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Page 5 of 33 <br />31 RMMLF-INST 12 (1985) Page 4 <br />31 RMMLF-INST 12 (1985) <br />(Publication page references are not available for this document.) <br />The legal distinction between lode and placer deposits arises from [he provisions of [he General Mining Law <br />which authorize only two forms of location for locatable mineral deposits. Lode locations are authorized for 'veins <br />or lodes of quartz or other rock in place.' [FN4] Placer locations are authorized for 'claims usually called placer, <br />including all forms of deposits, excepting veins of quartz or other rock in place.' [FNS] This dual system of <br />location, based on a distinction created by successive statutory enactments, has been part of the federal mining laws <br />since 1870. [FN6] <br />[2] Geological Distinctions <br />Although governed by legal rules rather than scientific definitions, the determination in the field [o locate a <br />deposit as lode or placer will usually be made by geologists and landmen, whose perspectives may differ from that <br />of lawyers or judges. Thus, a[ least a casual familiarity with [he classification schemes and terminology used by <br />geologists is helpful in understanding [he problems created by [he Legal distinction between lode and placer <br />deposits. <br />[a] Classification Schemes <br />Systematic classification of ore deposits has always been a favorite and hotly debated topic for geologists, <br />whose efforts to simplify the complexity of natural occurrences have resulted in a plethora of classification <br />schemes which continue to evolve as new theories are developed. [FN7] Even in their simplest forms, such <br />classifications involve categorization far beyond an artificial distinction between lodes and placers. [FN8] <br />The seazch for new ore deposits has traditionally been based [o a great degree on the practice of drawing <br />analogies to [he characteristic features of ore deposits [ha[ have already been discovered and mined. [FN9] <br />Systematic classification aids the exploration geologist, as well as the student, scientist, mining engineer, and <br />economist. Classification schemes have been proposed on the basis of such criteria as the origin, form and <br />depositional environment of [he deposit, rock associations, and [he type of mineral involved. [FN10] Schemes <br />based on the type of mineral and the form or shape of the deposit may be of greater value to economists and mining <br />engineers than to geologists, who have historically favored classifications based on rock associations and the origin <br />of the deposit. [FNl l] Information about rock associations may aid [he exploratory geologist in identifying the <br />potential existence of ore deposits in [he field, while information on the origin of deposits may aid in determining <br />the potential extent and depth of the deposit. [FN12] For example, by recognizing an ore deposit as one typically <br />formed deep in [he earth, as opposed [o one which originated closer to [he surface, the geologist may better assess <br />whether a deposit will show continuity and depth or bottom out quickly. [FN13] <br />[b] Lodes, Veins, and Placers <br />The terms 'lode; 'vein; and 'placer as typically understood by geologists are not inclusive of all locatable <br />deposits, and are, at best, descriptive of only a few types of ore deposits. [FNI4] Nevertheless, for purposes of <br />compliance with the General Mining Law, a locatable deposit must be characterized as either lode or placer. In <br />geological parlance, a 'vein' is typically considered to be atabular-shaped, hydrothermal ore deposit, which <br />includes classic fissure veins and replacement veins. (FNlS] A 'lode' traditionally has been considered [o be an <br />unusually [hick vein or group of veins. [FN16] Placers are usually regarded as accumulations of heavy minerals, <br />such as gold or ilmenite (titanium oxide), which have been concentrated on [he earth's surface into a minable <br />deposit by the force of gravity operating in connection with erosional processes, such as stream flow, wind, waves, <br />or mass movement. [FN17]Because of the manner of [heir formation, placer deposits tend to be youthful in <br />geologic age, small in size and low-grade, but are readily exploitable because they are composed of loose, easily <br />worked materials that can be extracted and processed by inexpensive methods such as dredging. [FN18] Older <br />© 2006 Thomson/Wes[. No Claim [o Orig. U.S. Gov[. Works. <br />http://web2.westlaw.com/prinUprintstream. aspx?prft=HTMLE&destination=atp&sv=Split... 6/] 4/2006 <br />