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Show l$kWi astiU& ' racsv ' 7 ' RaeMKrvJSiOGsg VOLUME 2 NUMBER 12 MAY 18, 1970 25 Cents Per Copy Homestake links fate of mine to gold price SAN FRANCISCO If relief in terms of a higher price for gold is delayed beyond the next few years, it might come too late to save Homestake Mining Co.s large Homestake Gold Mine in Lead, S.D., Paul C. Hcnshaw. president, cautioned the annual meeting. Gold revenue, principally from the Homestake Mine, for about $24.4 accounted million of the companys S34.1 million total revenue in 1 9. Mr. Hcnshaw added that If relief comes soon and strong, the mine have docs excellent potential in depth which, though costly, could be brought into production. the Although companys were earnings up sharply in the first quarter, those from the gold mine were significantly lower during that period, due partly to the low price for gold and partly to a temporary drop in Mr. grade of ore produced, Hcnshaw said. For the quarter ended March 31 Homestake $1 earned million, or 19 cents a share, up from $427,428, or nine cents for the corresponding 1969 period If the indicated trends continue, the year 1970 should be a reasonably good one for Homestake, Mr. Hcnshaw said. Expanding on the gold mine he added that situation, have costs continued inflating to squeeze profits and noted no chance for relief that through dellation is expected. On the other hand, Mr. Hcnshaw said, Recently the Free World price of gold has been gradually showing strength. He said the company is hopeful that this price improvement will continue and that the grade of ore produced be back to normal during the second quarter. Mr. Hcnshaw also predicted that lead and zinc, both now high on the market, will drop in price as world production of these metals continues its rapid rise. But, he said, a projected increase in the companys and volume production efficiency throughout this year should more than offset the anticipated fall in sales price per unit sold. will cautioned that the middle term outlook for lead is under threat as certainly measures to restrict use of lead additives to gasoline continue to be given serious consideration. But he added that in the longer run, I believe wisdom will prevail and lead additives to motor fuels may still command some share of the lead market. . He NMA chief proposes mineral reserve areas of Mineral Areas in the public domain was proposed last week by Eskil Anderson, president of of most wilderness and large United States of the raw materials necessary for its position among the great nations of the world, he said. Establishment Reserve recreational areas, he said. Their productivity would provide this country with the American Mining Congress said in a bulletin received recently. The 10. 5 million acres involved now is classified for the Northwest Mining basic sinews of retention and multiple use industry management under the Association. Such areas would assure the necessary for it to maintain its Use Big Indian mill rebuilt back on stream Utah Big Indian Uraniun Co. is back in business at its mine 35 miles south of here. After a winter shutdown during which the property's mill was completely rebuilt, production is again under way. Operation of the property has been taken over by G.M. Wallace & Co., Denver, in a joint venture with Keystone Metal Co. of Pittsburgh, Pa. Although Big Indian is near several past uranium strikes, it has not located any uranium reserves of its own. The property, however, has a long history of copper production, going back to 1900. The new production venture, known as Keystone Wallace Resources Co., took over management from Qiff Copper Corp. and Associates, Ltd. Cliff Copper Corp. and Associates was formerly an affiliate of Cliffs Copper Corp., and G.M. Wallace & Co. Cliffs Copper is a subsidiary of Cleveland Cliffs Iron Co. subsidiary. Following the rebuilding, the plant is now handling about 2)000 tons of ore a day in a copper-leac-h precipitate. The precipitate goes to a smelter for refining into copper wire bar. The plant is designed to handle 2,400 tons of ore a day. The firm expects to produce about 500,000 pounds of copper a month from the open pit on the Big Indian MOAB, property, operators say. Big Indian Uranium started out as Big Indian Copper Co. in 1900 and operated as a copper property through both World Wars. It took on its name in 1954 when the search for uranium triggered a major geiger counter and jeep scramble over the Colorado Plateau. survival and would be in the total national interest, he said. It is proposed that in such areas mining and recreational uses of the land would exist without hinderance, or with priority to mining where possible, he said. Such reserves would be made up of small, highly mineralized areas whose total acreage would represent only a tiny percentage side-by-si- de Anderson said the proposal for Mineral Reserve Areas will be brought to the attention of those conducting hearings in Alaska on the proposal to create the Wrangell Mountains Mational Scenic Area in south-central Alaska. There are no Department of Interior lands now designated as National Scenic Areas and this would be a new category, the Am. Oil Shale to study to tap thermal power Atomic WASHINGTON explosions underground in Utah could tap underground heat reservoirs to generate electric power if an approved 'study of geothermal energy concludes such power sources would be feasible. The Atomic Energy Commission signed a contract here with the American Oil Shale Corp. of Salt Lake City Battele-Northweand the Research Institute to look into the proposal. st Classification and Multiple Act, it said. A study report on the proposal recommended that of a plan would emphasize preservation, enhancement and development of the scenic, recreational, fish and wildlife, mineral, timber and water resources in a environment. development high-quali- However, the ty AMC said, mining would be barred in a 2 million acre wilderness preservation area. N-bla- sts Part of Project Plowshare, the proposal contemplates explosion of an atomic charge deep to break up underground naturally-heate- d rock. Water from the surface would be injected; the resulting high steam pressure, superheated would be passed through a steam turbine a and generator then the water condenser, returned to the heat sources. The concept would involve a enclosed nuclear completely it is involving, explosion thought, little or no release of radiactivity. The study is expected to take six months and will look at sites and costs of using atomic explosives to free oil shale deposits as well as geothermal steam sources. steam geothermal d federally-ownesources are on land in Utah, Oregon, California, Nevada, Montana, Idaho and Wyoming. Many |