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Show J OF U LIBRARY 1 I 'em ''V i METAL PRICES 15c Lead (per lb Gold (per oz.) $34.91 25 24.2c Copper 16c Zinc (per lb.) Silver (per oz.) 82.75c new mined Features Alining, Oil, Financial One Year $2.50 Salt Lake City, July 4, 1952 VOL. 23, NO. 27 Utah Drilling Ore Moving From Great Project Lower Metal Prices Threaten of Wests Industry Results In Stability Lower metal prices mean a general tightening of the belt New Oil Shows at Combined Metals Reduction Companys Pioche plant in the near future and it could have serious effects on the future of the . The Scouting Division of the Oil Company, northwest division, has released the following summary of drilling wells for the past week: Ute Tribal 'C No. 1 (located in Roosevelt Pool in SW SV, Carter - Sec. Core No. 8, tween feet Marysvale Co. Withdraws Loan Request be- feet, recovered 59 9239-9-8 Drill-ste- test No. m 3, at feet, open 60 minutes, had a weak blow initially, dead in 23 minutes. Recovered 5 ft. dark green to black oil, 1260 ft. of water cushion aiid 25 ft. of test No. drilling mud. Drill-ste4 at ft., open 120 minutes had a weak to very weak blow initially, dead in 20 minutes, recovered 3 ft of oil, 1350 water cushion and ft of gas-ct 27 ft. of mud. Crews 9355 ft. coring at G. E. Rons ton No. 1 (located in Roosevelt Pool in SE SW, Sec. Crew3 drilling 9236-9- 8 i i m I 9296-934- 8 I ut gas-cu- 18-1S-1- at feet 4958 Ute Tribal B No. 1 (located Toin NE SEW, Sec. 9954 tal depth ft Plugged bach total depth 9838 ft. Shut down while working oyer rig. Ute Trial bo N. 2 (located in Roosevelt Pool in SE NE, Sec. Ran casing at 9056 ft., with 350 sections. Core No. 13 at 9101-1ft,v recovered 8 ft Crews coring at 9151 ft. H. A. Peterson No. 1 (located in Roosevelt Pool in SW SW, Core No. 1, at Sec. ft., recovered 52 ft. 20-1S-1- i 28-1S-1- V ch 3 . 13-1S-1- 8979-902- 3. Core No. 2, covered 58 at ft re- Core No. 3, at ft, recovered 9083-9- 4 ft, 9028-8-3 11 ft. Drill-ste- m at ft., open 120 minutes, had a weak blow for 60 minutes and died, recovered 1 ft. of free oil, 1110 t water cushft of93oil andof gas-cuNo. 4, Core mud. ion, ft recovered between ft, test No. 2, 8918-909- 4 9094-914- 2 ft 41tti Joseph Smith No. 1 (Flat Mesa wildcat well, located in center of SE SE, Sec. Road and location complete. Waiting on contractor. Elmer Moon No. 1 (Antelope wild cat located 50 ft. east of center of SW SE, Sec. ft., Core No. 1 between 2416-6test recovered 50 ft Drill-steNo. 1, between ft, open 120 minutes, had a weak blow Initially increasing to a fair blow at end; recovered 30 ft. and heavy mud, slightly gas-c. 16-3S-5- 9 m 2301-246- 9 f ut tarry oil-cu- t. tween ft. Drill-ste- 2589-26- 45 m Core No. 2, beft., received 55 test No. 2, between open 60 minutes, had a weak blow initially, dead Continued on Page 2 2580-264- 5 ft, Synthetic Manganese Attempts by German 'metallurgists to produce a synthetic manganese ore for their steel mills during World War II are described in a Bureau of Mines report released today by Secretary of the Interior Oscar L. Chapman. The bureau now is engaged in similar reseach for American industry. Like the United States, Germany ladks adequate reserves of e manganese ores and was unable to import enough for military needs during the wii7 Consequently, researchers intensified their efforts to treat domestic manganiferous iron orasto '.produce a substitute for higbgde --manganese ore. high-grad- whole Pioche area. That was the analysis of S. S. Arentz and Paul Gemmill, engineers at the plant this week. Mr. Arentz and Mr. Gemmill pointed out that the recent 20 per cent drop in the price of lead and zinc is a serious prob-lem for C. M. R. There was not a 20 per cent margin of profit on the ores before the price drop, and at current prices with the same costs, the company is facJohn MARYSVALE, Utah W. Deer losses. of serious Wilhelm, president ing Trail that his Mines, reports In order to offset this, Arentz company has withdrawn its resaid, it is necessary to mine quest for a government loan. some of the high grade ore re- In a letter to the Director of serves, which is not good for the Defense Minerals Explorathe future of the mining indus- tion Administration, the company says: try of Pioche. First shipments of copper ore from Anaconda's r27,li00,000 No immediate cuts in personThis company hereby renel are anticipated, but the quests that its application for Greater Butte Project, commenced this month. Shown here company is not hiring men for an Exploration Mining Loan to is a copper miner deep under Butte hill, operating pneumatic replacements at the present assist a proposed project on its tons To drill preparatory to blasting. tap the 130,000,000 time. Arentz said that there Lucky Boy mercury (selen-- . ' of copper ore on this development, Anacondas wall have o be increased efi ium) deposit, be withdrawal and a low engineers are using an adaptation of cancelled as of this date. ciency throughout the plant. cost method of mining already in use in other properties. Mr. Arentz said that the comApparently we were laboring to under the delusion that the eleits get manganese pany hopes ments as for contained in the ores operation plant ready . soon as possible, but that the were In critical short supply work on this project has been and that extraordinary efforts should be exerted to bring all slowed by the steel strike. The staff members of the possible deposits into the known 1951 production of gold, DENVER, . Colo., July company criticized the Demo- reserves, and also that we have silver, copper, lead and zinc had a total value of $182,897,139, cratic administrations policy misinterpreted the intent of the the highest in the states history and 15 per cent greater than on metals. They pointed out laws creating your agency. We do not desire to become that of the 1950 output, according to final figures compiled by that the government has subsiInvolved in any program extrainves-mendized foreign mining the Bureau of Mines. neous to our long-randeveland at the same time The increase was attributed scheme unless the opment need fought foreign metals at a to do so is to larger outputs of silver, lead, or critical for urgent higher price than is being paid national defense. and zinc, and to higher prices Apparently it for domestic metals. for defense metals copper, lead not is This is a serious drawback to and zinc. Our reasons for withdrawing the domestic mining industry, Ultah again was exceeded only the application is that it could and it makes it unstable. Many to controversy in which lead by Arizona in its production of to mines close are forced for production being figues second ranked also and we have neither time nor incopper Utah mines past permanently because of these clination to engage. among the states as a producer a dollar value ex- practices. Deer Trail Mines is a consolif gold and silver. It was third J The federal munitions board dation of of any other year that ceeding In lead and ninth in zinc. companies formed by has also complicated the mining the late Patrick in the states history. in this most was the far Copper by This record, for yield of gold, problem by stockpiling metals district comprisingHenry followthe five the of products, silver, copper, lead and zinc, when they are scarce and failimportant companies: ing contributing 72 per cent of the can be attributed to several ing to buy when they are plenValdasia Gold Mines Corporatotal value. Lead was second factors. The most important was tiful. Such policies create peRainbo God Mines tion, high, providing more than 9 a higher price structure which riods like the present one, it ration of Utah, Gold Belt Corpoper cent, followed by gold with afforded producing companies was pointed out, and the do- Corporation, Patrick T. Mines Henry 8, zinc 7,. and silver nearly 4 an encouraging margin of pro- mestic market is made soft and Development Corp., Deer rsil unstable. cent. per fit This, together with increased CO., Carisa Gold Mines, Mr. Gemmill indicated that Mining Gold Mines the demand, demand of the defense metals, good Despite Trinity Corp. and stockpile, which could be the Greenhorn Mining Co., as high prices, and record total resulted in accelerated produc- the used to stabilize the industry, is well as the other values, the states 1951 copper tion efforts. mining propand erties which Mr. Henry had At the start of the current working against it. production declined slightly Mr. Arentz charged that many carried gold output down with year, metal prices were at a reathrough a lifetime of work dewhich have in- veloped companies delarge is most in the Marysvale of the level for sonable and gold it, production writh the federal govwas moving ahead at a prom- fluence rived from copper ore. ernment have substantial forThis was caused mainly by a ising rate. Figures for the first eign mining holdings, said that shutdown at half of this year will undoubt- it is to Jheir interest to ruin the stike and the Utah Copper property at edly prove very favorable. domestic production of critical (Week Ended Jnne 28, 1932) However, now, at the begin- metals. Bingham. The decline was offset at least in part by the larger ning of the second half of the If the prices were high, under BINGHAM DISTRICT, UTAH to is the zinc lead and beginning of year, volume picture Combined Metals Reduction-5- 50 silver, this program, there would be a change. Due to recent declines, low tariff or none at all When tons. produced. are subS. Mines 8690 tons. U. The states yield of copper de- prices of lead and zincstate-widwould the tariff prices drop, e clined 3 per cent from 278,630 stantially lower and domesthe .Utah thus Copper (Kennecott) allowing rise, short tons in 1950 to 271,086 in labor difficulties are beginning tic industry stability in times 1055 n cars daily average. 1951 and that of gold 6 per to develop. of stress. This would offer the PARK CITY DISTRICT, UTAH The producing companies, country the advantage of a New Park Mining Co. 1337 cent, rom 457,551 fine ounces to 4324316. Production of silver in- faced with lowered income, are strong and dependable domestic tons. creased from 7,083,808 fine besieged with demands for in- source of metals. Park Utah 1446 tons. ounces to 7,310,665, a 3 per cent creased wages. So clouds begin Combined Metals provides EUREKA DISTRICT, UTAH Lincoln County and especially Chief Consolidated 85 cars gain; lead from 44,753 short tons to darken the immediate future to 50,451, a .13 per cent gain, of one of the states greatest in- the Pioche area with its largest ore. and zinc from 31,678 short tons dustries. A condition can well single industry, and some conDragon Consolidated 36 . cars to 34,317, an 8 per cent gain. develop that would prove detri- cern has been expressed over clay. In 1951, 94 per cent of Utahs mental to the workmen them- what the new price level will Eureka Lilly 2 cars ore. gold production, 65 per cent of selves, to other industries and mean to the area. Empire 2 cars dump ore. its silver, more than 99 per cent even the public in general This Mr. Arentz said that he felt PIOCHE DISTRICT, NEVADA of its copper, 54 per cent of its latter, due to the loss in mine that when the steel srike is Combined Metals Reduction lead, and 53 per cent of its zinc tax payments. For a certainty, settled, the stockpile of zinc 3 cars lead concentrate, 14 cars were recovered from copper ore production cannot be main- will be used up rather rapidly zinc concentrates, 12 cars perore mined in the tained without equity between and that the price is likely to lite. and zinc-leareturn to a reasonable level. Continued on Page 2 costs and Income. (Courtesy J. A. Boyle ft Co.) low-gra- de block-cavin- g, Final Figures Show Utah Metal Output At Record Level 4r-U- tahs ts ge I . Ore Shipments six-da- y 85-to- d 1 |