Professional Documents
Culture Documents
OF MINERAL PROPERTY
EXAMINATION OF MINERAL
PROPERY
1
United State Geological Survey.
tailing piles, etc, which can be reworked at a profit. A broader definition, in line with
common usage, would cover extraction of non metallic mineral products as well as
metals. The distinguishing point between “ore” and “metal or mineral bearing material”
is the grade above which extraction of the end product is profitable under a given set of
cost-price circumstances. Economic factor are important to this determination. Without
change of grade or location what is “mineral bearing material” at one time may become
“ore” at another through development of cheaper mining or extraction processes or
because of change in one or more of the factors entering into cost of production vs. sale
of product. Likewise, the mere transfer of a property at forced sale may so reduce the
capital charges to the new owner as to make the operation profitable.
PURPOSE ----------- Every examination has a definite purpose, although its scope may be
limited or broad. It may deal solely with a single phase of the business or it may
encompass the entire operation. This condition is necessarily true because clients’
circumstances differ and because each mine represents individual problem. No two
mineral deposits are a like, no two companies operate a like, no two localities are
favoured with the same economics conditions, and no two examiners are of the same
temperament. A mine may be in any stage of development from a mere prospect pit to a
fully equipped an operating plant; it may be in its extreme youth, in its prime years, or in
its declining old age:
Examination of mineral property is usually called for in the following
circumstances:
1. When change of ownership is considered, either by out right purchase or sale,
or through consolidation with other properties.
2. Appraisal for tax purposes
3. When fund are to be solicited trough sale of stock or bond or by bank loan.
4. When planning broad revision of operating methods or installation of
important, long-life equipment.
F.W. Sperr1 expressed these ethical considerations as follow “Every precaution should
be taken to avoid the influence of the question of compensation upon the engineer’s
judgment and opinion. If the parties are strangers to each other, it is best for both that
engineer’s compensation should be wholly or in large part paid in advance, or be well
secured for payment upon delivery of the report. The engineer should be entirely free
from the pressure of financial necessities which might possibly influence his judgment
or opinions. If there arises the remotest suspicion that the prospective client desires to
keep the engineer in line’ by considerations, the engineer must decline to undertake the
work if he hopes to maintain his good repute as an engineer”
The subject of ethics and responsibility has been covered in a concise manner also by C .
Frank Allen1 in his text business law for engineers.
What an engineer may attempt. If an engineer of good training and experience is call
upon, as often happens, to carry out work not altogether within the line of previous
experience, and he enters upon his duties modestly and with earnest purpose to succeed,
it is probable that strong evidence would be necessary to hold him liable for faults in his
work if there seemed reasonable probability of success when he attempted the work.
An engineer who never attempts work which he has not already demonstrated his ability
to carry out, is of little use in the world. Where the result of failure is likely to prove
serious and the probability of success definitely doubtful, the engineer should decline the
service, unless the necessary seems imperative whit no better alternative apparently
available.