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Show Pane 2 OMJ - October 19, 1970 Globe Minerals, Monada drill successful gas well in Utah Globe production. The well is located on a 4,000 Minerals Inc., Salt Lake Gty, has announced the completion of a acre lease block owned jointly by Globe Minerals Inc. and Monada gas well 14 miles west of Vernal Utah, in the Uinta Basin. Logs Petroleum Corp. Globe, as operator of the lease indicated the presence of two sands. block, has entered into major for the sale of the well was at negotiations The new completed discovered gas. Allyn W. the lowerv leval. and tested a newly natural How of 1.4 million cubic Falls, president of Globe, said the feet per day at a depth of 5,141 company will move quickly to feet. The upper level will be develop this gas property and will completed when the well goes on commence an offset well SAN FRANCISCO gas-beari- ghuckin immediately. Drilling activity in eastern Uinta Basin has increased sharply since Shell Oil Co., Mountain Fuel Supply Co. and Chevron Oil Co. made recent new discoveries in the i Basin. Globe is a Salt Lake City-base- d natural resources holding company which has recently expanded its activities in oil, natural gas and mineral Mont. Silver Ledge, Inc., Missoula, proposes to increase its number of shares from 3 million to 21 million and issue 18 million shares for silver concentrates valued at S10 million. This was disclosed in a proxy statement issued in connection with a meeting of stockholders called for 1 p.m. Oct. 25 in Missoula. The silver is owned by Majestic Sales, Inc., of Philadelphia, and is stockpiled at Llano, Texas, according to a statement filed . with the Spokane Stock Exchange. Die report showed Silver Ledge had disbursed more than S260,000 up to last May 31, and at that time had current assets of S2,236 against current liabilities of S4.108. Most of the funds were spent in exploration and development work at the Cape Nome Mine near Clinton, Mont., under an agreement with Hera, Inc., calling for extending the main haulage level about 1,168 feet and raising 460 feet to connect with the 500 ft. level of the mine. Silver Ledge drove the tunnel 1,678 feet and the raise 320 feel before running out of working exploration and development. Silver Ledge spent more than S7,000 on a Colorado Property under a joint venture agreement with Niagra Mining and Co., the report An showed. option to purchase Development geological organifaiion- - ha'.c a test shipment. committee and will Camp, geologist, I Kennecott Corp.andParker tajoted Gay u 3 Kennecoit Copper Corp. Solutions told to energy woe Pag' from ; recommendations toward solution. The Report Subscriptions $10 Per Year 25 Cents a Copy Published weekly in Salt Lake City, Utah by Charles E. Hayward of 1243 E. 21st South, Salt Lake City, Utah 84105. Mailing address: P.O. Box 19243. Salt Lake City, Utah 84119. the mining and oil industries of the Rocky 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 the publisher and do not reflect the attitudes or opinions of the merchants, brokers, corporations and service firms who advertise herein or otherwise sponsor this publication. Serving Second Class Postage Paid at Salt Lake City, Utah Advertising Rates: Display Advertising Classified Advertising Phone Editor 8t Publisher N02ZZZ2Z . 487-076- 8 or predicted that within some 20 years the U.S. would be short most of the basic raw materials upon which its economy and standard of living depend. Many of its predictions have now come true, but few if any of its recommendations to alleviate shortages have ever been implemented, Liedtke stated. The current energy shortage could be predicted from the Paley Report, he asserted. The shortage of electricity is merely a dramatic symptom of undrlying mineral shortages of natural gas, residual fuel oil and coal. The nation, and to a greater extent the world, has vast reserves of all three, but failure in governmental policy has resulted in shortage, he said. Liedtke cited these . recommendations from the $2 col. inch $2 for 20 words 467-966- 2 Chuck Hayward 2ZZZZZZZZZZZZZZZZ2SZZZZ billion and net claims by foreign central banks and by the International Monetary Fund stood at SI 2.7 billion. Since then the resenes liae been reduced to about SI 5.4 billion accounting for the S900 million allocation if SDUs the (.lain.-:- !:.. tSpechil Drawing Rights) for 1970 to about SI 7.3 billion. --- and -- by a nominating At the end of 1969; U.S. official reserves stood .it SI 6.9 t comomed organization. voted to meige and have adopted Candidates ate: Utah namethe Geological Howard Kitma, President Association. The two organizations, the petroleum geologist, Utah Intermountain Association of Geological Survey : Edward R. Geologists and the Utah Vice President have Geological Society, Keller, senior geologist, Mountain overlapping memberships, and the Fuel Co., and James B. Lindsay, votes were overwhelmingly in president of LEERCO; favor of the merger. Leslie W. A slate of officers has been Program Chairman selected Any way you look at it, that's one hell of a deterioration. the property was dropped Utah geologists vote to merge groups into Utah Geological Association Members of two Utah What happened? No sudden catastrophe. The continuing deficit of balance of payments transactions in the third quarter of 1970, which ended Sept. 30, has brought the UJS. monetary authorities back to the position of early 1968 when President Johnson introduced exchange controls to preserve the the anchor of the international integrity of the dollar if And our monetary authorities are exchange system. the same fork in the road, they're surprised to be right back at the only ones surprised. The official monetary transactions of the government during the quarter just ended resulted in a deficit of $2 billion, which means, according to informed sources, that the net U.S. reserves position in relation to foreign claims on the country's gold stock has deteriorated by about $7 billion so far this year. capital last November, according to the report. Work was then suspended and the operation shut down. Negotiations with Hera, Inc., resulted in a new agreement last March which gave Silver Ledge a half interest in the property, with Hera taking back the operation. following By Chuck Hayward In may come as something of a shock but no surprise that for the second time since World War II the United States cannot meet all claims against its gold stock out of its monetary reserves. In pure arithmetic terms, this means the dollars convertibility is no longer fully guaranteed by the and in plain terms it means the assets which support it American dollar isnt worth a Continental! Silver Ledge to increase capitalization, purchase $ 1 0 million in concentrates MISSOULA, tfw Report: various tax incentives, both foreign and domestic price stabilization programs; special resource agreements and Federal mineral purchase agreements in politically unstable foreign areas; direct federal loans in areas unsuitable for export-impobank loans and removal of trade barriers in cooperating nations. rt - It doesn't take a slide rule to see that inert now exists a shortfall of dove to S2 billion between Americas official debts and its capacity to liquidate these debts without recourse to further credit from official sources. Treasury Secretary David Kennedy's suggestion on the use of monetary assets to defray official liabilities has not been since not only is the U.S. taken too seriously in Washington politically reluctant to meet these claims out of gold, it is now marginally incapable of doing so. Nor has the appeal by International Monetary Fund Schweitzer been taken at face Managing Director Pierre-Pau- l value. Schweitzer, while apparently calling on the United States to spend its assets in financing the payments deficit, was in fact urging U.S. authorities to curb the outflow of dollars into official hands abroad. Schweitzer really doesnt want to undermine the American monetary reserves position, since the main complaint of the IMF about the U.S. payments deficit is that the very large outflow of dollars into the world monetary system so far this year has swamped the relatively small issue of the paper gold certificates known as Special Drawing Rights. Creation of the SDRs was based on the assumption that the inflow of gold and dollars to the world liquidity pool would be held back to moderate proportions. While the gold situation has been controlled, the dollar outflows have apparently swung out of control, diluting the SDRs as the desirable source of controlled increases in the liquid resources needed to finance growing international trade and production. Still, there is some sympathy for the UJS. in monetary circles, since at least half the official dollar losses incurred so far this year have been in the form of repayments by American banks to their foreign branches of funds borrowed last year to avert a liquidity crisis. of which goes to add weight to the argument of the American gold mining industry that the wealth of the country is not created through bookkeeping entries, through the printing of additional paper dollars, or even in increasing the volume of Special Drawing Rights (watch for a request to increase the amount of paper gold'). AH so-call- ed Borrowing funds to avert a liquidity crisis merely postpones the inevitable and each postponement becomes shorter and more expensive. Increased domestic production of subsidized by the government, if necessary, would gold keep the dollar where both the IMF and the Treasury say they want it at home. |