The Economic Aspect of Geology

by C. K. Leith

Lake Superior Iron Ore Exploration As an Illustration

To illustrate the application of some of the methods of exploration of the kinds described in this chapter, the writer selects an example from his own experience in the Lake Superior iron fields.[40]

In this region, consideration of the economic aspects of the problem may eliminate from the best explorable field certain Canadian portions which are far from water transportation, because the conditions in these sections would prevent the use of anything but an exceptionally large and rich deposit. Economic conditions determine in advance also that it is not worth while looking for ores of certain grades, either because they are not usable on account of deleterious constituents or low content of iron, or because these particular grades have already been developed in excess of requirements. Having determined what ore is desired, whether Bessemer or non-Bessemer, whether open-hearth or foundry, further elimination of area is possible on the basis of past experience.

Coming to the geologic phases of the problem, the first step is to eliminate great areas of rock which are known never to contain iron ore, like the granite areas and the quartzite and limestone areas. Within the remaining areas, by examination of the surface outcrops and with the aid of magnetic surveys, iron formations are found which are the mother rock of the ores. In Michigan, it has been possible to use certain percentage expectations in the areal location of iron formations within certain series of rocks extending over wide areas. Such percentage coefficients have been useful, not only in exploration, but also in the valuation of lands which are so covered with drift that no one knows whether they carry an iron formation or not.

Examination of the iron formations results in elimination of large parts of them, because their metamorphic condition is not favorable to ore concentration. In the remaining areas more intensive methods are followed. It is scarcely possible to summarize briefly all of the structural and stratigraphic methods used in locating the ore bodies. These have often been described in print.[41] Comparatively recent advances in this phase of exploration work have been in the more detailed application of stratigraphic methods to the iron formation. The group characteristics of the iron formation are fairly uniform and distinctive as compared with all other rocks; yet within the iron formation there are so many different kinds of layers represented that it is possible to use these variations with great effectiveness, in correlating favorable horizons for ore deposition, in interpreting drill records, and in other ways. Another method of approach, employed chiefly on the Mesabi Range, relates to the slumping of the ore layers which results from the leaching of silica during the concentration of the ore. This slumping can be measured quantitatively, and has been used to much advantage in exploration, in correlation of ore horizons, in preparation of sections and ore estimates, etc.

Early geologic explorations in the Lake Superior country were based on the assumption that the ores were concentrated by waters working down from the present erosion surface; but recognition of the fact that the waters which did the work were related to a far older and different erosion surface, under conditions which allowed of a far deeper penetration, has modified exploration plans for certain of the districts like the Marquette and Gogebic.

Notwithstanding the complexity of the geologic factors involved, their net result has been to concentrate iron ores in a surprisingly uniform ratio to the mass of the formation in different parts of the region,—with the result that on an average it may be predicted for any district, in an exploration of sufficient magnitude, how much ore is likely to be cut in either vertical or horizontal dimension. Thirteen per cent of the productive area of the Mesabi iron formation is iron ore. For the remainder of the Lake Superior region five or six per cent is the factor. These figures mean that, if a person could explore a broad enough area of iron formation, any miscellaneous group of drill holes or underground openings would tend to yield these percentage results. Such percentages are amply sufficient to pay a large profit on the exploration. The question may be raised why the application of geology is required, if such average results can be secured from miscellaneous undirected work. The answer is that seldom is it possible to conduct an exploration on a sufficiently large scale to be sure of approximating this average, and that geologic study has made it possible in many cases to secure a better percentage result. If the geologist is able to raise the percentage ever so little, the expenditure is amply justified. He is not expected to have 100 per cent success; but he is expected to better the average returns, and in this on the whole he has not failed.

Applying this method specifically to the Gogebic Range, it appears that up to January 1, 1918, exploration and development had covered 3,650 acres of iron formation, measured along the dip in the plane of the footwall, within the limits of the area in which the formation is in such condition as to allow concentration of the ore. The total area of the footwall to a depth of 3,000 feet is approximately 9,650 acres. The range, therefore, was 38 per cent developed to this depth. In the developed area, 160,000,000 tons of ore had been found, or approximately one ton per square foot of footwall area, or 43,800 per acre of footwall explored. The total area of ore measured on the footwall was 785 acres. The ratio of ore area to total explored area, measured in the plane of the footwall, was 21-½ per cent. This may be taken in a rough way to indicate the average exploring possibilities in new ground, where local conditions to the contrary do not exist. This means that over the whole range about one drill hole or cross-cut in five will strike ore on an average. Or, looked at in another way, about 200 feet of drifting in every 1,000 on the footwall will be in ore. Applying this factor to the unexplored area, amounting to 6,000 acres, the range had an expectation on January 1, 1918, to a depth of 3,000 feet, over and above ores already discovered, of approximately 262,800,000 tons. This was sufficient to extend the life of the range by about forty-four years. Knowing the average cost of development of ore per foot in the past, and knowing the annual output and its rate of acceleration, it is possible to figure with some accuracy how much expenditure should be planned for annually in the future in order to maintain a safe margin of reserves against output.

Such quantitative considerations in the Lake Superior region serve not only to guide the general conduct of the exploration and development work, but in some cases as a basis for valuation both for commercial and taxation purposes.