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Show April 26. 1955 The Western Mineral Survey. Salt Lake City. Utah Page Four WESTERN MINERAL to Start NEW DRILLING PROJECTS TO BE STARTED BY GALENA SURVEY 2 Drilling News Advertising . Circulation Phone Church Street Salt Lake City, Utah 421 Utah this week begins diamond drilling projects at two locations according to Ben H. Bullock, president. DENVER BUREAU Newe - Advertising . Circulation 723 Ktttredge Bldg. Denver, Colo. NORMAN LEVINE Denver Representative Entered as second class matter at Salt Lake City, Utah, under Act of March 3, Subscription rates; 15.00 lor two years; $3.00 lor one year. Please mention Western Mineral Survey when writing to advertisers. Advertising rates on application. Publisher In a separate operation drilling will be resumed on Uranium Properties near Topaz, Utah. Previous drilling had encountered some uranium. According to a report from Ray- For the news ol most significance in the mining and oil world. All news appearing in the Western Mineral Survey is obtained from sources believed to be reliable but no responsibility is assumed lor accuracy ol Hits Topaz diamond drilling site previous exploration has shown good prospects. n Com- pany has been drilling for two months on the Maxine Claims, in lower Cottonwood Wash area, 20 miles south of Blanding. On Tuesday when in the drift, workmen reached the ore zone, obtaining samples which ran as high as 4.78 per cent uranium according to Sherman D. Gardner, field geologist and Arnold L. Brown, chief engineer, who supervised the operation. Chief Engineer Brown said: We have only partially blocked out the ore body and our plans, of course, call for drilling, to outline this particular body, in order to determine the trend of the body. We hit mineralization in a number of the drill holes, but, actually, we found this attractive looking group of holes were better than some of the others, indicating commercial quantity in this pone group. We had been drilling perpendicular to what we thought was the trend but now we are going to follow the trend, going back in an attempt to determine the extent. Shipments are being made at the present time from the ore found in the drift. This is a virgin area and we are the first company to fpend an appreciable amount of money to learn whether there is rylhing in there. Material found in the drift is very encouraging. In two weeks we expect some determining news. Shumway to Drill Wooden Shoe Ore There is a much more cheerful sentiment in the industry than prevailed last year at this time. Last year at the annual meetings of the two associations, lead and zinc producers were waiting for the Tariff Commissions report on the higher import duties that had been requested, waiting to see what the Government would do to help the industry and also waiting to see whether the business recession that was then being felt would peter out or turn into a depression. Most of these uncertainties have since disappeared. While the Government failed to impose higher import duties, it did agree to buy lead and zinc for the stockpile, and it was these purchases that helped to improve the markets statistically and pricewise. There is a danger, however, in leaning on the Government for a solution to the trades problems, because die cures may frequently be worse than the disease. If the Governments stockpiling program is carried on for the sole purpose of helping an industry in distress, it constitutes little more than a subsidy. The present consumption of lead is somewhere between 100.000 and 105,000 tons a month. In addition the Government stands ready to buy about 10,000 tons monthly for the stockpile, so that there is an outlet each month for 110,000 to 115,000 tons of lead. The supply of lead from domestic mines, from scrap recovery and from imports amounts to approximately 90,000 to 95.000 tons monthly. The deficit has been made up by the producers drawing on their own reserves. Last year die producers stocks of refined lead were 100,000 tons whereas today they are about half that amount only The statistical position of zinc, while gready improved from what it was last year, is not as good as it is in lead. The trouble is that the high rate of domestic production and the imports create a supply that is in excess of consumers needs. The domestic slab zinc output and the net imports of slab zinc create a supply of approximately 100,000 tons a month whereas consumption is somewhere between 85,000 and 90,000 tons a month. Were it not for the fact that the Government has been buying each month approximately 15,000 tons for the stockpile, the stocks in the handc hands of the producers would have increased rather than de- Actual development work on the Shumway mining properties will start about April 25, when the road now under construction ought to be completed, it was ceased. announced by Company officials. With the Government practically guaranteeing a floor The Wooden Shoe property price Nos. 1 and 2, where the A E C for lead and zinc its stockpile purchases, the nearby through late in 1954 drilled out seven outlook for both these metals is encouraging, provided there good mineralized holes will be are no labor disturbances in the automotive, steel and metal major the scene of the first developindustries. There is no ment work. mining shortage in sight for either lead It will be necessary to drive or zinc so that consumers need not worry about using substitutes; in from the rim an estimated 100 and since there has been no price boom in either of these metals, feet in order to reach the first there is no reason for anticipating a bust. mineralization. Stratford L Wendelboe The Federal Reserve Board de- it is not unlikely that widespread cision to raise the margin on shift of investment policy may stock purchase borrowings from take place that would start an 60 to 70 per cent in an effort to of new buying of uranhalt unmanageable speculation in avalanche New Yorks big money markets, ium stock offerings, with a reis not expected to affect adverse sultant abandonment of former in the matter of ly trading on the Salt Lake Stock buying policy fuel conventional company seExchange and the Salt Lake uranium board. curities. Both transact business on a strictIt becomes of more than passly cash basis. interest that Anaconda Coping The possibility exists that the per Company, Homestakeg Minincreased cost of trading in New ing Company, Newmont Mining York, may prompt some inves- Company, American Lead Comtors to look to the Sait Lake pany and American Zinc Commarkets for stock bargains. vast sums of are The possibility of conversion to pany forspending work in money, exploratory nuclear power replacing the funcof maintaining protions of existing conventional anticipation fuel. nuclear duction of fuels, and at a lower cost,is receiving serious study by investOpportunities for investment ment trust leaders, whose respon- in uranium properties of Utah sibility it has become to invest are becoming to industrialists of millions of dollars in securities. the nation, with the promise of If the threat of competition reaping undreamed of rewards from uranium becomes realistic, for their risks. over-the- -counter Intermountain Stamp Works CLYDE AND KABL PAHNIEB, Owners BRONZE MEMORIALS RUBBER STAMPS STEEL STAMPS MACHINE ENGRAVED PLATES 242 EUT 2ND SOUTH PHONE 04 SHARP ENGINEERING COMPANY Steel O O O Steel Steel Steel SUPPLIES FABRICATORS ERECTORS PLATE SHEET BEAMS O O O ANGLES CHANNELS BAR O O O TANKS BINS STRUCTURAL STEEL PLATE DUCT CHUTES WAGON DRUMS O O O TANKS STRUCTURAL BLDGS. DUCT WORK PIPE O O Portable Equipment For Site .Work We Are Growing With Satisfied Client 74 Ups Margin Requirements o Uranium Securities Telephone Industrialist's Cast Eyes Toward Utah As Big Board O O O & Company 68 South Main mond A. Garcia, consulting geologist, the area shows strong indications of commercial Site of diamond drilling project which is hoped will uncover body ol Halloysite Clay Ore in Virgin Area South of Blanding Outlook Bright for Lead and Zinc Uranum Trans-Wester- te Utah will be undertaken to uncover a Halloysite Clay Body. Editor JAR EX K. McCORMICK Feature Editor O. D. QUINLAN Adv. Manager FRANCIS JENKINS Contributing Editor L. M. HILL Trans-Wes- t. Galena-Syndica- A project in the Santaquinn Mountains east of Santaquinn, 1879. Harry B Miller Projects f 1336 Major Street Salt Lake City, Utah Teletype SU-9- 7 Salt Lake City, Utah PHONE 51 SHARP ENGINEERING COMPANY |