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Show W' For METAL PRICES Information Copper 33 On Stocks Uraninm Lead 15 Zinc 11H and Mining Vol. 26; No. 11 Ubraa Muck 22. 1955 Comstock Group Merger Deal For s'2nia In ireka Property $5,000,000 Ore Body and 53 Silver-Lea-d Claims to be Added In Two Weeks A proposed merger of the resources of Comstock Uranium Company, with Zuma Uranium and Oil Company and one other company, that will make available $500,000 of cash reserves, is expected to touch off within the next two weeks, a tremendous coalition, which anticipates ac- quisition of a $5,000,000 proven ore body, plus approximately 43 patented silver and copper claims in Nevada. Good oil properties are included in the holdings of one of the companies to be merged. Additional uranium properties will be added, as the consolidation is consummated. Samuel A. Walsh, President of Comstock Uranium Corporation, and his associates in that company, have acquired control of approximately 700,000 shares cf 1,000,000 shares of Zuma Oil and Uranium Company stock. They expect to make it increase the capitalization and bring in some good uranium properties. All but 300,000 shares of Zuma is now controlled by the group which began to pick up stock on the Salt Lake Stock Exchange, three weeks ago, when it was selling at two and three cents a share. It is now quoted 19 cents bid and 20 cents asked. The Comstock affiliates have purchased all of the treasury stock of Zuma, to finance the company, and took over from the retiring offices and directors, to insure control. Zuma owns silver properties at Eureka, Utah. The company, was incorporated in 1907. Much money was spent and a large amount of ore shipped. A shaft 1300 feet deep was sunk and much drift work accomplished. The original stock was 50 cents a share at the start. About 47 assessments were levied on the company. The stock cost some of the original holders, an average of 60 to 70 cents per share. Zuma is to be consolidated with two other companies whose assets include $500,000 cash with valuable uranium, land. The deal will get off to a flying start with acquisition by Comstock Uranium of 43 patented silver and lead claims in Contact, Nevada. It is expected this project will start in 60 days. Instead of merging with small companies that seek alignment with Comstock, it has been decided sounder financing policy to non-as-sessa- ble, Hope for Solution Of Upgrading Ores A group of inventors residing in Midvale, Utah, are said to have patented a uranium upgrading machine that gives promise of standing the test in working low grade ores up from as low as .01 per cent to acceptable value. The Atomic Energy Commission is said, to have conferred with the group and to have examined the product of their inventive trend. Blackrock Plans merge two or thee companies with a backlog of cash reserves. An outstanding debt of $4,000 has been paid off for Zuma. This was financed by the group controlling Comstock. It took exactly four hours to raise $50,000 with 10 persons each providing $5,000. The group now has, as near as can be ascertained something like $350,000 with which to further future plans. Comstock stock is now 22 cents bid 23 asked. In the next week or 10 days, it is contemplated to acquire control of a $5,000,000 proven ore body with Atomic Energy Com-misiapproval papers on it, as part of the merger. Drilling Program At Dolores River Uranium Corporation, which controls extensive uranium claims in southern Utah, soon plans to start an intensive drilling campaign on its 326 claims, located in White Canyon and in the Dolores River area, it was announced by S. F. Blackrock Walker, and Associates, who have recently opened offices in Suite 410-41- 1 Beason Building, Salt Lake City. Mr. Walker, head of the company is a native of Salt Lake City, and son of the late Senter F. Walker, who formerly controlled the Walker Iron Mining which some years ago, Indian Queen Start Company, of its holdings to the uisposed Utah Construction Company. Shipping Ore From As soon as approval has been from the Securities and Strike South of Moab obtained Exchange Commission, Mr. WalIndian Queen Mining Com- ker said the company will offer pany has made a good ore strike its securities in New York City, and will begin shipping ore im- Houston, Texas, and other cities mediately according to a mes- and states, as well as in sage company officials have re- Utah. Blackrock is a Nevada cor ceived from Orion Hoffine, man- poration. Offices are also mainager in charge. Exploratory work tained in Las Vegas and Elko Newas diverted to an upper level vada. It is a $5,000,000 corporaor reef above the incline where tion. The Walker family has been they had a fair indication of an interested in mining in the state outcropping. It looks like we have a mine of Utah since 1847. Walker Copwas the enthusiastic telephone per Mining Stock has been listed message Hoffine expressed as ne on the New York Stock Exrequested his shipping order be change as well as the Salt Lake forwarded immediately. City and San Francisco exIt was announced that Robert changes. After SEC approval has been Carlson, Vice President and one of the managers will leave this obtained, Mr. Walker said it is week to personally inspect the expected the stock will be offered property which is 13 miles south to the public at $2.50 a share. of Moab. Ore shipments are in There are no shares outstanding -preparation to the Atomic En- except those in the hands of the ergy Commission at Moab. original incorporators, he said. The company has a total of 32 Mr. Walker resides at his country claims. Thus far, exploratory op- estate in Walkers Lane, Cottonerations have penetrated only a wood. distance of 200 feet. The government will pay a bonus of six cents per mile for the first 100 miles $100,000 Moab P. O. for trucking of ore to the receivTo Get Under way ing station. The ore bin has been strengthThe first phase of a $330,000 ened and enlarged with replacement of old timber with a lot new Post Office building at of new lumber. Moab, to be erected by Fred Stoye, of Las' Vegas and Moab will be started in about two Shell Starts Trading weeks, it was announced by Haines & Purhonen, architects of On Over Counter Mkt. Salt Lake City, who have preShell Uranium, Inc., latest, re- pared the plans and specifications cruit to the ranks of the penny for the job. It is estimated the uraniums began trading on the entire job, will cost about $330,-00- 0. over the counter market recent-- at The building measuring 54 cents a feet one and one-ha- lf by 102 feet is to be erected share. in three phases. The first phase H. Wayne Stead Company is estimated to cost $100,000, will underwriter. Shell has 30,000,000 include the post office on the shares of stock and owns properties in LUsbon Canyon, San ground floor with 36 offices on the second floor. Practically all Juan County. George B. Anderson, of Salt of the office space has been Lake Citr, president of Alco leased. The second phase consisting of Uranium Corporation, is also stores and 40 offices will be five Othof Shell Uranium. president er officers are D. A. Gerby, of started in about three months Vem Cog-gl- e, upon completion of the first unit. Moab, Salt Lake City, secretary, The building is to be located half and Joseph F. Auer, Salt Lake a block from the bank in the heart of Moab. City, treasurer. on to . vice-preside- nt; One Tear $3.00 white lake tfeiia A Head erf Merged tfranium Ccrp. 0$ faerica Property Expects to Request Milling Contract From A.E.C. In the Near Future Uranium Corporation of America is building up an organization of experienced mining men both among its directors and its active officers, it was announced by John H. White, Jr., .new president, who took over this week as head of the recently merged UCOA group, consisting of several far flung groups of potential uranium properties. We already have a nucleus of a strong management composed of men who have spent their lives in the mining industry both in the field of metallurgy and the field of geology, Pres. White told news men. He said UCOA has a number of extremely promising ore bodies and he expects to mine and mill uranium ore from properties located in Arizona, Utah, Colorado and Wyoming. He pointed out that UCOA already has sub- - Pres. White said there is enough ore in sight in the near future to enter into negotiations with the Atomic Energy Commission regarding a milling contract. I do know we have large ore bodies on some of the properties right now and with a little more work will be ready to enter into negotiations with the AEC looking to a milling contract. Our properties are sound, the ore is there, we have a triple-- A proposition which requires no ballyhoo Mr. White concluded. Mr. White has recently served as mining consultant to Standard Ores and Alloys, large holding company, which recently signed an agreement with UCOA to do the drilling and exploration work on all the UCOA properties, Standard paying the cost of the work in return for an equitable arrangement of reimbursement later. 2 Properties of UCOA recently merged include the Lost Dutchman, Sierra Ancha, Fortune, Chief, LTte and Uranium Corp. of America. 4 Longyear to Drill Chief Consol. Claims at Eureka Also Has Lease to Explore Central Standard Claims Which Adjoin The E. J. Longyear Drilling Company, 1777 S. 2nd West, has obtained a lease from Chief Consolidated Mining Company for drilling operations at it3 own expense, on Chiefs properties at Eureka, Utah. John A. White stantial ore bodies blocked out on some of its properties, whereas on others it will be necessary to do exploration and development work. Gold Cloud to Start Trading on March 24 Gold Cloud Uranium Company, which is reported to have discovered ore in four of five places on its claims, recently completed its original stock offering, which R. N. Cooper reported was over- subscribed. At the office of the James E. Reed Company, Judge Building, 8 East Broadway, it was said the stock would begin trading over the counter March 24. It was said unfilled orders for stock, after the issue was sold out, totaled 200,000 shares. The offering price was five cents. It is predicted the stock might open March 24 at eight or ten cents a share. Some holes have been sunk im- mediately adjoining claims of Central Standard Mining Company where the Longyear Company also has a lease to drill. Longyear may exercise the latter privilege, depending upon favorable results from operation of the Chief Consolidated claims. The program involves prelim-nar- y drilling estimated to cost $100,000, on Chief Consolidated property, with a possibility of further exploration of adjoining claims. The belief prevails among some mining authorties, ore may have been encountered. Stock of Central Standard, on the Salt Lake Stock Exchange, has advanced spectacularly from three cents a share to 13 cents a share in active trading. Thomas F. Pierrepont of Provo Foundry and Machine Company is president and general manager of Central Standard. Cecil Fitch, nt and Jr., is the new general manager of Chief Consolidated, with offices in the Dooly Building. vice-preside- |