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Show "Jn Vol. 28; No. 35 i0HificaHce in The Oil and tteurS etf HtfiJt Salt Lake City, Utah, November ft wld Sweet Mining Acquires 2 e 52 feet, commercial ore was en- countered. Geologist Reports In a letter to Victor Sweet, Sweet Corp., consulting engineer Dorsey Hager said discovery of uranium ore on your Vagabond Claims at Temple Mountain, Emery County, is very important. From the first report the ore is four feet thick, 30 feet wide and 100 feet in length. Radiometric assays are reported around five per cent. If this would hold true for the 1,000 tons that are fairly probable from the present drilling on the channel. This ore would represent a value of $844 per ton, or approximately $850,000. However, such a figure seems unduly high. Values in the measures of $500,000 would seem a safer estimate. present claims W'At'iny rae are valuable ones, and as further development takes place, should prove highly profitable," Hager said. Develco Acquires Lease Develco acquired a mining lease on these claims after the Sweet Corp. had acquired a mining lease on the other half interest in Vagabond No. 1. First shipment of ore from the mines was shipped to the Monti-cellMill on Sept. 19. Develco Co. spent thousands of dollars in sinking the shaft, moved in equipment housed in the shaft, built a loading site, installed a blower, buckets, hoists, and other - such compressors, is currently minand equipment, claim. its ing This district has produced some $112,000,000 worth of uraniiim ore, more than any other area in Utah, Sweet Corp. said. The Union Nuclear Carbide Co. is in this area and is now completing a new mill in Greenriver, Utah, some 60 miles on a paved road from the Sweet mine. The climate is such that mining and hauling can continue year around. Second Froperty Property number two just acquired is located on Wray Mesa, Montrose County, Colo., consisting of some 44 claims, Sec. o - 52-fo- ot 24-2- 5, R. 20 W. and Sec. N R. 19 W.N.M. PM. T, These claims lie on the east slope of Wray Mesa along the northwestern flank of Paradox Valley. Uranium mineralization in this general area usually occurs within or at the base of the three ox sandfour strong bench-formin- g make wich stone layers up the of members Salt Wash Sandstone Three formation. Morrison the sandstone benches, or ledges, which are strongly developed are in this area. This property overlies these salt wash sandstone benches and ' is only in part thinly covered by T. 47 N 47 0. cent A new oil discovery in the Paradox Basin of San Juan Coun-:y-, Utah, was announced by Water L. Price, president, Renyolds the overlying Brush Basin shales. This is a very important and favorable economic consideration, the corporation reported. This property has recently produced to date some 105 tons of commercial grade ore from a 60 foot long tunnel. The ore is typical of the high vanadium type uranium ore found throughout the salt wash sandstone of the area. The property has been certified for bonus payment by the Atomic Energy Commission. Additional drilling on these claims has uncovered ore in 23 holes out of '25 holes drilled. These holes were from 24 feet to 32 feet deep. The holes infer a channel-lik- e body about 37 reet wide and 127 feet long. More Drilling Planned Additional drilling is planned to determine the length of the channel. It may well be possible to strip this overburden. 10 Spotlight Shines On Utah Crude Valuable Uranium Groups Two more properties were added to Sweet Corp. Mining and Milling holdings since the publication of its prospectus. They are Vagabond No. 2 and half of Vagabond No. 1, located in the Temple Mountain Mining District in T. 24, E. 11 East, Temple Mountain, Emery County, Utah, and on Wray Mesa, 'Montrose County, Colo. Develoco Co. was employed in June of this year to drill three holes. These holes were drilled from the surface to the Monen-kopiformation some 112 feet. At Price 1, 1957 Mining Corporation. The new well, located approxi- mately 11 miles north of the tract Aneth field on a 54,000-acr- e called the Hatch Lease Block, owned jointly by Reynolds and Three States Natural Gas Co. of Dallas, Tex., flowed high gravity crude on a test at the rate of 235.2 barrels per day. The rapid flow rate was obtained uschoke through ing a quarter-incerforations from 5,967 to 5,987 :eet in a five and half inch production casing set at 6,047 feet six-ho- ur h The above photograph shows Develco Co. workmen at one of two properties added by Sweet- Corp. Mining Milling. It is located in the region of Temple Mountain, Emery County, Utah. The other site is Wray Mesa, Montrose County, Colo. - Navajo Tribal Council Raises Royalty Rates On Land Leases Navajo Tribal Council at Win- sections in Township 41 South, 24 East lying south of the The claims are situated on rim dow Rock, Ariz., proposes to place Range Aneth pool and between White h or 16 23 per cent Mesa and rock outcrops and thus afford a Ratherford fields might easy access to mining. There are royalty on the entire 302,570 prove more attractive bid-wis-e three other ledges on the property acres of oil and gas leases it is than scattered tracts that can be reached by drilling putting up for bid this year and north remaining of the present production at some 200 feet in depth. Sweet the Aneth. forepart of 1958. Corp. plans to do this. In event, these acerages More than 75 per cent of the aroundany At the present time, there is land is in San Juan potentially proved lands County. now lease by the tribe are under exposed in the tunnel face apTribal Council the Earlier, all Block in 1, bids on which will proximately 2 feet of ore that JhtendftdJn. lease, : only jt be'Tecei ved air Window has not been fully exploited as lands around the Aneth and Rath-erfor- d Ariz., Dec 10 at 10 a.m. "'Rock; yet. Sweet plans to have this pools in San Juan County There are some 7,394 acres of property in production in the for a one-sixt-h royalty. tribal and alloted Indian lands very near future. The remaining wildcat" lands, in this parcel. The famous Yellow Bird mine estimated at about 374,000 acres, On Jan. 15, 1958, the Tribal that has produced good ore since would bear the traditional 12 Council will offer 167,450 acres 1910 (Madame Curre') is Sweets per cent royalty, a spokesman of land in San Juan County, Utah, neighbor not over a few - hun- said. and Apache County, Ariz., for dred feet away, and the tunnel However, in the formal adver- bonus bid. The Apache County is coming directly toward its tisement for bid distributed Monacres are on the south of property. Sweet will drill along day,- the council announced that the Paradox Basin and fringe in parts the border. the rate of royalty will be 16 23 of the Black Mest Basin of that per cent on all leases." state. The acres in Utah are west A spokesman in the realty de- of present tribal lands under partment at the Indian .Agency lease extending generally over said that the royalty applies to a 30 square mile area. all lands up for bonus bid both On February 11, some 119,753 proved and wildcat acres will be bonus bid and on The action is taken under a March 19, an additional 87,974 new regulation of the U.S. Deacres will be bid upon at Window partment of Interior which per- Rock. These lands are in both mits the various Indian tribes to Juan San and Apache County. seek this higher payment. ' A motion for an injunction to This new development is restop Columbus Rexall Oil Co. garded in many quarters of the from moing 5.8 million shares of Rock Mountain oil and gas inalleged unregistered stock in in- dustry as the first opening terstate commerce was denied in wedge" for higher royalties affect U.S. District Court Friday. ing fee, state and eventually fedturned W. Ritter Willis eral public domain oil and gas Judge El Paso Natural Gas Co. has , down the request for the pre- leasing. sold all its rigs in the San Juan The set had Council Tribal earlier and trial liminary injunction Basin and reorganized its drillannounced 10 12 a.m. it wanted at on the matter for No. royalties with L. S. Fuller to ing similar those extracted department The Securities and. Exchange being Salt of Lake as superintendthe state federal City and governCommission earlier had filed a by it was this week ent, ments announced Calon in leasing complaint charging that Colum- ifornia Mr. Fuller been has northwest of the Gulf and along bus Rexall transferred more than division with ofMexico. superintendent five million shares of its stock in fices Salt Lake In the new Tribal the City. letting, to a Cuban corporation. George Love was named north The complaint charges that the Council hopes to place about west drilling superintendent with southits in reservation of stock was being broken down into ern Utah under oil and gas leas- headquarters at Farmington, N.M smaller denominations which are Roy Webb was transferred from ing. being carried into interstate com are taken up, about Rock Springs, Wyo., to Midland, all lands If merce without being properly 50 per cent of the huge and Tex. registered under the Securities sparsely settled Indian domain The transmission company sole and Exchange Act. will be under lease to oil firms. its four rigs operative in the Daniel J. Scjholtz, (Montreal Last November, the council northwest area because tools from Canada, claimed to be an officer reaped 27 million dollars in a large number of private conof the Cuban corporation, and bonus money from oil firms bid- tractors are available for work, Steven J. Dinneen, New York ding for position ' around the Rig purchasers, for an undisclosed City, claimed to be a member of Aneth pool. Some of the most ex- sum, were San Juan Drilling Co. the Columbus Rexall firm, were pensive acreage proved to be non- (two rotaries) and Great Westin the productive. ern Drilling Co. and Claude Car-rol- l named as Drilling Co. (one each). It Is possible that some seven complaint. one-sixt- an-nounc- Judge Refuses Motion To Halt Sale Of Stock El Paso Co. Sells San Juan Rigs . off-sho- re one-fourt- h The gravity of the oil was 43.2 degrees API corrected and the gas ration was 1,397 cubic feet of gas per barrel of oil. The flowing ubing pressure of the new well was 460 pounds per square inch. An official potential test, ac- cording to Mr. Rice, is scheduled, to be run later this week. Known as Reynolds Hatch Ltd. No. 1, Federal Lease the new wildcat is the fourth exploratory well in the C Zone of the Paradox limestone formation which produces in the Aneth Field. Three earlier wells drilled by the combine were dry holes, Reynolds and Three States have SL-06766- . ' 8, . already brought in six producing, wells, on. a .joint basis, in . the Anp,,. eth field and one joint interest well with Shell Oil Co. on another lease. These producers are almost due south of the latest Paradox Basin discovery. . N. M. Mine Lists High Ore Output Dy-sa- rt ALBUQUERQUE, N. M. Mine No. 1 of Rio De Oro Uranium Mines, Inc., in the Ambrosia Lake region near Grants, New Mexico, is now the second largest producer and shipper of uranium ore in the Uinted States, it is announced by W. Rodney De-Villie- rs, president Only ten months ago this mine was in sixteenth position. Mr. DeVilliers said that since April, 1955, his firm has produced and shipped 80,000 tons of ore from this site, which was the first to produce commercial grades and quantities of uranium ore in the widely-publicize-d Ambrosia Lake area. Current production now ranges from 12,000 to 14,000 tons per month with a five day workweek. Dollar value of this monthly production, coming from 80 separate working faces underground, is approximately $350,-000- . Rio De Oros operating efficiency is being widely acclaimed in the mining industry with an average of 19.5 tons of ore being produced per individual man shift, This speaks well," Mr. said, for operating pracDe-villie- rs tices under the direction of Ray Schultze, Rio general superintendent, and for the crafstmanship of Rio De Oros family of workers." The pioneer Ambrosia Lake firm is affiliated with the Hidden Splendor Mining Co., a wholly-owne- d subsidiary of the Atlas Corporation. |