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Show Wirr''h&s-'?$&& Jw ffettJ '&& "i??' ? vMUgWw etf tHtet Significance in the Oil and Vol. 28; No. 6 APR:)- - W i Salt Lake City, Utah, Friday, April 5, 1957 SAT T r vrm " 10 Cents Radorock To Share Profits $4 Million Bid of Paradox Basin Ma; From 500 Uranium Claims By Firms For Gas Natural Plant Stiiuy that Drilling Rights 9 Radorock Rescources, Inc., today entered into an agreement with Gas Hills Uranium Company whereby Radorock will operate more than 500 uranium claims controlled by the Gas Hills Company in Wyoming. The two companies will share in net profits from the properties. Announcement of the agreement was made by Ralph W. president of Radorock, and Cotter Ferguson, president of Gas Hills. The properties involved are in the uranium Gas Hills and Crooks Gap area of Wyoming, principally in Fremont and Natrona Counties southeast of Riverton. . Ney-ma- n, Mr. Ferguson said an ore had been blocked body partially out on the Sagebrush Group of claims near properties of Lost Creek Uranium and Globe Mining Company. In addition, he said ore has been found in the Wind River Group claims, near Lucky Me and Vitro Uranium Company holdings, and on the Buss Group of claims adjacent to the Redwood Mine. These holdings are well be- yond the preliminary exploration stages, and we are confident that Radorock has made a major step forward in the agreement with Gas Hills Uranium Company. Mr. Neyman said. Radorock Resources, Inc., is a This was the second important transaction completed within the subsidiary of Federal Uranium and controls the Rapast week by Radorock. Previ- Corporation near Mine Moab, Utah. Radoously, Radorock entered into an don rock willadvance initial funds for exploration, and Federal then will have an opportunity to participate by financing the second stage of exploration, with the two comMr. Ferguson said his company panies then to share jointly. had partially blocked out two ore bodies on the properties with preliminary drilling. Additional ore has been indicated at other locations where limited drilling has been conducted, he said. operating agreement with Amrad "Oil and Minerals Corporation on more than 300 claims, also in the Gas Hills area. 1 Paradox Basin majors are con- (organized as a common producsidering erection of a big natural ing area), as yet. IGNACIO, COLO., March 26 Theres even some discussion More than four million dollars gasoline plant in the Aneth Pool itarea San was of Juan about taking the natural gases County, was bid by Oil companies for the disclosed from the proposed gasoline plant Monday. acres on to drill of 46,557 right On basis of preliminary engi- to Southern California. But proxthe Ute Mountain Reservation in southwestern Colorado and east- neering work, cost of the facility imity of lines of either Pacific has been placed at between 14 Northwest Pipeline Corp. or its ern Utah. million and 16 million dollars. parent El Paso Natural Gas Co. Twenty oil firms took part in moves in discussion of would seem to dictate a more Initial the bidding. The average' offer was $92 an acre, compared to $142 the project were projected by practical plan. Whether the plant is underway ait last Octobers richer land leas- Shell Oil Co. and the Texas Co. A Shell spokesman in Los Ange- later this year or next, the planing. John L. Kelley, reservation re- les said that discussion of the proj- ning is another indication of the magnitude of the oil industrys habilitation director, said Tuesday ect was only in its Infancy. all but 160 acres of the leases is Presumably, as in the' custom effort in Utahs Paradox Basin. in Montezuzma County of Colo- with building such plants, other rado. The smaller parcel, awarded producers at Aneth Field and to Union Oil Co. for $8,281, is in possibly others at nearby pools, would be Invited to participate Utahs San Juan County. No producing wells are in the in the construction and percentage ownership of the plant. entire area, Kelley said. A natural gasoline plant strips The new leases, all lasting 10 the light oil liquids from gas years, allow the reservations 709 Indian residents a .12.5 per produced with the oil from the cent production royalty from field. The gases generally are Mountain Mesa Uranium Corpwells. The lease payments go into contained in the oil solution are when released and crude the alare and oration has undertaken an explorthe Federal treasury to is surface. the brought reserve Ithe on located for projects atory drilling program on 25 oils These are then placed light claims 65 miles northeast of tion. on transmission lines and carried Casper. Approximately 2000 feet to markets much as the crude is of drilling has been completed transported. At the terminal of and mineralization as high as .20 the crude lines,- the light oils fre- percent U308 has been encountquently are treated separately in ered in eleven drill locations. the refining cycle. drilling is in progress to Natural gas remaining from the Further more accurately evaluate the into the plant either is The claims are in the pool to maintain pressures, de- properties. area where Kerr McGee, on the nature of conser- general Loma and uranium comSodak onal valuation of minerals pro- pending vation required at the field, or each are to the sold to gas transmission lines. shipping ore at duction. Utahs contribution panies rate of the approximately 2000 nations total minerals production Aneth wells have a tons was 1.59 per cent in 1945, 1.81 ratio of about per month from stripping to 1, meanoperations less than 75 feet from per cent two years ago. ing it is expected that at least the surface. The report describes the pro- 700 cubic feet of natural gas Mountain Mesa further reportwould be produced with every metals duction of on their Suned the that drilling single barrel of crude oil. copper (source of more than half Gas Hills of set the in Claims If the field were given a prithe states mineral wealth), lead, a subhas developed Wyoming mary, recoverable reserve of 320 zinc, silver gold and uranium new ore stantial including body, million barrels (admittedly a genof Utahs as the backbone erous estimate at this time), then grades as high as .70 per cent minerals industry. eventual recoverable natural gas U308. Rough calculation of the drillProduction in copper ran $208 would be about 224 billion cubic reserves developed by ofthe indicates a approxitonnage ing or 56 per cent of the feet of natural gas. million an in tons 75,000 is estimated having It that after mately light uranstates total. Value of Utah of approximately ium production in 1956 is con- oil separation, a gas of 1,100 BTU place value be Thermal could $1,000,000. Unit) (British milservatively estimated at $13 produced. It would thus be acceptlion, the report said. able for pipeline transmission. As Aneth is allegedly a closed Excluding mineral fuels, Utah stands among the top five states trap type field without substanit might not be in the value of its mineral pro- tial water-drivthe gas into duction. Utah last year was second necessary to water could be field. A drive the to in proArizona copper only conservation established on basis, to in Colorado second duction, Juan of waters San the secand utilizing molybdenum production a would which River, provide in ond to South Dakota gold proe in controllable drive duction. Riverton, Wyo. - Another urarelation to the pace of crude oil nium mine will soon be in proThe state ranked third in lead withdrawals. Gas in the duction All thi3, of course, would re- Hills production and fifth in iron prodistrict.. mining duction. As the steel making quire a high degree of effort among producers at the and using industries of Utah The Bengal Uranium pit in the have grown, iron ore production, field which is not even unitized, East Gas Hills, located a half has mile east of the Redwood mine particularly in Iron County, property tax load, the report of Two States Uranium, has now become an increasingly-.significan- t part of the States. minerals showed. Approximatelytaxes completed its overburden stripall of the paid property wrote. Mr. ping. Sargent industry, last year in Utah were paid by Ore shipments from the General At the same time the industry mining companies Their share pit will begin in 10 days to two a jump of 94 weeks. is booming in the production of was $11,904,000 the minerals fuels. Since 1950, The Bengal open pit is one of per cent since 1950. In the same annual production of natural gas period, total property taxes paid the largest in the Gas Hills. The has risen 430 per cent, from four in Utah have increased by only ore is at a depth of 80 feet. The million cubic feet to 19 million 59 percent from $38,168,000 gigantic dog-leshaped pit is 235 cubic feet, and the production of in 1950 to $60,683,000 last year. 130 feet wide. feet long and 1.2 million to 2.2 million barrels, In 1956, mining properties Stripping of the pit has been or 78 per cent. Coal still accounts were assessed at a value of $321 under way all winter long. Iniof the million 27.5 per cent of the tial shipments will be made to for more than mineral output. states annual total assessed valuation of the the AEC buying station operated As the minerals industry has state, the report said. The metal by Lucius Pitkin, Inc., at the site assessed valuation of .the Lost Creek mill on the grown in production valuation mines have an or 92 per cent of Sweetwater, a distance of some and national stature, it alto has of $295 million, 20 miles. assumed a growing share of the the industrys total. - Mountain Mesa Drilling In Wyoming Area . . As Utah Shows Report - Important Mineral Source Mr. Neyman and Mr. Ferguson said the companies hoped to develop enough ore tp warrant a The Utah mining industry is uranium ore processing mill in making a steadily growing conthe area, with both companies tribution to the nations mineral participating in the milling production. venture. A report on the Economics of Mr. Neyman said that Radorock UtahsMinerals Industry, comwould conduct a comprehensive piled by Ray L. Sargent for the drilling program on the proper- University of Utah Bureau of ties, beginning this spring. Mr. Economic and Business Research Neyman visited the properties and released this week by Osmond with other Radorock officials re- Harline, Bureau director, showed: - cently. 1 The valuation of Utahs mineMany uranium observers be- rals production, excluding uranlieve the Gas Hills area is one of ium and other strategic minerals, the richest uranium areas in the last year ammassed $369,647,000, nation. Production is already an all time high. The total was underway at several mines in the approximately 40 percent of the area. The Gas Hills Company is total valuation of production from one of the largest holders of Utahs three basic industries acreage in the area. Mr. Ferguson manufacturing and agriwas one of the first men to pros- mining culture. pect the area, following the init2 The valuation of minerals ial discovery, and staked some Radof the claims involved in the produced in 1956 in Utah account1953. ed for 2.13 per cent of the nati- orock acquisition as early as Panama Government Aids Columbus Rexall Operation President Ernesto De La Guar-diJr. of the Republic of Panama yesterday received Herbert J. of Steel, executive Cataract Mining Corp., for a lengthy conference during which the results of recent exploration for oil and gas by Cataract and Columbus Rexall Oil Co. were a, vice-preside- nt discussed. (Discussing the Cataract and Rexall concession, Columbus covering over 850,000 acres in Darien Province, Panama, the President said plans are afoot to n continue the area. Darien the Highway through cut would road The projected concessithrough the companies' on- The President also mentioned that his government is considering Inter-America- the building of small airports with feeder roads to make the area more accessible. Steel delivered to the President a preliminary geological survey of the Darien district written by Dr. Stanislaw Kriz, internationally recognized petroleum geologist. He thanked the President for the cooperation given by the Panama Government and .the President expressed his wish to give any assistance possible to Columbus Rexall and Cataract to expedite exploration and drilling of Panamas oil resources. Columbus Rexall last month acquired a 50 percent undivided interest in Cataracts concessions covering over 850,000 acres in Darien Province. re-cycl- ed gas-oi- l 700-80- 0 non-ferro- BengalUranium Now Ready To Ship Ore e, re-cyc- le man-mad- fast-developi- one-fift- h g one-tent- h |