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Show v t i y .k i"m ALT LAKE VALLES rucis iiit!t 81LVU (par ml LEAD M 1M hi corns r- te VOL. 18. NO. 50. to Salt Lake City, Utah, December 12, 1947 ty di Oil Firms Plan Vast to if id ta It e 18 5 rn - y ft al it An outlay of this magnitude In the two-ye- ar period will represent more than 22 per cent of the total investment of about 18 billion dollars in the oil In dustry, the countrys second largest. The projected capital investment in 1947.-19is based on a survey of a number of companies which have' actually budgeted outlays in the period totaling more than 3 million dollars. Capital investments will be made in the four divisions of the industry, all of which with the exception of crude oil production, are at practical, or 'close to maximum operating capacity. On the basis of reporting company figures approximately 2 billion dollars will be used in production (including exploration and the acquisition ..of prospective lands); slightly more than 1 billion, 100 million dollars in refining; about' 440 million dollars in transportation; approximately 480 million dollars in. marketing, and about 75 million dollars for miscellaneous purposes. A sizeable portion will be used with an eye to the development of new and Improved products, including work on processes for the conversion of natural gas and coal into liquid petroleum products. - 8. sr id g ie )0 48 la ta re . ie 8 B8 as i E1- oil-beari- - ri el ng - . in( ty or al . da ce ic ie. Leasers Have Tough Time ie er At Nev. Mine tie Claims of the .Tonopah-Bon-an- za weekly newspaper that $40 ore under present conditions is worthless from the smelting standpoint and that $57 ore could not pay a profit, have been seconded by leasers of the Cortez mine near Beowawe who found that even '$138 ore isnt profitable. Two carloads of ore have been shipped by Jack Nielsen, Clayton Coppin of Tungsten and J. P. McGlynn. Returns on one carore proved load of diver-lea- d discouraging. Nine dollars a ton was paid for freight with a 10 which the per cent shippers dont understand. Smelting cost $8 a ton. There were deductions of per cent beunder 30 per was cause the lead cent. Silver was paid for on the basis of 95 per cent of 90 cents. Trucking was $4 a ton the most reasonable feature of the undertaking, as contracted for by S. P. Ramp. When leasers get through paying 25 per Cent royalty and mining costs, they figure the picture will not be a bright one. . .The mine is located 37 miles south of Beowawe. It is leased from , the Cortez Metals Co. of which John Coleman of New York is principal owner. A crew of four men has been working under the foremanship of Mr. McGlynn. el . re e- ey i- . - ils ay i- - er of ar 1- 50-ce- thentic sources. id - ur sur-char- k. th e- i- ge, 1. ra Inspiration Cons. Inspiration ' Cons. Copper Co. ordered a dividend of $1 on the AS HIGH GRADE ORE deposits have become depleted mining firms have been forced to mine lower grade ores. This has necessitated modern and efficient plants and mining on a large scale in order to drive costs per ton into a range permitting profitable handling of these low grade ores. Above Is shown a portion of Kennecotts huge operation at Bingham Canyon, Utah. Mining Low Grade Ores Become Big Business The mining and processing of low grade ores such as exist in Utah, requires large scale operations, which means big busi ness. Just as mass production or assembly line production of a large plant requires manufacturing large capital investment for equipments and payrolls, large scale production in mining demands extensive plants and payrolls. Hence they become big business. In Utah the value per ton of ore mined is $3.10, compared to $3.81 in Arizona, $4.45 in Nevada, $10.95 in Montana, $11.26 in Colorado and $14.76 in Idaho. (Lower averages show by the first three states are caused by large low grade copper projects). In order to compete with ores from neighboring states it is evident that Utah mines must operate on a large scale, so the only alternative is what is called big business. are Naturally, where therenum-rous also are there mines large sucthe and small mines, cess of one mine stimulates prospectors to search for another. So the benefits of large scale operations are not only confined to low cost operation, but the larger ones are in a position to help the smaller properties with their processing facilities, and their continued research to keep abreast of metal markets. Hence big business is not bad business. . Use Helicopter BREMERTON, Wash Iir the Cascade Mountains of Washington toe Bear Basin mine has a helicopter moving its ore at 200 Bend 26 pounds a trip to North miles distant. From - there the ore is trucked to the Tacoma smelter. The Bear Basin property has ore values in silver, gold, copper, lead and molybdenum. Edwin Sauers of Bremerton is president of Bear Basin Mining Co. Inc. Bids for Cisco Well Production MOAB, Utah Reports from the Cisco district are to the ef- . - Only four per cent of the states 73,015 669 npntLhaVe J611 intensively perhaps less than gated by geophysical methods. lCC0wng to the state mining which mining cLnSS Chambw Smmera. gLbythe The booklet out that in addition manypoints marginal areas in the older and productive dis-triwill yield mineral wealth 811(1 productive rL.uluuturf of many long shutdown mines still remain. In addition to pointing out the future possibilities of in Arizona, the booklet mining also pre-sea synopsis of the industrys d prcsent toSncePa cts nts Contained in the portion relating to. Arizona mining industry is this sidelight: In the 364 years that have elapsed since the first recorded mineral discovery in Arizona in 1583, the states mines have yielded $3,897,030,072 in mineral wealth. Had that amount been possessed by one man 500 years before Christ, and had that same man lived today, he could have spent. $4,000 a day and still have more than $325,000,000 left. And that disregards any interest or income from principal." The booklet is illustrated with pictures of Jerome open pit mines at Ajo and Bis-be- e, typical mining operations sales. and a number of other scenes Present financial condition of familiar to those in the mining the company is slightly improved industry in Arizona. over the same period a year ago. Bank loans total approximately $260,000, broken down as follows: Rico $135,000 to the Walker Bank and Trust Co., and $125,000 to the To Whitney Brothers Bank in New Stockholders of Rico ArgenOrleans. The company has cash on hand of $100,000. If present tine Mining Company will recrude oil prices prevail, it is ex ceive a dividend of five cents on January 14, 1948, pected that the company will be per share to an announcement able to complete its Rangely according the Salt Lake office. firms by drilling program without the The will be made to payment additional need of borrowing stock or record as of December from banks, although they money have a line of credit of $800,000 26, 1947. Payments in various amounts with the Whitney Brothers Bank, have been made to stockholders should they need it. for the past seven years and the total dividend disbursement National Lead now tops $400,000. The comNational Lead ' Co. announced pany is .the major producer of an extra of .$l and a quarterly ore in Dolores County, Colorado. dividend of 25c on the common, both payable Dec. 20 to stock of record Dec. 4. This will bring the 1947 total to $2. The com-oadisbursed $1.50 in 1946. The current dividend was for 00 . fect that the .Wasatch Oil company of Woods Cross, a division of Phillips Petroleum corporation, had contracted for any commercial production from the Brother well. These Taylor reports were confirmed by J. A Minton of the Wasatch land department. Mr. Minton added that his company had applied to the Denver and Rio Grande Western railroad for a rate on transporting crude from the nearest railhead in the event of sufficient production from the Taylor well or the Cisco field. The action of the Wasatch Oil company gives observers reason to believe that the Taylor well has greater possibilities than it has been credited with heretofore. No definite news is available the last few days concerning the Taylor well. Delford Taylor has not yet returned from a trip to the west coast but is expected this week. Bill Taylor has remained at the well. It is understood that about 5000 gallons of oil have been pumped from the well and that storage tanks are within 1000 gallons of being filled. Whether or not the oil level in the hole was reduced by pumping has not been re$3,091,000. ported. Times Independent . Huge Area Open to Prospecting PHOENIX 16-pa- ge Argentine Pay Dividend ny Increase in Price of Crude Oil Seen as. Impetus for New Exploration customers and the armed serv ed switched announcement Recent by major oil companies of a fifty ices. In recent months we have cent per barrel increase in the price of crude oil is expected to found it increasingly difficult to prove a substantial impetus to obtain crude oil for our refineries as a result of predrilling of new wells. Taking the lead in the move miums which are being paid, diwas Sun Oil Company. John G. rectly or indirectly, by many of common, payable Dec. 23 to stock of record Dec. 8. This brings the 1947 total to $2.25 as Pew, vice president of Sun in 25c was paid in March, 25c plus 25c extra in June, and 50c in making the announcement made following statement: September. This dividend will the The company has taken this total $1,182,000. action in an aggressive effort to Im sure my husband is un- obtain sufficient supplies of faithful to me, she moaned be- crude oil to operate its refineries cause not one of the children at the capacity required to meet looks in the least like him." unprecedented demands from its i creases were comprised of a nt per barrel rise posted by major companies October 15, 1947 and a nt increase posted December 8. Present daily production of Utah Southern Oil is as follows: Rangely deep - 1000 barrels per day. Rangely shallow - 200 barrel per day. Garland (Big Horn County Wyoming) - 500 barrels per day. Grayson (West Texas) -80 barrels per day. Total - 1780 barrels per day. Drilling End Exploration In the Garland Field, where the company holds 35 per cent interest with Ohio Oil Company, a new well was brought in last week in the Tensleep at 4050 feet. This wfell was drilled on the edge of the property and proves 2 or 3 more locations. Another well is drilling at 2700 feet. The objective of this well is the Madison, which is expected to be encountered at approximately 4150 feet Both of these horizons are already proven in the Garland Field. Taking into consideration the new posting on crude oil, the companys monthly revenues are estimated to be running at $90,-0to $100,000 per month. About three fourths of this is from Rangely deep and shallow, and the balance almost entirely from Garland. Make Costs. Drilling in the Rangely Field is going ahead at a very high rate with 13 deep rigs and 2 shallow rigs operated on Utah Southern Oil property. Drilling expenses are running at approximately $85,000 per month, so for the first time since the heavy drilling, program, was started, in August, the company is more than covering its drilling costs with revenues from crude oil 20-ce- - ie One Year $2.50 Utah Southern Oil Company is benefitting from increased production in its Rangely and Garland Fields and is also being aided by increased crude oil prices, according to information obtained by Edward N. Bagely of Salt Lake from George T. Hansen, president of Utah Southern. The recent crude oil price in capital more than 4 billion dollars will be made by the petroleum industry in the United States in the two years of 1947 and 1948 for new and improved facilities needed to serve soaring public and industrial demands for all oil products, according to information obtained today from au- k a lSJOa Utah Southern Records Gains in Oil Output Developments Record investments of if t- 1AM Features Mining, Oil, Financial ft is l- MluSI Mtta II.M ILIlll GOLD (pm mi) LINO (par 1M) - 8MILTU each offer miums. Pew said it is our belief that an increased price will prove an incentive for stimulating increased production." During the last days of OPA, a nt our compettors. increase in crude prices refiwas small independent Many granted. This .was followed ners who have little or no crude by a nt increase, a nt nt and a production have used premium increase, a second nt of means as increase.. obtaining payments The last crude oil for their plants. hike As a result, some producers came only six weeks ago and who wished to sell at the best was initiated by Phillips Petroprice the oil which they produc- - leum Company. ever-increasi-ng 10-ce- 25-ce- 10-ce- 25-ce- 20-ce- Metal Mining Industry ol Utah r 1 |