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Show etf llttet Significance in "The Oil and Mining World" "Ooc Silt Lake City, UUh, December 9, 195S Vol. 26; No. 43 mil NEARS V Oil Compact Commisison meeting in Santa Fe last week. Gov. John F. Simms of New Mexico, was elected as the new chairman of the commission, replacing Gov. William Stratton of Illinois. The Harris Bill, which has passed the U.S. House -- and is pending before the Senate, is intended to remove producers from direct federal control of Lakes Area Ore Uncovered natural gas. The resolution stated that the commission feels that state cond servation efforts are being with by federal control of natural gas. and that the states should have control of natural gas production as well as oil GETTING THERE! inter-ferre- that in the past year proven reserves have increased less than a trillion cubic feet while demand has increased more. Steen said that the only solution to the decreasing natural gas supply is to increase exploration. He pointed out that exploration in the San Juan Basin has been the only major deevlopment that has taken place in the past 10 years. The commission decided to hold ing May 31. Six governors and two former its spring meeting in Dallas attended the meeting in Santa Fe. start-govemlo-rs Professor Ci Cloy Importance There is a great national demand for clay minerals, according to Prof. Leonard B. Sand, who urged members of the Mineralogy Society of Utah to keep prospecting as pioneers, in laying the foundation of an industrial usage that is going to con- tinue undiminished for many years. Prof. Sands said the best deposit of halosite in the United States will be found in Eureka, Utah, where the former Dragon mine has been reopened for halosite production, a most important clay mineral, which oil companies throughout the United States use for filtering oil products. He pointed out that clay minerals are used for refractory brick, ceramics and industrial tile with a big field of other future uses opening up. The speaker declared that one type of bentonite found in Wyoming has 2500 commercial uses. COMPLETION mill. The mill, under construction for a year and six months, is expected to be completed 60 days after Universal completes its contract with the Atomic Energy Commission. Aagaard said officials of Uni- - supporting the Harris Natural Gas Bill was passed unanimously by delegates to the Interstate 22-ye- ar 10c Per Copy The first processing mill constructed in the United States with no penalty on high lime ore and the first mill to be constructed at the site of the ore deposit, is about 90 per cent completed at Mineral Canyon, it was announced by Elmer K. Aagaard, of Salt Lake City, vice president of Universal Uranium and Milling Corporation, whose company is erecting the New Mexico Bureau A strongly worded resolution production. During the closing technical session of. the quarterly meeting, an official of El Paso Natural Gas Co., said that the United States has a supply --of natural gas, based on present reserves. El Faso vice president Ilugh F. Steen said it is alarming 53.00 By O. D. Quinlan Survey Feature Editor Nears Ore Resolution Supports Gas Bill One Year Webster II. Russell, secretary-treasure- r of Five States Uranium Corp., Albuquerque, checks count on ore in drift on companys Dirty Devil No. 3 claim on Tomsich Mountain, San Rafael Swell; Miners muck out in Dirty Devil No. 3 drift, which ore expected to tap blocked-ou- t body at about 225 feet; Miner Parker II. Childs dumps Scoot-Cret- e . LOS ANGELES Discovery of a major uranium ore body in the Grants, N.M. area, was reported today by Pacific Uranium Mines Co. Robert Redmond, chief geologist for Pacific, stated that six test holes on 700 foot centers exline tending on a North-Sout- h were successfully drilled in Section Ambrosia Lakes area, McKinley County, near Grants. Three separate uranium ore zones were penetrated in three of these six holes. On the same Section 24, four separate holes, 2,000 feet East of the North-Sout- h discovery line, were also successfully drilled. Redmond further stated in his versal are hopeful this will be in about two weeks. Kent Johnson, of Moab, is president of Universal Uranium. He has an office in Moab. Earl Smith, of Moab, widely known assayer, is credited with developing a process for extracting high lime ores without a penalty to miners. There is a heavy penalty now. In a recent address before the American Mining Congress, in Las Vegas, Paul C. Henshaw, San Francisco, an executive of Homestake Mining Co, which has a large ore body, which is in high lime ore, emphasized in his concluding remarks there would be available an ore reserve of several millions in both grade and total tonnage, for any ura- nium extraction plant, located reasonably near the Big Indian area, provided that the plant is designed around the nonpenalty process on high lime. The importance of the mill was emphasized by Aagaard, who said it not only will be the first mill constructed in the United States with no penalty on high shuttle car at portal of lime ore at the site of the ore Five States Uranium Corp.s deposit, with special processes mine. Company expects to mainavailable for the ore in the lotain shipping schedule of two cality. He said Canadian mining comloads daily. panies have been locating small report: (Continued on page 2) The preliminary drilling has indicated a very large area of Go-Ahe- ad commercial ore in the Western part of the Section, and apparently a second large ore body occupying the approximate center of the Section. With further drilling, it is posShawano Development Corp. will be one of the first Amer- sible that these two ore bodies may connect. ican companies to drill and explore for oil in Guatemala. It is felt that the ore bodies SALT LAKE CITY Federal According to- Alexander L. Guterma, president, Shawano in Pacifics sections will compare has received grants to four concessions which cover an area of in magnitude with any found in Uranium Corp. has agreed to sell its one-thir- d interest in the the Ambrosia Lake area. approximately 100,000 acres. Daniel-Ruddoc- k group of claims Shipment of a Brewster N-- 4 W. for D. Nebeker $3,350,000, Slim Hole Rig to Puerto Barrios Jr, Federal president, announced is underway, and the company today. expects to begin drilling operaAn option on the property, lotions no later than the second cated in Utahs Big Indian Disweek of January. was trict, given to Moore and Carlos Castilla Armas, presiNew York brokerage Schley, dent of the Republic of Guatefirm. The has six company SURVEY DENVER BUREAU mala, granted the oil concessions to months exercise its option. to Shawano under the countrys The U.S. Atomic Energy Commission and Continental UraIn connection with the action, new Petroleum Code which benium, Inc, of Grand Junction, Colorado, have signed a contract the brokerage company has made came effective on Nov. 9, 1955. for the construction and operation by Continental of a uranium a loan of $300,000 to Federal e companies Only twenty-ninprocessing mill at La Sal, Utah. Uranium Corp. The New York qualified, and they include Esso The Grand Junction Operations Office of the AEC made company also has an option to Standard Inc., Texas Petroleum the announcement today. of Federal 50,000 purchase Corp.. and Continental Oil Co. Construction of the plant'is expected to begin promptly, with at $4 a share. shares of Guatemala. completion scheduled for the summer of 1956. The loan, which is in addition Shawano geologists stated that The new uranium mill will be owned and operated by Conto the bank loan negothey believe that production tinental Uranium, Inc, and the entire output of uranium con- tiated $300,000 Federal last month, by would be encountered between centrates will be purchased by the Commission. La Sal is in our gives company the necessary 3,500 ft. and 3,800 ft, and in San Juan County, near the northern edge of the widely-know- n needed to excapital working not than 6,000 any case, deeper Big Indian Wash uranium mining area. our other holdings, Nebeft. The La Sal mill will process uranium ore produced from plore said. ker concessions the Shawano All of properties owned, leased or controlled by Continental, as well After sale of the Daniel-Ruddoc- k are located in the East Flores as uranium ores bought from independent producers. interest, Federal will have area, the- geological characterisCompletion of the La Sal mill will bring to 14 the number more than 43,000 acres of uratics of which are similar to the of uranium processing mills operating in the western United nium property, including Cincinnati Arch, which controls States. Nine mills are producing uranium concentrates and four seven mining mines which are in prothe prolific production of Pennothers are in various stages of construction at Edgemont, South duction three and mines in sylvania, northern New York, Dakota; Moab, Utah; Tuba City, Arizona; and Maybell, Colorado. on Indiana and Ohio, page 7) Kentucky. 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