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Show U OF U LIBRARY ' -y- CITY I ) ' . -V siammA r Features Mining, Oil, FinanaMSnARY UWmilY VOL. 24, NO. 39 Salt Lake City, Utah, September 25, 1953 n OF UTAH Q Gold Increase Not Harmful To Economy SEATTLE Robert P. Day pointed out that inflation is caused by an increase in the quantity of money or credit, which is largely controlled by the government, whereas, an increase in the price of gold would in turn e increase the behind each dollar and thereby stabilize the supply of money. He reminded his audience that inflation did not result from the increase of the price of gold in 1934. In discussing the possibility of the convertibility of ofir currency into gold, Day cautioned that the price of god must be first increased to stimulate production of Che metal and thereby enlarge our gold reserves, which, in turn, ; gold-valu- Members of the mining industry continue to fight for increased metal prices as reports are received of new shutdowns or curbing of the rate of activity. In the meantime information is being assembled for presentation at the lead and zinc hearings to be held on November 3 and 5. A number of moves are also underway in an effort to effect a raise in the gold price as the present level has forced inactivity at such properties as shown above. Polaris Go. Lists Third Iron Ore To Quarter Gain Be Shipped Polaris . IDAHO Mining company this week listed an estimated third-quartprofit of $200,450, before depreciation, depletion and amortization, in a report to stockholders accompanying checks in payment of the dividend No; 35 for 10 cents a share. This is only slightly less than the $205,500 reported for the second quarter. Third quarter operating income receipts from ore sales and other sources less operating expense was substantially higher in the third quarter, however. It totaled $305,070 as against $286,860 in the second quarter. A big increase in provision for taxes from $53,-20- 0 in the second quarter to $91,690 in the third more than offset this gain in income. The companys net profit for the first nine months of this year has totaled $491,786, the report shows. Work on the companys big exploration project east of the Silver Summit mine has been in progress since August 25, it states. The project will include 12,400 feet of tunnel work, 330 feet of raising and several thousand feet of diamond drilling at an estimated cost of $685,000, half of which will be advanced by the defense minerals exploration administration under a loan contract er Gold Exports In the past eight months the United States treasury has lost a billion dollars worth of gold. The resumption in recent weeks of the outflow from government vaults has brought the treasury stock down to $22,276 million at July 23. At November 30, 1952, the pile was $23,337 million. Recent withdrawals have been quite large. A recent week saw one of $100 milion. Tear $29 Operation States. WALLACE, One Combined Metals Cuts Day, President, Cordilera Corp., in a talk here recently before the 1953 Metal and Nonmetallic Mining Convention of the American Mining Congress stated that an increase in the price of gold would not have an inflationary affect upon the economy of the. United would establish .an honest relationship between the value of a gold-base- d dollar and the goods or services which that dollar would buy. 3 To Japan NEV. Dodge ConLOVELOCK, struction Co. has received a contract for the shipment of 60,000 tons of iron ore to Japan, accord- ing to Frank Dunn, superintendent for Dodge. Indications are that the contract will be expanded to 160,000 tons, judged from information received from the Overseas Central Enterprise, - San Francisco, through which the shipments will be made. Accordingly, Dodge has resumed work and has plans to keep its big trucks moving to the Southern Pacific loading plant at Colada. Loading on ships is at Stockton. Mining Is Open Pit Ore is mined from an open pit located south of Buena Vista Valley on the east side of the low Humboldt range about 35 miles from Lovelock. It is trucked over the Coal canyon road, maintained by Dodge. Loading is at a point six miles northeast of Lovelock. Dodge has constructed a siding and loading plant on the west side of the Southern Pacific tracks. No state highways are used so large loads can be hauled without running into the state weight limit laws. Dodge Has Lotsof Ore. Dodge Construction Co. shut down operations while it put down drills to determine the extent of its ore. It had already stripped off a large area. Lots of ore was located. As a result, mining is the most efficient the company has been able to achieve so far. Only coarse ' ore is accepted by the ore has to Japanese, under-size- d be stockpiled for some future use. The Dodge ore is very free of phosporous and sulphur. Small Mines Take Part In Development Of Uranium SEATTLE, WASH. Blair Burwell, President, Minerals Engineering Co., Graqd Junction, Colorado, outlined the history of domestic uranium production at the 1953 Mineral and Nonmetallic Mining Convention of the American Mining Congress. Burwell told his audience that the four principal sources of uranium prior to 1939 were the deposits of the Colorado Plateau, Week Ending Sept. 19, 1953 the Belgian Congo, the Eldorado BINGHAM DISTRICT, UTAH Mine in Canada, and the mines of Combined Metals Reduction Co. Bohemia. He said that the richest 165 tons. of the four was the Colorado Pla U. S. Mines 7,844 tons. teau. Utah Copper (Kennecott) 960 85 ton cars, daily average. He stated that the unsual feaPARK CITY DISTRICT, UTAH ture of most Colorado Plateau New Park Mining Co. 1300 tons. ores is the fact that they contain EUREKA DISTRICT, UTAH important amounts of both uranChief Consolidated Ore 53 ium and vanadium and that one or cars. the other of these metals has con.Dragon Consolidated clay trolled the economy of the region 24 cars. and its development. ore 1 car. Empire Mines Burwell said that the region led PIOCHE DISTRICT, NEVADA the world in radium and uranium Combined Metals Reduction Co. production until 1923 and daimec 2 cars. Lead concentrate, 5 cars. that the reason for the end of proZinc Concentrate, 17 cars, Perlite, duction at that time was that the 17 cars. Vanadium Corporation of America Bristol Silver Manganese No- agreed not to produce vanadium in competition with Peruvian produles, 1 car. duction. Mining for vanadium content was resumed in 1935, during New Pilot Plant which time the major source o: GRAND JUNCTION, Colo. On these ores was again the Colorado the Colorado Plateau, American Plateau. This production establishCyanamid Co. is operating a ed the Colorado Plateau region as tly-completed pilot plant at the largest raw materia Grand Junction to test new ex- possibly source of uranium and vanadium traction processes on various in the world. types of ore. Another pilot plant According to Burwell, the efhas been set up at MonticeQo, forts of small miners and claim Utah, to attack special problems. owners were mobilized to exparn New processes also are being tested by Anaconda Copper MinContinued on Page 2 ing Co. at Grants, N. M., and the Climax Uranium Co. at Grand Junction. Personnel from WashThe defense materials procureington are working jointly with the bureau of Mines station at ment agency has approved a nickSalt Lake on pilot testing a flow- el Mines, Ltd., owned jointly b; sheet for the proposed Shiprock Newmont and Pacific Nickel Mines, Ltd. plant Ore Shipments Two more drops in the price of zinc this month, forced a major curtailment at Nevadas largest zinc mining operation this week, as Combined Metals Reduction company posted notice laying off nearly 75 men at its Caselton mine. This was the second such layoff this year and virtually stopped zinc production at Caselton. The company is adding a second shift at its Black Metal and manganese Hurley operations, which will provide jobs for men who would otherwise have been included in the Caselton layoff. The company also announced that production crews will be added to its operations at the Minerva tungsten mine, 70 miles northwest of Pioche, as soon as work is completed' on surface and camp facilities. Crews have been employed at the property for several months, working on a DMEA exploration project and rehabilitating mine workings. This work has been done under contract by the Centennial Development company at Eureka, Utah. - The prices of lead and zinc have dropped steadily for the past 18 months, due to dumping of forj-eigmetal on American markets. Recently the price of lead ' has some stability, but zinc has continued' to drop as imports reached new highs of over twice the average tonnage imported during the period 1940 to 1950. Many western mines had closed prior to the most recent price drops and most of the mines still operating were taking heavy losses in the hope that the situation would be corrected. Congress failed to act on proposed legislation designed to prevent foreign dumping on American markets due to heavy pressure from the State Department to continue the free trade policies of the last years. A hearing is now pending before the Tariff commission which may result in some relief for the western mining industry and the President has appointed a commission to study Americas foreign trade policies. Much of the imported metal flooding this country is from mines subsidized by the American taxpayer and some is coming in on government contracts paying substantially above the domestic market price. The price of zinc to the western miner has dropped from approximately 12 cents per pound, after freight and smelting, to approximately three cents per pound on the same basis, a reduction of 75 per cent from ceiling price in effect last year. recen- Nickel Project Climax Moly The Climax Molybdenum Company has taken a lease and option on a group of claims east of Kokomo, Summit County, Colorado. The claims are about five miles airline distance from the Climax deposit and are on the southwest side of the Ten MQe Canyon from Climax. Climax plans a geologist ang diamond drilling program for molybdenum and |