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Show . V'OF ' CITY I, U ,t LIBRAHY 1 . .i ' Tjm: : -- . . f. . .a.m I a. , RY MMlH 6 V.53 JUL mlt jjl&tmtl Mbng, t VoL 24. No. 27 Oil, Financial Salt Lake City. Utah, July 4, 1953 One Year $2J0 Huge Gold Prospectors Divert Efforts Toward Store Held Rare Metals Uranium Favored Finding a get them posits, Fahrenwald said. For Hoarders tinue to scour prospectors By the Wests that reason, followup .exploration until some job job opened. the Bank Recent estimates the fact that are on the Bureau the war - con- Part-tim- e four-squar- es moun- by of International Settlements place the value of gold held in private hoards in various parts of the world at aproximately $11,000,000,-00the Institute of Life Insurance lids does not include reports, gold which has been used for industrial purposes- 0, The U. S. governments gold holdings of about $23,000,000,000 about twice as great as Se only private foreign hoards. Private ownership of gold is forbidden by law in this country. Significance, of the hoarding figures can be seen in the fact that private foreign gold hoards alone are as great as official gold reserves of all governments in the world outside the United States and Russia, the Institute Estimated total of points out official reserves is $10,800,-000,00- 0. these . The paradox of the situation, the Institute .says, is that there is such a vast store of idle ant unproductive money in the world while at the same time there is a severe shortage of dollars for trade purposes and a great need for investment capital for modernization of production and for areas to helping undeveloped realize their potentialties. " '1 Another apparent contradiction is that hoarding is most preva lent in those parts of the world .which have the greatest need for investment funds and productive capital. The Bank of International Set tlements estimates more than half of all hoarded gold is in the Orient, and there is evidence of hoarding in the Middle East, Latin America and Africa. It also reports gold hoards in France are variously estimated at $2 to billion. The greatest amount of gold hoarding occurred in 1951, reflecting events in Korea and their inflationary aftermath, the Life Insurance Institute says. In that year an estimated 59 per cent of known gold production disappeared into private hoards while only 15 per cent was added to official In the previous gold reserves. five years from 46 to 58 per cent of total annual gold has been added to official gold reserves yearly. Initial objectives have been won, ing years prospectors turned to the strategic metals the Interior Departments Bureau needed for the war economy. of Mines reported recently, to a Today most of them have vis- top priority campaign to develop ions of cashing in on the $10,-00- 0 methods for recovering strategic bonus posted by the atomic manganese from the Wests large ore. energy commission for a urani- reserves of low-graum deposits meeting its standProcesses were developed dur-n-g ards. two years of intensive reThe metals that have built search to laboratories at Salt Idahos great mineral industry ake (Sty, Utah, and Tucson, gold and silver are merely Am. They have been proved, in the bureau from part-tim- e incidental today, Fahrenwald art, in the last 18 months of declared. Prospectors are aftprospectors in all parts of the pilot plant operations at state. Two of the specimens er uranium and the rare-eart- h Boulder City, Nev. were more than ordinary signifmetals asodated with monazite, The problems are icance and warrant further atand they are just learning how difficultmetallurgical to be much remains and tention as soon as posisble. to hunt for these metals. advances but done, significant One of these was the first Uranium samples tested by the now have been made, Regional Diof monazite rock form in sample Bureau; he said, are just short rectors H. C. Miller of San Franever received by the bureau. It of being economical to mine. cisco and J..H. East, Jr., of Denwas found near Salmon. So. far Fahrenwald reported that exannounced jointly. ver, all known deposits of this straploration for oil is being conMaganese is indispensable , in tinued in southeastern Idaho, tegic mineral in Idaho have the manufacture of steel, the No. 1 been associated with placer' but no discoveries have been metal of our industrial economy. sand. made. Hie other unusual specimen The board of control of the Thirteen pounds of it go into each high-grade aluwas kyanite, a Bureau is made up of Dean ton of steel. . There is no acceptsaid. minum silicate used in the manFahrenwald, Gov. Len Jordan, able substitute, they knownf ufacture of porcelain for sparkSttfte Mine Inspector George Lacking large deposits of commercial-grad- e manganese, plugs. It came from a deposit in McDowell, Henry L. Day, presBenewah County. ident of the Idaho Mining Asso- the United States is. dependent "Information with . the sam- ciation, and Professor Earl upon imports for about 90 per cent ides indicate they could repre- Cook, head of the department of of its requirements. After World War H, we obtained considerable sent economically important de-geology at the university. manganese from Russia until that country imposed an embargo late -- to 1948.-:No- w? -it comes largely -from India, Africa, and Brazil, contingent, of course, upon sea lanes remaining open. To establish a measure of both Solons Side - Track Vital Issues and national seInterests of the domestic mining industry are receiving little con- curity, the Bureau has concentratsideration in the present session of Congress, according to a special ed a significant part of its staff Rule 334 under the Securities analysis of mining legislation prepared this week by John Kamps of and fluids on reaserch to develop Act of 1933 provides' that oil or the better and cheaper methods for Washington staff of the Associated Press. from steel-furnagas interests involving The only metal mining bill recovering manganese e ore inand tracts of land may be slags so far was one to benefit passed cluded in the same offering sheet consumers rather than producers. deposits. under Regulation B only if the It suspended the small import By Congressional authorization, interests offered are producing duty on foreign copper, and was flotation and hydrometallurgical landwowners royalty interests and rushed through Congress in Feb- pilot plants were built in Boulder if certain other conditions are prove ruary, the fourth piece of legisla City to develop further anddevised met The purpose of this rule is the laboratory procedures tion to be enacted into law. to guard against investors being at Salt Lake City and Tucson for Many measures favored by the ores of the misled through the inclusion in a Artillery Peak (Ariz.) Colo. Seven mines industry have been introduced DENVER, of interests sheet This stogie offering deposit, 50 miles and quarries of the Rocky Moun- since the current session conven- district in different tracts which may vary tain south of Kingman and one of this area were among the winners ed in January but there has been been estigreatly in present or prospective of safety achievement certificates little action on them. Hearings countrys largestU. has value due to their location with S. Geological the the National Safety Competition have been held on some and a few mated by contain minimum of a reference to other tracts devel- in to Survey of 1952, J. H. East, Jr., regional have been approved by commit175 million tons of marginal and oped or proposed to be developed. director of the Bureau of Mines, tees. submarginal material. Of the toTwo bills, one to permit mining However, it has been found that announced recently. some 15 to 20 million tons in certain instances the rule has They and 138 other mines, quar- on public lands reserved for pow- tal, is believed to contain 5 per cent operated with unnecessary strin- ries, and open pits operated a to- er development and other pur- or more manganese and more gency and has resulted in the fil- tal of more than 17 million man- poses and the other to encourage than 2 million tons is estimated ing of additional offering sheets hours last year without a lost- domestic production of tungsten, Continued on Page 3 in- time with respect to injury. There were 603 .en- have been passed by the house. terests in different tries, a gain of 18 over 1951 and The former has been to the hands tracts in order to obtain the the second highest enrollment in of .a Senate committee since exemption. Where, for example, the contests history. Man- House aproval on April 20 and acWeek ending June 27, 1953 all of the tracts involved are lo- hours of exposure for all contest- tion is being held up pending reBINGHAM DISTRICT, UTAH cated a considerable distance ants totaled more than 160 million. ceipt of reports from the secreCombined Metals Reduction from any tract developed or proPerfect safety records were re- tary of the interior and the bud200 tons. to be developed, there may ported by 186 contestants, but 35 get bureau. posed U. S. Mines 7167 tons. in the worked less than the required 30,-0be no discernible difference The tungsten bill, which would Utah value or prospective value of the man-houCopper (Kennecott) 960 and so were inel- extend for two years the domestic n cars daily average. several tracts and consequently igible for the certificate award. tungsten purchase program schedCITY PARK DISTRICT, ' UTAH in such a case there is no reason Regional winners include three uled to end 1, 1956, was apJuly 1697 New Park Mining Co. why all such tracts may not be to Colorado, three in Wyoming, proved by the House without optons. included in a stogie offering sheet and one in Utah. position last week after spokesEUREKA DISTRICT, UTAH men for the tungsten industry told 44 Accordingly, the commission has ore Chief Consolidated a House subcommittee that the amended the rule so as to pro- Copper Sulfate cars. land vide that Production of copper sulfate in extension was necessary to stimu- I Dragon Consolidated clay 25 owners royalty interests in non- May dropped '14 per cent below late prospecting and mining of cars. a vital defense metal. contiguous tracts may be includ- the April tonnage, and was less tungsten, Empire Mines ore 1 car. Much of the current domestic suped in a single offering sheet where than shipments which rose 12 per PIOCHE DISTRICT, NEVADA it appears, on the basis of all pas cent according to the Bureau of ply is imported, but some is proMetals Reduction Co. Combined or proposed development for oil or Mines, United States Department duced in Idaho, Montana, Califor7 cars. Lead cone. zinc cone. gas, that an of the tracts have of the Interior. Stocks dropped 4 nia, Nevada and Virginia. 2 cars. Perlite 13 cars. equal possibilities, and where al per cent but were sufficient for A bill to define and protect the MARYSVALE DISTRICT, UTAn of the other conditions of the rule little more than a months needs rights of miners who file claims Deer Trail Mines 1 car. are met at the May rate of shipments. Oowttaned on Page 2 (Courtesy J. A. Rpgle & Company) tains, despite they have been prospected steadily since the gold-rus- h days. A W. dean of the UniFahrenwald, of Mines of School Idaho versity and director of the Idaho State Bureau of Mines and Geology, reported at the annual meeting of the Bureaus board of control. Diming 1952, he said, nearly 800 mineral specimens came to Sheldon P. Wimpfen, manager of the raw materials office of the Atomic Energy Commission at Grand Junction, Colo., says uranium ore production on the Colorado Plateau is increasing at an excellent rate. "Production in the first quarter of 1953 is almost double that of the same period in 1952, he says. The AEC official says that this, 'to him, shows that present prices paid for ore on the Plateau must be adequate. The price was increased two years ago, along with a bonus program, he adds, and "the reason for that increase was to encourage production. "The excellent results are conclusive, he says. projects schedule for the coming field season. Other field projects recommended for this year include: Completion of the Meyers Cover fluorspar project in. Lemhi County; a survey of the Seven Devils mineral area in Adams, Washington and Payette Counties; a study of the W. R. McDowell property in Idaho County; and a study of a potential area south of Blackbird in Lemhi County. Most of the samples received last year, he said, came from people who thought they had ' struck something in uranium or one of the rare earth metals. "The number of mineral samples coming in for identification has been running between 700 and 800 every year since the depression, he stated. "While the number has been fairly stationary there certainly has been a change in the kind of samples and the question asked. During the depression, when the current part-tim-e prospector rush had its birth, most of the mineral-huntinwas being done who men were by only inter- ested in finding enough gold to . . de con-inuo- us cobalt-copper-go- ld g SEC.Amends Rule On Oil, Gas Interests Pass Favorable Mine Legislation U.: S. Congress Fails To self-sufficien- cy ce non-contig-uo-us low-grad- Mountain Mines Lauded For Safety non-produci- Production Of Uranium Shows Substantial Gain day Dur- Battle For Manganese Makes Gains ng non-contigu-o-us . 28-ye- Ore Shipments ar 00 rs 85-to- non-produci- ng |