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Show -- 4J OP U LIBRARY ' CITY 1 r 'V METAL PRICES Lead (per lb.) 19c Gold (per oz.).$34.9125 i Copper 242c fcinc (per lb.) 19.5c Silver (per oz.) new mined 90.16c Features Mining, Oil, financial Salt Lake City, April VOL. NO. 23, XO. 15 11, 1952 ' , One Year $2.50 Oil Expansion Program Seen Bunker Hill Net Income Records Drop Government is expected to flash the green light on a stupendous go ahead oil industry expansion plan, reports Joseph Huttlinger, Washington oil correspondent from the nations capital. The program calls for 25,000 new wells to be drilled in the last half of the present year and 55.000 drillings under the year 18-mo- nth Net income of Bunker Hill & Sullivan Mining and Concentrating Company for 1951 was $3,730,898 or $281 per share, compared to $4,186,316 or $3.16 per share. Ore production last year dropped to 207,171 tons from 395,813 tons in the previous year, but output from operations increased from 112,445. tons in 1950 to 358,972 tons in 1951. Total ore reserves at the year end were 2,918,183 tons, 86.4 per cent of which Bunker Hill type ore and the balance Blue Bird type ore. Reesrves at end cf 1950 stood at 3,014,476 tons. An additional 2,028,241 tons of low grade marginal ores were available in presently explored blocks in the Guy block caving area at the end of 1951, the report notes. Total mine production last 1953. black-cavin- g lead-zinc-silv- The action is due in the form of Defense Production Administration approval of a new pro-- . gram outlined by the Petroleum Administration for Defense. A battle royal took place during most of this week over the next year oil wells figures, with the DPA at first holding out for only 52,000 wells; but PAD thinks it changed DPAs mind. The PAD program was in the form of a request for steel allocations to support a petroleum expansion of this size. At one point the DPA estimate endorsed the addition of new refining capacity at the rate of 500.000 barrels daily each year, against the PAD figures of er zino-lead-sil- ver year was 25,476 tons of lead, tons of zinc and 1,844,281 11,-16- 3 ounces of silver. In 1950 the mine yielded 37,720 tons of lead, 10,029 tons of zinc and ounces of silver. The Bunker Hill smelter facilities also operated at a somewhat reduced capacity during the entire year, but the smelter proprogram improvement gressed at a quite satisfactory rate, it is stated. Smelter output of all metals last year was lower than in 1950, as follows, 1950 figures in parentheses: Lead, 54,315 tons (75,249); zinc, 13,372 tons (14,950); antimony, 723 tons tons (1151); copper, 1174 admium, 149,546 m0I jaAns !(8&rtZI) spunod 635 ounces (11,949,907); gold, 3283 ounces (3668). The Sullivan Mining Company, in which Bunker Hill is a joint and eual owner with Hecla Mining Company, operated its Star Mine and concentrator at csapacity throughout the year. Its electrolytic zinc plant was at full capacity operation 94.34 per cent of the year. Earnings of this company amounted to before income taxes, but the tax cut of $2,412,625 reduced this to a net 1951 profit of Dividends of $1,250,000 were paid during the year, half of the total going to each of the joint owners. Production of Bunker Hill slab brand, special high-grazinc, 99 per cent pure, at the Sullivan electrolytic plant reached a new all-tihigh of 54,477 tons in 1951, slightly more than the 53,922 tons produced in 1950. Output of Sullivan brand electrotHytic cadmium, also 99 per cent pure, was 272 tons as compared with 295 in 1950. Other saleable metals recovered in residues, dross and other byproducts included 8480 tons of zinc, 3441 tons of lead, 160 tons of copper, 515,660 ounces of silver, 1929 ounces of gold. Total zinc output was 62,947 tons as against 62,879 in the previous year. (1398); -- $4,-497,0- 11 $2,-084,3- de me Conception of Equality The average mans conception of equality is a state in which he will be considered an important citizen. Nb man is so stingy he will object to (having others share his good opinion of himself. mu MijiLL SITUATION was big news in mietal circles this week with the government over the industry following inability of labor and steel to get together on demanded taking age increases. Repercussions followed the governments edict, and while workers have returned to work, nothing has been settled regarding one of the Nations foremost economic Planned Exploration Program Oil Activity New Oil Finds Result Of Pushed in An economic transfusion of areas, are cited in the article. Basin Area For example, it costs spent by oil nies in exploring the Williston a year to maintain a single , Basin area of North Dakota was described recently by the Independent Monthly, publication of the Independent Petroleum Association of America. Lloyd W. Sveen, northwest editor of the Fargo, N. D., For-ruin an article on the nations newest oil - producing state, reveals vast social and beneficial economic changes resulting from this expenditure of oil companies, and adds: Most of this huge sum was spent before oil was found. In a survey for the Fargo Forum, Sveen polled 16 oil companies and independents on their costs for exporation and drilling in Western North Dakota, and added estimated service costs for smaller firms for similar spending. His article covers period since 1947 when leasing and exploration began which culminated in North Dakotas first oil discovery near Tioga in April, 1951. This discovery, operated by Amerada Petroleum Corp., cost $1,000,000 to drill and complete. Leases alone accounted for vast cash outlays. Standard price for rental was 10 cents an acre in 1947. But by May, 1951, there were 23,637,54S acres under lease for oil and gas purposes 'and the minimum rental was up to 25 centa per acre. In late 1951, a survey of the registrars of deeds disclosed acres under lease. Even on the eastern lank leasing advanced to 50 cents an acre, wrote Sveen. Recently 1G0 a vies near Tioga brought $28,000 In bonuses' and first-yerental. One firm paid $587,889, or $34 per acre, on 17,290 acres of Indian land in McKenzie County. Endless other costs, most of which are inflated due to the burden of operating so from established oil m, nine-figu- re 28,-229,- ar far-re-mo- goods for the 000 seismograph crew in North Dakota. At last count there were 119 such crews operating there. Cost of simply importing a drilling rig from established oil areas runs up to $25,000. Actually drilling a deep tlest in North Dakotas Williams or McKenzie counties, with constant Continued on Page 2 ber period anyway. The total, determined this: week by the Petroleum Administration for Defense, is 487,500 tons. The second quarter, tota was 450,000 tons. Another tons went abroad in the second quarter. On the basis of 40 tons of tubular goods a well, the third quarter supply would support a drilling rate of close to 50,000 wells a year, the governments ... Oil operations continued 0. The American petroleum iBr. dustry is due for eight per cent, more steel oil country tubular $300,000 compa- $100,000,000 475,-00- 42,-0- at an accelerated level in the Basin area of Utah, according to fol lowing summary of the Roosevelt Standard: Ute Tribal C Xo. 1 (located in Roosevelt Pool in SW SW, Sec. Crews are drill6087 in shale at feet ing Ute Tribal B Xo. 1 (located in Roosevelt Pool in NE SW, Sec. Total depth 9954 back total depth feet, plugged 9838 feet; most of lease equipment installed, tanks full of oil, (Week Ending April 5, 1952) and BINHAM DISTRICT, UTAH testing will commence when tank trucks are able to move Combined Metals Reduction oh. 400 tons. Co. U. S. Mines 7715 tons. Rosemary Lloyd Xo. 1 (Roosevelt Utah Copper (Kennecott) Stepout well located in NW A core at 980 cars daily average. SW, Sec. feet 50 feet; recovered EUREKA DISTRICT, UTAH 11,409,459 11,459-517 a core at 48 cars Chief Consolidated feet, recov48 11,517-57-6 a core ered at ore. feet; Co.n-r-3- 1 59 feet recovered cars clay. feet; a core at Dragon 11,576-630 feet recovered 38 PARK CITY DISTRICT, UTAH New Park Mining Co. 2009 feet; a core at 11,630-68- 7 feet and a core at 11,687-69- 8 tons. feet had no Park Utah 1390 tons. report. Crews are coring at feet. Silver King Coalition 120 Ute Tribal Xo. 3 (located in tons concentrates. (Courtesy J. A. Hogle & Co.) Roosevelt Pool in SE NE, Sec. 16-1S-1- E). 00 target If producers dip into inventories, if any, and turn to mechanical tubing, they may go over this rate, says the PAD. Over the long pull, a better ply is in sight. One of the nations top defense chiefs foresees a 20 to 25 per cent increase in tubular goods, long the bottleneck to new wells, by next year. 20-1S-1- E). Ore Shipments 24-1S-1- E). 85-t- on Life for most of us is a continuous process of getting used to the things we hadnt expected. Dont expect too much from the man who talks about what he did stead of what hes doing. feet feet; a cor at 10,963-98- 0 left core and core catcher in hole. Crews drilled up core A drill-stetest was and fished ore catcher and are 5731-87 taken at feet, but packer coring drill-stagain at 10,996 feet. e failed. A mtest at 5734-8- 7 UJS.A. Xo. 1 (Vernal wildcat feet, open one hour, recovwell No. 6, located SW SW, Sec. ered 1600 feet of drilling mud 3 A core at slightly water cut. Crews are feet lost 4746 circulation at feet; drilling at 6036 feet. II. A. Peterson Xo. 1 (located a core at 4845-9- 9 feet recovered 1 fe in Roosevelt Pool in SW SW, 54 feet; a core at 12 recovered Sec. feet; a core at Crews drilling 4911-5- 5 feet recovered 44 feet. at 2966 feet drill-steA test at 4822-50Willis Moon Xo. 1 (Duchesne one wildcat well No. 2, located in SE feet, open hour, recovered mud and Crews are 720 feet of water-c- ut SE, Sec. 3000 of feet t 5405 at very in feet sand slightly and drilling water. A core at 5027-8- 4 shale. Duchesne Ute Tribal Xo. 2 feet recovered 57 feet. Crews (located in Duchesne Pool in SE are drilling at 5160 feet. A core at NW, Sec. Canyon-GoXo. 1 (Jack-- j 10,737-79- 5 feet recovered 58 Canyon wildcat well located in A feet; a core at 10,795-85-3 feet re- SW NE Sec. covered 58 feet; a core at 10,853-91- 1 core at 8 feet, recovered feet recovered 58 feet; a core 17 feet. Crews are coring a7 at 10,911-96- 3 feet, recovered 46 6462 feet. 11,-7- 18 m Newmont Plans Tungsten Exploration GOLDFIELD, Nev. Exten- sive exploration and development of tungsten deposits in Ophir Canyon, south of the Mil-le- tt mining district in Smoky Valley, is scheduled soon by Newmont Mining Corporation. An access road has been built to the property and operations will start as soon as mining machinery can be installed. Preliminary prospecting indicates substantial deposits of commercial grade scheelite. Newmont Mining is interested in developing sufficient tungsten ore to warrant revamping its gold mill at Goldfield into a scheelite concentration plant. . 4583-464- 4899-491- 13-1S-1- m 27 13-4S-4- gas-cu- . 16-4S-4- W). vt I 6184-621- |