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Show Fate THE WESTERN Z Noose Pulled Tighter On Milling Industry The following article is reprinted from the Deseret News by JACK JARRARD Deseret News Business Editor The noose was pulled a little tighter around the neck of the western mining industry with price cuts in both copper and zinc. Meanwhile the House Ways and Means Committee still was sitting on the lead and zinc legislation which if passed this session of Congress would afford some relief to domestic lead and zinc producers. Some say that failing demand for the metals has knocked prices three ways from Sunday. The legislation would provide relief for the U. S. producers by slaping higher tarrifs or taxes on imported metals thus giving American producers a chance to compete with foreign' metals produced by cheap labor. Under this proposed legislation, duties on imports would increase as the price of either metal dropped, but the taxes would h be based on averages. three-mont- This would be too long to wait, some trade men say, because as a higher tax was anticipated foreign producers would increase shipments to get in under the wire. After the one-hacent price cut Monday, zinc now stands at 10 cents per pound, the lowest it has been since early in 1954. The cut brings to 3 cents total price cuts since May 6. Most Utah mines and mills are going to keep on producing at least thats the thinking at the moment. In fact, its cheaper to lose money by operating a mine than it is to lose money by closing the mine and just keeping maintainence crews on hand. There are around 1,500 persons employed in the mining and milling industry in Utah, In 1949 there were than more 3,000 working. That figure dosnt include the number of men employed in the smelting of these ores, either. Frank A. Wardlaw Jr., general manager of INTERNATIONAL SMELTING & REFINING CO., says that the price cut makes the situtation in the industry much more desperate. of the UTAH MINING Mike Romney, secretary-manage- r ASSN., pointed "ouf tint four out of five operators lost money when lead was 16c and zinc at 13c. Its obvious that the loses will be much heavier now. We are sustained by the hope that we will get some relief during this particular session of Congress, Mr. Romney said. Not much change is seen for the near future in the metal pricing, the men agree. But one thing, some people overlook if the mines and mills dose down, it wont just affect those working in the mines and lf lead-zinc-silv- er ... mills. It will affect the whole town where these people live. The banks, grocery stores, barber shops, drug stores, places of recreation and any other business operating in Tooele or Park City and the other smaller townh in Summit and Tooele Counties, all will be hit and hit hard. And there are allied industries too, such as the powder plant at Bacchus and other suppliers of the mining and milling industries which would be hurt if no protection is given the American mine operator in dealing with foreign metals. And for those American companies operating in foreign countries they, too, have an advantage over those working within the continental confines of the U. S. of A. Profits brought into the United States from foreign opper-ation- s are subject to 38 per cent U. S. Taxes. When the profits are made here the corporate tax take is 52 per cent. Thats not considering the amount of wages paid an American miner or millman as compared to those in Mexico or South . Africa. MINERAL SURVEY Friday, July Emery County Wildcat Well Discovers Oil; to be Deepened Paradox Production Co. Tuesday reported a discovery of oil at its Sands Mesa wildcat in Emery County, Utah. The find was represented by recovery of five feet of free oil in a drill stem test of file Her-mo- st formation between 4,019-4,04- 4 feet, said O. Li Carson, Salt Lake City, president of the small independent. Mr. Carson said that the test, open four hours and shut in one hour, saw a good blow of air throughout and recovery of 2,126 feet of drilling fluid. The top five feet was 2 degree API gravity oil, he related, 41-4- WESTERN MINERAL SURVEY NEWS pany, Mr. Carson declared. The official stated that a coring program between 4,025-4,07- 1 feet in what is believed to be the Hermosa stcion, recovered oil and gas stained rock between feet. Between the cores contained sulphur water and between 4,066 - 4,071 feet, a section of dark grey limestone was found. 4,0254,050 4,051-4,06- 5, In the 4,0254,050 interval, a porosity of per cent was established with permeability of from zero to 200 millidarcies. Gas volume was 6 per cent; water (connate), per cent; oil, per cent, Mr. Carson said. The well is now being deepened and another test of this area is scheduled later, the Salt Laker 9-2- 7-1- 8 3-- 44 ALpina APVZBTT8IWO Box 2608 DI 49 Belt Lake City, Utah 2402 Curtla St., Denver Alpine Kntered aa eecond elaea matter at Salt city, Utah, under Act of March 3, 1879. Subscription rates: $5.00 for two for one year. yean; $3.00 Please mention Western Mineral Survey when writing to advertisers. Advertising rates on application. Editor L. M. All news appearing in the Western Mineral Survey la obtained from sources relieved to be reliable but no responsibility is assumed for accuracy of statements. Reproduction of any material from this publication must have written permission from the publisher. Announces Uranium Leases Merger 0 K-L- Decision Favors The U. S. District Court in Wyo. handed down a decision in favor of Mountain Mesa Uranium Corp. and H. O. English. The decision was made June 26, 1957. Phone DC Curtii St.. Denver UWM Cataract Mining Corporation of et al have entered into an agreeNew York and KLB Oil Associ- ment, subject to ratification of B ates, a partnership consisting of Associates, by which the assets Guy Lombardo, Carmen Lombar- of the Lombardo Brothers- - Kiel do, Lebert Lombardo, James Keil partnership will be acquired by Cataract, according to a joint statement issued by James Keil and J Roger Wallace, president of Uran. Company 2402 Street . KLB, Cataract Report $1.5 Million 421 Cbu?di - CIRCUIATIOH 4 6-2- with the remainder a mixture of drilling mud and sulphur water. The packer, set above a sulphur water flow, leaked, according to information from the testing com- - said. 5, 1957 Cataract. James Keil, Guy Lombardo and Bruce de Montmorency have been elected directors of Cataract. Mr. Keil, who formerly was president of KLB Oil Corporation and and who discovered and developed the el Oil Field in East-lan- d County, Texas, has assumed active direction of all of Cataracts oil and gas properties (n Texas, in the Four Corners area, in Arizona, in the Republic of Panama, in Bolivia and in Cuba. Jo-Ki- Western Minerals Company announced entry1 into the Gas Hills Crooks Gap uranium area by acquiring options and leases on approximately 18,000 acreas of mining claims and leases in this area. After preliminary geological and exploration study, a large drilling program to get underway in the next 60 days is planned. The lease properties lie close to production and in the same geological structure as the producing ore bodies in the area. In addition to this, the company has acquired large acreage of undeveloped mineral leases and mining claims in the Baggs, Wyo., area. The acquisition of these properties and the establishment of an exploration development and land office at Riverton, Wyoming, starts the companys development program in a new state, in an area which is considered next to the Ambrosia Lake area, the greatest future potential producers of uranium in the United In Civil Case No. 3966, filed December 9, 1955, by Charles M. Coleman, of Chicago, and Riverton Uranium, a Nevada corporation qualified to do business in Wyoming, whose primary stockholders were Charles M. The purchase price involved Coleman, Albert W. D filing, atW. torney; Kirkpatrick Dilling, $1,508,000. The Lombardo interall attorney, Chicago, Illinois, the ests in turn are buying of record for Charles million warrants of Catattorneys UranM. Coleman and Riverton aract stock entitling them to pur- States. The companys holdings in Amium were Albert W. Dilling, of chase said stock at the price of brosia Lake and the Sangre de Chicago and Spence and Hill, of $1.00 per share. Cristo Mountains, where large Wyoming. The terms of the contract re- established proven are deposits Charles M. Coleman and River-t- o quire that Cataract immediately are being developed, with the new Uraium in their suit against take all the necessary steps to Wyoming land acquisitions, give Mountain Mesa and H. O. English, prepare for an application to list the company an interest in all of its president, claimed a third Cataract on he American Sock the major uraniuf ore producing areas in the United States. party beneficiary by virtue of Exchange. a contract entered into between Mountain Mesa and San Juan Uranium which contract had long Resources ago expired, according to its terms and San Juan had, on several occasions, stated they no longer had a contract or any interest in and Radorock Resources, Inc., Fri- Radon for Radorock, was reimto any of Fountain Mesa Properday reported net profits of $555.-70- 0 bursed $817,000 in costs of develties. for its first fiscal year of oper- oping the mine. Radorocks first year has been findcourts In the ations, which ended April 30, 1957. decision!; the Ramarked came the income from The by productive results. The ing was that Coleman and RiverRadon Mine Indian is expected to proton Uranium1 at no time were don uranium mine in Big vide your company with a subthird party beneficiaries to an District, Utah. stantial cash flow for the next Ralph W. Nevman, president, agreement as against of several years ahd the promise San Juan and Mountain Mesa of said that more than one-ha- lf the individual officers of said cor- Radorocks chare of these pro- of the new properties in the Gas fits was realized in the final Hills District gives the firm an porations. This decision will permit Moun- quarter of the fiscal year. intriguing long rage potential. tain Mesa to work its properties period the report added. Diving this three-mon- th without Interference by this suit. the mine shipped 11,564 tons of Coleman and Riverton Uranium ore having a gross value of $936,-66- 0, had filed a declaration of interafter mining costs. Grade of NEW REPORT est in and to Mountain Mesa ore for April was 1.07 per cent properties and had written the U308. Potential of Oil & Gas Atomic E n e r gy Commission Radorock recently declared a an in cents interest cash a five dividend these of share claiming Holdings In Utah Atomic Energy Commission to payable Aug., 5 to stockholders of withhold any payments for the record July 5. Write or Phone for ore due Mountain Mesa until the Annual reports disclosed there FREE COPY case was decided. This had the are now five drillings rigs at MID AMERICA (effect ff (preventing; Mountain work in the Gas Hills District Mesa from mining inasmuch as of Wyoming where file firm has SECURITIES,. Inc. they could not receive payment 1,200 uranium claims. During the OF UTAH for the ore mined and sold to the fiscal period, a bank loan of $278,-00- 0 26 West Broadway was repaid. Hecla Mining Co., Buying Station. This decision will DA Salt Lake City also clear up this situation. . Wallace, Idaho, operator of the one-and-a-h- alf 0 Radorock Reports Profits Hit $555,700 During Fiscal Year en-force- ble |