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Show PACE TWO Tk "toiler Miami Srrey. Fekrury 8, 1S55 Stoll Lake City Leonora's Oil Lead Zinc Price Boosts Could Income Swells Kennecott Copper Makes Strides Bank Deposits Lilt Consolidated Eureka Income In Utah Properties Development In a report to stockholders of Consolidated Eurekas income, An extensive development proLeonora Mining and Milling based on present production, may gram is contemplated this year. Progres, Wwort 4 i Although Kennecott Copper Corporation experienced a drop in copper production during 1954, it made big strides in the expansion and improvement of its Utah properties. A highlight of the year s activity was the companys observance of its 50th anniversity during which a statue of Daniel C. Jackling, founder of Utah Copper, was presented to the State of Utah by the Sons of Utah Pioneers. It states in the capitol rotunda. The Worlds biggest producer of copper , Kermecotfs Utah Copper Division produced 423,000,000 pounds of copper in 1954 companred to 541,550,000 pounds in 1953, However, company officials said a production increase was effected during December because of a greater consumer demand for copper. In fact, the company a seven-da- y work week in December and announced the hiring of an additional 500 men at die mine and mills to meet the increased production schedule. Expansion and improvement projects of the company in Utah included the launching of a $1,800,000 addition to its electrolytic refinery at Garfield; the completion and dedication of a $1,250,000 research center at the University of Utah campus; continuation of an electrical modernization project at the Magna and Arthur mills which involves new equipment and wiring; purchase of five new shovels at the mine and the effecting of a waste dumping cars. satisfactory method for freezing-proofin- g said number a officials of factors contributed Company to last year's drop in copper production. Among these was a decrease in the demand for copper early in the year, and strikes which crippled operations for six weeks. In addition to copper, the company produced 22,300,000 pounds of molybdenite, vital in the production of steel A total of 28,700,000 pounds was produced in 1953. Copper ore mined and milled during the past year amounted to 24,080,000 tons. This was compared to 30,000,000 mined and milled during the previous year. To reach copper ore, 35,800,000 tons of waste material was removed last year compared to 49,300,000 in 1953. The refinery expansion, now underway, indudes the construction of an 80 by 208-fobrick, reinforced concrete and steel addition that will house equipment to produce vertical castings. This will give the refinery greater flexibility in meeting customer requirements. The research center at the University, one of the most modem in the nation, will facilitate the study of problems and methods used in mining, milling, and refining copper. It will develop the results into commerical application. In addition to latest research fatilities, die center indudes a pilot plant in which production methods can be tested before actual application at the regular facilities of company. The electrical modernization project at the two mills has been underway for two years. It was launched in connection with a flotation remodelling project. The total was estimated at $3,300,000. The flotation remodelling was completed early in ot Company, President John Matson said the Company holds an undivided 7 per cent interest in 2160 acres in what is known as the Grayson Oil Fields, in Regan County, Texas. Within the past year, the report stated the Leonora Company has received $2263.59 from the sale of oil from this field; this being the amount allowable, as that part in regard of Texas is to production at the present time. According to the report, a grand total of $47,870.30 has been received by the Leonora Company to date, since this field was brought in. pro-rate- d Mr. Matson pointed out to the stockholders that the management and control of the Grayson Oil Field is held by the Utah Southern and Skelly Oil Companies. Their competent staff, of geologists and engineers will determine the future development of this field, the report declared. Mr. Matson in his report to stockholders also points out that Leonora holdings in Box Elder County consist of 3941 acres on what is known as the Rozel anticline along the north shores of Great Salt Lake. He said 1211 acres of this land has been assigned to Oil Incorporated, Leonora retaining a 3 per cent overriding royalty; and 160 acres assigned to the Utah Southern Oil Company, Leonora retaining a 4 per cent overriding royalty. In Uintah County, Mr. Matsons report says that Leonora holds 45 acres iq the Section Ridge anticline. This property, according to the report to stockholders has been assigned to the Utah Southern Oil Company, with a 4 per cent overriding royalty for Leonora. possibly reach a total of between $500,000 and $600,000 at the end of 1955. Tbtal income in 1954 was $79,226. A factor favorable to Consolidated Eurekas income, is the accelerated advance in lead-zin- c prices which began to from the doldrums in emerge the Spring of 1954 and have continued in an upswing the last eight months. Today, there are definite signs that further lead-zin- c price advances may be expected. It is not the amount of ore but the extremely rich quality values found in Conof lead-zin- c solidated Eurekas production that is one of the important fac-tr-s which shuld build up incme. As far as is knwn, there is no structural change that would cut off the supply of rich ore, which appears to increase the volume as exploratory work goes deeper. The mine entered production in July 1954. Production until the end of December was 1194.5 dry tons of ore, for which the Com$165,879 after pany received freight and smelter costs were from the mine is near future. On for the planned the basis ef the annuel report of President Jamse E. Hogle, one is led to venture an observation that a large scale mining operation will eventualize. The price of copper which has been steady for a year, broke out on the upside last week with great stimulation. The Increase represented a rise from 30 cents a pound to 33 cents, in one days move. The price now appears to have firmed at 33 cents. Some mining authorities interpret this price rise as the first step in a long series of price hikes which they expect will take place this A second exit yea. I j Open Office Securities Lindquist-Hal- e Grif Lindquist, for the past eight months trader with the Rocky Mountain Securities Company, has opened his own brokerage office with Don Hale, under T i Securthe name of Lindquist-Hal- e ities Company, at 517 Atlas Building, Salt Lake City, Utah. i j ! In Emery and Wayne Counties, the report by Mr. Matson says Leonora owns a 12 per cent interest in 5459 acres, of which 2,259 acres has been assigned to the Carter Oil Company, with Leonora retaining a 2 per cent override. Leonora, according to the report, retains its interest in the remaining 3200 acres. The report stated oil and gas discoveries in Utah appear to be of major importance and, as de1954. At the mine, the five new shovels represented an expenditure velopment progresses, it becomes more and more evident to Mr. shovels- were pur- Matson by Kennecott of $1,210,000. Five seven-yar- d that oil and gas producchased at an average cost of $250,000 each. tion will become a large and Also put into operation at the mine last year was a more profitable business in the State. effective and practical way of freezing waste dump cars, a proThe report declared, it is beblem which had been of concern to company officials for some cause this fact, the Leonora Comtime. pany has acquired and leased considerable acreage, believed to of constant found solution a Kennecott that research, Through have possibilities for magnesium chloride brine, sprayed inside the empty rail cars, oil andpotential out furIt is gas. was more practical than substances tested and used previously. ther in the report pointed to stockholders Magnesium chloride purchased from a Utah company, effectively that these lands are located in prevented the waste material from sticking to the sides and Box Elder, Davis, Utah, Emery, Other solutions tested previously included, calcium chloride, San Juan, Duschesne, Grand, Sevier, Kane and Uintah Counbottoms of the cars during dumping operations in winter. ties and contain a total of 13,163 oils and even Great Salt Lake Water. Electrical heating of the acres. The report says these cars and mechanical shaking of the cars were even considered. eases have been selected by comOther projects launched included the piping of coarse tail- petent geologists because of their formation and favorable ings from the Magna mill to the northeast section of the eight-mil- e Structural location, which indifeatures, square tailings pond where it will be used to seal the dike cate possibilities for oil and gas. wall against seepage. The project is being carried out by the A part of this total acreage, acengineering department of both the Magna and Arthur mills. cording to Mr. Matsons report, to major oil A pipe, four and a half miles long is being laid along has been assigned Leonora companies. retaining a the south and east dikes to reach the trouble spot. 2 cent to 4 per cent overper Meanwhile, efforts are being continued to reduce further riding royalty. dust from the tailings pond. A system of huge sprays covering Mr. Matson said Leonora has the. effective. At has areas the dust problems pre- ample cash in the bank, obtained proved very Texas oil lands. Leonora sent time, studies 'directed toward use of light weight pipe to from its on iiock the Salt Lake Stock Exmake the system more mobile are being carried out Tim comhad a flurry on Friday change and again on Monday, when it pany has already spent over $168,000 on the project. area wind study has also been made in reached a top for the day of .08 A Magna-Garfiel- d cents per share. connection with dust conditions. - 12-in- ch y. safe |