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Show to 0 1 Significance in The Oil J "Ow Veto I Vol. 28;No. 30 Salt Lake City, Utah, Friday, September 20, ing N O ss w to Wct-ld-" 10 ! Officials Dedicate Public :iOuY or -- Ce lit U MOAB The second largest ura- - ' nium mill in the United States was dedicated in public rites here Sept. 14. The mill, built by Uranium Reduction Co., at a cost of around $9 million, has been crushing and processing uranium ore from the neighboring Big Indian mining district at full steam since last November. However, the rites here make the work official. Over 1,000 persons attended the ceremonies. There were top men fin business, government and civic affairs from all over the country in attendance here. Mitchell Melich, young Moab attorney and president of Uranium Reduction Co., introduced officers and directors of the company as well as distinguished guests. This is Uranium Reduction Co.s $9 million mill at Moab which was formally dedicated in rites Saturday morning. Over 1,000 invited fuests and residents of Grand and San Predict Marysvale U-O- re A major revival of mining ac- den Cycle, Corp., said that about tivity is forecast in the Marysvale 1,700 acres in the district adjacent uranium district one of the ear- to and northwest of the operations liest boom areas in the industry of Vanadium Corporation of Amin Utah. erica had been acquired from vaMerrill Shoup, Colorado rious parties. The principal blocks were pur-Springs, Colo., president of Gol Juan County attended the ceremonies. Prominent men in business, government, and industry joined in the celebration at the Uranium Capital of the World." Substantial new ore reserves have been developed at the Radon mine of Radorock Resources, Inc., the company was informed today. This new information, as to ore reserves in the Radon Mine and other matters will necessitate a of the Radorock holdings in connection with a pro. posed merger of Radorock into an enlarged Hidden Splendor Mining Company, according to R. W. Newman, President of Radorock. Mr. Neyman said other parties concerned in the proposed merger have beep advised of increased ore reserves, and agree 'that renegotiations in connection with the merger will be initiated. The ore body was originally proved by drilling before mining operations began. At that time, in ore reserves of more than 200,000 tons were indicated. No additional exploration work was conducted because of high drilling costs and the depth of the ore body. Instead, it was determined that the most desirable method of ascertaining ore reserves would be in underground development work. This work recently reached the point where a survey could be made of reserves. Hecla began its 1955, from John Wilhelm and Castine, a geologist who up the fissure system on controlled by the Potts interests. Agreements were concluded with the Black Bear Consolidated Mining Co., under which Golden Cycle obtained a one-haundivided interest in toe Potts mine in return for development work on the properties. Some 100 tons of ore will be shipped daily from the properties, Mr. Shoup said, with expectation that this will be increased to 200 tons by the end of the year. Some 18 miners are currently employed. Meanwhile, Phillips Petroleum Co. is conducting exploration work on Mount Baldy which is across the valley from the VGA mine. chased Morris opened claims A representative of toe oil firm at Salt Lake City said the work was in toe nature of a prospect and that the claims had been turned to Phillips by the Potts in. terests of Marysvale. C. U. Brown, station master for investigation work, and Rado-rock- s toe Denver & Rio Grande Westindependent survey began ern Railroad Co., said about 100 cars monthly of uranium ore are shortly after. Radorock is a 52.6 percent own- shipped to the Salt Lake City mill Hecla Mining Company, oper- ed subsidiary of Federal Uranium of Vitro Corporation of America ator of Radon mine for Radorock, Corporation. from the Marysvale area. has unofficially informed Radorock that mine reserves are now estimated at more than 500,000 tons of uranium ore, averaging 0.68 per cent of U308. Mr. Neyman said that Radorock began an independent survey of ore reserves several weeks ago. This survey is proceeding, and will continue, Mr. Neyman said. Heclas'm o s t recent findings were based on underground development work. The mine is currently producing uranium ore at on average rate of more than 5,000 tons per month, with ore sales of more than $350,000 monthly. The Radon Mine is located in Utahs Big Indian District, southeast of Moab, Utah. Mining is being conducted from a shaft. The deep, ore is considered high grade, and the mining operation being conducted by Hecla for Radorock is one of the most efficient in the nation. . 700-fo- ot Vitro Signs Contract For New Uranium Ore Supply A long-teragreement for the 6th West and 33rd South, is one of purchase large quantities of of the largest custom uranium m uranium ore from the mills in toe country. The Cord mine, which includes Indian Mining District of San Big Juan County was signed Friday the Pasco, Uncle Ben, Jen and between VITRO URANIUM Co., Jackie uranium claims, was and JEN, INC. bought by Jen in March from E. The announcement was made L. Cord and Association of Reno, here in Salt Lake City by J. Carl- in toe largest single uranium sale ton Ward Jr., president of Vitro, ever recorded in the U. S., accordand C. E. Tuttle, Jen president. ing to Mr. Tuttle. Mr. Ward was here for toe recentAccording to Mr. Ward, the convention the concluded of agreement goes to March 31, 1962, ly the expiration date of AEC pur American Mining Congress. Jen, which has , Under toe agreement, Jen will chase contracts. substantial Vitro in claims four been from shipping ship ore amenable toe for sev. as of known the district, quantities jointly Cord Mine, to the Vitro mill here eral months, will provide a maxi-Se- e VITRO SIGNS Page 2 in Salt Lake City. The mill, on low-lim- e U-or- es tion Co., and whose prospecting find started the whole uranium business booming down here. The guest speakers were Gov. George D. Clyde and Utahs senior senator, Arthur V. Watkins. E. H. Snyder, Salt Lake mining man who is chairman of the board The Federal Power Commission of Uranium Reduction, introduced last week suspended a portion of Jesse C. Johnson, director, raw division,' Atomic Energy a 5 million dollar annual whole- materials Commission. sale natural gas rate increase pro. New Mill In his address, Sen. Watkins posed by Pacific Northwest Pipelabeled the new mill as the beline Corp. of Salt Lake City. ginning of a southeastern Utah The action halts any 'hike af- industrial development . . . that fecting Mountain Fuel Supply Co., will rival your great potential which enjoys a pipeline rate with for development as a major tourthe transmission company. ist center. Sen. Watkins went on to outFPC was reported recently as toe use of federal funds durline saying a hearing would be orderthe past four years to help ed later in the case. The suspen- ing meet Moabs increased populasion, which covers about $3,800,-00- tion. He praised this use of fedof the $5,500,000 proposed rate was pleased that eral hike, was termed a nominal ac- the monies, but government did not go to the tion in these cases by the power extreme of a processing commission, by a representative mill in Moabbuilding faas a government of Pacific. FPC Trims Pacific Revival lf New Reserves Found In Radorock Mining Responses Made Response to the introductions was given by Howard I. Young, president of the American Mining Congress, and Charles A. Steen, president, Utex Explora- NWs Rate; Halts any Hike 0 Some $1,700,000 of the increase did go into effect Thursday, however. This increase covers sale of natural gas by Pacific to distribution companies for e to Industries. re-sal- Only Utah organization affected by this hike would be Utah Gas Service Co. which serves Moab, Monticello and Vernal in eastern Utah. Pacific estimated, however, that toe Utah Gas Service Co share in this immediate rate hike on interruptible (industrial) sales would amount to no more than an estimated $10,000 a year." Superior Oil Plans Aneth Field Test Superior Oil Co. Monday filed witoJJtah State Oil and Gas Con- servation Commission its notice of intention to drill Navajo A-- 9 well in the Aneth Field in San Juan County. Location of the well is listed in the northeast quarter of the northeast quarter, Section 14, Township 40 South, Range 24 East. It will test the lower Boundary Butte limestone to a depth of about 5,900 feet. cility. I wish to commend the manindusagement of this new Moab try, the senator said, for taking the financial risks and providing the private financing for this extremely important industrial ven. ture. Clyde Speaks Gov. Clyde, in a brief talk, said, Utah is only at the beginning of its greatest era of resource development In uranium as in its scores of other wealth. sources of natural He called on the Atomic Energy Commission to either continue its guaranteed price for uranium production beyond the presently set limits, or else remove the restrictions from commercial transactions in uranium and let it find its price level on the open market. Gov. Clyde added that he considered this important to a sounder and better economic climate for the future development of the uranium industry. This mill is exceeded in size and capacity in the United States only by the uranium mill, Grants, N. M., operated by Anaconda Cop- per Co. Moab, which has been bursting at the seams, business-wise- , be- cause of mining and oil conditions, also was bursting with pride Saturday with the formal ceremonies over for its largest employer. |