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Show v Vol. ifHificaHtS in The Oil and fHMttg World" fteAt Tke'Wtslera Mineral Swrey, Salt Lake City, Utah 27; No. 25 Torontc Ample U- Ore zones opened up so far and ore TORONTO, Canada tonnage indicated are such that the present and projected develMines, Ltd., opment program estimates at will readily prepare ample ore for mining to meet the tonnage contracted for when deliveries start in April, 1957, to the Lorado Mill. This information is contained in a recent report filed by H. T. Leslie, B.S., E.M., consultant for Cayzor mines, which are located in the Beaverlodge area in the Province of Saskatchewan, Cayzor-Athabas- ka I I Canada. Total drifting and drilling to date indicates 1,145 tons of ore Re-Comstock per vertical foot averaging 0.46 per cent uranium oxide undilute, Mr. Leslie reports. Upwards of 4,000 tons or ore from the underground work has been stored on A momentous decision to re- the surface which is estimated to sume mining activities on the average approximately 0.30 per historic Comstock Lode at Vir- cent. Three drifts are advancing in ginia City, . Nevada, was announced today by Louis H. Sea- - ore on the second level. Over 1900 grave, president of Consolidated feet of lateral development has been completed on this level to Co. Virginia and approximately 4,130 feet Mr. Seagrave said that Con- n the first level, he writes, an on decided active Virginia has on the first level has Drifting program for development and optons per vertical foot 451 proven eration of its extensive holdings OOiS3 per cent TO08 averang the Comstock Lode, which over drift' lengths On the . second level drifting has so far opened up 165 tons per ver I Con-Virgin- ia To -- Open I I Red Hill Enters Merger With Colonial Nuclear Red Hill UraMOAB, Utah nium Co. of Moab .soon will absorb Colonial Nuclear Industries of Grand Junction, Colo., under an agreement approved by directorates of both companies, it ws announced here today. . Jack C. Turner, president of Red Hill, said his company will ake over Colonial Nuclear management in a stock exchange ransaction. One share of Red Hill will be exchanged for two of Colonial Nuclear, Turner said. Colonial Nuclear has approximately 3,202,000 shares outstand- August 17, 1956 Contract1 T ransfers Oil Leases, Uranium Mine D. W. Squirrell, president, of the Golden West Oil and Uranium Corp., announced today the signing of an operating agreement with Golden West and the Balcones Exploration and Drilling Corp. of San Antonio, Texas. The Balcones Corp. is a major operational mining company with extensive operations in the plateau states mining area. The agreement transfers a producing uranium mine in Utah and approximately 130 other properties to Balcones. The mine, which has previously shipped approximately 2,000 tons of high grade uranium ore, will be modernized and mechanized immediately so that production can be stepped up. At the same time, a number of new entries will be opened on the same outcropping in the immed- iate vicinity.The Southwest Assay Corp., a subsidiary of Balcones, will establish a mineral assay laboratory branch near the property to provide quality control for the ores and assays for the core drilling. The transaction also includes the transfer of oil properties of Golden West to Balcones under - ing. V The merger agreement is subject to approval of stockholders of both companies. Robert I. Ludwig is president of Colonial Nuclear. Colonial Nuclear assets total $447,924, according to company records. Turner said the company has an income of approximately $4,000 per month from uranium averaging 0.423 per cent and oil properties. have 'uranium oxide over drift lengths Merger of Colonial Nuclear inof 420 feet. In addition diamond to Red Hill marks another step drilling has indicated on the first Large values in gold and silver Ln( second levels 528 tons per in the Turner company's, expanstill exist on Consolidated Virfoot of ore averaging sion program. Negotiations on Mr. Seagrave properties," 0.3663 ginias other mergers are in progress, per cent uranium oxide, said. Earlier operators concen-- 1 A total of 125 diamond drill and Red Hill also expects to antrated solely on high values and holes has been drilled on the soon the purchase of a ignored ore of lower values which property and these drill holes nounce are of commercial grade today, with few exceptions obtained one major producing mine in the There also is reason to believe or more intersections containing White Canyon area of San Juan that valuable ores exists in a uranium oxide. Recent diamond County, Utah. virgin area near the surface. drilling has not only established Modern machinery, relatively in- lateral continuity of ore zones, expensive approach from the sur-- but has established that ore zones face, and improved milling methr go to depth, In view of the Important re- -, ods are todays proper approach. suits obtained in the recent drill- The companys exploration pro- - fog and also in the underground gram includes drilling and open development, arrangements have cut operations in virgin areas and been made to sink the shaft two The U. S. Atomic Energy Comsampling and metallurgical work more levels and open up the ore mission and the Dawn Mining to confirm previous assays. The bodies at these elevations, and Co., of 300 Park Avenue, New program, is being undertaken as also open a loading pocket below York City, have signed a contract the result of recent t examination the fourth level to load skips, for the construction and operaof the properties and exhaustive The development program tion by Dawn of a uranium proof documented reports, eludes the continuation of drift cessing mill in Stevens County, many not previously known to ing and crosscutting on the firs about 40 miles northwest of Spoand second levels to open up ore exist. Washington, it was an- ; drives on the third kane, line bodies, The work planned may well an(j fourth levels to the ore zones, nounced today at the Grand Junction operations office of the lead to extensive operation at Vir- a ging 0f ore and waste City, Mr. Seagrave said. es from the fourth level loading commission. Construction of the The time has passed for econom-- 1 pocket to levels above and the plant is expected to begin promptical reopening of the older, deeper preparation of the various ore ly, with completion scheduled in about .12 months. workings, but we can start at the zones for mining, risk little with top and go down The mine is equipped with To be owned and operated by or guessworx. substantial buildings and the the Dawn Mining Co., a subsidMining CorCompany studies indicate that- most modern mining equipment, iary of the Newmont will promill' new meththe which with fey additions will be poration, with present equipment and cess ores from the ods and values of $20 to $30 a capable of full production, Northwest region, including ton in gold and silver (which Supplies are on order and Comstock experts regard as like- - steadily arriving to maintain full ores controlled by the contractor after navigation as well as ores bought from indely), properties can be made high- - operations until 1957, Mr. Leslie pendent producers. opens in June, ly profitable through open pit op- states. of erations, with possibilities The product, uranium concenstriking richer deposits. the property Cayzor Although trate, will be sold to the Comor 18 claims of consists unapprox mission under the terms of the Another new activity being near located acres .720 conutract. dertaken is the exploration of the imately In the Beaverlodge Uranium City The on the property. huge dumps In the new plant, the contracdevelopment has been dumps were accumulated in early mtrated southeast on the mainly days when, the company side of Jean Lake on zones along tor proposes to use a circuit utilizcounter-curren- t or closely associated with the ing acid leaching, decantation thickening, followed Jean Lake Shear. (Continued on Page 4) . I -- Construction pf the new plant royalty operational agreements. The Balcones Corp.' acquired, to place in escrow, 10,291,870 shares of Golden West to withdraw the unissued and treasury shares from the market, during t. the tenure of the control agree-Imen- -- Jon the amount involved in the transaction was that the acquisi- and that .T mite northf Jn would Mr- roy,lt5r Parent Rawlins, 88 miles southeast of be in the millions of dolLander, and 90 'miles southeast tainly lars. of Riverton. Squirrell stated all of the properties are ore bearing but that extensive exploration and core drilling will be required on some of the properties to determine their commercial value. He added that immediate exploration and core drilling costs would be in in uranium the hundreds of thousands of dolrecovery by w'28rrrtV8 Uranium Processing Mill Set For Spokane Area by Dawn I : I pass-gini- : newly-develope- . con-minin- g -- Mr. Squirrells only comment 1 d ion-exchan- . columns. lars. The extent of the Properties Known as a column makes the transaction one of the flowsheet, this process has been investigated and tested by larger mining property acquisithe National Lead Company and tions of recent times. Contacted in San Antonio was the U. S. Bureau of Mines under C1- James E. Duke, president of the sponsorship of the U. S. j tiie Balcones Corporation. He ackAtomic Energy Commission. nowledged that the operation con-Th- e plant site is located near jtrol agreement had been complet-ForStevens County, Washing-- 1 ed and stated that further infer- ton, and is approximately 40 miles mation would be released after northwest of Spokane. the transaction had been reportstockholders The site is served by Highway ed to the Balcones in the firms regular quarterly No. 2 to Reardan, then north 20 report. miles on state Highway No. 31. Col. Duke declined to name Power is available from' the the price paid out in the trans-asetioWashington Water Power Combut agreed that it was pany. ion-exchan- . d, n, Commercial deposits of uranium ores were first discovered in the Spokane Indian Reservation area in the fall of 1954. Explora tion and development have pro- ceeded to a point where reserves are large enough to support a milling operation and provide a market for the producers of the area, according to the sizeable but not excessive in view of the extent of the properties. Howard L. Grant is Chief Engineer and Grover C. Ridgeway is Regional Superintendent for J I Balcones. Collins the Land F. Spang acted as is Chief of Department and Claude General Counsel. Both attorneys for Balcones B. Coon in the transaction. Balcones will assume control of the properties immediately. |