OCR Text |
Show ? fyni$cntU in The Oil and Ifliitiitg World THE WESTERN MINERAL SURVEY Atlas, Bleak Reorganize Directorate in Stock Deal GRAND JUNCTION, Colo. A reorganization of Atlas Uranium Corp. of Grand Junction, through a transaction which has strengthened the company financially and brought it into alliance with another strong organization, was revealed here today. Atlas and Bleak Uranium disclosed in a joint statement that Bleak has purchased a substantial block of Atlas treasury stock, and that three Bleak directors have joined the Atlas directorate. The announcement emphasized that Jack C. Burgess of Grand Junction will remain active in Atlas management. As president, n Burgess has served Atlas as a most for staff management of the time since the company was organized in 1953. Under the reorganization, he has been named chairman of the board and also will serve as business and geoone-ma- logical consultant. New Atlas officers will be Allan Fisher of Los Angeles, president;' D. L. Herrick, vice president and general manager; and W. G. D. McEIrath of Provo, Utah, director. T. J. Christiansen of Salt Lake City remains as secretary - treas- Signs 'Farmout'. With Nava Zuni SANTA FE, N. M. United West- ern Minerals Co., today announced signing of a farmout agreement between United Western Minerals an dits farmout group and the Nava-ZuDevelopment Corp. The farmout agreement covered Sec. ni 16, Township 15N, Range 12W in the Smith Lake area of McKinley County. Terms of the agreement provide for a minimum of 50,000 feet of exploratory core drilling on the section with work to be completed prior to March 1, 1957. Signing were the agreement for Nava-Zun- i Harry S. Marks, president, and Albert B. Logan, secretary. Both men are of Colorado Springs, Colo. Signing for United Western were Alva A. Simpson, Jr., as president, and Herbert Holt, secretary. largest World' LOS ANGELES, Calif. Discovery of the largest alluvial deposit of high grade iron ore in the world one that may well revolutionize the entire steel industry in Western United States and the Orient was announced here today. Dramatic news of the existing deposit, encompassing more than 40,000 acres in the Black hills of Arizona, 45 miles northeast of Tucson, was revealed by one of the finders of the mine, Texas engineer-geologiJohn Martin. Of this area, Martin added, a record 200,000,000 (cq) tons of iron ore have already been blocked out and certified, and block- ing operations are being continued at the rate of a million tons 30-year-- st Jackpot Gets Interest In Claims Company. The original claims were patented in 1887 in the Virginia district which has been a notable gold, silver and lead producing area. per week. Martin declared that tests of iron ore from the mine made by several of the countrys leading laboratories and engineering firms certified the iron content at a phenomenal 60 per cent to 68 per cent Fe. Mining engineers reports indicated on the basis of present findings, the Black Hills discovery may turn out to be the largest source of high grade iron ore in the world. Black Kills iron ore, the report pointed out, actually test out higher than that mined in the Messabi range of the Great Lakes region, which has long been the largest producer of iron ore in the United States. Martin, who heads the Omega Mines, Inc., operators of the development stated that production will start immediately. He said a $60,000,000 contract with a Japanese syndicate was now under consideration. The youthful Texan declared that the dry magnetic separation process will be used in the mining operations, pointing out that because the Omega ore is alluvial and magnetic, it can be mined on a basis of sand and gravel in an During the latter part of June, Jackpot began a modernizing program at the mine site in order to increase production. Two electric compressors, heavier rails, a open pit. new aluminum air line, new ore The dry magnetic separation cars, air operated mucking ma- process, he said, will provide chine and new drilling equipment Omega nfrith a cheaper mining were instiled. Non to the consumer. Our plans call for a producProduction has been increased tion tons per month for of 150,000 to 75 tons per day. the first year, Martin said. ComExtensive exploration was also mitments now being processed incarried on at this time, including dicate that we will begin shipdrifting approximately 600 feet ments on or about the first of on the vein which runs from 24 next year. inches to five feet at different inOmega Mines., Inc., a Nevada tervals. corporation, has established business offices in Las Vegas, Nev. One assay across the face of the said that coring, testing Martin vein ran 34.21 ounces gold, 49.8 and certifying the richness of the ounces of silver, 15.2 per cent lead was conducted under the mine and 1.4 per cent copper. of internationally known mining engineers, geoloDuring June, Jackpot particichemists. and in a well gists pated in the drilling of Orchard Field of Morgan the Reports supporting the high content of the Omega ore owns Colo. iron The company County, a 22 per cent working interest have been written by Dr. Harriin this well which was completed son Schmitt, Silver City, New Mexico: Park Hodges, New York; flowing 135 barrels per day. As soon as funds are available, P. H. Lund , Engineering Co., Jackpot will continue drilling on Phoneix, Ariz.; B. H. Martin, on Page 2) the rest of the lease. op-pass- ed . Atlas-Blea- market. In The . Atlas and Bleak both own extensive uranium properties in the Four Corners area. Atlas also has oil. and gas leases in La Plats County, Colo., and uranium interests in New Mexico. k The alliance, while hot in any sense a merger, is an important step in the expansion of both companies, the joint an- nouncement said. Atlas and Bleak will closely work together in present operations and future dealings. The amount of Atlas stock purchased by Bleak was not disclosed. However, the statement said Bleak paid the par value price of 10 cents per share, which is above current quotations. Bleak made the purchase as an investment, it was emphasized, and their stock will not be placed on the Arizona Iron Find Called The farmout group jointly interested in the (McKinley County state school land section are San Jackpot Oil Co., Denver, has Jacinto Petroleum Corp., J. H. acquired 45.8 per cent interest Whitney & Co., and White, Weld in two patented mining claims & Co., of New York. known as the Bald Eagle Claims. claims are located in the The A spokesman for United WestMining district of Clear ern also said that several other Virginia Creek County, Colo. farmout deals for exploration and The first four months of prodrilling of United Western leaseholds were being negotiated at the duction from this mine grossed more than $9,000 worth of ore present time. for Jackpot. The ore was sold to American Smelting and Refining urer. Fisher is a Bleak director, and also is president of the Ace Manufacturing Co. of Los Angles. Herrick is a director and general manager of Bleak, and is vice president of the Ace Manufacturing Co. McEIrath is general manager for the Utah Natural Gas Co. and is vice president of Bleak. Bleak and Atlas will share offices in the Petroleum 'Bldg., Grand Junction, where Atlas has been located since the company moved from Moab last spring. alliance will be The Atlas-Blea-k of particular interest in Gunnison County, Colo., Where both com' panics have base metal properties. Ore from both Atlas and Bleak mines will be processed by the new Atlas mill which is nearing completion near Crested Buttes. Both companies have been mining and stockpiling ore in the Crested Buttes area for several months. United Western friday, September 21. 1956 on NEW ASSOCIATES D. L. Herrick, new vice president and general manager of Atlas Uranium Corp., confers with Board Chairman Jack C. Burgess at companys Grand Junction office, Herrick also is general manager of Bleak Uranium, which purchased a substantial block of Atlas treasury stock last week in a deal described as advantageous to both companies. Lew-(Continu- ed |