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Show March 12, 1954 The Western Mineral Surrey, Salt Lake City, Utah Cause Of Land Rush Takes Huge Depression Note The Nevada Area ticle(Editors is reprinted from the east of Ely. The new discovery was viewed by oil industry members as being of tremendous importance because of its opening .to potential development of a vast region of heretofore unproductive domain. According to information contained in an article by Frank J. Gardner, oil geologist, appearing in the February 9 issue of the Oil & Gas Journal, Nevada lies in an area that is Ijighly promising fo; the development of oil production. Exerpts from the article follow: Geologically, Nevada lies within . tiie province and displays three major tectonic Basin-and-Ran- ge sedifeatures; the sedithe Paleozoic mentary basin, between and them, mentary basin, Permo-Triass- ic a Paleozoic high known as the Manhattan geanticline. Of these two basins, the eastern or Paleozoic basin offers the better possibilities for oil accumulation and it is here than an active wildcatting program is now under way. Gulf Oil Corp. has ' three 6,000-fotests seeking the Humboldt (Pliocene) formation, and hole Shell is drilling a 6,000-fosouthwest of Gulf wells. This Paleozoic basin extends eastward into Utah and has an ot ot . area bf more than 70,000 square miles; it. is believed to contain of 15 following arNorth- ern Miner; Canadas foremost mining publication. This is how our neighbor to the north views American Gold Policy.) Somebody has taken a $25 million bite out of the American gold cherry, to register the first loss the Treasury has suffered this year. The taker was probably Britain. Last year the U. S. Treasury lost a billion and a quarter of its gold reserve as other nations built up their piles. Apparently the thought over, is not yet Now that Russia has finished. seemingly stopped selling gold probably from exhaustion of ready governments abroad supplies must gratify their appetite for gold largely at American expense. This is because the major part of current mine production continues to. find its way into private hands, or gets used up in ornament and in industry. The American pile at last count was $22,005 million. One more bite and it will be $21 billion something. Another years loss like last years and it will be $20 billion odd. Theres psychological magic in figures like these. If the Americans ever see their gold pile falling through the $20 billion line theyll get excited. , They should be excited now, because the depression in prices which is bothering so many American business men stems, in most part, from the , great desire of countries abroad to build up their gold reserves. In order to gain g power these foreign governments follow policies that have a tendency to hold down wages and prices. That tendency is being exported to America. Zinc is one example and a good one. Deflationary policies abroad permit foreign countries to ship zinc into the U. S. at nine cents' and make a profit while American miners lose their jobs. So long as American-Canadia- n prosperity was running high, on artificial sfilts.lt was next to useless to try and get the big gold facts across to people. . J nt, gold-buyin- nearly 287,000 cubic miles of sediments (80 per cent of them marine). Its western edge is thought to lie along the line of Permian facies change on the eastern flank Of the Manhattan geanticline. " Its geologic structure, as yet, not fully known, is complex and is characterized by innumerable faults, folds and intrusions; structural anomalies favorable to the and Standard of California, leases accumulation of oil are legion.. were ' taken by Carton Oil Co., Evidences of oil and gas in the Phillips Petroleum Co. and The eastern basin of Nevada have been Texas Co. recorded in numerous cases in the In eastern Nevada, then, the form of surface oil shales, fosgeologist finds all the exploration sils containing small amount of essential elemento-for the producfree oU, gas and oil seeps and ac- tion of oil, so far, the oil; tual .showings in wells. The one source rocks,except, reservoir rocks, evilegitimate oil seep on record is on dences of migration, and favorable the Bruffy ranch; here, the oil structures. The one final discovoozed out of Mississippi strata onto medium will be, as always, the the surface of the water in a well ery and if drill, present and indicated drilled for irrigation purposes. future, drilling programs continue, Whether these evidences indicate Nevada may well be the 29th state commercial oil accumulations or to oil. produce simply residual deposits is still in doubt, but they do point up the existence of petroleum at one time. H-BoPotential reservoir rocks are present in the permeable sand sections of the Tertiary and Mississip-pia- n, limestone in the Devonian Lithium, the lightest of met? Is and Ordovician and dolomites of a key element in the manuand Silurian age. of the is one mafacture The deepest well in Nevada was which with this terial country is drilled in 1952 by Standard Oil Co. well supplied, according to the buof California and Continental Oil reau of mines. Co. to a total depth of 11,543 feet, Reserves of the &oft, silvery metwhere it was abandoned after logal. which is similar in appearance in oil of traces and gas ging only and chemical conduct to sodium, hole The strata. Permian penen are into the Mississip-pia558 ample fcp any foreseeable detrated feet either-fo- r atomic or comDiamond mand, after topping the mercial bureau the uses, Peak formation at 10,985 feet. It reports. was considered a conclusive test of In the manufacture of hydrogen the Summit ' Springs structure of bombs, lithium serves in a dual White Pine county and was situ- capacity, dt is a raw material from ated approximately halfway be- which is produced one prime intween the current wildcats of Gulf gredient itself in at least one verand Shell. sion of the super weapon. In addition the element has a Geophysical and leasing work reached a peak in the state during number of important industrial of seis- uses particularly' in the manufac1952, when 81 crew-week- s gravity-metand actviity ture of ceramics, glass, enamels mograph besides 3 r Gulf, Shell and greases. vers corded; j - . Material mb In Ample Supply a b, : . will Mining m The stampeding for oil leases in eastern Nevada and western Utah has now subsided somewhat but not until after several million acres of federal lands had been acquired,, according to reports from U. S. Land offices. Cause of the land rush was discovery by Shell Oil Company of a commercial producing well at a depth of 6800 feet in Railroad Valley, Nye County, Nevada. The area is located some 65 miles south- Coeur d'Alene To Lead Lower To Operations Dividend Pay Resume At Price Prompts Sunshine company dividend cents a regular pay a share for the first quarter, it Summit King New Buying was announced last Monday by reduction in the price er of The . The Summit King mine just lead to 12V& cents a pound, New Secretary C. M. Hull following a north of Tonopah, Nevada will be- York basis,, met with favorable meeting of the board of directors ' Wash. gin s toping and shipping ore with- buyer response last week and there in Yakima, in the next few weeks, it was dis- was some slight improvement in It will be the companys fourth closed following a visit here. this zinc sales, but demand for copper consecutive payment for the week by top officials of the con- continued quiet as consumers amount Prior to that a rate cerns interested in the operation, awaited enactment of a new gov- of 20 cents a share was maintainaccording to an article in last ernment policy in Chile, according ed for several quarters'. weeks issue of the Tonopah Times-Bonanz- to E. & M. J. Metal and Mineral , 15-ce- nt a. Markets. In Tonopah to personally inspect the property, which has experienced a series of up and downs since the discovery of gold-silvore in August of 1953, were Ira B. Joralemon, a director of both the Homestake Mining Co. and Bralorne Mines, Ltd., and Dr. T. M. Broderick of the' Calumet & Hecla Consolidated Copper Co. Also on hand was Percy Dobson, Summit King superintendent. er , The ground 'being developed is owned by Calumet & Hecla and is under lease to Summit King, a Bralorne subsidiary, and Home-stak- e. Extensive diamond drilling at various has been undertaken ' recent weeks, to times, including ascertain the scope and value of the orebody which brought rich assays at higher levels. This week Broderick indicated that the operators have gone as far as is considered practical with diamond drilling which is unrealistic so far as values are concerned. The next step is to actually begin taking out ore in the hope that s toping will disclose an extension of the orebody beyond the limits indicated by diamond drilling, he said. i All three officials made no se-- . cret of their opinion that the ore-bodoes not appear to be as large, as had first been believed, and that the property may be after dosed down temporarily removal of the known vein, matter is accomplished unless additional orchis discovered. Kennecott Copper corporation acted quickly to meet the changing copper situation by making further cutbacks in production throughout its western operations. Its Ray division in- - Arizona and its Chinco division in New Mexico will reduce operations from a six to five-da- y week at the end of this week and its Nevada and Utah operations will effect a similar cutback on March 15. Nearly 1200 men will be laid off 355 in Arizona and New Mexico, 644 in Utah and 170 in Nevada. Additional cuts in zinc output were also made last week .by American Smelting and Refining company. The company said it is reducing refined zinc production at its Amarillo, Texas, plant by 900 tons monthly and trimming production of zinc fume at its El Paso plant by a similar amount. The new cuts bring the total reduction in domestic zinc production to nearly 15,000 tons a month. The disbursement will be made on March 31 to stockholders of record March 1. It will total $223,-32- 3 and will boost to $32,803,725 the firms dividend outlay since payments were started in 1927.' Sunshine is the nations largest silver producer, and also produces of lead, copper, and substantial quantities ,in antimony from its own and adjoining properties in the silver belt between Wallace and Kellogg. The adjoining properties are operated from .deep levels of the Jewell shaft under profit-sharin- g agreements. by-produ- "t Well my son, what did you learn in Sunday School today? We1 1 Copper Until Chile has finally settled its copper difficulties the market situation is not expected to change much one way or the other. During the last week it became known that Chile intends to set up a National Copper Institute in which representatives of the government and the producers are to cooperate in handling the affairs of the industry, including market. ing. Lead Consumers were in the market for larger tonnages of lead. Sales in the domestic market for., the t week totaled 9,703 tons, which compares with 5,628 tons in the preceding week. Though the price was lowered from 13c. to l2V6c. per pound most of the weeks business was dosed on an average price basis and involved March shipA total of 347,594 shares of ment metaL stock valued at $237,702 changed Zinc hands on the Spokane ' Stock exThough theweeks business show- change during February, according to Ben Harrison, exchange learned all about a cross- eyed bear. About a what? Yes, sir; named Gladly. We leahied a song about him: Gladly, the cross Id bear. . Dad, give me a dime. Not. today, sonny, not today. Dad, if youll give me a dinve, Ill tell you what the iceman said to mamma this morning. Here, son quick, whpt did he say? He said, Lady, how much ice do you want this morning? - . dy Trade Slower At Spokane What would your husband say if he knew you were necking like this?. . I really dont knov He doesnt know I can neck like this. Friend: Haj your wife changed very much since you married her? Husband: Ill say my habits, my friends, and my hours ed some improvement, compared with recent weeks, the market was far from active and the situation here was unchanged. Stocks are too large to induce buyers to stock up under prevailing uncertain conditions. president This represented a substantial decline from the January volume of 448,624 shares with a valuation of $382,282. In February, .1953, exchange business amounted to 344,-17- 7 shares for $305,382. Leader in share volume last month was Mineral Mountain, with a volume of 52,500 shares. Independence ranked second with 47,700 shares, followed by Sunshine Consolidated with 43,400-shar- e Subscribe Now f Western Mineral Survey . turn-ove- 2214 East 1st South Salt Lake City, Utah PUBLISHED ONCE EACH WEEK I r. Bunker Hill, consistently a favorite, was tops in dollar volume, its total for the month being $42,-68Polaris and Sunshine were second and third with $35,569 and $33,021, respectively. February board sales amounted to 126,769 shares for $47,008, with the balance for the month going at between-sessio- n sales. 7. Late News, Quotations, Information Service, on Mining, Oil, Financial KEEP POSTED ON THE GREAT URANIUM BOOM $3.00 One Year Uranium Continued from Page 1 are being sent from , the property values running around $30.00 during the month of ' February. Seventeen workmen are employed at the mine and offices of the company are at Moab, Utah and 419 Walker Bank Building, Salt Lake City with production $5.00 Two Years Subscription Order Enclosed find for which send me Western Mineral Survey for Address NE V 4 i I t |