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Show igHificahce in The Oil "JwiVeurJ ctf lP'U VoL 26 No. 41 c Wl and liUning World" One Lake City. Utah Octobei 28. 1955 Teai $3.00 10c Pex Copy N Apache Discovers Major Ore Body; To Drill Soon In Big Indian District Apache Uranium Corp., has discovered a major ore body in the Big Indian district and has drilled out enough ore to justify sinking a shaft and approaching the project from a realistic Atomic Plans standpoint, Apache announced today. Stanford Announced Mahoney, Apache president, told a Survey porter the average grade of ore obtained per cent. Ore feet in thickness, he said. holes vary from two feet to Colonial By property R. re- is .30 Apache's The only large-scal- e uranium stripping Is at located the Rattlesnake Mine near operation in Utah Moab, Utah. The mine is operated by a subsidiary of Continental Uranium, Inc. This view is taken looking toward the lower west wall of the pit. RIG OPERATION Continental Stripping Plans Told, Finances Outlined Continental Uranium, Inc. sales of uranium ore were up 13.4 per cent and profits after provision for federal income taxes but prior to depletion, allowances were up 27.6 per cent in the first half of 1955 as compared with the figures contained in the report for 1954, Gerald Gidwitz, chariman, announced in a letter to shareholders today. Continental Uranium currently operates two mines, Continental No. 1 and Rattlesnake mine, both located in San Juan County, Utah. A major stripping operation is in progress at Rattlesnake which is expected to increase the yield of ore by 50 per cent. The companys administrative offices are located in Chicago, with field offices in Grand Junction, Colo. The profits figure was $175,393.16 for the six months ended June 30, 1955 as compared to $91,606.51 for the four months ended December 31, 1954. Four months figures are used for the comparison since the company acquired its first properties in September, 1954. Sales of ore amounted to $628,268.72 in the first half of 1955 as compared to $368,195.29 in the 1954 period. The percentage increases for both sales and profits were computed after adjustment for the fact that the 1955 period covered was two months longer than the 1954 period. All officers of the company continue to serve without remuneration, Continental Uraniums chairman stated. Sabre's New Ore Strike Spurs N. M. Mill Plans Sabre Uranium Corp., which has encountered a great amount of high grade uranium ore on its claims near Grants, N. M., over the past several weeks, was reported today to have encountered two exceptionally important ore holes. Spokesmen said today that the company has two sections that are being blocked out in outlining an ore body. The company has encountered so much ore that it contemplates, according to spokesmen, the con- Grants for the past six months. struction of a new processing It is planned to outline the Commill. Permission is to be sought panys ore before shipments. from the Atomic Energy CommisDarwin Peterson, trader at the sion. Salt City office of Mountain An important recent develop- StatesLake Securities Corp., 345 State ment on Saber claims is the acwho recently flew over the tion of Pinon Uranium Corp., Street, Sabre described the propclaims, which farmed out three sections as fantastic. He said the erty of property bn the Saber claims, entire area is a tremendous ore in proximity to the reported e He said Oil deposit. strike. Co. is mining uranium in the viPinon is reported to have drillof ed to depths varying from 400 to cinity Sabre's claims. 6600 feet. After reaching the 400 The Sabre president is Hugh to foot level Pinon is said have Craigie, Grand Junction, Colo. Ofencountered 150 feet of ore of ficers and directors include eight men from Texas, two from Grand low grade mineralization. Sabre has been drilling near Junction, Colo, and one Nevadan. Kerr-McGe- six is a contin- - uation to the west, of the Continental Uranium Co. property. Mahoney said his men have drilled for 1000 feet on the same channel and have found ore for that distance, which guarantees Apache will be able to mine practically continuously for a distance of 1000 feet. Mahoney said Apache has one feet of ore that will and assay one per cent and that most of the six foot ore body averages .525 per cent. He said his company will know within two months the extent of the ore one-ha- lf body. Mahoney said his company faces a very difficult problem at one place where the ore body lies underneath the wingate cliff and it is impossible to get a drill rig on it. As a consequence drilling has been started on the upper rim and on the lower base of the cliff with the ore body under- neath. At the widest point there is an ore hole that is 275 feet south of ore holes on the north side. He said he assumes the channel may be as wide as 250 feet at some points and at other points, will probably be the same as that of Continental Uraniums from which that com( discovery u pany mined $1,000,000 worth of ore last year with not much more ' drilling-ou- t than Apache has achieved for the length of the channel. I think we have a major ore body drilled out except for the wingate sand stone cliff in the center, which interferes with our drilling. We are going to be obliged to drill from the base of the wingate sand stone cliff and will unquesionably drill back unr der the cliff to complete the See APACHE Page 2 Uranium Strategic Pays 3 Million For N- M. Land - Uranium Strategic Minerals Inc., of. Salida, Colo., has announced a $3,000,000 purchase of 640 acres of land near Gallup, of N.M. The secretary-treasure- r H. the company, Ray Strickland, said the land, located two miles northwest of Gallup, was bought from Donald Conley. . Big Indian Pays Off Standard Uranium Corp., selling at $1.25 a share over the counter has reported net profit of $479,266 for nine months ending September 30, 1955. Properties are in the Big Indian district. A total of 68,398 tons of uranium ore were shipped during the nine month period on which the company claims to have reaped a net profit of $12,266 per ton. Bleak Hits Ore On 'Pete'; Has 12' Face Bleak Uranium Co., Inc. reports assays showing .20 percent to 22.56 per cent in four drifts on three and a half Picolo Pete cairns in Hidden Valley, Utah. The claims are located two and a half miles southwest of the Happy Jack Mine, according to President Charles M. Bleak. The - drifts being owrked are in the Shinrump formation. Four drifts are back 50 to 250 feet. All ddifts are in the ore with a 12 foot face of ore showing in the 250 foot drift. Engineers for Bleak are highly optimistic. If the 250 drift holds out for 200, they say, the Bleak properties could rival anything on the Plateau. On 203 Montezuma Group claims in San Juan County, Utah, Bleak has outcroppings in the Morrison formation which assay .8 to 1 per cent. Bleak also has option to buy 104 claims in Happy Canyon on Muddy River. Total cost of the claims is $120,000. According to Pres. Bleak this group has indications of being one of the largest producers in the area. Survey Denver Bureau JUNCTION, COLO. A program of wide atomic diversification for Colonial Uranium was approved this week at a special stockholders meeting which voted to: GRAND 1. To increase capitalization from three million to 15 million shares. 2. Change the company's name to Colonial Nuclear Industries, Inc. 3. Put into effect an agressive program of diversification. 4. Recapitalize at $2,000,000. The company has contracted with Colorado School of Mines Research Foundation to do research which will determine tne type of thorium plant Colonial will build, possibly near Gunnison, Salida or Westcliffe, Colorado. Also announced at the meeting was the acquisition of a large block of the Sunnyside Mine at Silverton, Colo., with modern flotation mill capable of 100 tons a day. The property is known as the Gold Prince Mine. New board members elected include R. Dawson Hughes of Dallas, Carl W. Crites of Cushing, Okla., Wililam Gianetto of Durango, Colo., John W. Murrell of Miami and John E. Price of Ft. Meyers, Fla. About 85 per cent of public-hel- d shares voted for the new program. Am. Smelting r. Contract Ends; AEG Invites Bids The 7-Y- Grand Junction operations office of the U.S. Atomic Energy Commisison announced today that the American Smelting and Refining Co., which since 1948 has been conducting uranium and concentrate-receivin- g functions on behalf of the Commission, has notified the Commission that it will terminate these activities at the expiration of the present contract on December 31, 1955. The commission is interested in continuing this work under a Albuquerque Man contract procedure as in the past, according to Manager Shelton P. Misfiles; In Jail Wimpfen of the Grand Junction New Mexico Bureau Operations Office. As a preliminary move in the An Albuquerque, N. M. man, L. D. Alexander, has been sen- selection of a new contractor, the Junction Office recently tenced to 30 days in Bernalillo Grand sent out letters to a score of privCounty Jail and fined $100 after ate firms believed to be qualified pleading guilty in District Court and invited them to submit proto a charge of violation of the to the Commission. posals state mining code. Since the Commission desires to Dist. Judge Paul Tackett susobtain the best qualified operapended the jail sentence and fine tor to conduct the program on its and ordered Alexander to pay all behalf, firms interqualified $100 court costs. ested in this work wil Ibe sonsid-ereAlexander was charged with failure to furnish the state inThe commission has not request-p- d spector of mines with a statistiproposals from firms whose incal report of a mine he owns terests extend into the domestic as required by, New Mexico law. uranium field. Two similar cases, based on The proposed contract will be a charges filed by mining inspeccontract, the fee tor, John Garcia, are pending in District Court. See AEC Page 2 ore-buyi- ng -- d. |