Rocky Mountain Oil and Mining Journal | 1970-07-20 | Page 2

JULY 20, 1970 OIL & MINING JOURNAL PAGE 2 99393'993393933393393319 9 33 33 3 399m m Charlie Steen strikes again Subscriptions $10 Per Year 25 Cents a Copy Published weekly in Salt Lake City, Utah, by Charles E. Hayward of 4386 W. 3780 South, Granger, Utah 84120. Mailing address: P.O. Box 19243, Salt Lake City, Utah 84119. Serving the mining and oil industries of the docky Mountain Region. Articles and information herein are true and factual to the best knowledge of the publisher. Information and opinions published are the sole responsibility of'thc'publisher and do not reflect the attitudes or opinions of the merchants, broken, corporations and service firms who advertise herein or otherwise sponsor this publication. Second Class Postage Paid at Salt Lake City, Utah Advertising Rates: Display Advertising Classified Advertising Phone: [phone] $2 col. inch $2 for 20 words or 298-3- 703 Editor & Publisher Chuck Hayward 3 9 M3 3993 33 3'39993 Senator challenges FED on reserve coin regulation Sen.Wallace F.Bennettof Utah has challenged the Feds right to implement a proposed regulation preventing member banks from counting as part of their required reserves any silver coins being held for bullion or numismatic (collector item) value. The Utahn, ranking Republican on the Senate Banking and Currency Committee, stated in a letter to Red. Chairman Arthur F. Burns that It is Congress that should decide what is and is not legal tender for all monetary purposes; this authority has never been delegated to the Federal Reserve Board. Sen. Bennetts comment came in response to an announcement of the proposed regulatory amendment, made last week by the Board. The Board, which also set July 13, as a deadline for arguments, indicated its proposal is in response to an alleged practice of some banks to hold silver coins aside because of their bullion value. Counting these coins as reserves encourages specualtion in silver bullion, a Federal announcement stated. Sen. Bennett said, I question seriously the authority of the Federal Reserve Board to differentiate between coins for reserve purposes which the United States Congress has declared shall be legal tender for all debts, public and private, public charges, taxes, duties and dues. He continued, Even if the Federal Reserve Board did have such legal authority, I question the advisability of the proposed amendment. Implementation of the proposal would have the effect of I do not believe it is depressing silver prices in the short-rudesirable for the Federal Reserve Board to take action disrupting the silver market just four months before the time when the Treasury will cease to sell silver and when it will seek a price determined by market factors. n. One-tim- e RENO uranium Charles who has seen Steen, king his millions slip away into debts, said he is 99 per cent sure of a new Utah uranium strike that could be worth $600 million. Its like Mi Uda all over Steen told a news again, conference by telephone from Excalante, Utah, near where he and others have staked out about 500 claims on the Colorado plateau. Robert Reid, Vancouver, B.C., president of one of the firms holding claims, said if . reserves. In his letter to Chairman Bums, Sen. Bennett requested that the July 13 argument deadline be postponed, and that no action be taken on this issue until it has been carefully considered by Congress. 40-mil- the oil company geology reports showed the high degree of radioactivity. Core sample will be assayed in Moab. Steen and Reid said the results should be ready in about four days. The claims are about 1 50 miles from Mi Vida, Steens name for the $60 million uranium strike he hit when a 18 penniless geologist-prospectyears ago. I only had 25 per cent of that $60 million, Steen said. This time Ive got a helluva lot more of it. or King Silver ofacquires Utah leases King Silver Corporation Vernal, Utah, has announced the undivided, acquisition of 50 interest in 1,920 acres of Utah state mineral leases on the West side of Utahs Untie Mining District. Bear Mining Company, of subsidiary exploration Kennecott Copper Corporation, and American Smelting and Refining Company also hold interest in the area. Cecil C Wall, President of King Silver Corporation, said the interest was acquired from Inc. and Geocon, Campo Lake City, Salt Minerals, Inc., Current centers interest around the activity of AS & R who is drilling a test hole in Utah exploration companies, for an undisclosed sum. The leases are in Township 1 1 South, Ranges 3 and 4 West, Salt Lake Meridian, Creek Juab County. Section 1 8, Township Range 3 West. 1 1 South, Geologic and geophysical studies have suggested that a belt of volcanic and intrusive rocks and sediments similar to those in the Untie and East Tintic districts may extend southwest from the Tintic district in the gneral area of King Silvers holdings where the belt is largely covered by alluvium filled, down-faulte- d troughs. The Untie and East Tintic districts have a recorded past gross production in excess of $400 million in silver, lead, zinc, gold and copper. The districts have received increased attention in recent years due to substantial discoveries of lead-silvores in the Burgin Mine area by Bear Creek Mining Company. er Toledo starts exploratory drilling Exploration drilling at the El Mayor Dominican Republic copper mining concession will start this week, Anthony G. Hatsis, president of Toledo Mining Co., announced. Toledo has completed a road to the mining 1 site. Exploration contracts have drilling been let to Drilling and Prospecting International Ltd. of Warwick, England. are most encouraged by major copper ore bodies, Hatsis said. Sample taken indicate ore testing from four to 20 per cent copper. The El Mayor properties are about 60 miles northwest of Santo Domingo. The concession We one of three awarded Toledo Mining Dominicanas C. Por S., wholly-owne- d subsidiary of Toledo Mining. Toledo has a crew of geologists and engineers on the scene. It has retained C. De Witt Smith Co., natural resources engineering firm, as counsel for exploration and development. is Crews still drilling away at Rulison GRAND VALLEY, Workers drilling toward Colo. d cavern created by the the Project Rulison underground nuclear experiment said they had reached a depth of 8,094 feet but still had not punched into the chamber. Were still working on it, a spokesman said. Weve got no gas-fille- idea when well get through. Wilbert Veronie, drilling foreman said everything was smoothly although going than slower expected. Officials had hoped to reach the chamber on underground Colorados western slope by Monday. Drilling is taking place in the This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities. The offering is made only by the Offering Circular. New Issue Sen. Bennett noted the Board apparently bases authority for its proposed action on a law passed in 19S9 giving the Board of Governors of the Fed. the authority to permit member banks to count all or part of their currency and coin as reserves required by the Federal Reserve Act. 1 find no indication Sen. Bennett continued, that the Congress intended for the Board to use this authority to differentiate between coins on the basis of the date they were minted or their metal content, or any other such distinction. Our purpose, rather, was to assure an orderly transition from the no vault cash was allowable as situation prior to 1959-wh- en a situation in which all vault cash could be counted as reserve-t- o assays prove out, the area could produce up to $600 million in uranium. The claims were staked in a e area after research by Steen and others turned up radiation readings on samples from unsuccessful test oil wells that, in Reidss words, pushed the needle right off the graph. If the ore is solid and the grade we anticipate, its worth hundreds of millions of dollars, Steen said. A drill is pushing to a depth of 2,400 feet, where Reid said Non-assessa- ble CENTAUR ENTERPRISES LTD. 10,000,000 Shares Common Stock No Par Value Offering Price: $0.03 per share holding company with subsidiaries which propose to offer a variety of services to the public in the fields of securities and insurance. A projects exploratory hole some 300 feet southeast from the hole that was used to emplace the nuclear explosive in the rock about 8,400 gas-beari- ng feet underground. Angle drilling to cross the lateral distance ot the chimney began at a depth of 6,468 feet after a 5.5 inch casing liner was1 milled from the exploratory hole. When drilling reaches 7,600 feet, a new casing liner will be' cemented in place from about 6,000 to 7,000 feet. Production testing of gas liberated from the fractured rock is expected to begin after the chimney is encountered and gas samples are analyzed for radioactivity. Plans call for the gas to be flared (burned) from a stack at the Rulison site once production testing begins. The gas will be monitored as it is produced by highly sensitive radiation detection instruments to assure conformance with Atomic Energy Commission health and safety standards which are the same as those set by the Federal Copies of the Offering Circular may be obtained from the Underwriters. First Fidelity Underwriters, Inc. 530 East Fifth South Suite 201 Magnum Plaza Salt Lake City. Utah 84102 Phone [phone] Radiation Council. Project Rulison is a joint experiment of the AEC, Austral Oil Co. Inc. of Houston, and the Department of the Interiors Bureau of Mines to determine the technical and economic feasibility of stimulating natural gas production.