydrothermal alteration of the igneous rocks. Barite-galena is most important in the Chloride Flat mining district, about one mile north, where argentiferous galena provided silver for the supergene ore. The hypogene carbonate, lean in iron and manganese, has been oxidized and consequently enriched by meteoric waters containing an excess of oxygen and carbon dioxide to form ore bodies of intimately mixed hematite and pyrolusite. The ore bodies, at one place attaining a length of 1600 ft., a width of 300 ft., and a thickness of 25 ft., are largely confined to areas of brecciation and to spreads from faults in Silurian dolomite beneath soft Devonian shale. Boston Hill comprises three rolling hills southwest of and adjoining the town of Silver City (pop. 5044), Grant County, N. Mex. The mining district covers less than 2 sq. miles. Silver City, on a branch line of the Atchison, Topeka, and Santa Fe Railway, is a supply point for the important mining communities at Santa Rita, Hurley, Hanover, Tyrone, and Mogollon. The Chloride Flat mining district adjoins Boston Hill on the north. History and Production Bonanza-type silver ores were discovered in the Chloride Flat mining district during the silver boom of the seventies and eighties, at which period it has been credited with as much as $5,000,000 production. In 1916 manganiferous iron ore was first shipped from the Boston Hill mining district to Pueblo, Colo., where it was mixed with manganese ore from Lead-ville and smelted into spiegeleisen. During 1926 and 1927 the Colorado Fuel and Iron Co. mined and churn-drilled part of the district. Mining operations ceased during the depression of the thirties, but production was resumed in 1937. Since 1916 the Boston Hill mining district has produced about 600,000 long tons of ore averaging about 12 per cent manganese and 35 to 40 per cent iron.

Jan 1, 1949