Show Mill Extension Will Bolster Economy i Officials Optimistic About Post 1966 Buying Program An amended Uranium concentrate purchase agreement was signed Monday by the Atomic Energy Commission and Ur Uranium um Reduction company extending the between the and and the 1500 ton-a-day ton Moab mill to December 31 1966 The Tho The action culminated two and one half years of The amended agreement provides pro vides for tor conversion of one of the mills mill's acid circuits to a carbonate carbonate car car- bonate circuit capable of treatIng treatIng treatIng treat treat- Ing the high lime ores of th the district It also provides a firm market for numerous Independent ent ore producers whose properties properties proper proper- ties hereafter are dedicated to the Moab mill mil URe President Mitchell Mel- Mel ich also announced signature of ore purchase contracts in line with the new concentrates o trae sn sates sales s agreement with Hidden Splendor Mining company Lisbon UranIum Uran Uran- turn lum Corp Mountain Mesa Uran Uran- Uranium iuni ium Corp Hecla Mining 1 company company company comp comp- any and Resources Inc Exploration Corp and andLa andLa andLa La Sal Mining and Development Corp Contracts have been signed also also al also al- al so with Standard Uranium Corp The Standard contract covers ore reserves established prior to the major discovery made by Stand Standard id on the Big Buck properties pro pro- perUs in the Big Indian Mining district Standard is negotiating separately for Inclusion of the discovery ores In the 1001 p program gru 11 Unde Under the agreement with the ARC C the commission has the right to call caU on for treatment treat treat- ment of ot additional ores above and b beyond yond the contract terms terms' without rationing of existing suppliers according to Mr Mel Mel- 1 ich h. h The commission Is doing this right now In order to provide provide provide pro pro- vide markets for the ores from independent r miners Mr Mel- Mel Ich said The million dollar donar agreement agreement agreement agree agree- ment provides a Influence influence in In- fluence on oh the areas economy alwell as al aswell aswell well as a guarantee of a market for the mills mill's product Approval of the agreement had been announced announced announced an an- In May Moy of 1959 but no details were known until the Monday Monday statement of tIRe and the Atomic Energy Commission Negotiations Negotiation began bean Mr recalled In fn February 1957 Its been a long time In coming added added add add- ed mill Superintendent Roy Hoi Hoi- lis A note of optimism was sounded sound sound- ed for the post 1966 period by mill officials I believe there will be a market for tor uranium after 1966 1006 said Mr Both through the government and in limited amount civilian purchases he continued We Continued on Page e 8 fr A MILL CONTRACT Continued from Page 1 can build a fine industry If f we cooperate with the existing government government gov goy program and take a asane asane sane lane approach toward the amount of Uranium concentrate they the government will buy he said Mr referred to the Atomic Energy hearing before the appropriations committee of the House In which the committee committee com com- stat stated d that it appreciated and approved the commissions commission's decision not to stockpile uranium uran Cum ium ore and thus avoid the deplorable deplorable deplorable de situation that exists In other metals The present conversion project project pro pro- reflects the optimism the mill management feels concerning concerning concern concern- ing the Industries future after 1966 With the addition of th the new leach circuit will be competitive in the commercial post government uranium concentrates con cons sales picture Mr said Statistically the purchase agreement provides for the sale of rounds of uranium in concentrate to the from Moab mill Added to the amount of concentrate delivered delivered de de- de livered by the mill since the first delivery by in November of 1956 under the contract that would have ended in March 1962 the n newly extended contract means that will deliver an estimated million dollars worth of uranium by bythe the end of 1966 That is s assuming that the operation remains at the 1500 ton per production called for by the agreement Additional treatment of ores could b be called called call call- ed for by br the In announcing the amended contract the Grand Junction office said that this is another another an an- other Commission action to Implement implement im Im- Im the program announced April 1958 to expand to a limited Urn lim extent domestic uranium procurement thus providing a 1 market for those areas which have no market or had an Inadequate Inadequate In In- adequate market for reserves developed prior to November 1 I 1957 This announcement noted that Moab Big Indian Wash area had sufficient mill capacity but that satisfactory arrangements arrangements arrange arrange- ments should be made for allocating allo alla eating cating mill capacity to the various vars var ious lous mines In the district The amended contract contra t accomplishes this purpose |