After Brazil was found, in 1500, the intentions of Portugal were primarily to explore as much as possible of the natural resouces available; however, the Portuguese didn´t find any prompt source of wealthiness, like the gold that the Spaniards found in their American colonies (the natives of Spanish America, like incas and maias, were at a more developed cultural stage, and were already used to explore gold and precious stones) or even the speciaries that the same Portuguese had found in their Eastern colonies.

During almost two centuries, Brazil was a producer first of pau-brasil, and then of sugar cane; the former was already available, the latter had its culture estimulated by the Portuguese, given the high value of white sugar in Europe. All the cane farms were established on the coastal zone, not only because the lands were more adequated, but also because the exploration of the interior lands were much more costly and risky. The area of Minas Gerais, which is separated from São Paulo and Rio de Janeiro by hard to transverse mountain chains (read about geography of Minas Gerais), remained unexplored for that long time.

The bandeirantes, stimulated by the Portuguese Crown, were the first ones to reach Minas. Expeditions date back to 1674, but only around 1693 were the first discoveries of gold mentioned; Fernão Dias Paes was the bandeirante who most explored the region (today, the main road of Minas Gerais pays a tribute to him).

In the first years of the 1700s, Minas Gerais saw a gold rush. People from Brazilian areas (particularly Bahia and Rio de Janeiro) flocked to the mines; the central government in Lisbon had to legislate to stop the Portuguese from immigrating.

From 1708 to 1710, there were fierce combats between the bandeirantes from São Paulo, who claimed rights over the discovered mines, and the Portuguese and other Brazilians (that the bandeirantes referred to as emboabas), who wanted to get a share of the gold; the episode was known as War of Emboabas (Guerra dos Emboabas), and in the end the paulistas were defeated.

From 1693 to 1720, the population grew very quickly; in 1720, the Portuguese created the capitany of Minas Gerais, with capital in the city of Vila Rica (today, the city is called Ouro Preto).

Portugal faced unexpected troubles with the new situation. The sugar cane structure was concentrated on hands of few farmers, who usually had good relationship with the officials; these facts simplified sensitive processes, like taxation and foreign trading control.

In the mines, the situation was completely different. Lots of people had the chance to strike gold, which, in turn, could be easily hidden and smuggled. Portugal sent to Brazil a bureaucratic army to control the influx of tools, the output of gold, the taxation of the production; seeing how difficult it was to gauge the actual production from the mines, Portugal established other parameters to calculate taxes: by number of employees, by amount of tools, and, eventually, a fixed amount of gold per mine, which, being determined unilaterally by the Crown, had a higher value each year. The day when taxes were due (the Collector of the King would come in person) became known as derrama. In 1763, the administration of Brazil moved from Salvador, Bahia, to Rio de Janeiro; besides being closer to the mines, Rio was the port through which the gold was sent to Europe.

The Portuguese never had preocupation with the productivity of the gold prospection; if loads of tax collectors came to Brazil, Portugal never sent a geologist. Only the gold near the surface was explored; because of the poor techniques employed, a large proportion of the gold was lost forever; Portugal was much more concerned with taxation than with rationally exploring the gold. By 1760, reports indicate that the production of gold was in rapid decline.

For a short period, the production of diamonds surpassed the production of gold; during the period, the region around the city of Diamantina flourished. However, Portugal showed the same lack of care, and the diamond production soon vanished.

To the decline in production, Portugal responded with an increase in taxation; rebelions became more and more common.

With the financial progress brought by gold, several Brazilians had the chance to go to study in European universities; by that epoch (second half of 18th century), the libertarian revolutions (notably the American, in 1776, and the French, in 1789) were spreading ideas against the totalitarian monarchies.

In 1789, Vila Rica saw the eclosion of the Inconfidência Mineira: a movement organized by members of the elite, including judges, priests, militaries and, of course, all those people who felt over-taxed by the Crown. The figure of Tiradentes, who claimed responsibility, was forever carved into Brazilian History. This movement was important, above all, because showed that there was already a strong nativist sentiment (not only economic rebelions) demanding independence from Portugal; this sentiment kept building up until 1822, when Brazil became an independent country.

After 1822, the combination of more political freedom with the sharp fall in gold production promoted radical changes in the life of Minas. Geologists and other scientists were sent; they couldn´t restore the gold reserves, but their studies on the potential of the iron launched the basis of what would become the modern metal industry. The masses who depended on the gold had to look for new economic activities. There were villages and cities spread around an extensive area of the State; people had settled wherever gold veins had been found, but the spaces between unhabited places had been little explored. Also, the population of Minas was more used to migration movements (something very rarely seen in the sugar cane areas), and was ready to move to occupy new horizons.

Like the other States where coffee was successful, the farmers tried to find skilled manpower. The government of Minas tried to create colonies of Germans (near Juiz de Fora), Italians (near São João del Rei) and others, but most Europeans had a better adaptation to the colder climates of southern Brazil. Today, it´s noticeable that the culture of Minas had a major influence of the Portuguese settlers, and a smaller influence from the immigrants who came later; Minas is still seen in Brazil as a conservative State; several religious (catholic) traditions are maintained in the smaller cities; the figure of the "mineirinho", the naive looking hillbilly who turns out to be smarter than the smart guys is recurrent in Brazilian jokes and anedoctes.

When Brazil became a Republic, in 1889, Minas Gerais was the most populated Province.
The old capital, Ouro Preto, had no longer the importance of the golden times. A new capital, called Belo Horizonte (that´s the Portuguese for "Beautiful Horizon"), was planned and inaugurated in 1901.
Because of the economic power brought by the coffee, two States dominated the political scene in the first decades of the 1900s: São Paulo and Minas Gerais. Until 1926, Afonso Pena, Venceslau Brás, Delfim Moreira and Artur Bernardes were the mineiros politicians who became President of the Republic.

In 1908, huge reserves of iron ore were found in the State; the fact attracted immediate attention from international capitalists, and the Itabira Iron Ore Co., with British capital, was the first to be granted a charter, in 1910; in 1918, an American capitalist, Percival Farquhar, took over the company. Itabira Iron Ore Co. would eventually become Vale do Rio Doce, one of the largest mining companies in the world.

In 1921, with capitals from France, Belgium and Luxembourg, the Companhia Siderurgica Belgo-Mineira was founded in Sabará; this was the first conglomerate of heavy industry in Brazil.

During World War II, President Getulio Vargas took advantage of the interest of American government in having Brazil as an ally, and negotiated fundings for the construction of the Companhia Siderurgica Nacional; for political reasons, the company was based in Volta Redonda, Rio de Janeiro, but was entirely dependant on the iron from Minas.

In 1938, the city of Contagem, near Belo Horizonte, was given the status of industrial center; the initiative attracted many enterprises, and Belo Horizonte became the economic center of Minas Gerais.

Minas Gerais was ready to become of the most important Brazilian States.

The Ouachita National Forest has developed two free use quartz crystal collecting areas, one on the Womble Ranger District, located near Mt. Ida, Arkansas, and the other on the Jessieville Ranger District, located between Jessieville and Perryville, Arkansas. For more information contact:

Womble Ranger District, Mount Ida, Arkansas TELE: 501-867-2101
Jessieville Ranger District, Jessieville, Arkansas TELE:501-984-5313.
Or visit the Ouachita National Forest Hompage at http://www.fs.fed.us/oonf/ouachita.htm to get information on these and other Ouachita Ranger Districts.

QUARTZ MINING HISTORY

Prehistory to early 1980's -- Historical prospects and excavations of quartz crystal in the Ouachita Mountains have occurred sporadically at locations from the Mt. Ida to the Jessieville and Perryville, Arkansas, areas. A.E.J. Engel, who worked closely with Hugh Miser mapped extensively and identified quartz crystal prospects and deposits within the quartz belt in the 1940's and 50's (Engel, 1951). Of the 58 sites reported by Engel, 7 were within the Crystal Mountain sandstone formation. Of the 7 sites, 3 had been prospected in the late 1800's and early 1900's. Of the 4 remaining sites 3 had reported production during World War II. Quartz mining was considered an essential mining industry by the War Department during the war years because of the need for oscillator grade quartz in military communications equipment. (Engel, 1951). During that time some of the most famous quartz mining occurred on Fisher Mountain in the Mt. Ida area. The Fisher Mountain mine was the only underground quartz mine in the Ouachita Mountains. In the 1940's, A.E.J. Engel mapped in detail the major quartz vein systems and mines in the Ouachita Mountains.

Rock crystal quartz, the most common gem variety of quartz crystal, is, like all quartz, formed from the two most abundant elements in the earth's crust: silicon and oxygen. For centuries early civilizations believed that these pinhead size to nearly a meter in diameter rock crystals were permanently frozen ice. Quartz's high thermo-conductivity, which makes it feel cool to the touch, may have added to this belief. Regardless of what early people may have believed, historical records show the use of rock crystal for decoration and jewelry for at least 4,000 years. Tools and weapons were made from rock crystal long before it was used for decoration and jewelry.

During the late 1980's and early 1990's, metaphysical uses and applications of rock crystal resulted in an increase in its production and processing. The metaphysical market used raw crystal in jewelry, person power and healing devices, and as charms. Additionally, spheres, sculls, pyramids, and other metaphysical objects were made from rock crystal. During the height of the trend, these uses accounted for 40% or more of the rock crystal consumed in the United States and also resulted in price increases for most of the crystals. Today, the metaphysical market has declined from its peak and appears to have stabilized at about 15% to 20% of total rock crystal consumption.

The market for rock crystal carvings, objects of art, and spheres is still strong. One piece of evidence of the demand for quality rock crystal for these types of uses is the level of sales of high quality quartz crystals from the National Defense Stockpile (NDS). During fiscal year 1994, sales of quartz crystals from the NDS totaled 313.1 metric tons valued at about $6.3 million, of this total, 96.8 metric tons valued at $3.21 million were sold during 6 days of the Tucson Gem and Mineral Show in February. During fiscal year 1993, NDS sold 176.8 metric tons of quartz valued at $1.64 million.

A gem dealer who purchased NDS quartz in Tucson shared the following information with the author: A 3,412 gram piece of quartz was purchased for about $120. The purchaser blocked out a totally flawless piece that was sent to a U.S. sphere cutting operation to be made into a flawless sphere. The sphere factory charged $48 to cut and polish a high-quality 84 millimeter, 844 gram sphere. The dealer sold the finished sphere for $1,200. This is only one dealers reported success in using NDS rock crystal and may not represent the outcome of any of the other NDS quartz sales.

Figure 8.--Rock crystal from Arkansas.
(Photo is courtesy of the author.)

Arkansas.--To many in the gemstone industry, Arkansas and rock crystal quartz are synonymous. Mount Ida, Fisher Mountain, Hot Springs, and Jessieville names mean quartz crystals to many people, but in fact, they are towns or places in the Arkansas quartz belt. Not only is Arkansas the major producer of gemstone and decorative rock crystal but it is the only producer of "lascas” the feed material used to make synthetic quartz.

The rock crystals are produced from quartz veins in sandstones and shales of the central part of the Ouachita Mountains. The quartz belt is about 240 kilometers long and 24 kilometers wide, extending southwest from near Little Rock all the way to northern Oklahoma. The crystals are beautifully formed with lustrous faces, many have water clear, colorless terminations. Commonly, they are milky in appearance because of inclusions. On large plates of crystals the crystals are often short and stubby, but in smaller crystals it is not unusual for them to have a length that are at least 6 times their diameter. Many of these slender points are used as “gem points” in making earrings and pendants.

Historically, the demand for crystals was from tourists, collectors, interior decorators, carvers, sphere makers, and certain industrial and military applications. However, in recent years the increased use of quartz crystals in the metaphysical field has greatly impacted the demand and price for Arkansas quartz. Another market for the crystals is as feed material to be irradiated to produce smoky quartz. Most smoky quartz from Arkansas is not natural, but is irradiated rock crystal. Although its not the only U.S. producer of rock crystals, Arkansas is by far the largest, its quartz crystal mining industry is measured in millions of dollars per year.

California.--Deposits in California are another source of significant amounts of quality rock crystal. For many years cobbles and round crystals have been found in streambeds in Amador and Calveras Counties. The best quality, largest, and most abundant crystals come from ancient stream channels in the Mokelumne Hill area of Calveras County. Over the years, various mines in the area have produced thousands of kilograms of rock crystal, with some of the individual crystals weighing as much as 275 kilograms and many of the crystals measuring more than 600 millimeters in length and 250 millimeters in diameter. The American Museum of Natural History has a 150 millimeter sphere cut from a Mokelumne Hill rock crystal. Additionally, the pegmatites of Hiriart Hill, San Diego County, have produced hundreds of kilograms of fine-quality rock crystal from which a number of 60 to 90 millimeter spheres have been cut.

New York.--Herkimer County, NY, is nearly as famous for its rock crystals as is Arkansas. The most productive area for "Herkimer diamonds", as the well-formed, mostly doubly-terminated rock crystals are known, is the rock outcrops and associated soils in a belt between the towns of Middleville and Herkimer, NY. The belt extends about 5 km south of Middleville. At least two other areas in the Middleville area also produce "Herkimers." Most mineral collectors feel their collection is incomplete without at least one Herkimer. The crystals are faceted, raw crystals are mounted to be used as pendants and earrings, and crystals are even bored to be strung as beads.

Currently, the crystals are not mined commercially but are collected by hobbyist and professional collectors. The crystals are found loose in the soil where they have weathered from the underlying rock or they are taken from cavities in freshly broken rock. The cavities maybe so small as to contain only a single 4 to 5 millimeter crystal or large enough to contain hundreds of crystals with some of the crystals over 100 millimeters in diameter. The smaller crystals, 4 to 12 millimeters, tend to be the best and some of the crystals contain inclusions of carbonaceous material and liquid- or gas-filled voids.

Others.--Arizona, Colorado, Idaho, Georgia, Montana, Nevada, North Carolina, South Carolina, and Washington all produce some rock crystal each year. Most of the material ends up in mineral collections, but some are cut into stones for jewelry and a small amount is used for carving. The market for large, fine-quality rock crystals appears to be strong and every indication is that the strong demand will continue, because of the increased demand for carvings.

Mining for quartz crystal has occurred since Native Americans occupied the Ouachita Mountains. Cultural evidence has been found indicating that quartz crystal was fashioned into arrowheads, used in rituals, and as trade stock with other tribes. Many of the quartz mines from Native American mining efforts would have been obliterated by historic mining activities. However, there are several sites that, with more work by archeologists and geologists, may one day prove to be remnant prehistory quartz mines.

The interest in quartz crystal continued when pioneers and settlers moved into the area in the 1800's. Reports of crystal mining and sales totalling about $1000 are noted as early as 1859, and coming primarily from the Crystal Mountains in Montgomery County. Quartz crystal sales in 1890 were estimated to be about $5000. Quartz crystal mining declined with a drop in the tourist population in the early 1900's, but picked back up in the late 1920's when paved roads were constructed in the Ouachitas.

In a 1942 report by the Arkansas Geological Commission, it was noted that the "crystal fields have been hunted so throughly in recent years that it is virtually impossible to find good specimens on the surface" (AGC, 1942). That report also indicated that single crystals in quantities were selling for about $0.60 per pound for mine-run specimens and up to $2.50 per pound for select clear crystals. The report further indicated that Garfield Lewis, operating in Sec. 10 T3S R24W and on a federal lease in SESW Sec. 4 T3S R23W, removed 20,000 pounds of quartz crystals from his federal lease in 1940 and another 20,000 pounds in 1941. Approximately 5-10 percent of the crystals were reported to be "clear", with an average size range of 1/4 to 3 inches in diameter, and the largest weighing 10 pounds. Mr. Lewis later obtained a preference right lease (old BLMA-027767; T3S R24E Sec.4 S1/2SESE) on Gardner Mountain and mined there from 1952 to 1976. In the fall of 1942 the Government took steps to stimulate the mining of quartz crystal specifically to meet the critical demands of the war effort for oscillator grade quartz crystal (cultured quartz crystals grown under laboratory conditions from massive quartz is now utilized for this and related purposes). Most of this subsidized mining appears to have occurred primarily in 1942 and 1943.

A quartz crystal buying station was established in Hot Springs in June 1943, by the Metals Reserve Company. Some 212,600 pounds of crystal, valued at $35,0000 are reported to have been mined primarily for the war effort in 1943 alone. Most of this crystal came from the Blakely Sandstone near Jessieville out of the Blocker Lead / Dierks No.4 mine (100,000 pounds of crystals), from the Diamond Drill Carbon Co. No.4 and 5 mines (16,000 and 22,000 pounds of crystal), the Miller Mountain mine (18,000 pounds of crystal), the McEarl mine (6,700 pounds of crystal) and the Fisher Mountain mine (30,000 pounds of crystal) in the Crystal Mountain Sandstone Formation of the Crystal Mountains.

Post War interest in oscillator grade natural quartz crystal essentially ceased with the development of cultured quartz technology. Cultured, or synthetic, quartz crystal utilizes abundant and inexpensive massive white quartz sources, thereby producing more chemically pure products at a lower cost for the electronics and high-tech communications industries. The demand for oscillator grade quartz essentially ceased in the 1960's as the electronics and communications industry became more proficient in culturing high quality quartz crystal for their purposes.

In 1969, it was reported that over half of the quartz crystal mined in Arkansas came out of Garland County. The value reported between 1952 and 1969 was $66,174, primarily from the Coleman mine in Sec. 12, T1S, R20W (Blocker Lead / Dierks No. 4, opened by the Metals Reserve Co. in 1943). It is reported that up to 1969, over 250,000 pounds of quartz crystal had been removed from mines in Garland County, of which around 150,000 pounds was recovered during 1943 and 1944 in response to the war effort, and 43,000 had been recovered prior to 1943. It is further reported that of the 250,000 pounds, only 4,000 pounds were considered "oscillator" grade material useful to the electronics and war industry at that time (Stroud, 1969). The primary historical quartz crystal mines in Garland County include the following (mines still in operation are noted with an asterisk * ):

- T1N R19W Sec.13&14 -- Hamilton Hill diggings; Womble Shale; discovered after 1865, worked 25 years before 1943.

- T1N R19W Sec. 7 -- Dierks quartz crystal area #5; Stanley Shale; operated between 1938-43.

- T1N R19W Sec.31 -- Dierks quartz crystal area #6; Womble Shale; mined 1937-38

- T1S R20W Sec. 1 -- Diamond Drill Carbon Co. #4 and 5 mines; Blakely Sandstone; discovered and operated before 1943.

* T1S R20W Sec. 1 NESW -- McEarl mine; Blakely Sandstone; operated from 1940 to present.

* T1S R20W Sec.12 W1/2 -- Dierks #4 mine (Coleman mine / Blocker Lead / Geomex mine); Blakely Sandstone; operated from before 1943 to the present.

* T1S R21W Sec. 2 S1/2 -- Miller Mountain diggings; Blakely Sandstone; prospected in 1890-1910, and 1928-1942, and operated to the present.

After the war years and with the advent of technology designed to utilize massive quartz for electronic, computer, and other industrial applications, quartz crystal mining was conducted primarily for the tourist and specimen collector (cultured quartz crystals grown under laboratory conditions from massive quartz is now utilized for industrial purposes). In the mid 1980's a renewed interest in quartz crystal mining was experienced reminiscent of the 1940's war years, but its primary use now is for a very different purpose.

Between the late 1940's and the mid 1980's, the quartz crystal market was primarily influenced by tourists, rockhounders, mineral specimen collectors, jewelry enthusiasts, and others interested in the simple esthetic properties of natural quartz crystal. In the mid 1980's, persons interested in quartz crystal primarily for what they purported to be "metaphysical" and "mystical" properties they associated with it, became the primary influence over the market for high quality natural quartz crystal. Popular media sources such as TIME magazine, ABC NEWS "20/20", OMNI magazine, numerous newspapers and many others, reported on this market and the accompanying fad interest in quartz crystal (TIME, 1987; ABC, 1987; OMNI, 1987; Arkansas Democrat, 1987).

The Great Quartz Crystal "Rush" -- Between 1986 and into the early 1990's, there was a "rush" on the Forest specifically for mining quartz crystal predicated by an extraordinary national and international social interest in crystalline quartz. This resulted in a 300% increase in mining activities for quartz crystal on the Ouachita National Forest. The sources of information for the following general "recent" history are from personal experience, and numerous discussions with quartz miners and dealers in the Ouachitas through these years.

- Up until 1986, in the period from 1975 thru 1985, the Forest worked with a total of 20 quartz crystal operations, averaging two active operations per year. In that time period, the primary market for quartz crystal was the "rockhounder", specimen collector, and museum quality interests. In 1985, the best quality quartz crystal was selling for around $30 per pound.

- In 1986, the Forest worked with 25 quartz crystal operations in that year alone. Prices for the best quality quartz crystal jumped to around $50 per pound as a result of increasing market influence and demand from metaphysical and paranormal interests. In September 1986, the first competitive quartz crystal lease sale in the country was held on the Ouachita National Forest for an 80-acre tract in the Womble Ranger District (ES-36588; T3S R24W Sec.4). The tract sold for $22,200 and was the first real indication of the value being placed by quartz crystal interests in their desire to obtain rights to mine this mineral.

- In 1987, the Forest worked with 43 quartz crystal operations, and with another 28 proposals being developed, for a total of 71 cases involving mining claim groups and hardrock permits and leases covering between 11,000 to 25,000 acres of the Ouachita National Forest. Early in 1987 the price for best quality quartz crystal jumped again to around $100 per pound as a result of full market influence and demand from interests other than "rockhounders" and specimen collectors.

- In 1988, while the market for quartz crystal remained good, the price began to drop for lower grades of crystal in the late summer of 1988 as an apparent result of a large amount of good quality crystal that had been introduced primarily into the American market from overseas sources and from the increased local mining activity. In the fall of 1988, Federal legislation was enacted through Section 323 of Public Law 100-446 (enacted September 27, 1988) that changed the permitting and regulating of quartz operations on the Ouachita National Forest. This legislation also affected the way that over 55 pending proposals would be handled.

- In 1989, lower grade quartz crystal prices dropped back to pre-1986 levels, while best quality material remained relatively strong. Even though the quartz crystal market was relatively weaker now, the new procedures for mining quartz on the Ouachita National Forest resulted in the sale of over 155 quartz mining contracts, and brought in over $20,000 of additional revenue (50% of which is returned to the State for county school and road programs). The Ouachita National Forest was involved with more than 200 quartz crystal related operations, contracts, and activities by the end of 1989.

In 1989 and 1990, holders of quartz mining claims on the Ouachita National Forest voluntarily relinquished 502 mining claims and obtained Forest Service issued Quartz Contracts under P.L.100-446 Sec.323. The relinquished claims represented 99% of the mining claims for quartz on the Ouachita National Forest in Arkansas.

Competitive sales for quartz mining began in 1989. Between 1989 and 1996 over 200 contracts for quartz have been issued to the public for mining on the Ouachita National Forest in Arkansas. At the end of 1996 there were 50 active contracts on the Forest. Revenue from this program is approximately $45,000 per year from competitive bids and from annual contract fees.

Same but Different...

Here, reference to quartz as "industrial grade" and as "crystalline" is made only to distinguish between two distinctly different markets, demands, uses, mining methods, and pricing for quartz.

Industrial Grade Quartz -- Quartz used in the electronics, computer and other high tech industries, must be of a very high chemical purity (generally less than: 20 ppm Aluminum, 3 ppm Iron, 10 ppm Sodium (from: G.Coleman, 1987). While either the massive or the crystal form of quartz may meet the high purity standards, it is typically only the massive, milky, translucent, non-"visibly crystalline" form that is actually mined specifically for these industrial purposes. Also often referred to as "bull quartz", industrial grade quartz is crushed and processed to produce various products including synthetic, or man-grown "cultured" quartz crystals from which other products, such as computer chip wafers, are cut or otherwise processed. A local industrial grade quartz operation on private lands near Paron, Arkansas, just east of the Winona Ranger District, is mining a 30 to 60 foot wide massive quartz vein. This material is quarried in a manner similar to high volume aggregate operations and sold for a few cents to a few dollars per pound depending, again, on its' chemical purity. The price for industrial grade quartz has remained relatively stable through the years. On the other hand, quartz crystal is typically not used for industrial applications because it can be sold at a much higher price in non-industrial markets. There is no relationship in the markets or prices between industrial grade quartz and quartz crystal and, in fact, the price for quartz crystal has significantly changed over the past few years.

Natural Quartz Crystal -- Quartz crystal mining is by far the most prevalent mining related activity on the Ouachita National Forest at this time. The Ouachita National Forest and adjacent lands contain major quartz crystal bearing veins in several geologic formations within a significant crystal bearing belt or zone approximately 30 to 40 miles wide by 70 to 90 miles long through the eastern and southern portions of the Forest. This zone encompasses the Winona, Jessieville, Caddo, Womble and Oden Ranger Districts through Perry, Garland and Montgomery Counties. The principle quartz crystal producing formations are the Crystal Mountain Sandstone and Blakley Sandstone Formations. The Jackfork Sandstone, Bigfork Chert, Stanley and several other Formations are also known producers, but are generally considered to be not as prolific as the Crystal Mountain and Blakley Formations. Quartz veins may extend for many hundreds of feet, often occur in repeated parallel and crosscutting arrangements, and typically are parallel with the east/west structural trend of the ridges. The veins range in size from several inches in width up to a reported 30-60 foot width in Arkansas, and 100 foot width in Oklahoma (Miser, 1959). However, the typical and more common crystal producing veins are from several inches to several feet in width. The crystal typically occurs in pockets that vary from inches to many feet in diameter. The quartz crystals produced from this zone are reputed to be among the best in the world.

QUARTZ MINING CATEGORIES

Quartz crystal activities can be generally divided into three relative categories:

Rockhounding: activities conducted by those persons interested only in quartz crystal collecting or rockhounding as a hobby or personal pursuit or for other non-commercial purpose. The value rockhounders place on crystals they dig is purely subjective and does not reflect true market value or take into account costs typically associated with exploration, mining, and process in a commercial enterprise. A site that may be highly "valuable" to a rockhounder may be of no "value" whatsoever to a commercial operator because their respective criteria for determining "value" can be very different.

Part-time Pursuit: those persons interested in looking for and digging quartz crystal to supplement income from other non-mining sources. This category would include those persons who would mine full time if or when they find a pocket of marketable crystal. In such cases, once the pocket is mined out they typically return to a part-time search for the next pocket. Quartz prospecting would come under this category.

Full-time Commercial: those operators whose primary purpose is to explore for and develop quartz crystal sites would enter this category. The prospecting for and mining of quartz crystal is their sole interest and source of income. These businesses will generally be the largest employers of quartz diggers. In the Ouachita Mountains, during peak mining periods, companies in this category may employ up to 20 persons to explore, mine, process and sell quartz crystal.

Persons operating in any of the above categories often describe themselves as "quartz miners." All quartz prospecting and mining related activities in the Ouachita Mountains are surface operations, whether they are conducted by a recreational digger or by a part or full-time commercial operator. Regardless of the category, the actual "mining" of quartz crystal is a labor intensive activity requiring, in many ways, more patience, persistence and experience than actual formal training. The following is a description of the typical activity levels in all quartz related operations in the Ouachita Mountains. Rockhounding, a noncommercial recreational activity, is included because of the large number of people that annually visit the Ouachita Mountains and the Forest to pursue this past-time for their personal enjoyment.

QUARTZ CRYSTAL MINING OPERATIONS

General -- Public Domain status and Acquired status National Forest lands within the quartz crystal zone are intermixed. Quartz crystal producing formations and crystal bearing veins trend across both land status designations. Prior to 1988, this resulted in different permitting and processing operations specific to the federal laws and regulations governing mining on Public Domain status and Acquired status lands in the National Forest. Legislation enacted on September 27, 1988, changed and simplified the legal permitting procedures for quartz on the Ouachita National Forest in Arkansa, so that quartz operators were required to deal with only the local Forest Service District Ranger regardless of the land status.

Present day quartz crystal mining operations are surface operations generally involving from one to three operators using a single backhoe and occasionally a bulldozer, primarily to remove the overburden from the crystal bearing quartz veins. Several larger operations on private lands adjacent to the Forest employ from 5 to 20 operators, and their mining method is basically the same as the smaller operations. The quartz crystal is contained in pockets within the quartz veins. Once a pocket of quartz crystal is exposed with the backhoe, the actual mining of the crystal is done by hand with tools such as picks and "scratchers". Hand-mining at this point is necessary to reduce the chances of damaging the crystals. Any damage to the crystals caused by mining and handling severely reduces their value in the marketplace. The crystals are then carefully wrapped, placed in baskets, and transported to yards and businesses where they are cleaned, processed, and sold. Most quartz crystal mining occurs only in the upper 15 to 20 feet of the surface. Several larger scale operations in recent years have excavated to depths of approximately 80 feet. In 1987, it was estimated that approximately 250 people were employed in exploration and development (mining) of the quartz crystal resource, and another 250 people were employed in local wholesale and retail sales markets for the quartz.

COMMERCIAL: The first step for the commercial operator is to find a potentially favorable site to prospect. The prospector looks for a surface exposed white quartz vein, and then for any surface occurrences of quartz crystal along the trend of the vein. A surface occurrence of quartz crystal may represent a pocket of crystal and generally marks the point where the prospector will begin digging. Once a pocket of crystal has been dug out, the prospector may decide to look for another surface occurrence of crystal or may decide to risk prospecting further along the vein in hopes of finding a deeper pocket. Consequently, the prospector is continually searching, or prospecting, in hopes of finding another pocket of good quality quartz crystal.

The commercial operator, whether full or part-time, has a critical interest in the size of a pocket, quality and quantity of the crystal it may contain, and the cost to access, remove and process it. Because of the obvious financial considerations for their business, they must be able to reasonably anticipate making a profit from the venture. The commercial operator looks primarily for crystal pockets measured in feet and yards. Larger pockets generally exhibit larger better formed and clearer crystals, and plates of crystal clusters. Many commercial operators will also prospect relatively small holes but typically will use mechanized equipment to do so.

The size of quartz operations on the Ouachita National Forest range from less than 1/4 acre up to a maximum of 5 acres, with most of the 40+ operations on the Forest being less than 1/2 acre in size. A number of them are no greater than 10'x10'x5' deep, or are no more than narrow trenches less than 20' deep and 40' long that follow the strike of a surface exposed vein. Only four operations on the Forest have highwalls from 30' to 50' and upwards of 100' long. The two largest operations in the Ouachita Mountains are being conducted on private lands and are each about 50 to 60 acres in size with 50' to 80' highwalls, and with working faces that extend for several hundred feet.

The typical commercial quartz crystal operations in the Ouachita Mountains, whether considered part-time or full-time, are conducted by 2 to 4 persons using a backhoe/front end loader. Only a few operations are large enough to utilize a combination of bulldozers, excavators, and backhoes on a regular basis. Regardless of the size of the operation, there is a wide variety of sizes and types of wheeled and track mounted backhoes and excavators in use on quartz operations in the Ouachita Mountains. In general, only the few larger operations utilize the heavy mechanized equipment almost full time in their mining operations. Part-time operations often involve the use of rented or contracted equipment. Some operators will use equipment they own primarily for construction or non-mining excavation type work, to prospect during slack periods in their main jobs.

The primary purpose for the bulldozer is to efficiently remove overburden. The backhoe or excavator, which can also be used to remove overburden, is the principle equipment utilized to expose the quartz veins and then to excavate the veins in hopes of uncovering a pocket of quartz crystal.

Explosives in quartz prospecting are used, but sparingly to avoid causing damage to any possible occurrences of quartz crystal. Whenever possible, the rock is ripped or otherwise worked by a backhoe until a pocket is found and exposed. If explosives must be used then a drill rig or a compressor and rock drill are used to drill an appropriate hole pattern. The holes are then charged with only the minimal amount of explosive necessary to loosen the rock and allow the backhoe or bulldozer to continue removing it.

If a pocket of crystal is encountered, the equipment is stopped and the operator moves to the working face to begin carefully exposing and removing the crystal by hand. All quartz crystal is removed by hand regardless of the size of the operation. As noted by Mr. Ocus Stanley, a long time and highly respected quartz expert in Mount Ida, Arkansas, "In the strictest sense crystals are not mined; they are dug, a pick and shovel being the standard equipment." (Stanley, circa 1980; RE: U.S.B.M., 1990, #64). Quartz operators use pry bars, scrapers, picks, mauls and chisels, even dental tools in some cases, and other tools that are often homemade and individualized by the operator for this purpose. Great care is taken in handling any crystal because it is essential to remove it in such a manner that it is not even slightly damaged. Any damage to a crystal caused by the mining or processing method, or from careless removal, is easily detected and often renders the crystal worthless.

Most pockets are filled with clay that also serves as a natural packing material somewhat helping to protect the crystal during removal. However, it also obscures the quality and quantity of the crystal at the mine site. Any crystals that may be found are removed and wrapped in newspaper and placed in wooden baskets, cardboard boxes, plastic buckets or other appropriate containers which in turn are typically transported in pickups or other passenger vehicles. The containers of uncleaned crystal may be sold in bulk to a quartz dealer, or may end up at the operators' home or business where it is cleaned and prepared for sale.

NONCOMMERCIAL (ROCKHOUNDING): The rockhounder may be attracted to almost any surface occurrence of crystal simply because their interest is strictly personal and non-commercial. Consequently, many rockhounders are happy to find even the smallest of pockets, and remove and keep even the poorest quality and smallest crystals in their personal and hobby crystal digging pursuits. They often expend a great deal of time and money to do so, and with no anticipation of recovering their expenses or concern for financial gain. The rockhounder typically creates hand-dug holes less than 5' to 10' in diameter and only several feet deep. They do not utilize mechanized equipment, and are on site for only a few hours, or may return to the same site repeatedly for several days in a row if they are camping or staying nearby. While their hand digging and prying tools are often much like the commercial operator's, beyond that there is little comparison.

PROCESSING: The crystals are removed from the containers and set on tables or mesh wire platforms and then hosed off with water using a garden hose with a spray attachment, or a high pressure spray hose, to remove the clay and dirt. They are then placed on trays in a covered vat of a weak oxalic acid solution (generally mixed at 1 lb. per 3 gallons of fresh water; Oxalic acid can be purchased for about $3 per pound). The oxalic acid is a bleaching agent that neutralizes iron staining that typically coats the surface of quartz crystals. The vats can be of any size but generally are 50 to 500 gallon containers that are heated either by a wood or gas source. The oxalic acid solution and crystals in the vat are slowly heated to just under boil at about 180 to 200 degrees Faranheit and held at that temperature for 4 to 5 hours, and then allowed to re-cool to room temperature (Sinkankis, 1970, pages 289-292; Jones, 1986, page 63; Arkansas Democrat, 1987, pages 9 & 11; Mitchell, 1984, pages 26 & 27; Nagin, 1986, page 41). It may be necessary to repeat the oxalic bath processes if the iron staining is particularly severe. The crystals are then removed and thoroughly rewashed with water (if the oxalic acid is not completely washed off the crystals it can permanently stain them yellow thereby significantly downgrading their value). The cleaned crystals are then sorted and graded, and are ready for sale.


QUARTZ CRYSTAL PRODUCTION

Prices for high grade quartz crystal are remaining relatively high, although during the summer of 1988 lower grade material prices trended downward due to flooding of the market with low and medium grade material. High grade material only represents from 0 to 20 percent of the total material from most mines. The quality of the crystal varies from mine to mine and results in a wide variation in the proportion of high, medium, and low grades of quartz crystal.

The U.S. Department of Interior, Minerals Management Service, in its' 1986 Annual Report, indicated that a total of 1.7 million pounds of quartz crystal had been produced between 1920-1981. It is anticipated that much of this crystal was mined during World War II when quartz crystal was in demand by the war industry for use as oscillators in radio equipment primarily required by the military (cultured quartz crystals grown under laboratory conditions from massive quartz is now utilized for this and related purposes).

Federal production records for quartz crystal from leases on Acquired status federal lands of the Ouachita National Forest in the periods noted below indicates the following:

* 1946-56 Average Annual Lease Production 2,660 pounds per year
* 1957-67 Average Annual Lease Production 8,745 pounds per year
* 1968-78 Average Annual Lease Production 10,124 pounds per year
* 1979-85 Average Annual Lease Production 24,131 pounds per year
* 1986 Reports from 3 Producing Leases 43,217 pounds in 1986
* 1987 Reports from 5 Producing Leases 87,133 pounds in 1987
* 1988 Reports from 4 Producing Leases 40,296 pounds in 1988
* 1989: Jan. thru July (4 prod. Leases) 5,900 pounds (partial)

Production records are not available for minerals produced from public domain status Forest lands prior to 1989. However, it is estimated that as much quartz crystal was produced from those lands as reported to have been produced from the leases on acquired status lands where production records are required. In 1987 it was estimated that the average overall value for quartz crystal in the Ouachitas was about $2 to $5 per pound (based on wholesale dealer total average value for all grades of cleaned quartz crystal of from $2 to $5 per pound). Consequently, conservative figures for total quartz crystal removed from the Ouachita National Forest in 1987 is estimated to be about 190,000 pounds (reported production from leases + estimated production from operations on public domain status lands), with an estimated average wholesale value of from $380,000 to $950,000 in 1987. In addition, a significant but undisclosed amount of quartz crystal is removed from private lands adjacent to the Forest and within the quartz crystal zone. Also in 1987, it was estimated that at least 250 people were employed in exploration and production (mining) of quartz crystal, with at least another 250 people employed in sales, in the Ouachitas.

Mineral Industry of Perú

Perú is the third largest country in South America, bounded on the north by Ecuador and Colombia, to the east by Brazil and Bolivia, to the south by Chile and to the west by the Pacific Ocean. It lies entirely within the Tropics between the Equator and 18° south. Geographically, Perú is divided into three major regions, a narrow coastal belt separated from the Amazon rain forest by the northern extension of the Andes mountain range. This narrow coastal belt is mainly desert and contains Perú's major cities and its best highway, the Pan-American, which runs the entire length of the country. The eastern slopes of the Andes receive much more rainfall than the western slopes and form part of the rain forest of the Amazon Basin.

Perú is one of the most extensively mineralized regions of the world and has a long history of mining activities dating back to pre-Columbian times.  Perú plays host to some of the largest and lowest cost precious and base-metal mines in the world, including Alta Chicama, Yanacocha and Antamina. Many of the world's major mining companies, including BHP-Billiton, Newmont, Phelps Dodge and Barrick have operations in the country.

In 1991, the mining law was simplified and now provides an attractive framework for development of minerals projects. There are few limitations on holding mineral concessions in Perú. Concessions can be held 100% by national or foreign companies indefinitely provided that an annual fee of US $3.00 per hectare per year is paid to the government as a land tax. The same concession title is valid for exploration and for mining, hence there is no complicated 'conversion' procedure. Peru's clear and simple mining law and excellent geological potential has helped the country to attract one of the largest budgets for minerals exploration and development in the world.

Perú is a Presidential Democracy with Alejandro Toledo being the incumbent President and leader of the Perú Posible Party, which has 47 of the 120 seats in Congress. An Alliance has been formed with Frente Independiente Moralizador Party and the next elections are due in 2006. The current economic policy is broadly pro-market and focused on prudent fiscal management.

The population of Perú is 27.2 million and unemployment is approximately 9%. Real GDP growth was 4% in 2003 and is forecast to grow in 2004 by 4.2% and 4.4% in 2005, due for the most part to strengthening international prices for copper and gold. Inflation, which was 2.3% for the year, has been at OECD levels since 1999 and is likely to remain so for the foreseeable future. The floating Nuevo Sol is expected to remain among the least volatile of the Latin American currencies due to solid economic performance, which is driven by export growth and prudent macroeconomic management.

Of the total exports for the year, gold accounted for over 19% of the gross value, copper over 15% and zinc over 5%. Of the total export market, 26% of goods went to the US with 9% to China. Of the import market, 25% of goods came from the US with 8% from Chile. Perú has been accepted as an associate member of the Mercado Comun de Sur ("Mercosur"), the southern cone trading block, comprising Brazil, Argentina, Paraguay and Uraguay. It is hoped that Free Trade Agreements with the European Union and Asia may be concluded within the foreseeable future and that the withdrawal by Perú from the G-21 group of countries may lead the way to a Free Trade Agreement with the US.

The largest source of foreign investment in 2002 came from the UK, which invested US $2.5 billion into mining, petroleum and telecoms; Spain invested US $2.41 billion and the US$1.97 billion. Total foreign investment on the Lima Stock Exchange totalled US $2.87 billion at year end 2002.

Many domestic and foreign companies operating within Peru’s mining sector are expanding their operations, preparing feasibility studies and carrying out intensive exploration. While exploration activity worldwide has fallen dramatically during the downturn of global commodity prices, the level of exploration activity in Peru has remained remarkably buoyant.  This trend is characteristic of the level of optimism that international investors have in the country and the perceived value of its mineral assets.

A number of Australian resource companies have already established a position within the Peruvian mining industry:

• BHP-Billiton
• Rio Tinto
• Pasminco
• Western Mining
• Newcrest

Whilst the total number of companies directly involved in the industry at present is small, their presence covers the total range of the industry from actual investment in mineral production through suppliers of services and equipment (Mincom, ALS-Chemex, MIM Process Technologies, Global Mining Services, Maptek, Surpac, Minproc, Thiess Contractors, Ryco Hydraulics, Caterpillar-Elphinstone, etc).

The high level of investment being planned for Peruvian mining industry (almost US$9 billion 2001-2007) offers enormous business potential for both Australian resource investors and exporters of mining equipment services and technology across all facets of the industry. Particular attention is being placed over the next 5 years to the environmental and safety aspects of the industry. Both of these components are lagging behind international standards when compared on a country-by-country basis.

According to the Ministry of Energy and Mines, planned investment in mining for the near future totals US $8901 million as follows:

• Expansions (2001-2007) – US$492 million
• Construction (2001-2002) – US$1050 million
• with and under feasibility study (2001-2007) - US$3643 million
• Exploration (2001–2007) – US$1506 million
• Privatisation (2001–2007) – US$2210 million

Although Peru is open to sourcing mining equipment, services and technology from around the world, there is little evidence of significant inroads by Australian suppliers, other than ALS, GRD Minproc, Mincom and Warman Pumps. The market for mining equipment and services is receptive and very competitive, with all major international suppliers represented. The local manufacturing industry also offers strong competition on co mmodity goods (that are not technology intensive), but also potential for joint ventures or manufacturing under license arrangements. The local manufacturing industry has recently demonstrated an increasing capacity to supply the mining sector. There are significant opportunities to develop a strong market position through joint-venturing and local manufacturing.

Peruvian mining community is determined to develop a truly world class mining industry and this offers enormous business potential for Australian companies whose products and services have a technical and cost competitive advantage in:

• Mineral exploration (geophysics, mapping, diamond drilling, tunnelling)
• Mining software (resource estimation, modelling, mine design and planning, maintenance and optimisation)
• Gold mining and processing technologies
• Contract mining
• Engineering services
• Environmental equipment (water and sewage treatment plants, effluents analysers, software)
• Environmental consulting (remediation and mine closure)
• Mine safety training and equipment
• Mining equipment