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Show March 22. 1955 proaching that of coal in the generation of electric power, and in the opinion of many people the future of the electric power industry will be based to an ever increasing degree on the use of fissionable fuels. Royal Hits it Rich Near Mold Claims If we may refer here to the law of supply and demand, two facts become apparent at once. The first, and one highly favorable to the mining industry, is the obvious demand for a large inventory of nuclear fuel for each new reactor. The second, and more sobering fact is the possibility that as much as 98 per cent of the fissionable material may ultimately come back on the market as a secondary metal supply after reprocessing. (There is obviously no economic connection between the coal mining industry and the disposal of ash and certainly no other segmet of the mineral industry producing a consumable metal is faced with the scrap problem of this magnitude. Unofficial reports reached Salt Lake City today that Royal Uranium Company, George Patterson, president, has a rich ore strike of good commercial value at its Indian Creek claims, San Juan County. The strike Is reported in the same channel as that of Moki Uranium's important strike of last fall, but 900 feet distant. America's Fastest Growing Operation Uranium Producers Face Problems and Uncertainty Excerpts from the presentation of Eugene B. Hotchkiss Vice President, Vitro Corporation of America before the Prospectors and Developers Association of Canada t PAGE FITE The Western Mineral Survey. Salt Uhe City Tho present state of the newest and fastest growing operation in our North American Mineral Industry the uranium business 13 an exciting one. The rate at which new prospects have been discovered in Canada and in the United States, to say nothing of other parts of the world, is fantastic. And in the older properties and I use the term advisedly exploration and development are daily increasing the proven tonnage of economic ore by huge quantities. These facts are obviously immensely satisfying to the prospector, the developer and the miner, whose prime concern is the supply of ore in the ground. But what sort of existing or potential demand welcomes this increasing supply of ore? And how well equippedi are we to convert this ore into a marketable concentrate and at a profit? I would like to present here a few facts, some opinion, and a few hunches, which I hope may put this problem in a manageable perspective, but first, I would like to recall briefly some past events in the development of atomic energy and some forecasts that were made as it progressed. They may provide an interesting point of departure for our attempt to look into the future. We are perhaps too prone to forget that it was only a bit less than fifty years ago when one of the foremost scientists of the time. Lord Kelvin, asserted that the atom was absolutely indestructible. A quarter of a century later Lord Rutherford, addressing a meeting of the British Association for the Advancement of Science in die same hall where Kelvin had made his flat assertion announced that he had bombarded atoms in his laboratory and had split them into fragments. His accomplishment was of immense significance, but as reported in the New York Herald Tribune of September 13, 1933, his forecast was. and I quote: The energy produced by die breaking down of the atom is a very poor kind of thing. Anyone who expects a source of power from! the transformation of these atoms is talking moonshine. Tremendous scientific activity followed Rutherfords discovery. Hahn and Strassman split the uranium atom; Meitner confirmed their experiments and measured an enormous release of energy in the fissioning process. Szilard predicted the chain reaction, and in a little over a decade, Rutherfords prediction of the futility of power from die atom disappeared in a fiery mushroom cloud over Hiroshima. Even those who engineered this release of the greatest force ever harnessed by man were quite sure their discovery was but an instrument of mass destruction: and through the batting average of our scientific soothsayers was declining at an alarming rate, the temptation to prophesy was apparently as strong as ever. It was only a scant five years before the Nauti lus, our nuclear powered submarine, stood out into die North Atlantic last month, that one of our foremost scientists disposed of the possibility of nuclear propulsion for ships by snorting horse feathers". Finally, in any discussion of supply and demand of fissionable materials used in power generation, one should recognize the potential significance of the breeder reactor. It is a scientifically proven fact that certain types of reactors can actually more fuel than they consume, and at produce, as a least theorectically, might produce additional fuel faster than the ability of the power industry to make use of it. But if I have painted a gloomy picture of tremendous and rapidly expanding resources of ore,-- if I have overstated the huge potential supply of secondary metal if my worries are overdrawn about the demand for our product being controlled by a short-tergovernment requirement for weapons, backed an infant nuclear by power industry that promises to create more fuel than it uses if all this is too pessimistic then permit me to recall to you how far from the mark were our earlier and more learned prognosticators in their forecasts of the future. by-produ- ct, holders is in process of preparation describing the new strike. It will be distributed shortly. m Let us bear in mind that the present installed electrical generating capacity in Canada exceeds 21 million KW and on the basis of past experience with the rate of expansion of the industrial and domestic economy of Canada may be expected to increase at least 20 fold over the net 50 years. Coal and water power will supply a substantial portion of this projected expansion. But this still leaves a huge potential demand for fissionable fuels even under existing schemes for energy generation. Perhaps even more important is the fact that we are not by any means limited to die present generation schemes and there is small reason to believe that we will stick to them. Furthermore, with the recent successful demonstration of the use of nuclear energy for ship propulsion in the Nautilus, and die fact that significant progrss has been reported in the development of atomic powered aircraft, I would say the future of the uranium business looks economically bright. NO ULTRA SENSITIVE! BACKGROUND TOR PLANE, W OR COUNT! FOOT PROSPECTING! Af A CAR $495.00 . $239.50 BISMUTH COUNTERS GUARANTEED TO DETECT BURIED ORE BODIES! Tour FULL purchase price refunded if within 30 days you, find another counter on the market with equal or greater sensitivity at the same or lower price! Write for information. Some dealerships open. ATOMIC ELECTRONIC ASSOCIATES, INC. 45 Bait Broadway SALT We have stated that the supply of ore is rapidly increasing. Let us idmitthat a major reason for this is because of the artificial. stimulus of government production bonuses, subsidies and guarantees. We are still in what Dr. Lawrence Hafstad (Former Head of Reactor Development of the U.S. Atomic Energy Commission) calls the windfall era, because of military redemands that We be militarily quirements. National basis our strength must be based on strong; but on a long-teraf sound, free enterprise economy which we in the States, and I self-intere- Properties of Royal and Moki adjoin. When the strike was discovered an attempt was made to keep it a secret. The news leaked however arid Royal stock advanced from ten cents to 18 cents a share. Later it fell off to 14 cents. A letter to Royal stock- UHE CITT 1. UTAH Phone SCINTILLATION COUNTERS "Precision" Detection" 111B 222 DS $495.00 $289.00 GEIGER-BISMU- TH COUNTERS "Aero" Bismuth "Aero" Geigei $179.50 $159.50 (3.000 Hour continuous operation) (1 year "trouble-free- " warranty) Fisher 1955 "Scout Deluxe Counter $139.50 Geiger l "Scout Deluxe" Fisher-1- 955 Bismuth $159.00 "Uranium Fisher-1- 955 Scout" $99.50 Others from $35.00 up All Scout Models Adapted fox Drill Hole Probes MINERALITES Heavy Duty 30 Ft. Throw $77.50 "SL 2537" $39.50 "M-12- " Field Model $39.50 "V-4- 3" Complete service and repairs on all makes detection instruments. Geiger Counters for Rent GRAND JEWELRY 220 So. State Sal! Lake City 79 Write for free catalogs. NEW ISSUE st m -- believe our Canadian friends as well, have never felt was consistent with the presence of government in business. When government purchase contracts expire April 1st, 1962. will we be prepared to carry 'on with die constructive uses of nuclear energy without government subsidy? What are we doing to prepare our selves for it? future for nuclear energy is dependent upon the expanding power requirements of our society. Within the next several decades peak production of the fossil fuels will be reached. I am informed that with Jthe. exception of Quebec, The long-rang- FFMCa 4.000.C00 Shares Noa-Assessa- low-cos- Common Stock PEES To Bona Fide gMABE Residents oi the State of Utah nvnrnwRTTrne e British Columbia, and to a lesser degree in Ontario, where unharnessed hydro power exists, Canada must look to thermal power generation to meet her future requirements. If we are t to avoid major increases in the unit cost of energy, new sources must be prepared and perfected to absorb the demand. Already the cost of nuclear fueling appears to be ap- - PRISE J. KNUDSOH & COMPANY EARL SECURITIES Phone 9-87- 29 Salt Lake City, Utah 450 South Main Offered only by means of the offering circular (sent free on request) |