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Show 09 NESS I CITY orr TjGr,o5V BLDG jft n.j4 .iV SAL MH LAU rALLAY SMELTS rAICAA IO.YAA (par m. It LAAD. MC OOPYAB OOLD Ipar aa AWO (par IAAI h lull NHa IMA .AAJA S4.SISS IMIi Features Mining, Oil, Financial VOL Salt Lake City, tUah, August 15, 1947 8, NO. 30. 1 One Year $2.50 Mines Face Adjustment Premium Veto Following holders are to Utah Firm of mining stocks forecast the Many trying results of President Trumans veto of the Metal Premium Bill. Leaders in the mining industry at no time were in complete agreement on the late subsidy plan nor in its operation. There may be equally divergent opinions as to the effect of its discontinuance. Now that metal subsidies are I " out, - except for - government I for grants approved exploration work to be completed in 1947, the mining industry was not taken wholly by surprise. Congressional action, a year ago gave fair warning to them to ready themselves for just such a Near Vernal Favorable progress' is being made by Vernal Oil &.Gaa.Con)T pany at its test well six miles northwest of Vernal, Utah, according to information teaching this city today. Now down some 340 feet, objective of the new well is exploration of the Vernal Dome oil structure lying some fifty miles northwesterly of the now world famous Rangely oil field. The Weber sand, which is the prolific oil producing sand in the Rangely Oil Field, is the objective oil zone of Vernal Oil and Gas Companys test well. In the ce geologic section of 5 the Vernal Dome, this sand was I calculated- to be reached at a If depth of about 1359. feet, and X with the test well now at a depth of about 340 feet, should result in- a drilling depth of about one thousand feei" j be drilled 4 to reach this sand. Therhsi-Iphori- a or Park City formation, Permian age, which is oil producing in parts of Wyoming, should $ be reached by the drill at about 1 200 feet less drilling depth than lithe Weber sand or a depth of about 800 feet. The Vernal Oil and Gas Company has. heavy duty combination rotary and cable tool drill-- ing - equipment with a ST 'foot steel derrick, capable of drilling 10,000 feet However, considering the shallow drilling depth to the objective Weber oil zone, cable tools are being used. This test well is being watched closely by oil men throughout the country as the test shows possibilities of being the first major producing well in the state. (Note: On page two is an unusual photograph showing site of Vernal Oil & Gas Companys' test well and a comprehensive view of the Vernal Dome.) sub-surfa- - - Union Chief. Begins Shipment of Ore Union Chief Mining Company this week started ore shipments from its mine located at Arum, White Fine County, Nevada. As a result of the start of shipping operations stock of the company has been moved to the operating side of the board on the Salt Lake Stock Exchange- Following completion of extensive road repairs, the firm started mining operations around the first of July. Silver Sought EXTENSIVE DEVELOPMENT operations being conducted in Utahs famous Tintic Mining District are being projected in an effort to develop new orebodies. Conducted on properties controlled by Chief Consolidated Mines Company, both for is company account and by lessees, the work now underwayfew next the information to valuable during yield expected - months. New Work Launched in Tintic by Chief Cons. As the search for metals progresses to deeper levels to replace valuable resources mined during the. war, the Tintic mining district, long one of Utahs major producers, is coming in for its share of attention. Several- - deep development announced, projects' have been old proof the several embracing is work progressing but ducers, manpower slbwly due "to the'lack "Of minin still persists that .. ing. rs In the However, district are looking to the new will work in the hope that Tinticstatus Mine output of. lead in June its former of some regain was unchanged from May, conamong the mineral producing State. sections of the tinuing close to the level preVaried Operations vailing during the earlier months The most ambitious program of 1947 but substantially above has been undertaken by the 1946 levels, although low in reChief Consolidated Mining five has Chief lation to other years prior to Company. The In under way 1946, according to the Bureau of different programs various parts of its property Mines, United States Department which spreads over a large area of Interior. On a daily average basis output showed a small gain in the Tintic district One which is being watched in June. No very large changes with interest is the development were evident in any of the large areas, the gains of the Evans group of claims just south of the town of Eureka. A of 7 per cent in Colorado and of of 6 per cent in Arizona marking shaft is being sunk to a depth 500 feet, from where a crosscut the largest shifts in rates of outwill be extended easterly in the put. Small producers in Colorado new min- were said to have been mining hope of developing a one which as much ore as possible before eral zone parallel to for many the ending of the Premium Price has been productive district Plan, which was not extended in the years beyond June 30, thus accounting Go To Depth At the Plutus property, the for Colorados rise. The gain in Chief Consolidated is sinking be- Arizona, on the other hand, was low old workings in an effort to largely attributed to one mine. prove the extension of ore runs Zinc Gains found on upper levels. . Mine output of zinc rose 4 per In the old No. 1 property, the the to cent in June, continuing the genextended is shaft being 2800 -- foot level, 300 feet below eral uptrend in progress since was the largest the. present ore bodies. During July 1946,- and 1944. The Western since was 2500 May reopened war. the the and the old mine responded with States, Central States, and Eastconsiderable metal for the war ern States groupings all showed percentage gains that coincided effort- Chief with the performance of the the of 2 shaft The No. Consolidated has been opened by United States as a. whole. Inthe North Lily Mining Company creases were indicated.for every state, except New Mexico where under lease. The North Lily incent drop was noted. In a old to workings extend plans a Western to States, Washingtons rise explore to new territory cent was the largest 32 of has per that new geological theory whereas othbein' advanced in that section proportionate gain, cent 18 were in Nevada, ers per of the district The Apex Standard property 10 in Colorado and 8 in Arifn the east end of the district is zona. being reopened by the Newmont Combined Metals Mining Company under a lease Washingtons - larger output arrangement. The Newmont plans systematic development of the was due to greater production area in an effort to bring this from properties of the American Zinc, Lead and Smelting Co. property into production. fact that no new large and the Pend Oreille Mines and . The scale producing mines, with the Metals Co. In Nevada the inbecause of exception of New Park, have crease was largely ' been developed in recent years greater' 'output bjf CotabiniJ short- Metals Reduction Co., and Ely together with the existing develthe is of Valley. Mine, .Pioche. district, lead pressing age opment for new ore bodies in Lincoln County. Small mines in the old districts, and the search Colorado were said to be getis chiefly toward deeper levels ting bilt as much ore' as possible which increases the cost of de- because the Premium Price Plan was scheduled, to terminate June. velopment and mining 30 and might not be extended. Price Trend -- old-time- influences Output lead-produci- ng - The Mexican government is reported, to be in .the market for two million ounces of silver. - 7-- . - Meted Mining Industry of Utah .: . per change in policy. Mines Close Down Zinc producers and some few copper mines are chiefly affected. Lessees who have been receiving B and C premiums may be obliged to cancel their contracts and seek work on company payrolls. In order to qualify for premiums many mines confined their operations to scaling mined-o- ut stopes. Some even refrained from mining their better ore so as to keep in the subsidy class. It was economically necessary for them to do this in order to stay in business. The interjection of government into us the metal mining by the subsidy plan furthered great increases in mining costs, and gave opportunity for' political theorists charged with the task of distributing the subsidies to impose, knowingly or otherwise, added burdens on the industry. Watch Prices - Attention is ; called " to other effec ts tharVhay result from' the subsidies. The dropping of threatened closing of zinc-le- ad te mines in the area may cause a stiffening in the price of zinc. With no premium on copper, we may be spared a surplus of copper supplies which seemed to be certain not many days hence. Little mines make big mines an intelligent plan for fostering and helping little mines can now be worked out independent of the emergency of war. Forty-fiv- e years ago Utah Copper the mine that furnished one third of our copper .needs for World War II was a struggling little mine. SEC Should Help Without premiums, mines can now produce any and all grades of ore that they can profitably mine. Naturally, it will take some time for mines to readjust their routines of operation. One operator has likened the continuation of subsidies to a persons addiction to taking dope the longer, it is continued the more difficult it is to do without. It is to be hoped that with the governments withdrawal from the metal-prifield, there will be a reasonable relinquishment of regulation by the Securities & Exchange Commission to allow freer flow of venture capital into mine development in the SUPERIOR, Ariz., Magma Copper Co. has revealed that woven ore deposits in its San Manuel mine near Tiger now exceeded 354.500,000 tons. Churn drilling on the property is still under way. W. P. Goss', general manager of Magma, states that the San Manuel ore body is the largest copper deposit found in Arizona in more than 35 years and is the largest potential copper de velopment since the Phelps Dodge Corp. opened its Morencl mines. To develop the San Manuel property, Magma stockholders last September voted to increase the companys capital stock non-ferro- from to 410,000 1,200.000 shares with a par value of $10 a share. The company had obtained a purchase option on the property in 1944. of the mine, Development Magma officials say, entails the' .construction ofa- - whole new-tow- n to house families of workers who will be employed in increasing numbers as the project progresses. Magma already operates one of the states at richest mining properties Superior. A group of Arizona mining executives estimate that the Globe-Miadistrict is in for a long productive life in copper mining. Indications that there are other undiscovered and still to be developed ore bodies in the state came with the recent discovery-othe San Manuel ore body south of Superior. . . tri-sta- ce (Continued On Page 2) mi f Ground Drilled Near Tonopah TONOPAH, Nev. Tonopah Development Co., drilling a big block of ground a little over a mile north of here, under contract with E. J. Longyear Co., is still working on the original in, hole, according to O. I. in engineer charge. According to reports, a number of holes are to be drilled to considerable depths in the hope of locating ore bodies rich enough to warrant a shaft and deep development. M. A. Diskin, former attorney general of Nevada, is president of the company. Lav-roosh- New Breathing Apparatus Approved for Mine Use respira- Recently-develop- ed tory protectiveequipment has been tested by the Bureau of Mines and found safe from the mine-rescwork under certain conditions, prescribed Thomas H. Miller, acting bureau director, 'made known today in releasing a publication on four new types of breathing apparatus. They are or suitable for oxygen-deficie- nt gaseous atmosphere free of skinpoisoning properties, and. have been approved only for use as equipauxiliary mine-rescment Mr; Miller .said. Because of a limited effective time ranging from 35 t& 45 minutes, the new equipment should be used only when near fresh air and. when .a. rescue team self- equipped - with 1 or ue self-contain- ed ue 2-h- our . . .) contained breathing apparatus widely employed in rescue work is held in reserve, the report states. Simpler in design and easier to wear, each new apparatus was tested thoroughly by the Bureaus Health and Safety Branch at the Central Experiment Station, Pittsburgh, Pa. . Industrially-develope- three d, types of .the new equipment were designed by the Mine Safety Appliance Company of Pittsburgh the Chemox Oxygen Breathing Ap- Demand-Typ- e Oxygen Saratus, and the Demand-Type Air Mask. The Compressed fourth the Scott Air-PBreathing Apparatus was developed by the Scott Aviation Corporation, Lancvr, Self-Contain- ak ed Self-Contai- ned |