OCR Text |
Show KEEP POSTED ON URANIUM 'A )ct VoL 26; No Khu& 9$ ljt'ifyQitficaHce in The Oil and HUning il)ct(4 m SLXL SJ'Lty. Big Indian jck good copper ore in 17 Big Indian Uran holes drilled and has a .d $900,000 worth of copper ore blocked out, according assay's submitted to officers of the company. The site known as the Big Indian copper mine is in the middle of the hottest copper and uranium area of Utah. adjoins it on the and southeast. southwest south, In earlier years a total of worth of copper was taken out of the mine. Out of 26 holes drilled 17 showed copper ore sufficient to justify a field man of American andMerger of Lone Star Uranium Drilling Co., with the Lone Smelting and Refining making a Star Mining and Development suggestion that the work continwas Co., reliably reported today ue. Blocking out of ore has into be under way. The deal is exterested that company. to be completed in two Three prospective buyers of pected weeks. copper ore are interested. One Lone Star Uranium and Drilliis Olin Matheson of New York, has oil properties in Texas ng; a manufacturer, who would like and uranium properties in New to have a continuous source of Mexico and in San Juan and supply of copper ore. Another Grand Utah and in counties, is American Smelting and RefinAriz. Canyon, Saytah ing Co. Also a Denver group is The company is said to have interested in the copper source. a large stock pile of ore. The The program of blocking out stock is still in the public offerore will continue until a sizable at 50 cents a share. ing stage amount has been piled up. It is Robert Dallas, Texas is Yarber, expected that negotiations with company president. bidders for copper will then be Lone Star, a privately held Invited. is reported to be Drills went through 110 feet corporation, at a share. valued $2.50 of copper ore on one of the holes About Lone Star, ac25, April put down last year. assets the all of of both quired Big Indian Uranium Co. owns Globe and Planet Uranium com 200 acres outright. panies, it was announced by W. Some of the directors envisage L. Davidson, president. an offer of $2,000,000 for the In a letter last April to stockThe a holders of Globe and Planet, property. company has lease on 300 additional acres. Davidson advised that Lone Star Thus far it has shown little cop- had acquired valuable properties known as the Deer Trail claims per deposit. manis in the Circle Cliffs area and the Hafin, Joseph general of in the mine. ager charge (Continued on Page 5) -- Cal-Uraniu- $2,-000,0- Number Companies Planning Merger Survey Denver Bureau The U. S. Atomic Energy commission and the Rare Metals Corp. of America, of El Paso, Texas, have signed a contract for the construction and operation by Rare Metals of a uranium plant at Tuba City, Ariz., it was announced today at ore-processi- ng n season. Abajo Uranium, which takes its name from the famous Abajo Mountains in San Juan County, Utah, has been cleared by the Securities and Exchange Commission to offer stock for public sale. Sixty of the Abajo claims are located over horizons in the seven mile area which includes the Hunt Oil Co. mine and the Thornburg mine, Chinle-Shinarum- p Chairman Milton H. Love, of the Utah Securities commission, with the support of Gov. J. Bracken Lee, intends to crack down upon uranium brokers found guilty of violating the state security laws to the disadvantage of their customers. The decision to warn brokers and later back the warning up with a summons before the commission, was reached this week, after several complaints had been made to the commission and to the governor that unethical practices had been used by some brokers in violation of rules affecting short-saleThe ultimatum is expected to be in the mail today after having received the signature of the governor. Discussing the complaints, Love said that he is sure some brokers have been acting both INDICATE as principal and as broker in the same transaction, which is proWELL IN hibited under the law. s. TESTS GAS WHITE CANYON The chairman said some brokThe management of White Can- ers are charged with purchasing yon Mining Co. reported this stock from another broker for week that tests indicate they their own account for resale to have a commercial producing gas their customers at a higher figwell on their property between ure than obtained in their transMontlcello and Dove Creek. action with the other broker. More detailed information is This sort of deal, according to promised within 10 days. Love makes it possible to reap a The company controls 10,700 acres surrounding the discovery profit plus a commission for the well which is in San Juan coun- broker and is not legal. ty, Utah, and which is described Love believes some as the Sitton No. 2 wildcat, at their have been Sitton Dome, 11 miles west of deals to unlicensed taking brokers on Dove Creek. the sumption they will not be A. P. Kibbe & Co. Salt Lake charged the prevailing commisCity, underwrote White Canyon sion. stock in April. The company has He pointed out that it is illegal 6,250,000 shares outstanding and was a broker to pay a commission shares the for initial 3000,000 to was salesman not officially idena The stock offered offering. at $1. It is now $1.75 to $1.87. tified with the brokers office staff. Violations are not widespread, he said. York, New Jersey and Washing- cated in the Judge Building, Salt Governor Lee told the commisLake City. Field headquarters are ton, D. C. he feared the situation sioner Abajos main offices are lo located in Moab, Utah. would get out of bounds unless some brokers are cited. The state insists on brokers acting fairly with customers. the Grand Junction Operations office of the commission. Construction of the plant is expected to begin promptly, with completion scheduled in about nine months. The new mill, to be owned and operated by the Rare Metals Corporation of America, will provide processing facilities for the uranium ores being mined in the Cameron, Ariz., and adjacent areas. Tuba City is on the Navajo Indian reservation in Coconino county, Arizona, about 75 miles north of Flagstaff. The Tuba City mill will process ore from properties owned, leased or controlled by Rare Metals, and also uranium ores bought from independent producers in (Continued on Page 5) Abajo Claims Cover Large Area on Colorado Plateau half-billio- 12 Rare Metals, AEC to Build Arizona Mill . Abajo Uranium Co. now holds record title to 106 mining claims covering over 2,000 acres in the highly productive uranium ore area of southeastern Utah and western Colorado. The companys four major claim groups are situated within a circular area (now known as the Colorado plateaus "Western Circle) which is believed to uranium ore dehave blocked-ou- t posits worth over a dollars. Most of the plateaus major uranium companies are situated in the Western Circle where concentrated exploratory drilling and mining are now in progress for the 1955 summer and fall 10c Pex Copy $3.00 By O. D. QUINLAN Two Lone Star m One Year Utah, July 22. 1954 Issues Ultimatum To Utah Brokerage: Vifca' Good Co" --: ' broker-salesme- n Love said the warning letter puts the brokers on notice that they will have four days time in which to deliver stock to the public, plus time allowed in transferring, or until a check for the transaction clears a bank. This provides for a reasonable time both of which now have substan- tial ore reserves. Forty claims are located in the Blanding, Utah area over Morrison horizon, a stratum which thus far has rendered eighty-fivpercent of the uranium ore produced on the Colorado plae elapse. The warning letter also advises that a broker selling for his own account, to another broker, who fails to deliver the stock to the other broker is not to be exto the buycused for be deemed to ing public and will have participated in a fictitious teau. Six claims are located in Colo- rados highly productive Uravan mineral district located inside the eastern boundary of the Western Circle. The company will combine its exploration and development efforts, working toward commercial production of uranium ore. Directors and officers of Abajo include Robert R. Hughes, president; Max D. Howcroft, vice president; Byron C. Watts, Secretary-TreasurerGrant L. Shumway, geologist and mining engineer; Glenn Rowland, airborne exploration. The companys capitalization is an authorized six million shares. Far value of the nonassessable stock is five cents. Principal underwriters are Lewellen-Bybe- e Co., Washington, D. C. The company has been cleared in New non-deliver- y sale. Action by Governor Lee, who summonded Chairman Love to his office, is said to have been precipitated when officers of a prominent uranium company ; w "WESTERN CIRCl r Arrows show location of Abajo Uranium Companys claims which are all located in what is now known as the "Western Circle, now located on the Colorado plateau. The Western Circle, In which most of the plateaus major uranium companies are situranium ore deposits worth uated, is believed to have blocked-ou- t over a dollars. half-billio- n placed information in the governors possession, in which it was alleged that one brokerage firm was short half a million shares on stock of the complaining uranium company and that certain tardiness or laxity had prevailed in conforming to the rules relative to short selling. |