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Show i N I C9 n tyHi$caHtS in The Oil and At Vol. 27; No. 32 World THE WESTERN MINERAL SURVEY Friday, October 5, 1956 At 1956 Mining Show Federal To Receive 50 Net Profit 'Rare Metals' Key to Future From Recent Mining Agreement Executive Vitro Corp. Says Federal Uranium Corp. today the expenditures necessary to ful- ment, Federal agreed to loan the Constant Minerals Co. $100,000, reentered into an agreement to be- ly develop the properties. come the operator of two mining The agreement was made with payable out of production The properties are the Galena properties in Nevada, according to Constant Minerals Separation ProR. W. Neyman, president. Federal cess, Inc. of Reno, Nev., which Hill mine, a operation will receive 50 per cent of the controls both properties. As con- 11 miles sc of Reno, and Jthq ica. net profits, after first recovering sideration for the operating agree- - Rabbit Hoi 'placer, a gold propeSpeaking before the 1056 Min- rather than rare metals that they mil T north of Lovelock rty-57 ing Show of the American Mining will spark the new industries of ' f. Nev. Congress in Los Angeles, Mr. tomorrow. Maurice JfWtant, president of He called attention to our meaHotchkiss pointed out that the th'e Minerals Co. said the Constant term rare metals is a misnomer. ger knowledge of the true propwith Federal was made agreement These metals differ widely in erties of the. rare metals. Their because the potential of the two characteristics, propertied and the preparation for industial use will too large for our is properties prevalence in which they- - are require the development of special to finance and manage. company found in nature. They aren't ev- processing techniques, he pointed A limited Board of the company which has !e said his firm declined several agreepartnership out. But stressed. he en all rare, ; The problem of coaxing these ment, to be known as Homestake-Ne- holdings of mineral leases and oil offers by companies who were they are an unusual and fascinatMexico Partners, signed Sep- and gas leases in Utah, Colorado seeking to buy the properties, unusual metals out of obscurity ing collection of elements. 22 in San Francisco by and New Mexico. tember. preferring instead to share, profits Mr. Hotchkiss proposed that we for profitable .service, to mankind CH: McLaughlin, president Rio Oro Donald de Inc. Uranium with an operating company. We Mines, borrow a term of scientific dis- poses a 'fascinating challenge to of Homestake has the shaft and opwere interested in dealing with Rodney1 Co.; only Mining mining tinction tised to designate other private industry, he added.. at de eration Ambrosia of Rio in the ederal because of its excellent present Vitros six operating , divisions, DeVilliers, president, congeries of diverse talents, and Alva has a lake Uranium been Oro and Inc.; area, Mines, pioneer operating managment under Mr. Call this group the College of three subsidiaries and two assothe mine the uranium in of, iA. development Veyman and its financial' ability Simpson, Jr., president Rare Metals. He nominated for ciate companies are engaged in' United G. R. (Buffalo) Ken- o develop our properties,. n area Co. and that Minerals Western opera ? membership in that group about complete K. Schemmer, partner .in nedy, well known uranium min-nRabbit Hole gold placer conrare metals tions in atomic energy, including John 60 of the & is one of founders H. sists the of 131 claims near Sulphur, J. Co., figure, Whitney the exploration, mining, milling, - a,; Production processing,' refining and recovery" from small-scalfv&epresidbnt of San- - Jacinto' Pe-- 1 operations to date' of fare earths and rare metals.-Thindicates the gold value will averHeavy Minerals Co., Chat- troleum Corp., and Clyde Osborn, one of finished month negotiations age about 85 cents a cubic yard. tanooga, Tenn an associate comin The deposits cover a wide area the various between partners pany, dredge-mine- d large deposits a and and contain tin, titanium and sevmillion uranium $10 mining of source materials for thorium, tiformula eral other valuable minerals, in venture, tanium, zirconium and rare earth milling neton 750 said addition to gold. Federals initial a mill, Simpson ores in Aiken, S. C and Panama Western program is to develop adequate gotiated by .the United City, Fla. water by drilling wells. A geoloRio de Oro group Vitro Rare Metals jo., Eannons-bur- group and the Bureau to the partNew Mexico Survey gist is no wengaged in selecting Pa., a division, is engaged will be contributed Oro de sites for the water wells. Rio ores for the The president of in the refining and recovery of nership as well as New Metals stockholders announcInc. has Corp. Uranium Mines The Constant Minerals Co. has fare metals and fine chemicals mill. Homestake will finance the mill voted unanimously last week to constructed permanent facilities ed that ground will be broken be- for industry and uranium ore fore the first of the year for an processing for the Atomic Energy construction, operating capital, merge into it Bonanza Uranium at the Rabbit Hole site, including stock piling and the sinking of a Corp. of Nevada at a special meet a separation plant, adequate hous$8 million uranium mill to be Commission. built near Grants, N. M., and proshaft, and the construction and fi- ing held at the Hollywood Roose- ing, a dredge yet to be assembled Hotel in Los Angeles. The and other duction should be started within nancing of the mining operations velt mining equipment. action brings into New Metals the on Section 32 and will manage a year. T--V The Galena Hill Little King Mine on the Colorado the milling operation. Rodney de ViUiers said that a a Plateau is which and uranium property lies in the foothills of Clyde Osborn, formerly with joint announcement is expected the Sierra Nevada Mountains, vanadium Westem-Knapproducer. and manager of any day now giving final apM. Leon about well known Comeight miles northwest of Frazier, the first uranium mill in New proval by the Atomic Energy atUtah and California Virginia City, center of the hismining mission to the project. Mexico constructed by of and Bonanza, torical Comstock Lode. Eighty-sevepresident will be associated in the lim torney Approval was completed after to the lode claims are included in the addition in that an announcement that Ilomestake ited partnership in management reported Hill properly. a Galena Little and nation-widA large operating King of the mill. Mining Co. has entered . into a MOAB, Utah cash the account, merger brings limited partnership agreement con- television audience is getting a According to the agreement, into New Metals more than 500 Ore shipments from this propone uraof mill. sink of Homestake the the will glimpse phase immediately cerning have been made from an opDe Villers said that Rio de 'Oro nium industry through a series of a shaft on Section 32, set up a mining claims in the state of New erty en operation, which has exposwill hold the largest single inter- four programs on Art Linkletters sampling plant and stockpile at Mexico in various stages of de- ed pit a vein of ore 50 feet wide. To est in the mill operation in a People Are Funny show which the mill site. The mill, capable velopment. These claims are checkered date ,this ore channel has been three-wadeal with Homestake began last Saturday. of handling 750 tons a day, will 250 Extensive The series will show the ad- be built in the Ambrosia Lake across the state with many situat- delineated forFederalfeet. and United Western Minerals Co, indicates the sampling by The Homestake agreement re- ventures of Fred and Norma Han-sin- area. The exact location of the ed in localities of intense activity ore ton a value. in averages $20 of North Hollywood, Calif proposed mill has not yet been at the present time. portedly Involves more than $8 facilities are available Milling beventure A program is joint million in financing and initial during a prospecting honey- settled, but the partners have opmiles of the mine. within few a ing readied with other mining operating costs for the proposed moon in southeastern Utah. Utaco tions on two mill sites. with Mr. Neyman said he believes mill. Homestake will be the man- Uranium, Inc., is Rio de Oro will operate its own companies whereby New Metals cash the will with put up Corp. Linkletter in the mill in the program. operations properties have excellent profaging partner mining program and contribute the partner companies up Last telecast showed putting and will also and operit potential for Federal. He said Saturdays develop their ore to the limited partner for the and supervision the Los equipment Western the agreement was made after United ate Hansings leaving Angeles ship mill for milling. properties. development and mining of these three weeks of intensive examinRio de Oro, the only company shortly after their wedding. The In a housing project extensive holdings. now in actual uranium production next two programs, on Oct. 6 and for 65addition, ation of the properties by an engior more homes in contemtwo was Basis of the merger show them will Ambrosia Lake area, 13, in the rich prospecting in the Grants area as part shares of Bonanza for one share neer and a geologist representing plated Moab the and own in claims to will continue operate its staking of the Homestake - New Mexico of new Metals. Application forthe Federal. W. D. Nebeker, Jr., chairPresiarea of under the man of the Federal board; Lester mine. guidance Partners operations. necessary permit to issue shares S. Harrison, vice president; C. De Villiers said that Rio now dent D. E. Kivett and Secretary-TreasureHomestake, one of the oldest in New Metals Corp. is presently Allen Elggren, secretary; and WilBill Hines of Utaco. is shipping 300t tons each month to the AEC buying station at Visits to the Uranium Reduction mining and milling companies in in the hands of the Division oi liam H. Gibson, a director, all Corporations for California. members of the executive commitGrants and has 4500 tons stock- Co. mill at Moab, to Utacos Allen the United States, has successfully Mexin United mined the Red1 States, New Metals was originally in- tee along with Mr. Neyman, also Can2 No. in mine uranium piled on its property for use when Canada corporated in 1904. Inactive for yon, and to the companys Bradley ico, South America and the new mill opens. inspected the properties. c several years it completed an inmine at Telluride, Colo, for many years. The mill probably will be loUnited Western Minerals Co., a tensive reorganization program in This transaction represents Fedtract three also will be shown. cated on a miles north of US 66 on the San The series developed,. Kivett Delaware corporation, has head- June and recently started trading eral Uranium Corporations first Mateo Road near Grants, De Vill said, through Linkletters intense quarters in Santa Fe, N. M. Pat- on the San Francisco Mining Ex activity' outside of the uranium field. interest in the uranium industry, rick J. Hurley Is chairman of the change. iers said. rare metals repThe resents the promise of the future in metals industry, according to Eugene B. Hotchkiss, vice president of the Vitra Corp. of Amerso-calle- d ranging from Americium to Zirconium. Although the College of Rare Metals represents the promise of future in the metals industry, Mr. Hotchkiss added, it is as common lead-silv- er . $10,000,000 Mining Deal Sighed in San Francisco , w . . across-the-boar- d g so-call- e New Mexico Is Site for New Mill e New Met. Merges With Nevada Mining Outfit g, Show Takes Over Moab For a Month lead-silv- p Kerr-Mc-G- ee n e y g r lead-zin- 408-acr- e er |