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Show LIBRARY X'lYJSimTY OF dec 2 I &ALT JTTjt SALT VALLEV SMELTS! LAKB rBICES 6 1047 tMM WN N.M SILVEB (Ml M- LEAD Ml IN COPPEB OOLD (Ml m) ZINO (mi INI AKJ CITY N.IIN N Ni Features Mining, Oil, Financial Salt Lake City, Utah, December 19, 1947 VOL. 18. NO. 51. One Year $2.50 1948 Looms as Banner Year for Mine Industry A substantial increase in the production of ores from western metal mines is expected to get underway after the first of the year according to opinions expressed around Salt Lake min- At Gold Mines SAN FRANCISCO, Cal. New gold mining effort in this great mining state has been shackled by the severe, .securities law in this state, coupled with the stupendous handicap of the federal securities law. Then followed the closing down of gold mines by the federal government duri ing the war, with the result that many mines were flooded and the workings caved.A Before the war more than i 1000 lode mines were producing 4 gold in the state. Now there are only about 50. California in former years had 25 major mines digging thousands of ounces uf gold a year. Only pne is now operating. Gold dredging companies "have fared better, but they are operating at only 70 of capacity. Costs Higher Soaring costs from new deal policiesresulting have all but wiped out the profit margin possible under the $35 an ounce ceiling pegged by the U. S. government on newly mined gold. And miners cannot sell gold except to the government. .E- - L. Oliver, president of the Idaho Maryland Mining Corp. ghe only large underground California mine still operating, sums up the industry's plight in an interview in Wall Street Journal. Before the war it cost us $15 a ton to get $20 rock (ore assay-in- g $20 of gold to the ton) including taxes, depreciation and everything. Today it costs about $19.80 to mine $20 ore." Gold mining becomes profit--ab- le in bad times, unprofitable in inflationary periods. There is always an unlimited market for gold. But unlike other commodities whose prices move according to the supply and factors,, gold prices nevei change in the U. S. except by The last change was in 1933 when the statutory price was raised from $20.67 an ounce to $35. Other gold producing countries also set a price on gold, but in some of them these days a supply and demand market in gold is boosting prices far above the pegged U. S. limit Open market gold inprice the Philippines is selling as high as $50 to $60 an ounce. Asks Price Raise What effect these ups and downs have on the gold mining industry is illustrated by profits of Homestake Mining Co., which in South Dakotas operates Black Hills, the largest U. S. gold mine. In inflationary 192i Homestake had a net profit of $1,044,070. In 1935s deflation, profits soared to $8,144,528. Last year, with inflation again, net was down to $2,361,657. The remedy for their present troubles, say gold miners, is higher price for gold. They en viously eye the Canadian gov ernments new $7 an ounce sub sidy for gold production. They hope it will be a pattern for Uncle Sam. Before the war, in a big mine like Idaho Marylands, the aver age gold miners weekly pay envelope held about $30. Now weekly wages range from $55 to $65. Base wages have risen from 62c an hour to 92 Vzc. In addition, miners now get 50c a day travel pay, time and a half for work over 40 hours ur (Idaho Maryland has and incentive week) pay as a bonus to lure them into working harder. These extras raise to 50 over weekly pay 20 the base wage. - ut EXCEPTIONAL OPPORTUNITIES still exist in western mining fields for young men looking for means of attaining fame and fortune. 1 History is replete with examples of men who have become industrial leaders as a result of success In mining. Shown above is the famous Tintic Standard mine at Eureka, Utah that has produced millions in new (wealth Since - ! . . - . de-hia- nd i . . its discovery: Plenty of Opportunity For Young Mine Effort premiums, Utah Mining Group Elects New Officers dif-ficut- ly " - . . - Coeur d'Alene Mines Declare Dividend Payments t Gil-son- ite - . Wl Crescent Junction . At Crescent Junction, 30 miles north of Moab, the Grand County Oil company has been wasting no time since spudding in their hole a few weeks ago. The level well is at the 1000-fo- ot although a fishing job held up operations for a while. A rotary outfit is being used. The companys objective is around 3000 Z -- Work " 48-ho- ( prices. Under certain conditions, many of the producing companies were granted deferred development and exploration which had to be used the end of 1947. As a result, by The great mines of today all were once mere prospects, and the companies so benefitted have been concentrating on developin making them men rose to become industrial leaders. ment activities, in order to reof and development Discovery Eurin ceive the greatest advantages the Tintic Standard mine possible under the program. For eka, is an example of how men this reason production, to a great and mines rise to fame. E. J. cirhumble of extent, has. been neglected. Raddatz, a man cumstances in his youth when New Ore Sources he entered the mining game had Without doubt, this period of the fortitude and the stoic deintense development and ex termination to make good in the ploration activity has resulted face of hardship and obstacles. in placing many of the nvines in The Shaf Did It SALT LAKE CITY James a position to now swing proYoung Raddatz located a group Ivers, vice president and general duction operations onto a higher of claims in the East Tintic dis- manager of Silver King Coali- level. trict which were referred to tion Mining Co., has been chosen Many of the firms having re only as a goat pasture and not president of the Utah Mining ceived these development funds too good at that Raddatz how- Association,' it was ' announced have been unable to use all their ever, with his practical know- here following the annual meet- available credits in the allotted ledge of mining was determined ing in Salt Lake yesterday. He time. This has been largely due to sink a .shaft through the succeeds James W. Wade, presi- to the dearth of miners and in obtaining equipment rhyolite capping and see what dent, Tintic Standard Mining nature had done below.- He or- Co- and supplies. For this reason, Other officers elected are A. it may be that the time for using ganized the Tintic Standard which was financed through as- G. Mackenzie, vice president; W these funds will be extended. That production will be insessments, nineteen of them over H. H. Cranmer, president, gena period of as many years. eral manager, New Park Min- creased, however, is a certainty, ing Co., second vice president; and from- all indications the Ample Chances H. Hunt, vice president and coming year should be one of Paul sinkFinally he succeeded in to general manager, Park Utah greatly increased activity for the ing the Tintic Standard shaft Mines Co., third mining industry. a depth of 900 feet and more. Consolidated vice and James K president, of one Tintic Standard became reelected Richardson, manager. and of Utah mines the great Additional directors elected to Raddatz one of the industrial serve for the coming year are leaders of the state. There is opportunity for intel- T. P. Billings,. U. S. Smelting, and Mining Co.; W. H ligent young men in the mining Refining H. New Park Mining Cranmer, mines the of industry today. All not-yeR. C. Cole, American SmeltCo.; been Divi have KELLOGG, Idaho of the future and Refining Co.; Cecil Fitch, dends $1,874,237 have found and there is opportunity to ing totaling Chief Consolidated Co apply the knowledge gained in O. N. Friendly, Park MiningClar- ; been declared . by nine of the Utah; to the developleading mines, of the Coeur metal mining, dAlene district during the last ment of other resources which ence F.Co.Hansen, American gAVftrfll UTAOlfS is gaining momentum throughout Mearle G; Heitzman, Silver Upwards of 30,000 sharehold Utah. King; Otto Herres, Combined ers scattered over the nation Reduction Co.; Thomas and some in foreign lands wil! I turned out the lights now Metals F. Kearns; Silver King; Tom participate in these disburse heaven. in were lets pretend Lyon,' International Smelting and ments Several thousand of these But, honey Im no angel. turned I Refining Co.; S. W. Norton, Pa- stockholders reside in Spokane I know thats why cific Bridge Co.; F. S. Mulock and the Coeur dAlenes anc out the lights. U. S. Smelting; D. D.. Moffat. many havie been associated with Kennecott Copper Corp.;' Wil- their properties from the star: liam J. OConnor, American of operations. W. C. Page, U. S Smelting; ' The old maid described her Smelting: M. D. Paine, Tintic sailor as Standard; J. D. Shilling. Kenne- friendship. !with Itthe was play for cott; E. H. Snyder, Combined purely platonic. her. for tonic and him Metals: Mr.' Wade, Tintic Standard; Frank A. Wardlaw Jr., International Smelting, and Clark L. Wilson, New Park. - Weve never been able to un derstand why women as pretty as those in the washing machine ads cant marry men who i.are able to hire the washing done! ing circles today. Basis for this belief is prin-ciapl- ly the fact that with close of the year government financed development will cease, following which a large number of mining firms will again con centrate on production. All-oEffort war the years mining During companies used every available means to supply the tremendous needs for metal. As a result. development work was of necessity neglected and the nvnes were left in a depleted condition. With the end of the war, however, a program was inaugurated to compensate, to some extent, the companies that had supplied all available ores at the low, OPA controlled ditto qooi. feet c Metal Mining Industry oi Utah 3 Toastmaster (introducing the Im sure that Mr. speaker): Jones of the Fertilizer Dept, will give you a pleasant half hour. He is full of the subject." lining Ass'n Critical of Land Policy SPOKANE, Wash. The Northwest Mining Assn has sharply criticized several ascents of the nations public land policy at its 53rd annual condition held here. Resolutions covering a wide ange of topics were adopted after the group had heard a nediction that great new ore odies will be discovered with scientific instruments to be developed in this age of flying Nurros and radar. Alaskan Deal The association is deeply concerned over the present policy of the interior department," a Jolicy statement said, in creating in Alaska huge reserva-io- ns for small groups of Indians;. reservations which make prospecting and mineral exploration prohibitive. State ownership and control of underwater mineral lands should be affirmed pnd finally established by legislation, the. statement said, but we oppose all pending proposals before congress to cede the entire public domain to the respective states in which it is located." Oppose Bill Association members oppose legislation designed to grant new powers over mineral land not valuable for fissionable materithe statement continued, als, and particularly oppose senate bill 1251 which would create a rational trust of lands containing phosphate and potash." We favor the establishment of sound currency systems based upon gold and silver throughout the world before our nation enters into any large scale foreign lending policy or the distribution of monetary relief, the policy statement said. Metal shortages were blamed primarily upon a lack of experienced labor, with depletion of high grade ores and a wartime. slowdown of development and prospecting listed as other important factors. To Drill Deeper Unable to get the pump to operate sufficiently because of gas interference, the Taylor brothers at Cisco have pulled the pump after it iiad produced about 6000 gallons They are now getting ready to drill the well deeper into the sand, tentatively identified as the Dakota. The well is showing substantial gas pressure and there is a oossibility that it will flow without pumping when the sand is penetrated deeper. The well is furnishing gas for all cainp .eeds. . Production in Madison DeepNow Drilling Impetus to Really CASPER, Wyoming develgiven an impetus by the sand proopment ofTensleep le Elk duction in the long-idsubsethe and Basin field, by quent development of Madison production in that same field, moves to test possible deeper pay horizons' are gaining momentum throughout Wyoming. A recent spur to this move was the opening of Tensleep production in the Torchlight field, where Stanolind brought in a well flowing more than 1600 barrels daily from that horizon. . Oil Company has what appears to be commercial production in the Madison in its deep test in the Lost Soldier field. .This well had previously found production in the basal Amsden sand, a new Wyoming producing horiSinclair-Wycmi- zon. ng The opening of Madison production in this well is expected to lead to deeper drilling in numerous central Wyoming fields, in which this zone his not been tested. . |