Laboratory experiments have shown certain fundamental relationships concerning the induction of a polarization potential on a metallic body in an electrolyte. The potential induced is a linear function of the potential drop across the body in the energizing field up to a saturation potential of 1.2 volts. Diffusion of ions and chemical action are the predominant factors which determine the rate of growth or decay of the polarization potential. Polarization occurs only at the boundaries of electrically conducting minerals. The results of the laboratory experiments provide an explanation of the induced polarization potential of a homogeneous, uniformly mineralized earth. This potential falls off as 1/r from a point electrode. Induced polarization susceptibility is defined and a method of analyzing field data is described. Field measurements over two mineralized zones (pyrrhotite and magnetite) substantiate the theory as developed.

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