Show Second Layer Laver of Potash is Revealed by Report One of the big factors in the enlargement of the potential of the he Taylor Delhi potash deposit on the Seven Mile anticline north of Moab was the discovery of a second deposit of ore are underneath i the first layer This fact was revealed In the release this of the complete transcript transcript transcript tran tran- script of the statements made by Dr Elton before the company stockholders at the meeting in Dallas last week Using colored slides and core drillings to illustrate his talk I told fold the stockholders that the first test well drilled revealed reveal reveal- ed the second layer of potash about feet below the first one Other tests to the deeper level revealed the extent of this tills second deposit A As a result of ot the statements by the man Inan who has been in charge of the testing of the Utah properties top officials of ot Del Dei- Taylor hi-Taylor Oil company will wili fly Into Moab Friday for a flying visit to the field and a check on work being done on getting the new area ready for opening at ata ata ata a later date James L L. Sewell company president president president pres pres- ident J W. W Bartlett vice dent in charge of engineering and andI I head of the potash project Cecil D. D Robinson vice-president vice and chief geologist and W W. W W. Newton Newton New New- ton head of geophysics and their wives will make the trip to Moab and go on to Denver Saturday I afternoon I The complete transcript of Sol Sol- Sol Sol- tes' tes statements at the Dallas meetIng meeting meet meet- ing were At our last meeting we In Introduced Introduced In In- you to a new project and what was to many O of you an unfamiliar mater material aI potash We told you that your company had lad made a discovery of the tha most valuable of potash minerals or potassium chloride and Its ts large scale fertilizer and chem chern- ical cat uses For Far the benefit of those of you who were not at our last meeting I would like to acquaint you with the area The deposit is in southeastern Utah seven miles north of the town of Moab Mush and the Colorado river It Is directly dir on U U. S. S Highway and 23 miles from the main line of the Denver Rio Ria Grande Western Western West West- ern era railroad the main artery serving serving serving ser ser- ser ser- ving the rocky mountain area Tho The new Pacific Northwest pipeline carrying gas from the San Juan basin to the Pacific Northwest passes through the property Last year we presented to you youa a favorable preliminary report by consultants on the economic feasibility of the project along with our own estimate of the Ute possible pus pose sible extent of the deposit and we owe promised that your company IW would uld pursue the development as rapidly as Da possible A year ago we drilled two successful successful successful suc suc- core holes boles about two miles mUes apart had the support of our mining consultants that this could be a valuable deposit and had luId our own Idea of what mat the extent of the deposit might be Today we have drilled nine core holes have an excellent correlation correlation correla correla- tion over an extensive area area and anda a valuable property This Is what your company has done on this project In the last twelve months First we have drilled seven large Jarge scale core wells We have drilled or cored over feet teet or more than 6 miles of hole We have cored a and td examined ove over feet ar or over 22 tons of core Here is is' the 1 and three eighths inch core we showed you yau last ast year taken from our OW No 1 well Since our No 2 well wen we have been taking 4 Inch core and here is a core pulled from our No 9 well only two weeks ago We began taking this larger core that weighs about 10 pounds bec because use it ft it was sug aug suggested that a shaft would have to be sunk before we could gather sufficient material for far test work to design a plant By collecting this larger Jarger core it t appears appears' that we will be able to evade this delay and get Into p production lon a year to two years earll earlier r. r The Th core of f interest is s examIned examined exam exam- ined med and analyzed In our Dallas DalIan laboratory Our core recovery ha has ban been excellent and the larger core- core should prove of great value in ha the necessary preliminary pilot work wark on an the most suitable proceSsing processing pro pro- ceasing method We completed the No 2 core corci well as an artesian brine well welland welland welland and are using this brine fortified with a small amount of additional addition addition- al salts as our drilling fluid in all of our exploration It U has proved to be an extremely satisfactory material and has afforded us a considerable saving In drilling costs Next we have demonstrated that we have a and continuous bed of potash which extends past the limits of the projected area presented at the thelast thelast thelast last meeting However a portion of the original area included in our former estimate has now been demonstrated to I. I contain high grade rather than sylv Here in blue is presented the proven and probable area indicated indi last year The white area indicates the he area in which the potash bed has bas been found In our more recent drilling In ad ad- Continued on Page 4 Second Layer of Continued from Page One ditton to the area shown here In blue and white an ares area of high grade has been found In our No 8 well and the area In black has been designated as the possible and probable cate cat car section is a combination of magnesium and potassium chlorides and we are arc pursuing the possibilities of developing developing de de- this mineral mineraI along with the potassium Magnesium Magnes Magnes- ium chloride and magnesium oxide oxide ox ox- ide easily produced from the chloride do have Important and extensive uses and we feel that In view of the size of the beds already demonstrated to be present the discovery of In a separate area will be a substantial substantial sub sub- plus factor We only discussed and considered considered con con- one potash bed in our aur earlier meeting but we cored a second zone In our No I 1 well welland welland and ond had Indications from our No 2 well that a second bed of lower low low- er grade existed some feet Ceet below the main bed In Utah No 4 and the subsequent w wells walls this lower bed hod was cored a a 1 i a I second bed bedwas bedwas bedwas was e a established In some cases this second bed surpasses n quantity quantity quan and quality the No 1 l red fed We as yet do not have sufficient Information to fully evaluate this second bed but we do know that It contains high grade over a considerable area We question the advisability at ot this time of further exploring this lower bed exclusively because drilling costs are high and we wedo wedo wedo do not need this additional reserve reserve re reo re- re serve to demonstrate the economic feasibility of the project and It will be much cheaper to develop its full potential from Crom shallow core holes drilled in the mine workings We have taken no finite reserve credit for this bed as yet but it will add substantially to the reserve figure granted to the No 1 bed alone It is clearly evident that the reserves In the property have been increased by about three times over the conservative estimate of proven and probable ore reserves offered last year by our consultants We have demonstrated demonstrated demonstrated dem dem- that a large blanket of covers substantially all of our area and we know that the total reserve is Is' beyond any of our estimates but as we move west the overburden increases due to the dip of the beds and the pressure of an and at this time we are not sure of how much of the deeper ore we can recover Therefore we have limited the pr present sent estimate to o Include only that portion we feel sure can be mined We hope hone that we can follow the ore body considerably deeper There appears appears appears ap ap- ap- ap pears to be sufficient high grade ore at shallower depths that on ona ona ona a basis of a 1000 ton daily dally plant the he common starting unit we will have at least a year 25 operating reserve and we anticipate that when the total possibilities Including in- in In 1 eluding the lower zone are considered con con- con 1 the operation will extend far beyond 25 years In this Seven Mile Anticline area near Moab we have in increased increased in in- creased our acreage from to over acres We now own all of the acreage we consider consider consider con con- sider of value on this structure The area in red represents our holdings at our last meeting The area in yellow indicates our recent recent recent re re- re- re cent acquisitions Our Utah No 9 g was drilled on a portion of this new property and the very encouraging encouraging encouraging en en- results indicate that a good portion of this area will be beof beof of f extreme value to us Our Utah No 10 which is just beginning will be further extensive of this new area These color slides should demonstrate demonstrate demonstrate dem dem- In a brief way the general general gen gen- eral features of the property For Fora a distance of from j mile to a amile amile amile mile west of the highway and main fault the property Is quite flat Then an escarpment covers a majority of the property to the west The property Just added to the north and presently being explored has at least two to three sections of flat area not covered by the escarpment As Mr Robinson has told you your company has bas established a geological district office in Moab with a staff devoted primarily to the work of development on the potash property Your company has obtained water rights tights and a pumping site on the Colorado river and end has hasa a way right established from the river to the property It will be necessary that a railroad spur from the property to the main line of the Denver 8 Rio lUo Grande railroad a distance of some 23 miles be built The railroad has been contacted and work on this phase Is la In progress We have been In continuous contact with several major shaft sinking mining and processing companies and are continuing to consult with them with regard to the development Studies regarding marketing of the product are being conducted These are the things we have done in the last year This Is what we are doing and what we plan to do In the immediate fu fu- fu- fu ture First we are attempting to di digest digest digest di- di gest the multitude of information we have gathered from our careful careful care care- ful rul and complete coring program We are continuing to explore the surface and subsurface geoly geology geol geol- o ogy y of the property and are preparing preparing preparing pre pre- pre pre- paring a complete te geological study on the area from the in information information In- In formation gathered We are continuing our m market market rk t research program so that we can determine what course to follow in deciding on the size of the initial operation and future ex ex- We are continuing our discussions discussions discussions discus discus- t with the various processing and mining groups In an attempt to determine that group which will best serve our needs in the design of shafts mining plans and processing methods J We are studying freight rates and transportation problems We are tore working with our consultants consultants con con- on a re evaluation of the reserves based on the additional information and property obtained obtain obtain- ed during the past year We are studying various processes pro to convert potassium chloride chlorIde chloride chlor chlor- ide to other valuable potassium compounds to broaden our marketing marketing marketing mark mark- eting base We have a lot of work to do doIn doin doin in the coming year and a lot of t questions to answer before we spend the 20 15 million dollars required to get into operation but we are proud of our record and wonderfully optimistic about the future Wherever we have drilled we have found potash We know we have a lot of it Under our present plans we should expect to be in operation with the beginnIng beginning beginning be be- ginning of revenue within two and one-half one years We hope to have a shaft started In 1956 1056 and we hope hopp that 1 by y our next net meetIng meetIng meeting meet- meet Ing we can report that a shaft has been started that a mill has been designed and that the project project project pro pro- Is well on its way to becoming becoming be be- coming a reality |