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Show The Western Mineral Survey, Salt take April 9, 1954 City, Utah Six Kellogg Shell Oil To Begin United Park City Holds Second Nevada Well Firms To Seek Property Ready For Opening Drilling and consumes between well Shell Continued from page Company is expected to begin drilling a second total near Uranium consumption miles from its Eagle Springs within the worlds days about miles southwest Company became a these metals and produces some Current, Ely, according to reports released this x Oil No. two 30 1 oil well ? week. new said the Shell spbkesmen well, to be the second of several additional test wells to be drilled in the Railroad valley area, will be put down about two miles south of the present well. Coastal Drilling Co. crews are working around the clock deepening the Eagle Springs well, where oil Shell encountered a 350-fobearing strata. This well is aplevel at the proaching the 7,900-fopresent time. Workmen at the well site reported drilling was still encountering rock of volcanic origin, similar to that in which oil. was first found. The well is expected to be deepened to approximately 12,000 feet No additional oil bearing strata has been discovered since the first oil was found below the 6,400-folevel. Officials in charge of the drillengineering ing project said studies still had not determined whether the discovery will mean that commercial production will Sunshine Oil .Ventures Develop Value , ot ot non-as-sessa- el . ot 35-cla- im 10-clai- m Lake-Minne-h- , : - m Small Oregon Town; New Rush Administration Praised For Mine Relief The 30 of the free worlds primary former companies were closed by production of lead and zinc. It labor difficulties and a 'strike in would be equally poor economics the summer of 1952 and have re- to destroy our domestic mining in- U. & I. Uranium, Inc., has been corporate entity May organized to serve as. operating company for the six Kellogg mining firms which are collaborating oh uranium exploration ventures in Utahs San Juan county near Moab, according to Lester S. Harrison, Kellogg, attorney and legal counsel for the firms. Sunshine Mining companys oil Articles of incorporation for the ventures in the province of Al- new firm were filed with the Shoberta, Canada, are developing in- shone county recorder last week, to items of substantial importance, listing a capitalization of $1,000,000 according to a letter received by with 10,000,000 shares of stock. Wen-dstockholders today along with R. Brainard, Harry G. Alway divichecks for the firt-quarte-r and C. Whalen, all of Kellogg, are . dend. , Several events of note" have the incorporators. of taken place, in connection with Incorporation separate engithese ventures since the firms neering and diamond drilling comannual report was written on Janu- panies for the joint Utah ventures Coeur ary 30,. President R. M. Hardy of Caledonia Silver-Lead- , states. dAlene. Silver Giant, Nancy Lee, holes which New Era, Signal and Silver Bowl The two step-u- p were then in progress west' and mining companies is also planned, Harrison said last week on his renorthwest of the Minnehik-Vikin- g discovery have been completed as turn from an inspection trip to the oil producers in the Cardium sand, Moab area. Much of the preliminary work and two additional holes one farther northwest and the cither on the groups original holdings . result Hot Rock group and Meanwhile, in Reno, Manager A. several miles west and south of the the Radon are now in prog- the adjoining L. Simpson of the federal land of- Minnehik-Vikin- g fice reported that applications for ress. group in the La Sal area southeast ik of Moab has been completed, The Pembina-Buc- k oil and gas leases have been filed field 60 miles southwest of Ed- Harrison reported. Access roads on almost 7,000,000 acres of public domain in Nevada since oil was monton covers an area of approx- to the proposed drilling sites' have discovered near Current six weeks imately 30 square miles and Sun- been built and drilling is. expected shine has interests varying from 4 to get underway in about a month ago. of when the engineering , staff com6 per cent, Hardy reports. to land However, there's plenty owns to which reserves oil Estimated left. The federal government pletes its studies, s ' owneracres-of of Homestake Mining company has the firms .percentage approximately 65,000,000 : land within Nevada's borders. ship applies now including 1,000, recently acquired, the group of Lease fees and rental collected 000 barrels proven and approxi- claims which adjoin the Hot Rock by the office since the Shell Oil mately 40,000,000. barrels indicated property on both the north and Co. hit oil in what may be com- but not proven, he says. south, he stated. The Moab field staff is 'continumercial quantities 65 miles southDevelopment of the area and west of Ely have amounted to exploration of additional adjacent ing its investigations for promising $3,469,124. acreage is being carried on and properties and one new group of ' of some this is expected that much of this 20. claims, known - as the Rocket said it money Simpson would be returned to applicants indicated reserve will be converted group, has been staked for the asin cases where more than one per-pt- o the category of proven 'reserve sociated group in" a. new uranium area in Grand county, 15 miles son has filed for the, same acre- during 1954," he adds. Socony-VacuuOil west he that of Moab, Harrison said, i Co., Inc., age. However, reported Costs of the Utah ventures are such cases of which duplication to termed the Pembina oil field its date have been much less than ex- outstanding .Canadian oil find of being shared equally by the six 1953 in its recent annual report firms and each will receive 1,000,-00- 0 pected. The discovery may have been one shares of the new operating in most North of the do Driver What mileage firms stock in return' for its inyou significant vestment in the projects. The readded. the America during think I get from this car?" year, it ' i maining 4,000,000 shares will be rePassenger Half." tained in the firms treasury subDriver Half. What do you mean? ject to dispostion with the approval of the stockholders of the six comPassenger Half of what you 1 panies. area going to tell me you get." Scene-O- f ' Organization of the new firm makes it unnecessary for each of . the. associated companies to qualify to do business and hold property Prospecting fever reminiscent of in Utah, Harrison pointed out the old days stirred Wallace Miner. the little eastern Oregon communv Malheur in of county, Harper, ity last week following the report of a promising uranium discoyery by Continued from Page 1 Louis Hall, auto mechanic and charge of the stockpile program part-tim- e prospector, from nearadminister it in the vigor and spir- by Ontario. it obviously intended by our chief One store in the little village WASHINGTON, D.1 C.' The will tents and reliance stocked House commitMeans executive, principal Geiger counters, Ways and be placed on American metals as burros in anticipation of a pros- tee has agreed to continue most it should be pecting boom and last Sunday of the controversial tax reductions Malone said he had information dozens of allowed to oil, gas and mineral that the Presidents cabinet. com- prospectors' took to the hills. companies for depletion of their mittee will later submit a proposed On the following day, however, natural resources. But the tax writers made a permanent minerals policy. Mount- F. W. Libby, director of departing evidence, he pointed out, con- ment of geology and mineral in- series of adjustments in the defirms the necessity for an added dustries, reported that samples pletion allowance for various unit price to domestic materials from the area tested so far have types of mines. Authorities said equal to the difference in Ameri- not shown any mineable amounts the result would be a tax cut on can wages and taxes and those in of uranium., . " mines, of about 15 to 20 million the chief competing foreign counHall filed 'claims on his discov- dollars annually. tries. ery last week and is reported to Under the allowances, comHe added: Undoubtedly, pres- be making preparations to live on panies are allowed a' percentage sures will continue to be placed the property. He nas obtained a deduction from their gross income on the government by strong Geiger counter reaction in in figuring their tax billS. The forces to purchase abroad the the sand hill area near Harbor theory is that oil, gas and mincritical materials and metals that Basin road. erals are declining assets and such can b provided by our own inThe Spokane office of the de- a business can not continue industries, particularly in the west. partment of interior has been di- definitely, as others might. Insofar as this nressure is resisted rected to make a check of the A new provision for minerals apand reliance placed on domestic minerals, according to Paul L. ples the 15 per cent rate to all industries to fill, our exoanded Wells, department geologist minerals not specifically named stockpiles, the Presidents new Harper is located about 40 miles in the law. This extends the alminerals not program constitutes a reversal of southeastof Ontario and about 75 lowance to several miles wst and slightly north covered now, ' such as gypsum, the New Deal Acheson-Truma- n . V Boise, Idaho.. 'mineral pigments ' stockpile policies. gold-mini- of of City. Mines of 65 50 40 1 8,-19- 53 mained closed since that time. Although 'these differences and the strike were settled by entering into a; new contract, effective December 1, 1953, work has not been resumed because of the low market prices of lead and zinc. Activities during 1953 consisted of maintaining the organization and the plants and underground workings at a cost of approximately $30,000 per month.. The Financial Statement for 1953 is herewith submitted. The mining claims of the United Park City Mines Company now form one consolidated block of about 9,000 acres, In addition to a considerable acreage of land with mining rights or held under lease and option to purchase. From this area since its discovery in 1872 there has been mined tons of ore, and dividends of have $70,000,000 approximately been paid to stockholders. The properties and workings of the two former companies were in such relation to each other that it was believed their consolidation would result in many operating and development advantages. A considerable acreage of this property is unexplored.. Plans for. ore production and a long range program : of development have been made and it is confidently expected, when the prices of metals will permit, that operations will be successful and profitable. After the close of World War II costs of operation rose steadily. For a period of time the price of lead and zinc also rose .up to high about January 1, 1949. From this high, which represented a combined price for a pound of lead plus a pound of zinc of 3754c, the combined price fello 2094c by the end of 1949. Again metal prices increased, reaching a combined price high of,3854c by .the end of 1951 and again plunging down to a present low of 2194c, combined price of the two metals. Such wild fluctuations of lead-zin- c prices are equally demoralizing to the fining industry, to the fabricators of these metals and to the consuming public, especially in the United States. It should be realized that the United States some-12,000,-00- dustry nnft become wholly dependent upon foreign sources of supply as it would.be to shut out such imports when needed by us. Somewhere in between these two extremes a is the proper solution of this problem. Many mines, including your own property, are now dosed, while others are operating- without profit or at a loss.' Every effort is bring made to find some remedy abnormal condition, eithfor er through congressional action or otherwise, which will permit resumption of normal production at 9 reasonable profit." - New Mexico Uranium Work Gains ; The ALBUQUERQUE, K M. of uranium new field relatively mining is booming at fever pace in New Mexico. The State Land Office reported more than 300 prospectors from all over the nation hard at it with Geiger counters and more ' sensitive scintillators capable of detecting atomic powers raw material under the earths surface. - .The Land Office said the prospecting is underway in 11 counties, including San Juan, McKinley, Valencia, Rio Arriba,' Qua Torrance, Sierra, Catron, Curry, Lincoln, and Dona Ana. A rich uranium strike was reported found in Eastern Rio Arriba county by Tom Bridges of Washington, D. C. Bridges filed 205 claims cover 4,800 acres of the area, which extends to within 50. miles of Atomic Energy Commissions laboratory at Los Alamos on the South. "'Bridges claimed the. ore to be some of the richest ever found anywhere. He gaid geologists estimated the presence of about 250,-00- 0 tons containing an average of .5 per cent of uranium oxide, oxide said to be worth $70 a ton. ng Subscribe Now Congress To Extend Mining Tax Reductions Geiger-counter-equipp- ed . , . Western Mineral Survey 2254 East 1st South Salt Lake 'City, Utah j PUBLISHED ONCE EACH WEEK r 4 Late News, Quotations, Information Service, on N Mining, Oil, Financial . . t ' " r KEEP POSTED ON THE GREAT URANIUM BOOM $3.00 One Year $5.00 Two Years V . pro-forei- Subscription Order gn ' - I ' Enclosed find $.:.. Mineral Survey for. ' N Miic.. y Address . . -' v . for which send me Western .... ! .. I 3 |