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Show August 24. 1956 The Western Mineial Survey, Salt Lake City, Utah Page 2 WESTERN MINERAL Editorial SURVEY i Program Promises Bright Future For Uranium Long-Rang- e d Production of uranium ore and concentrates from all sources continued to climb during the first half of 1956, according to the 20th report issued by the Atomic leads the field in proCommission. States United The Energy facilities here and duction. Construction of new abroad is expected to increase output even further. The AEC speculates that as soon as projects now underway or definitely planned are completed, total production should exceed 30,000 tons of uranium oxide (U308) per year. This production can be increased should there be a heavier demand. Three uranium processing mills are currently under construction, the AEC reports , and a number of concentrate proposals have been received which would involve construction of additional mills. The new uranium procurement program setup by the AEC to go into effect April 1, 1962, and run through December 31, 1966, will provide a guaranteed market for all uranium concentrates produced by domestic mills from domestic ores, subject, of course, to certain AEC specifications and limitations. The new program provides a base price for uranium concentrates, rather than ores, of $8. a pound, for U308 contained in concentrates that comply with specifications. No commitment for the purchase of vanadium has been made by the AEC. Looking toward the future, the report notes that as industrial demand for uranium develops, a gradual change from a Government-controlle- d to a commercial market is expected to take place. Producers will be able to sell to licensed domestic commercial users as well as to the AEC. free-worl- .semi-annu- al ore-processi- ng free-wor- Ore ld Production and Processing During the first half of 1956, the number of uranium mines in production remained more or less constant with those producing during the latter half of 1955. However, ore production from these mines increased sharply during the period covered 'U. S. has by the AEC report. Uranium ore production in the reached 3,000,000 tons a year and is expected to double itself in the near future. Production in 1948 totaled only 70,000 tons. No new uranium producing area has been discovered thus far in 1956, although several producing areas have been widely expanded. Because domestic ore production increased so rapidlv, the suffiprocessing capacity of mills now being operated was not;' cient to handle all the uranium mined. As a result, a great deal of ore is being stockpiled at the building sites of new mills. The new mills should reduce the stockpiles to normal operating inventories within a short time after they begin operation. Nine processing mills are currently in operation, while three others are under construction at Tuba City, Ariz., Edgemont, Other mills are under consideration S. D., and Moab, Utah. for location in New Mexico, Utah, Colorado, Wyoming and Washington. The total number of uranium processing mills may well be doubled by 1958. Milling capacity ranges from 200 to 2,000 tons daily. Foreign Activities Through the Combined Development Agency which was established in 1944, the United States and the United Kingdom have undertaken joint procuremertt and development of uranium has supplies in foreign countries. At the present time, CDA production contracts with Belgium, the Union of South Africa, Australia and Portugal. (Canadian uranium is not involved in the CDA program because it has been sold directly to the United States through the AEC). South African uranium production increased significantly among the foreign producers during the time covered by the AEC report. A total of 17 processing plants are authorized for the area, and 14 of these are in operation now. The other foreign areas noted a normal production of ore for the period. Domestic exploration programs have substantially increased the estimated ore reserves particularly in the major uranium field in the Ambrosia Lake area, McKinley County, N. M., and in central Wyoming. The potential reserves of the producing uranium areas in the United States are estimated at 30 million tons. Another 30 million tons of uranium ore has been indicated" and inferred by geologists. Certain areas of the United States .geologically favorable for uranium deposits have not even been explored to date. The planned program for the exploration and development of uranium producing areas here and abroad is encouraging for the uranium industry as a whole. Uranium companies which actually have the ore can look to the future with confidence in the fact that their fortunes do not solely depend upon the whims of a speculative stock market. Too, the planned program of progress forseen for the uranium industry will act as a kind of insurance against the wild promotional activities which have given the uranium market a bad name for many people during the past. long-rang- e, Mining Hi- JESSE C. JOHNSON, director of the Atomic Energy Commis--.ion- s Raw Materials Division, ooked over the Spokane Indian Reservation and Mount Spokane uranium districts and obviously was pleased with what he saw. He stated that a substantial tonnage of ore has been developed by only limited exploration and development. He said he would be surprised if considerably more isnt turned up. Clarifying the governments uranium buying program after 1962, he said that the $6 per pound price to be paid for uranium concentrates will bring producers of average grade ore (0.2!f to 0.30 per cent uranium oxide) about the same income they now receive under the AECs ore buying program. ram .loiiuini Lights HEWS de- Phone EM .ADVXRTISIXQ Box 3608 Balt try. First half Polaris earnings CXBCULATIOH Street 431 Church it is expected to be in great mand by the construction indus- - Uka DC City, Utah before depletion and depreciation Entered aa second daea matter at Balt were $138,000 versus $140,400 in L aka City, Ctah. under Act of March 3. the last half of 1955 and $238,000 in. Subscription rates: 14:00 for two rears; t3.00 lor one year. assets half. Current in the first current less Please mention Wee tarn Mineral Surliabilities, however, r when wrltlne to advertiser vey rose by $138,500 to $1,363,400. rates on application NABOB SILVER LEAD directors consider prospects so good HAMIT B MIUACR PnMUhrr at their Coeur dAlene region MIRIAM BRINTON Editor Arivsr-tldna- property that they have turned down a proposal to merge with or sell out to a neighbor. Mill- ing of development ore extracted in sinking the new Nabob winze 55 feet netted $3000 and management expects to double this figure. SUNSHINE jumped 75 cents on the Spokane Stock Exchange this Higher grades would receive week on buying orders from eastmore and lower grades less. How- erners interested in the firms ever, with milling costs likely to Canadian oil activities. go down, mill operators may give reCALLAHAN ZING-LEAproducers higher prices to get ported a second quarter net intheir ores, he pointed out. come of $31,324 vs. $67,391 a year PRO-CESS THE ION EXCHANGE ago and its VULCAN SILVER-LEAwill be used in the $3,000,-00- 0 subsidiary a first half net uranium processing plant profit of $33,358 or 2 cents a which DAWN Mining Company, share on the 1,872,000 shares Newmont Mining Corporation now issued vs. $49,249 or 3 cents is subsidiary, starting to build 40 on' the shares outstanding last miles northwest of Spokane on year. A labor strike adversely the doorstep of the Spokane In- affected income from their Galena dian Reservation. It will be the property in the Coeur dAlene second plant of its type in the region. AMERICAN SILVER MINING United States. The first is being e Oil In- CO. brought a $66750 damage suit operated by dustries at Shiprock, N.M. The in federal court against Hugh C. plant will use from 500 to 600 Van Valkenburgh and W. A. tons of sulphuric acid a month. Lindman of Seattle for alleged This may prove to be an addi- breach of contracts in connection tional outlet for the Bunker Hill with a Utah uranium venture. Companys acid plant at Kellogg, Ida., 70 miles east of Spokane. CLAYTON SILVER MINES scored a sharp gain on the Spokane Stock Exchange after reporting first half det income after taxes of $142, 832, or about 5 cents TULSA, Okla. Loren Keenan, a share, compared with $40,567 for the period last year and $78,-98- 6 formerly chief engineer and difor all of 1955. Gross sales rector, today was elected presitotaled $352,468 versus $191,208. dent of Natural Power CorporaA substantial year end cash divi- tion of America at a meeting of the tboard of directors here. dend should be decalred. Keenan succeeds H. E. RichPEND OREILLE MINES AND Waco, Texas, who remains METALS has increased its pro- ards, on the board of directors. duction of zinc and lead substanKeenans first action as presitially over last year. At times, dent was to announce the move when all three units of its big of the companys main office from new mill are in operation, 2,400 Waco to Salida, Colo., where the tons of ore are handled daily. firm has extensive claims in Rare What other Inland Empire un- Earth arid copper. The company derground operation can match recently acquired the Tamarack this? Unofficial reports have it copper mine, vhich has been that a new lead ore body has closed for 53 years because of been opened on the 2100 level litigation. and that a record 16 cars of conThe new Natural Power centrates were shipped to the dent is a native of Baxter presiSprings, Bunker Hill in one week. Kan., and a graduate of Chilli-coth- e REEVES MACDONALD College, Chillicothe, Mo. MINES, LTD., Pend Oreilles Ca- He was employed by the Consolinadian subsidiary, is yielding dated Lead and Zinc Mining Co., about 1200 tons of ore daily. All of Picher, Oklahoma, and later zinc concentrates now are going was an ore buyer for the Eagle to the Bunker Hill electrolytic Picher Co. Later he became preszinc plant at Kellogg, Idaho. They ident of the Harris Mining Co., formerly went to Anacondas one of the pioneers in the tristate lead and zinc field. smelter at Great Falls, Mont. Keenan formerly was a direcPOLARIS COM- tor of the MINING e Lead and PANY, Hecla subsidiary, is put- Zinc Ore Producers Assn., and ting $255,000 into a new Seattle is a member of the American manufacting and sales organization in an effort to obtain a new source of income to bolster sagging revenues from its silver D Kerr-McGe- Adv. Manager REX L. MeARTHUR All news appearinir in the Western Mineral Surrey U obtained from source believed to be reliable but no responsibility la assumed for accuracy pf statements. Reproduction of any material from this publication must bars written permission from the publisher Baker Named Director Of AEC Mining Div. The appointment of David D. Baker, as director of the Mining Division of the Grand Junction Operations Office of the U. S. Atomic Energy Commission, has been announced by Allan E. Jones, Manager of the Operations Office. For the past 18 months, Mr. Baker has been deputy director and acting director of the Mining Division at Grand Junction. He joined the Commission in July, 1954, as staff engineer in the Exploration Division here. The Mining Division administers the Commissions program in the western United States for the acquisition of uranium ores and the activities related to access roads, initial production bonus, and leasing. Natural Power Corp. Selects Mining Man As New President - 1 Tri-Stat- properties in northern Idahos Coeur dAlene mining region. The money is in the form of a loan but can be applied to purchase of a 73 per cent stock interest in the firm, Accesso Systems, Inc. The firm has applied for patents on a system of supporting acoustical tile in a suspended ceiling which provides access without use of exposed metal runners. Architects throughout the nation are recommending the system and Institute of Metallurgical and Mining Engineers. For the past three years he has been active with Natural Power in uranium exploration in the Moab, Utah, area, where the company also has holdings. Other members of the board are Jack Peck, Waco, vice president; H. D. Williams, Tulsa, president of Western Bond and Share Dale Co., a secretary-treasureW. Scott, Wichita, Kan.; and E. A. Richards, Detroit, Mich. Western Bond and Share is. the underwriting firm. r; Bureau Reports On Gas In Reserve Storage LP s Underground stocks of on June 30 totaled 355 million gallons, an increase of 97 million gallons during the month, according to the Bureau of Mines, U.S. Department of the Interior. Of the total, 287 million gallons were concentrated in Mississippi, Louisiana, Texas, and New Mexico, and the rest was distributed through New York, Michigan, Illinois, Kansas, Oklahoma, and Montana. LP-gase- |