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Show chuckin si Homestead buys properties DEN VER Agreement by Union Carbide Corp. to sell its mining properties near Maybell to Homestead Minerals Corp. was announced at the annual few meeting of Homestead recently had the opportunity to fly to Cessna Winnemucca, Nevada in the twin-engi310 owned by the president of East Antelope Mining Corporation. Purpose of the trip, on our part, was to cover the opening of East Antelopes mill at its Golden Amethyst Gold Mine, which we duly reported in the Journal. ne The trip was a memorable one for us for several reasons. We were lucky enough to have as pilot Frank Eastman of Tooele Utah, who has flown this route a couple thousand times or and pointed out items of interest more, drawing from a vast knowledge of the area both as a pilot and as a mining man. Carl James and Wayne Mallet, East Antelope mining engineers, were also on the flight and contributed to the travelogue. Frank enabled us to take a close look at both Newmonts Carlin Gold Mine and Cortez Gold Mine, the second and third largest gold mines in the U.S. Another memorable event the opportunity to meet and chat for a while with Clayton Darrah, publisher of the Territorial Enterprise. Clay and his wife operate the was Enterprise from their offices in Winnemucca. It was interesting to remember when and with fellow publishers who have lived and worked in many of the Rocky Mountain areas in which journalism history has been made. During that visit we subscribed to the Enterprise because we noted that Clay has begun to cover in more detail mining operations in his corner of Nevada which is located in what the Geological Survey has termed the Nevada Gold Belt. Last week in the Enterprise we spotted a story which helps to explain why. so-and-- so The story reported that the Darrahs son had taken a job with the Cortez Gold Mine following his graduation from the Nevada School of Mines. On the Cortez staff young Darrah will have an opportunity to study first hand one of the most interesting gold mining operations in the world. Cortez reserves, like Carlins -- it in near identical geological environment a few miles to the north, arc carried as micron-size- d particles. The gold particles arc so small that the ore cannot be visually sorted. Grade control is accomplished by sampling and assaying blasthole drill cuttings. The resultant information is used to prepare a digging plan which is relayed to the shovel operator by flagging the shot pile with appropriate colors for waste and ore. The pit is being developed on 20-fo- ot a benches by a modern carthmovcr fleet. The pit has a wall slope of 50dcgrccs. Elevation of the highest point is 5,400 feet with the ultimate mining depth presently designed to reach an elevation of 4,740 feet. The ore reserves data along with certain operating and price assumptions were n used in conjunction with the . Lcrsch-Grossma- two dimensional , stockholders. Homestead also will buy all Union Carbide leases adjoining By Chuck Hayward We July 28, 1969 OIL & MINING JOURNAL Page 6 computer program the developing optimum pit design. in its properties at Baggs, Wyo. Sources state that Homestead will have an 18 month option to purchase the properties with the right to mine and process uranium ores during the option period. John Emerson, general manager of Union Carbide's Plateau Operations, said operations at Maybell had been shut down since November, 1964. The mill there closed when its allocation was transferred to Union Carbides Rifle and Uravan plants. Aztec Securities opens in Provo insurance executive, PROVO Aztec Securities Corp. will open an office here at is vice office and president manager, and Wayne Pearce is vice 35 N. University Ave. The firm will president function as and director of research. Both are associated with the College of Business at Brigham Young University. Dan Wakefield, a Provo for stocks, bonds and mutual funds, according to Victor I Cartwright, president. broker-dealer- Theobald Lynn s is and will head insurance activities of the up firm. er secretary-treasur- Mr is vice and chairman of the president Deseret board of Pharmaceutical Cartwright Co., Sandy. New Mexico sells mining leases State Land SANTA FE, N.M. -- Bidders at the first sale of general mining leases offered by the Slate Land Office in a number of years paid a total of $25,694.48 in bonuses for nine tracts containing 4,518 acres. Commissioner Alex J. Armijo said Kerr-McGe- e Corp. of Oklahoma City offered the highest bonus received during the sale. They paid $20,722.68 as a bonus for 314 acres in McKinley County. We averaged $5.69 per acre for the 4,512 acres sold. This is a very high figure when you consider that our sale held under the old rules in January brought in about 50 cents per acre bonus, Armijo added. Oil Aide raps depletion slash Under the (Continued from Page produce a wide-rangin- g 1) tax reform bill before Congress recesses Aug. 13. Reports arc that a good portion of the tax reform package have been tentatively approved through informal agreement. The committee also voted to reduce the depletion allowance on depletion mineral depletion would be to allowance, it deducts 2714 per cent of the gross, or allowances its $2,750,000, from taxable $432 million a year, $360 million of which would pre-ta- x net, leaving raise federal revenues by come from oil and gas. There was no estimate effect of after-ta- x profit of for the revenue allowances ending depletion $2,870,000. overseas, but committee said Committee staffers staffers said it would be the effect of reducing the small. income of $250,000. Its tax would be $130,000 for an most other minterals-whi- ch range downward from the 274 per cent on oil and about 27 per cent rounded off to the nearest percentage point. Thus the allowance for coal, for gas--b- y example, would he reduced from 10 to 7 per cent. Left u n t o u e h e d , however, is the 15 per cent allowance on gold, silver, oil shale, copper and iron ore to encourage domestic exploration. The allowance works this way: An oil company is permitted to deduct 2714 per eon I of its gross income from its net income before computing federal income taxes. But the allowance cannot exceed 50 per cent of net income. For example, a company TiMPTE Mining Bottom & End Dumps Oil & Gas Tanks grosses $10 million on an oil well and has profits of $3 million after expenses. Under the law for most corporations it would pre-ta- x pay federal income, taxes of 52 per cent or $1,560,000, leaving an after-tuprofit of x $ ,440,000. 1 Call Platform Trailers Dick Davis at 1 484-125- For all Heavy Duty Equipment Needs NEW or USED Tri-Sta- te Trailer Sales 4 1764 So. 2nd West Salt Lake City, Utah |