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Show U OF CITY. : ' - LIBRARY U 1 ; . . METAL PRICES v 16c Load (per lb.) Gold (per oz.). $3 4.9125 24.2c Copper. 14c Zinc (per lb.) Silver (per oz.) 83.25c new mined Features TUjning,. Oil, Financial Vol. 23, No. 38 Salt Lake City, September Tsr 12, 1952 Drills Push Ahead In Basin Area Promising Ore Showing Cut At Tonopah TONOPAH, Nev. Supt. Percy Dobson has officially confirmed the discovery of an orebody of undetermined magnitude by th Tonopah Development Co. at the Summit King mine just north of town In an area which has never before yielded ore. Assays are running better than $50 a ton with the ore showing the traditional Tonopah ratio of 100 parts silver to one part gold. Dobson said that workmen have shouldered their way across five feet of the vein and tiie opposite wall still had not been contacted. He believes that the overall width will be between eight and 10 feet. The discovery, was made at crosscut the end of a on the level in the area where diamond drill cores indicated values would lie. The cores did not picture the true value of the ore as shown by current assays, it was said. Dobson, while expressingop-timisthat this may be it, cautioned that the operation may have just encountered a hot spot. He conceded, however, that this is unlikely and that there is a possibility that an entirely new mine field may be in the making. How far reaching an ' effect the new strike will exert on the economy of Tonopah is impossible to calculate at this early phase of the discovery. Should the orebody prove to be of commercial size and value, it will establish the fact that ore of the type which made Tonopah famous has been found in virgin country where possibilities are lmtless. Nonetheless, until such time as the scope of the new find is proved, it will be well not to indulge in premature celebration. 900-fo- 300-fo- . said that the next after step, ascertaining the width of the vein, will be to drift laterally in both directions to determine its overall length. Dobson Continued on Page 2 1 The United States is planning no change in its $35 per ounce price of gold, Secretary of. the Treasury Snyder said last week in discussing the annual meeting of the International Mone- tary Funds 50 governors, which opened in Mexico City. The announcement dampens hopes of gold producers that some action toward increasing the price of their product would be taken at this years meeting. Since the U. S. more or less controls the western monetary system through ownership to about of the worlds gold supply, its decision to stand pat for the present will very likely mean that nothing will be done by the board of governors. Big gold producing countries would like to see the price of gold go up because it would increase their dollar incomes. Furthermore, they believe it would help to stabilize the monetary system of the entire western worid. two-third- s 18-1S-1- m m 9 gas-cu- ot m ' The scouting division of the Carter Oil Company, northwest division, has released the following summary of drilling wells. G. E. ouston No. 1 (located in Roosevelt Fool in SE SW, Bee. Total depth 9769 feet. Attempted drill-stetest between 974664 feet, packer failed. Core No. 2 between 9744-6- 4 feet, recovered 20 feet. Drill-stetest No. 8, between 9755-6feet, open 2 hours, recovered 1500 feet water cushion, 25 feet t heavil yoil and mud; 5 feet of free oil. Seven inch casing set at 9768 feet, with 250 sections. Crews are testing. Ute Tribal No. 3 (located in Roosevelt Fool in SE NE, Sec. Total depth 9592 feet. ot Snyder Claims ' No Cold Price Change Planned One Year $150 18-1S-1- Pumpd e82 barrels of oti in 6 Vi hours, grindout .8 water. H. A Peterson No. 1 (located in SW SW, Sec. Core No. 23, between 10,088-14ft., re covered 55 feet Core 24, between 10,143-18- 8 feet recovered 45 feet. Core 25, between feet, recovered 23 feet ). jlcck of sufficient price encouragement in th e face of increasingly higher labor and material costs has resulted ina steadily declining gol d production level. With this condition reaching the .critical stage it is indicated that a suf ficient supply of new gold for monetary purposes will not be available in the near future. 3 10,-188-2- 11 Drill-ste- m Declining Gold Production Developing Major Shortage Bunker Hill Has Lowered Net Income test No. between 16, ft, open 120 min-utehad a strong blow immediately, gas to the surface in 2 minutes, had strong blow Recovered 4946 ft A serious gold shortage affecting the postwar currency sys- throughout clean, greenishbrown oil and tem throughout the world has been developing for a number of 278 feet of mud. Crews are coryears and has now reached the critical stage. ing at 10,224 feet World wide discussion of this enter upon a complete goldless Joseph Smith No. 1 (Flat Mesa is expected basis insofar as new government wildcat well, located in center important problem in the near future, according to of SE SE, Sec. Core is concerned. the Northern Mine of Toronto, paper No. 5, between 5478-8feet reIndeed, there is a possibility covered 8 feet Drill-stepointing out that decreased protest duction in the face of acceleratr that governments, in the aggre- No. 12, between 5446-8-6 feet ing demand is responsible for gate, instead of gaining a little open 2 hours, recovered 280 the condition. will begin to lose much, feet drilling fluid, slightly oil, r On the one hand there has gold cut. Crews gas and continues. it 5922 been a very large increase in at feet drilling At the present time the Uniin jewelry purhoarding, Elmer Moon o. 1 Antelope chases, and inordinary indus- ted States is selling gold to the wildcat well, located 50 ft east trial uses. Production has, at the and industries out of its of center of SW SE, Sec. same time, been falling sharp- arts, reserve at a rate exceeding 3W) Core No. 24, between 6654 6610 feet ecovered 566 feet Toly, mainly because of increased gold g costs, particu- two or three times annual new tal depth 6754 feet domestic output. larly labor costs. Canyon Government No. 1 North America and other The loss of gold to currency (Jack Canyon wildcat well, loareas where gold has not been systems is serious because of cated in SE NE, Sec. Drillstem test NoN. 29, between repriced are hardest hit by the the great increase in governdevelopment, the publication 75 minutes, feet mental financial responsibilities recovered 180 open states. ft. gascut mud, water cushion, In past years monetary in- iSi recent years and because of 900 feet gas-cu- t stitutions gained approximately the tremendous military defense no gas to surface. Total depth a billion dollars worth of gold a programs which free nations 9802, plugged back to 9205 feet mud. year, it is pointed out. In the are now required to maintain, it Conditioning years 1939-4- for example, these is contended. .institutions took in an average There is scant hope of bringof $1,092,000,000 per year of new gold, or about 104 per cent of ing a dishoarding of gold at present price levels, the publiproduction. cation pointed to the Recent competition for the re- abortiveclaims, French attempt of tyduced supply of new gold, from The WASHINGTON, D. C. a issue to band which gold ing the trades and arts and from succeeded in raw materials subcommittee of bringing out only people who prefer gold coin and about one the ComJoint Atomic Energy per cent of French bar as a form of treasure, has p mittee hoards.. stepped-uefforts private urged increased sharply and in 1951 To stimulate gold production, to locate new deposits and monetary authorities got only to stimulate dishoarding, to les- sources of uranium within the 15.8 per cent of production, or of the sen private buying, and thus to U. S., together with more emonly about amount of gold secured in the bring more gold into the hands and uses of the state, thfere is phasis on new techniques for average year 193945. e ores. The one procedure open. processing Knowing that world producIt is the simple one of rais- group described as faulty the tion of gold is declining, and knowing the depressing effect ing the official price, uniform- assumption that supplies of uraof continually rising labor costs, ly. nium are rigidly fixed. SupA would see not there can observer that the higher gold price plies of the metal will vary with may be now new gold whatso- induce inflation, but merely the amount of money, manpowever available for monetary recognize ,an inflation already purposes by as early as 1953, here, and it will regularize the er and effort directed toward the Northern Miner states. economics of the Western world, obtaining them, the subcomThus the Western world may the Northern Miner concludes. mittee declared. 10,145-18- 8 s, , . Hill and Sullivan Mining and Concentrating companys net income for the six months ended 'last June 30 to- Bunker taled $1,979,284, President Stan- ley A Easton reported this week in a statement to stockholders accompanying checks for the third quarter dividend. This is the equivalent of $1.51 a share of common stock and compares with earnings of or $1.85 a share, for the comparable period of 1951. Gross income from sale of metal and treatment charges was $23,102,561 in the first six months of this year, slightly less than the' $244,512,962 received in the first half of 1951. Profit from operations totaled $2,612,586 after deduction of $390,975 or taxes other than federal income and excess profits taxes and $390,173 for depreciation, depletion and amortization. In the first half of 1951 operating profit totaled $3,993,-555, 2. Net income before federal income and .excess profits taxes was over 30 per cent lowr this year, the decline being from in first half of 1951 to $4,-350,8- in the first half of $2,989,089 1952. The 6 m , salt-wate- 8-4- mine-operatin- E) 9338-847- 9 . 5 New Uranium Hunt Requested one-eight- current dividend- - pay- ment is comprised of dividend a No. 693, a regular disburseshare a regular ment, and No. 694, an extra 25-ce- nt 25-ce- 16-3S-5- nt payment of 25 cents a share. It increases the companys dividend total to $73,739,144, of which $72,281,250 has been paid to common stockholders and to holders of preferred stock. $1,-457,8- h low-grad- -- S |