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Show i Pace 2 MINERAL SURVEY THE WESTERN ' Friday, June 28, 1957 " WESTERN MINERAL MontanaState U Will Host Meet For MineralLaw SURVEY HEWS - CIRCULATION 421 ChurcL Street 1402 Curtla St., Denver c , Phone EM 40 ALplne ADVERTISING specialists in oil and gas mining law will be on 402 Curtla St., Denver the program of the third annual ALplne Entered aa aeeond claaa matter at Be! Rocky Mountain Mineral Law InLake City, Utah, under Act of March 3, stitute, which will be in session 1679. on the Montana State University Subecrlptlon ratea: $3.00 tor two yean; campus in Missoula, Aug. 1, 2, 3. 13.00 for one year. Sox 2608 EM Twenty-on- 49 e Sait Lake City, Utah . Institute speakers, drawn from states from New York to California, are all carefully selected experts of national, reputation on current oil and gas, mining, and taxation problems of interest to the Rocky Mountain region, according to Robert E. Sullivan, dean of the MSU Law School anc director of the institute. The annual institute is a project of the Rocky Mountain Mineral Law Foundation, comprised of associations, law schools and industry associations in the seven-statRocky Mountain area. Although the MSU Law School is a Charter member of the organization, tills is the first time Missoula was selected as the institute site. Pleaae mention Western Mineral Survey when writing to advertlaers. Advertising rates on application. L M. HILL Editor All news appearing in the Western Mineral Survey la obtained from sources nelleved to be reliable but no responsibility Is assumed for accuracy of statements. Reproduction of any material from this publication must have written permission from the publisher. Interesting Oil Showing In Wayne Go. e Predict Future Need For More Uranium Ore Paradox Production Go. reported an interesting show of oil and gas in Hermosa formation at its Sands Mesa Federal No. 1 wildcat in Wayne County. O. L. (Kit) Carson, president, said. in Salt Lake City that this show in the Upper Hermosa formation was not commercial and that the company was drilling ahead below 3,600 feet for other possible tests in the Hermosa and in the Paradox and Mississippian Demand for uranium as a source of atomic energy promises to far outstrip teh supply in the U.S., in the opinion of Newton I. Steers Jr., Washington, D. C., experts in the field. Steers, who is president of Atomic Development Mutual Fund, Inc., addressed a joint luncheon of the Rocky Mountain group of the Investment Bankers Assn, and the Denver Society of Security Analysts Tuesday at the Albany Hotel. There are vast sources of uranium outside the UJ5. but world demand for uranium probably will be greater than that of the UJS. because of the lack in many other countries of the cheaper fuels still abundant in the U.S. Even if the principal of the hydrogen bomb ever is adapted for industrial use, large amounts of uranium probably still will be needed, steers observes, because uranium is used in the hydrogen formations. Drilling the wildcat will earn the small independent a f interest in 28,000 acres in the area one-hal- held by Lon Putnam and Richard P. Smoot, oilmen of Salt Lake City. Mr. Carson said a drill stem test was conducted between 3,515-3,53- 2 feet. It was open four hours and shut in one hour. Recovery amounted to 710 .feet of water. Hydrostatic head was 1,875 pounds a square inch; initial flow pressure, 310 psi; initial shut in pressure (after 60 minutes), 765 psi. The weak, initial blow held steady and with air turning to natural gas after two hours of testing. Rate of gas flow was placed at 80,000 cubic feet daily. A second drill stem test be- tween feet was taken in the Hermost after a core between 3,630 feet and 3,642 feet bomb. disclosed three feet o foil, gas The need for atomic weapons and section. still is very great, Steers noted, Oil saturation was placed at 38 for the nation must be prepared to per cent, water 26 per cent and respond to aggression at all possigas volume 10 per cent The test ble points. And not only is atomic in this interval was open four energy being used in weapons but hours, shut in one hour, and saw in propulsion of guided missiles, recovery of 330 feet of drilling which now comprehend the whole fluid. Las 40 feet of fluid Showed weapons field. a trace of oil. Steers pointed out that much Gas volume on this test was investment in the atomic energy rated at 110,000 cubic feet daily field at this stage must be dilited of methane. that is, must be. made in comPressures on the second test in- panies which have other activicluded: Initial flow, 170 psi; shut ties. in, 750 psi, and hydrostatic head, Among the outstanding, firms in til field, in Steers opinion, is 1,680 psi. Mr. Carson said he was encour- Westinghouse Electric Corp, aged at the good show of oil which expects to derive $200 miland the show of gas this high up lion or 10 pot of its 1957 sales on the structure. from atomic energy equipment Pressures indicated that we Westinghouse sales in the field sand without now include the whole range of have an sufficient pressure to make this electrical generating equipment section a commercial producer," whereas in the past it supplied he added. only turbines. The firm also has eRgionally, the show is of im- a large group of personnel trained portance because of location of in the atomic energy field, due in the wildcat in the northwest sec- part to its subsidizaztion by the tor of tiie big Paradox Basin. Navy in developing the power Four major oil firms are making plant for the submarine Nautilus. The growth of Steers own firm contributions to the wildcat for is a measure of the rapid growth this reason. The Federal No. 1 is located in of the atomic energy field. Althe northwest sector of the big though the firm invests only in Paradox Basin. Four major oil that field, its assets have passed firms are making contributions to ;the $50 million mark in the four the wildcat for tills reason. years since its formation. 3,618-3,64- 2 water-staine- oil-beari- - w I Famed Bingham Mine Is Great Tourist Attraction OH Kiwi Visitors to the world-fam- ed Bingham Canyon open-p- it copper mine are not only getting a new-loat this famed scenic attraction, but they are also finding it more convenient to reach. The new observation point, opened this spring at the Apex yards, is reached by turning right up Carr Fork from Bingham Canyons Main St. To facilitate visitors traffic to and from the new point, officials of Bingham have restricted all parking along Carr Fork and have opened it for two-w- ay traffic. This had greatly aided the movement of traffic. The new observation point on side of the mine, the north-we- st features a bright, new shelter 100 feet long and 18 feet wide New .facilities Include rest rooms, a drinking fountain and a parking lot. Another new feature is the sloped floor of the observation shelter wrich permits those stand-in- g in the rear of a crowd to see ok ing to refining on a large flow chart in the shelter. An official guide is on duty at the new observation point to explain the operation to visitors and answer questions. The new point is open seven days a week from daylight until dark. The guide is on duty between the hours ol 9 a.m. and 5 p.m. each day. Most popular time to view the huge mining operation is between 3 pjn. and 4 pjn. when blasting operations generally take place.. However, general mining operations are underway continuously and chaning light patterns on the various levels of the pit make a visit at any time interesting and , spectacular. One of the most significant discoveries in the Nebraska Panhandle was being completed this week. Lewis Bros., Inc., of Denver encountered 28 feet of pay section in the J sand at their No. 1 Bourlier in Kimball county, Colo, on farmout from Magnolia Petroleum. Well recovered 5,870 feet of oil on drill stem test with a draw down potential of 1,850 barrels per day. This would make this operation one of the best discoveries in the Denver Julesburg Basin and very important for the sparsely drilled area in which it was located. The former observation point, located across the mile and three quarter amphitheatre at Copper field, was closed last fall due to expanding pit operations. It is estimated that almost a million and a half tourists and local visi-- mile into the deep pit. In ad- tors have viewed the scenic minare visitors able to trace ing operation from the old vantdition, the path of copper production in age point since it was placed in Utah from mining, milling, smelt- - operation some 15 years ago. hard-surfac- J)h SrieH ed A rank wildcat has been scheduled in the northwestern part of San Juan county, New Mexico. Pan American Petroleum will1 drill a test to granit at the No. in Section Navajo-southeast of the Hum-namiles nine field of Humble in the extreme northwestern comer of the state. B v The westermost discovery in the Paradox Basin was reported as a substantial flowing well this week. Shell Oil reported a flow of oil rated at 1,450 barrels per folday at their No. 1 TbhonadlaFlow of pipe. lowing the setting was guaged through 4864-incchoke through perforations of onURANIUM MINES, WESTERN ly 60 feet of pay section. SILVER and SQUARE DEAL are Continental Oil has reported adresuming diamond drilling at In cores at their Phoenix uranium property ditional shows of oil Musselshell in 'Utahs1 Big' Indian district their No, - 1 .Line in Operator recovDrilling last year found some ore County, Montana. with at depth. The property adjoins ered 28 feet of dolomite core the the Alice uranium mine of Home-stak- e. scattered oil shows in feet following 57 from feet of dolomite with oil shows CALLAHAN and and scattered vugs and fractures VULCAN SILVER - LEAD, on core in the interval 6,134-9through their Pinnacle Explor- feet. . ation subsidary, started diamond Belco Petroleum has an indicatdrilling the holdings of Uranium Mines adjoining Silver Mountain ed Frontier discovery at their Mullan, Idaho. deep field wildcat in the Big ground east First holes will be 1000 feet long Piney Field in Sublette county, and will probe two major struct- Wyoming. Operator' has released ural zones traversing the property. no other information other than OperaNORTH STAR URANIUM Is setting of pipe for testing. Section 1 Unit in No. the loading two freight cars of autn-ni- te tion, is bottomed at 8,416 from its Mount Spokane District Lehmbecker .lease for feet. shipment to Vitro Uraniums Salt Malco Refineries have reported Lake City processing plant. This a flow of oil from the Weber at brings the firms total' shipments their wildcat on the Buck Creek to four. About 200 tons of ore has area in Moffat County, Colo. Opbeen stockpiled since operations is 17 miles northeast of were resumed six weeks ago fol- eration nearest- production in the Thornlowing a January shutdown. field and opens up an entireBIG SMOKE URANIUM was burg new region to production. Well successful bidder for a lease on ly was originally completed in the 400 acres of land in the Spokane Shinarump and deepened to the I)idian Reservation adjecent to Weber (Pennsylvanian), where its present holdings. operator reported the flow of oil DAWN MINING, which now at depths below 10,000 feet indiNorthwest Colorado has is stockpiling uranium ore from in the Mididte mine on the Reser- cated considerabl e interest revation at its $3,000,000 uranium Pennsylvanian production of processing plant at Ford, Wash- cent months and many operators are drilling or contemplating tests ington, expects to pay off in loans before 1960 and to this horizon. then be in a position to pay dividends. Newmont Owns 51 of Dawn, and Midnite Mines 49. two quarters of 1954. NABOB suspended operations ZINC slipped -- cent a pound until the price of zinc improves. to 10V4c. It was the fourth in a official blamed series of reductions totaling 3c (A company foreign imports.) This leaves since last month. During the first Sidney as the only producer in 'ive months, zinc shipments to the Pine Creek zinc-lea- d district he government stockpile (mostly of the Coeur d Alenes, where !rom foreign barter deals) total some 10 properties were operating 103,327 tons vs. only 25,524 a 10 years ago. year ago Copper was forced BUNKER HILL'S third quarter- down 2a pound to 16-- c from last will of announced a dividends reduction be ly next Thursday. A 30c quarterly years peak of 46c. rate has ben maintained since GOLCONDA started to mill or; 1955 25c 1954 from for AS & Rs Morning mine this July July was and 12c paid in the first week. h MORE THAN $40,000,000 worth of ore was mined in the Coeur d Alene mining district east of Spokane in 1956.. Tills was nearly $1,500,000 more than in 1955. And after four consecutive years of declining output, ore production increased by nearly 100,000 tons to nearly 1,500,000 tons Bunker Hill led 38 producers by a wide margin, accounting for nearly half the total tonnage and more than half the gross value Lucky Friday production was up 50 from the previous year and topmark for ped the million-dollthe first time. HECLA had net income of $380,980 for the year up to May 31. This was an improvement over the same period of 1956. Income included $234,250 in net operating profit (after depreciation, depletion and amortization of $45,000) from the U & I Uranium operation in Utah; $180,000 in dividends from Bunker Hill and 863,225 in dividends from Polaris. The Utah operation yielded tons of ore averaging 0.$8 percent uranium oxide in the ar 21.-0- 49 five-mon- th period Hecla has advanc- ed the Silver Mountain crosscut nearly 1500 feet south from the shaft and is continuing towards the Snowstorm area while pre- -; arations are being made to drift easterly and westerly along the Paymaster zone at the 1100-foot point. POLARIS had net income after writeoffs of some $81,000 for the :!irst five months. Exploration of a north-sout- h structure has been suspended for the time being after exposing 182 feet of ore and drifting resumed toward the Vulcan boundary 2300 feet to the -- West. SUNSHINE began drilling a well in search of oil and gas near Ocean City, Wash. The site is in a block a sevwell which cut offsetting oil sands at eral and gas around horizon. The north he 4000-fodaho silver - lead producer also has other acreage blocks in the Grays Harbor area where there is considerable leasing activity. 5000-fo- ot 5000-acre ot copper-antimo- ny -- 6,199-6,22- 7 ZINC-LEA- D 9 , ,f . - - $5,-620,- 000 . . -c . 29-V- ic |