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Show United Nuclear Will Build New U-Mill United Nuclear Corporation Corpora-tion has announced plans to build a $11.5 million uranium mill near Gallup, N.M. The announcement makes UNC the first uranium producer pro-ducer of the decade to announce an-nounce firm plans for building build-ing a wholly new uranium mill. According to Nuclear Industry In-dustry magazine, the mil! will process ore from UNC controlled properties in the Church Rock area near Gallup, Gal-lup, N.M. which the company believes capable of producing produc-ing 1,500 tons a day. The mine will be put into production produc-tion at an estimated cost of of $,1.5 million; later another $2 million shaft may be added, add-ed, which they believe will supply all the ore' the mill can handle. United Nuclear's Church Rock reserves are estimated at about a third of the 11.9 million tons of ore, averaging averag-ing 0.210 per cent U308, in all properties held by United Unit-ed Nuclear, and a partnership partner-ship ' with Homestake-Sapin, in which UNC holds 65 per cent interest. Analysts note that some 6.5 million tons will be . needed to meet UNC and Homestake-Sapin Homestake-Sapin sales commitments, to the A EC and others, and it is therefore surmised that the Church Rock property accounts ac-counts for all but about 1.5 million tons of uncommitted reserves of UNC and the Homestake-Sapin partnership. Announcement of the proposed pro-posed mill was made last month to back an offering of $30 million in convertible su- bordinated debentures by UNC. In a broad analysis of the company's private U308 sales Nuclear Industry quotes a prospectus of $6.32 per lb., as the weighted average price for concentrates toe delivered in 1968 through 1973; $6.58 for 1974-1977 deliveries. de-liveries. These averages d? not include 3 million pounds of concentrates represented by finished fuel to be fabricated fabri-cated for Commonwealth Edison Ed-ison and AEC. |
