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Show hploring Utah Properties Mineral Encr . Inc., ac-, ac-, coring to Western Minim; News, recently announced that initial evaluation and exploration explorat-ion efforts have bci;un on site at the company's Lark-Royal and Black-Acton groups of uranium properties in San Juan County. I'nder terms of option contracts which have been exercised and accepted by l tali Power and Light, according accord-ing to the information, 1-43 claims in the Black-Acton group and P0 claims jnd a school section in the Lark-Royal Lark-Royal properties are subject to evaluation bv I'tah Power and Light. That company may earn up to 60 per cent undivided interest if exploration should develop significant proven commercial ore reserves. Mineral Min-eral Energy. Inc.. would hold the remaining working interest, inter-est, 40 per cent or more, depending upon funds expended ex-pended by Utah Power and Light. Overriding royalties are 5 per cent, except possibly the school section, which may reach 12.5 per cent depending on the grade of ore shipped. To earn the full 60 per cent interest, exploration work and related expenditures in the amounts of $200,000 would be required in 1975. $275,000 in both 1976 and 1977. and $"5,000 each in 1T8 and 1979. Utah Power and Light may cease exploratory efforts at its option and obtain working interest participation in lesser amounts depending upon funds expended, said Western Mining News of Spokane. Wash. |