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Show i -- . Vol. 28; No. 7 Salt Lake City, Utah, Friday, April 12, McRae Oil & Gas Co. Has Impressive Outlook Los Angeles: At a large J Jj I -U-- a Uj gather-in- g Phillips Pet. Makes U - Ore Find was an apparent new discovery on 5,000 acres in San Juan Basin in the Four Corners area. This well, the McRae-kut- z Canyon No. 1, is reported to have a potential of from cubic feet of gas, with a high distillate content. Future possibilities of .the company appear excellent, with a substantial cash flow insuring participation in promising areas, according to McRae. of security dealers held in the Los Angeles Stock Exchange Club yesterday, the impressive progress of McRae Oil & Gas Corp. was told by the companys president, J. A. McRae. Since the companys inception in 1955, daily oil production has increased from 532 to 1,500 barrels. Daily gas' production has increased from nothing to 7,800 MCF. Oil and gas income is up from $38,000 a month to the present $155,000. Oil reserves have increased from 1,400,000 to barrels and gas reserves from 2,720,000 to 17,896,000 MCF. For the five month period endBy A E C ing Feb. 28, 1957, net income was $142,900 on sales of $644,230. The U.S. Atomic ComThis compares with net income mission announced Energy today that of $192,102 on sales of $823,301 after 1, 1957, it would disMay for the entire year ending Sept. continue the practice of paying 30, 1956. the vanadium content of for A new discovery well was comores at the Grants, New pleted yesterday for 100 barrels Mexico, Government - operated per day in the Illinois Basin, buying station. No change will Kentucky, where McRae Oil & be made in the schedule for r Gas owns an undivided ores, and the prointerest in 221.5 acres, together ducers of such ores will continue with Phillips Petroleum and to receive payment for the vanadA second well has ium content as in Circbeen spudded in. Also announced ular Revised. provided 5, In the past, the Commission has issued special contracts providing Go. for payment for vanadium content of ores in cases where the lime content of the ore was sufficiently low to warrant such payment. However, S. L. experience has shown that the ores from the vicinity of Grants The Governors of the Salt Lake are in general not of the type, which usExchange, after receiving, the contains vanadium in a ratio latest statement of Tar Baby, vot- ually five of over ed .to restore Tar Baby Mining parts V205 for each stock on the Salt Lake Exchange, part of contained U308.. The Grants ores are primarily this incidentally was the new $1.00 Par stock, which was re- ores containing minor amounts of verse split in 1956, at the time vanadium which cannot be rethe stock was delisted,, for that covered economically. For this reason, contracts recently entered . purpose. Prior to that time most of the into by the Commission for conlarge items of obligations and un- struction and operation of uranpaid bills and contracts, were ium processing plants in the vicinpaid for in the process of the re- ity of Grants have npt called for organization, and now any in- the incorporation of. vanadium recome can account for a profit and covery equipment. for a possible dividend. Tar Baby has. already received its first income from Uranium Co. and Vanadium lease called the Mill Creek claim, in Montezuma Canyon, and also .the oil. wells (3) in Signal Hill, California, are pumping at the rate of 900 barrels Co. per month, and the revenue from that operation is adding to the Grand .Junction, Colo., Moab income of Tar Baby Mining Co. Uranium Co. of Grand ' Junction Mr. Clore the is presently at the CINCO. MET- announced today it has purchased ALS Claim near Chloride, Ari- outright all assets of Moab Minezona, and is readying a ship- rals, Inc. ment of Gold, Silver and zinc ore The latter firm was organized to be shipped to the smelter at two years ago and received SEC Midvale, and the assay of that clearance, but no public stock ore, showed a Value of $99.70 per offering ever was made. The ton, at the- mine. company owns oil and gas leases ' Negotiations are also in pro- in Texas and Oklahoma, and uranium property in Utah. but the Spring gress to farm Water claims as well as the Blue C. M. Hickman, President of Goose and Lady Luck claims; and Moab Uranium Co., said the name before all the snow has melted a of Moab Minerals wili be changed soon to emphasize its petrolegood income is anticipated. um interests. Moab Uranium Co.s The directors and officers of recent major activity has been in the Tar Baby Mining Co., are: oil exploration in Oklahoma, Henry Hefter, President and Hickman said, and it is probable t; the two companies will be conDirector; William R. Glore, solidated under ithe new name, E. L. Murray, Director; to H. David D. E. Judd, Director; approval of Moab subject stockholders. Uranium Director. Bullough, Secretary and New Mexico Grants Changed non-carnoti- te pe one-quarte- n. Tar Baby Mining Returns To non-carnoti- te Exchange Moab Uranium . Vice-Preside- Purchases Moab Minerals nt - - Vice-Presiden- Phillips Petroleum Co. has discovered and proved by core drilling a $2,800,000 ton above-average-grad- e uranium ore body on a wholly-owne1,280 acre mining lease in the heart of the Ambrosia Lake area near Grants, N.M., according to the annual report of the firm. A mining shaft is being sunk and negotiations are proceeding with the Atomic Energy Commission for the sale of concentrates from a processing mill which the company proposes to build. The company is continuing to explore for strategic minerals in this area and elsewhere, the report d stated. Phillips reported net income of in 1956 or $2.77 a share versus $95,203,057 or $2.78 a share in 1955. $95,202,615 1957 in the Big Indian mining district Radr Aiihuc. .es Dividends The directors of Radorock Resources, Inc., last week announced in a letter to shareholders that one-hal- f of the net earnings of the uranium firm would be earl dividends marked for 50 the and per cent for remaining acquisition and development of properties. The board said the first divi-dewould be established and summer. this paid Ralph W. Neyman, president and chairman of the board said expectations are that current net profits from the operations of the Radon Mine in Big Indian District by Hecla Mining Co. would run about $150,000 monthly to account. Januarys net was $213,000. February profit was below this because of machinery break down and lower grade ore encountered. semi-annua- nt Ra-doroc- ks During January, some 4,962 dry tons of ore with grade of 0.89 per cent U308 was mined, grossing $424,678. Net income to Radorock was $185,824 after mining costs and royalties. The firm, which also has a IVz per cent royalty, received an additional $27,654 from this source. As previously reported, Radorock has acquired operating control of 900 uranium claims in the Kas Hills and Crooks Gap District of Fremont and Natorna counties, Wyo. Parent firm, Federal Uranium, is contributing $200,000 toward exploration and development of these claims. . Big Reef Uranium Acquires New Claims Big Reef Uranium Co. has acres in the acquired vicinity of the Happy Jack, Big Horn and Columex uranium properties. Big Reef has 1120 claims in the Raffael area and recently San the efforts of individual prospeca five year lease on 112 bought tors rather than by large comclaims of the Circle Cliffs Uranpanies. He said the Big Indian might ium Co. . still be undeveloped if proposed legislation had been southwest of Moab under mining laws enacted in 1872, Friday voiced again his opposition to change in the basic statutes gov- in effect. Under these proposals, which erning claim locations. He spoke last week at the open- Mr. Steen- attacks, staking of ing of the second annual Moab claims in the present manner Ura'nium Symposium sponsored would be banned and five square by the Uranium Section of the miles or more of land might be American Institute of Mining, withdrawn for as long as five Metallurgical and Petroleum En- years by staking only the four corners of the area. gineers. Mr. Steen declared that present No assessment work would be mining laws proved to be as workable in the recent uranium boom required and Mr. Steen said the as- they were '.when created by plan would in effect be an expoineer miners and prospectors. clusive prospecting concession He pointed out that the Big In- under which the small prospecdian and most major uranium ore tor would have little or no chance bodies have been found through to profit from discovery. four-stak- 160 e - - United Western Minerals Called Special Meeting A special Santa Fe, N.M. of Directors the Board meeting of Minerals of United Western Co., with head offices in Santa Fe, New Mexico, was held here Friday, March 29. The meeting had been called by Alva A. Simpson, Jr., president and general manager of the company for the purpose of conferring on projects being considered by the company and approving various matters. An overall report on progress being made by the company in exploration program in New Mexico, Utah and Colorado was presented to the board by Simpson. The board also considered and expressed approval of an overall ten year income flow sheet of projected income, less royalties, mining and milling costs, etc., on proven ore bodies. The report also showed substantial estimated net profit after taxes over the ten year period, with ore production Cents 10 Charles Steen Opposes Mining Law Changes Charles A. Steen, who located Ms $70 million uranium bonanza ., Two Tungsten Concerns To Reopen Mills Minerals Engineering Co. and affiliated Salt Lake Tungsten Co., Salt Lake City, Monday announced reopening of mines, mill and refineries in the west in an effort to produce domestic tungsten in competition with world, imports. Blair Burwell Jr., general manager at Salt Lake City, said the conpany had concluded contracts with several American firms for the sale of tungsten metal at about $20 a unit (20 pounds). This compares with the chase by the United States ernment today of foreign-produc-e- was J. Willison Smith, Philadelphia, Pa., a major stockholder in the company. While here the board also held a meeting with representatives of the Homestake Mining Co., of San Francisco, Calif., with which United Western is a partner in a uranium mill now under con- struction at Grants, New Mexico. The board at its business session approved contracts made with Homestake for a general mining lease and business lease to on Sec. 32, Mexico Partners; an agreement with Superior Oil Co., Los Angeles, Calif., an agreement T-14- Home-stake-Ne- w R-9- gov- d K. Schemmer, New York; Wilson tungsten at $65 a unit, R. John said. Burwell Hurley, Albuquerque; Also Ohlahoma preCity. Porter, sent pur- Mr. This tungsten is delivered into the federal stockpiles at the taxpayers expense. Meanwhile, Congress has refused to date to extend any similar treatment to western products, despite a moral commitment under a public law approved by the 84th Congress, Mr. Burwell said. That law called for domestic tungsten purchasing at $55 a unity $10 a unit less than the foreigners get. He said the only thing that made operations possible for Minerals and Salt Lake Tungsten was the recent ore which could be mined on open pit methods at the Calvert Creek and Red Button mill at Glen, Mont. with Phillips Petroleum Co., Bartlesville, Okla.; with Four Mr. Burwell said Salt Lake Corners Exploration Co., and an additional 25,000 feet of core drill- Tungsten Co. would be happy to accept any shipments from ing on Section 14, Idaho and Nevada tungsten New Mexico. Utah, McKinley County, commencing .this summer. a also The board were miners, if they feel they can approved Present for the meeting the grade at a $20 selling entered make Patrick J. Hurley, chairman; Alva supplemental agreement 2 WESTERN for UNITED the finished material. See page price A. SimDSon. Jr.. Santa Fe; John T-13- R-9- |