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Show Pace 2 THE WESTERN MINERAL SURVEY United Western Drill Exploration 'Successful' in Colorado Operation Pushing its preliminary work prior to applying for a uranium processing mill to handle ore from its Tallahassee-SoutPark area in southern Colorado, United Western Minerals Co. has drilled several thousand feet of exploration holes during the past two months. From the standpoint of the company, the drilling efforts have been highly successful and h approximately 40,000 tons of prov- en ore and 120,000 tons of inferred ore have been blocked out. The drilling is being done under supervision of Marvin C. Chase, former district geologist for the AEC, and now in charge of United Westerns Colorado operations. Flow sheets on the metallurgy have been completed and engineering data is now being assembled for submission to AEC for an application for a uranium processing mill in the area. The Homestake - New Mexico Partners mill in the Ambrosia Lake area has been completed and is now processing ore. It is that the mill will be operating on a full capacity basis within the next few weeks. Ore from the ore body on Section 32, is now being shipped to the mill site by United Western. Over 2300 feet .of development drifts and raises have been completed to date on this section, as well as seven headings. It is estimated that projected maximum production from this section will shortly reach 300 tons a day. The tonnage estimate on this section has been revised by the company and it is now estimated at between 750,000 and 800,000 tons of ore averaging .28 per cent U308 drilled out in proven and inferred tonnage. It is estimated that underground development, .work .will result in substantial additional tonnage. The south half and the east half of this section have not yet been drilled. The lease on this section is from the State of New Mexico with a 5 per cent overriding royalty to the state, one of the lowest royalties existing in the Abbrosia Lake area. ex-pect- ed T-14- R-9- Vanadium Corporation of America, operating as partners on United Western Minerals state lease on Section 36, Ambrosia Lake, is shipping uranium and vanadium ore to Durango, Colo., for milling purposes. T-14- R-10- The mine is now in operation and is expected to reach full production of 30 to 50 tons per day on ore about the end of February. The ore bed contains 22,000 tons of proven ore, production of which to date has averaged .48 per cent U308 and .51) per. cent vanadium content.' A considerable quantity of inferred ore is also contained in the same section. Kermac Nuclear Fuels signed an agreement with United Western Minerals on Jan. 28, taking WESTERN MINERAL SURVEY NEWS 431 - CIRCULATION Church Street ADVKRTXBINO EM Salt Lake City, Utah Entered aa second class matter at Salt Lake City, Utah, under Act of March 3, 1879. Subscription rates: 63.00 for one year. 69.00 for two years; Please mention Western Mineral Surrey when writing to advertisers. Advertising rates on application. h. M. HIU. over responsibility as operator on Section 22, Ambrosia Lake, from Kerr-McGe-e Oil Industries, Inc. Kerr - McGees shaft has been bottomed and exT-14- R-10- ploration and development drifting is now underway. Kermac plans to mine this ore body in three different morizons and estimates that optimum production will reach 1500 to 2000 tons per day by July 1. United Western Minerals and its farmous group own a 15 per cent working interest in this section as well as a of one per cent overgross riding royalty. one-fourt- h The drilling program on SecAmbrosia 14, which Lake, developed an grade bed of ore, has been completed and mining and development plans are now under way. It is estimated that it will take 90 days to sink a shaft, install a head frame, hoist and other equipment, and an additional 60 days of development work. Production from this section is expected to begin on or about the first of July. The ore will be shipped to the Homestake-NeMexico Partners mill, which is now in operation. tion T-13- R-9- . w Indicating United Western Minerals extensive holdings in the Ambrosia Lake area, reports show that the mining and milling agreement with Homestake on United Westerns properties and other properties to be dedicated to the partnership, the mining agreement with Kermac Nuclear Fuels and the mining agreement with Ulndustry Woe.. (Contined from page 1) first, the commission has bumped its head on its budget. It will be spending 700 millions annually on acquisition of uranium concentrates, of which amount 300 millions go to domestic sources and 400 millions on foreign contracts, some of which extend to 1966. Additionally, nearly 600 millions more will go for production of enriched uranium products. A total of 18,000 tons of uranium concentrates from domestic sources and about 22,000 tons of concentrates from foreign areas are contracted for annually in years ahead. This 40,000 tons of uranium concentrates, under present plans, will be processed into fissionable materials. The bulk of the AECs budget apparently is being committed for feed materials in one form or another for reactors. However, it also is apparent that at this particular stage of developments, the armed services and the peacetime uses of the fuel have not caught up with supplies of available material. What is the solution? There is some division of opinion among principals in the industry and possible within the staff of the AEC on this. One group in the United States would like to see a huge public works program geared to nuclear energy which would place the federal government in the public power field. This would satisfy the pent up productive capacities of fissionable materials both here and abroad and would accomplish the socialization of the privately owned electrical power industry in the United States. Government In, Producers 'Out Not many in the uranium inVanadium Corporation of Amer- dustry advocate this if for no ica, give the company a market other reason than the fact that of approximately 500 tons a day the socialism eventually would in the Ambrosia Lake area alone. catch up with them, the government would be in and they would beout of the mining business. In any event, this certainly would magnify and not reduce public spending for nuclear energy which now exceeds the seven billion dollar mark, they believe. A group from New Mexico is Bureau of Mines motion pictures, produced by American in- advocating a type of soil bank this dustries, established new circula- for the uranium miner. Under tion records in 1957 and were plan, he would be paid a portion viewed by group audiences total- of the value of uranium disWhen ing an estimated 14 million per- covered and developed. rewould sons, the Department of the In- eventually mined, he , ceive other funds. terior announced today. This plan, too, would require The nationally distributed free-loa- n above the level appropriations films, covering 58 different now projected. subjects on the conservation and A third proposal is that the comdevelopment of mineral resources, stockpile uranium concenwere shown 237,128 times, a gain mission trates rather than send them of more than 10,000 over the previthrough gaseous diffusion plants ous high established in 1956. conversation to enriched mafor In addition to group audiences, terials or metals for a reactor use an estimated 18 million persons not demanded by the present saw the films on noncommercial of development. stage television programs, said Bureau By cutting production of uraniDirector .Marling J. Ankeny. a saving um metal by one-halGroup showings of the motion of several hundred millions could pictures were chiefly at schools, be made in the present budget of colleges, and universities and at the commission. It is then promeetings of associations, business that funds thus saved be aland civic clubs, scientific societies, posed located to increase purchase of and similar organizations. concentrates from U.S. sources. Reflecting the nations sustained The figure of 150 million dolinterest in atomic energy, a film lars a year is used in this connecregarding uranium became the tion. second most popular, being outAdding 150 millions to purchase ranked only by California and of uranium concentrates in the e Its Natural Resources. The range of $8 a pound, several thouthose films of and group sand more tons daily of uranium dealing with specific minerals and ore capacity could be established metals, shared honors among the in new mills. first 10 of widest circulation and This would aid in reducing the greatest attendance during the inequities involving mill capacity year. for Wyomings Gas Hills district All films in the bureaus library and in certain areas of New Mexof 6,200 prints are sponsored by icos Ambrosia Lake district. private firms or industrial organi- Other Mills Look for Assurance zations Vhkh pay costs of produc- rado also need assurances of a Other mills in Utah and ing them and providing copies for circulation by the bureau and by past March 31, 1962. This leadat distributors cooperating may require commitment of addiand tional funds for concentrates purschools, libraries, ing 40 chasing as well as a stretch-ou- t approximately states, Alaska, and Hawaii. None of existing contracts. Such a proof the films contains advertising. gram would bring a welcome staFilms are in the 16 mm. popular bility to many communities in size and all are in sound. Nearly Utah and Colorado. all are in color. Actually, the commission has Bureau Pictures Set New Record - f, state-resourc- Phone EM Box 3608 ; Editor All news appearing In the Western Mineral Survey Is obtained from sources believed to be reliable but no responsibility Is assumed for accuracy of statements. Reproduction of any material from this publication must have written permission from the published. Colo-progra- uni-versities- in m 1958 Friday, February 28, alt Lake Stock Exchange Sales Bonanza 1300 at .04 Brlatol Silver 1000 at .15; 1000 at .15 Clayton Silver 1000 at .1814; 1000 at .1914 Comstock 1000 at .13 Coni. Eureka 1500 at .30; 500 at .30 Dragon 300 at1.15; 300 at 1.10; 1600 at 1.05; 1.15 300 at 1.10; at 1700 1.05; 300 at 3000 at .04; 5000 at .0314 1000 at .0314 Leonora 3000 at .0114; 1300 at .0114 Mono Kearsarge 500 at .31; 350 at .30 Naildrlver 1000 at .0914 North Standard 1000 at .0114 Park Konold 1000 at .01 Rico Argentine 34 at 2.8714 Bllvre Standard 1000 at .03 Tin tic Standard 1000 at .5714 Western Alloys 1500 at .05 East Standard Grand Deposit Curb Sales Royston 1000 at Tlntlc Standard .0314 ' 55 at .50 UB. Mine Output Shows '57 Gain mineral output in the United States attained a record value of $18.3 billion in 1957, a gain of more than $750 million over 1956, reported the U. S. Bureau of Mines in its preliminary production report for the year. The 1957 increase, the bureau said, was due almost entirely to higher values for the mineral fuels, particularly crude oil and natural, gas, which were large enough to offset declines in production for most other minerals as well as sharp drops in The base-met- prices. 1945. Production of recoverable copper from domestic mines decreased nearly 5 per cent from 1956; refinery output remained about the same; and consumption of refined copper fell approximately 15 per cent. Total imports of copper rose about 6 per cent and exports of refined copper almost doubled. Stocks of refined copper jumped 65 per cent. al Anthracite, cement, gypsum, phosphate rock, bauxite, chromite, and tungsten all declined in both production and value. In contrast, helium, barite, diatomite, cobalt, mercury, ilmenite, and uranium ore all registered substantial pro duction and value gains. The value of the gold production, estimated at $62 million, was the lowest since 6,000 tons in 1956, is expected to rise to 15,000 tons or more in 1959. Commission Ends Industry Study Observers in Washington are now predicting that it will be about March 15 before the U. S. Tariff Commission sends its recommendations in the lead-zielse to the White House. They say there has been some evidence of greater activity by the commission now that all the questionnaire data are in. However, there is no indication that the staff renc The value of umaium ore production was included in the totalr for the first time, and was estimated at nearly $75 million in 1957, compared to $63 million in 1956. Production of domestic uranium concentrate was at the rate of port evaluating the data has been nearly 10,000 tons of uranium prepared for the commissioners. oxide a year, compared with about Among the many rumors flying about is one that the White House announced that between March will shelve the lead-zirecom31, 1962, and Dec. 31, 1966, it mendations of the Tariff Commiswould buy 500 tons of concen- sion because the Administration trates from any one property. But may not want to act before Conthis proposal rtever has been de- gress moves to extend the Trade fined adequately. And some in Agreements Act On the other the industry say this program hand, it is pointed out that Conactually could result in much gress might want to see what the larger appropriations for concen- President does about raising the trates purchasing than presently tariff on lead and zinc before conceived by the government. voting on the trade act extension. It is important to note that the The legislation recommended by industry is looking toward a near the President would continue the c date when nuclear powered on Tariffs General Agreement generating stations will be and Trade for five and fully competitive with electrical would Jfurther reduceyears existing production from fossil fuels. There also is an indicated wider tariff rates. use of uranium fuels in such armaMany members of Conress have ments as space ships and vessels stated that unless increased tartraveling under and on the oceans iffs for lead and zinc are d, of the world. and unless the President There also are foreign markets directs that these recommenations be followed, the question will to be considered. But insofar as this session of most certainly be raised again in Congress is concerned, it appears Congress. At this time, the Ways there either must be added ap- and Means Committee is waiting propriations or a shift in funds to see what the Tariff Commission within the AECs raw materials reoommnds and what action the program. Administration will take. nc steam-electri- recom-mnde- |