Show Phillips Oil to Build 1725 Ton U-Ore U Mill in Grants Grants' 1 District The U. U S. S Atomic Energy CommIssion Commission Com Com- mission and Phillips Petroleum company of Bartlesville Okla Okia Tuesday signed a contract for the sale of uranium concentrates to the commission The contract will i result In the construction and operation by Phillips of a new Uranium processing mill in McKinley Mc Me- Kinley county New Mexico having hav- hav havIng haying ing a capacity of about 1725 tons of uranium ore per day Phillips began exploration ac activities activities activities ac- ac In the Ambrosia Lake area in 1955 and by early 1956 had blocked out a sufficient ore supply to Interest the company I in proposing a mill nill operation At that time the Commission was advised by the company of its I interest in submitting a proposal for a milling operation Preliminary talks were commenced commenced commenced com com- In August 1956 and a formal proposal submitted to the commission In February 1957 Construction of the new mill millis millis is expected to commence soon with completion scheduled about mid It is estimated that the plant will cost approximately This is the fourth contract contract contract con- con tract entered into in recent months Involving construction of or ofa ora a mill to treat Ambrosia Lake ores The Phillips Phillips' mill mIU will be the sixth uranium processing plant to be located In New Mexico to treat ores produced In that state The site of the new mill is in McKinley county about 25 miles north of or the town of or Grants Ores treated in the pan plant will Include ores from properties or controlled by Phillips as well as a certain amount of amenable ore purchased from independent mine operators of the area |