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Show Ow WetoS etf IftMt Significance in The Oil and fining Wctl4' Volume 28; No. 55 Salt Lake City, Utah March 21, Price 1958 10 cents Utah Leads Nation During 1957 San Juan illine Produces In Adding Crude Oil Preserves Bulk of Heda's Profits Utah was the only state in the nation which last year more than doubled its proved reserves of crude oil. In fact, the Beehive State was exceeded only by Louisiana in net additions of crude, the American Petroleum Institute said Monday. API said that some 83,207,000 barrels of new crude were added to underground reserves in Utah during last year. As of Dec. 31, 1956, the state had proved reserves of 61,435,000 barrels. Some 4.608.000 barrels of reserves were produced in 1957 (nearly twice that of 1956). (Utah oil and Gas Conservation Commission placed value of production at $10,899,-042.- ) Thus the state, as of Dec. 31, 1957, had proved reserves of 140,- 034.000 barrels. This is considerably under the estimated reserves which representatives of major companies recently testified were in the Aneth and Desert Creek areas alone of San Juan Countys - Para-'doxTSaSh- l.'' a much duce. ... larger area will pro- The institute said that the net additions to Utah reserves totaled 78,599,000. Of principal oil producing states, 17 reported net declines in proved reserves and only seven noted increases last year. Louisiana added 182,150,000 barrels to its totals. Utah was second and North Dakota third (with additions of 62,387,000 barrels). Wyoming was fourth with additions of 56,554,000 barrels. Colorado reserves declined by 53,811,000 barrels. The state is producing about 55 million barrels of crude a year. And additions of new crude by extension and discovery totaled less than 1 million barrels. It is probable that with new discoveries already made and the progress of developmental drilling in existing fields, that Utahs reserve figure will, on proved basis, greatly exceed the 100 million mark by the end of 1958. Production will more than triple,' hitting between 14 and 15 million barrels. Gross value of oil produced should then be in the 30 to 40 million dollars a year But API is purposely cautious. It says its figures are based on only a limited area assigned to range. each new discovery, even though Proved reserves of crude oil for the committee (working up the nation stood at 30,300,405,000 the data) may believe that eventually barrels at end of 1957. This was a Hecla Mining Co. made three decline of 134,244,000 barrels, quarters of its net profits before said API. income taxes last year from its According to the Independent interests in the Radon uranium Petroleum Association of Ameri- mine in Big Indian District of ca, this is dramatic proof that San Juan County, Utah. excessive oil imports are undermining the national security. Annual report of the Couer The drop in reserves does not producer, result from an inability of the do- dAlene showed net mestic industry or any shortage of Tuesday that profit hunting grounds for oil, but is the before taxes was $1,004,777 for inevitable result of declining ex- 1957. ploration and drilling activity," The report also stated that net said Russell B. Brown, general counsel' of IPA in Washington, operating profit to Hecla from the D.C. Radon, after deductions for depreciation, depletion and amortization was $722,503 last year. This compares with like net from Radon of $660,952 for 1956. Heclas actual net profit for North Standard Mining Com- 1957 was $786,599. In 1956 the pany, 148 South 1st West Street, mining firm reported net profit Provo, Utah has levied an asses- of $904,997. The differences in insment on outstanding stock of the come are of course, to company of three fourths of one the lead-zin- attributed, situation which price cent per share. worsened 1957. steadily during Action of the Board of Directors was taken on January 10, Hecla also reported a signifi1958, delinquent date for pay- cant increase in high grade uraniment of the assessment was set um reserves at the Utah property for February 10, 1958 and the it operates for Radorock Re- date for sale of delinquent stock iKAilccaj Jut:.; Salt Lake Citjr. is April 10, 1958, at 515 Felt Build-ing- , During 1957, a total of 62,143 Salt Lake City. Place of payment of the asses- tons of ore were mined from the sment is Box 605, Provo, Utah, Radon assaying .85 per cent U308, which would need to be made of which 15,536 tons were for the prior to the sale date of April account of Hecla. 10, in order to protect stock holdTotal ore reserves of the Radon ings. as of Dec. 31, 1957, are estimated at 423,230 tons assaying .725 U308 of which Hecla owns 25 per cent of 105,807 tons. In preceding reports we have stated that approximately 300,000 tons of ore assaying .75 U308 had been indicated . Tests are now under way on by drilling. three Hecla president L. J. Randall, cyclone ore classifiers installed for experimenta-ti- Wallace, Idaho, said development nat the Magna ore concen- work completed during 1957 on trating mill of Utah Copper Divi- thp ore body made it possible to sion, Kennecott Copper Corpora- make a more accurate estimate of tion. ore reserves. And we were very P. H. Ensign, superintendent of pleasantly surprised at the inmills, said the new type classifiers crease over that previously indiutilize centrifugal force in place cated from drilling operations. of settling by gravity to separate Hecla also operates on the adthe coarse ore particles from the fine particles, an important op- jacent Hot Rock claims for Radorock Resources in the diseration in milling. It is necessary that the coarse trict. And the Hecla report disore particles be separated from closes that drilling of these the fine in order that the coarse properties to date has developed to a reserves of 31,210 tons of ore particles may be assaying .40 U308. This ore will finer size. cross2,000-foo- t Testing of the cyclone classi- be mined by a cut now being driven from the fiers is part of the companys search for better and more Radon to the Hot Rock ore is estimated to economical production methods to body. The cross-cu-t meet todays highly competitive foe about 500 feet in on its course. copper market, said Mr. Ensign. It was explained that it will probably require more than a year to complete the series of tests necessary to determine the advisability of installing this type of equipment throughout the companys two ore concentrating The annual report of Atchison mills. Topeka and Santa Fe Railway Co. rod an Meanwhile, experimental discloses' the lines subsidiary mill is currently being installed Haystack Mountain, Development at the Arthur Mill as part of the Co. had profits of $416,919 from companys search for better and New Mexico uranium mining opmore economical production meth- erations during 1957. ods. The mill utilizes steel rods The Santa Fees net last year instead of iron balls to grind ore. was $61,941,791 versus $70,213,171 initial to It is expected undergo 1956. for tests early this year. lead-silver-zin- c North Standard Sets Assessment c Test Classifiers Get Workout 20-inc- h o re-grou- con-stan- d Santa Fe Uranium Profit Reported i Senator Wallace F. Bennett of Utah examines a scale model of the Sergeant missile, to be produced in Salt Lake City by the Sperry Corporation. The missile is 30 feet long, carries an atomic warhead, and is the newest member of tho Army's guided missile arsenal. Heclas affiliated Polaris Mining Co. (55 per cent) reported net income last year of $199,236 or nine cents a share. This compares with a net of $334,491 or 41 cents a share in 1956. The firm also owns substantial interests in Bunker Hill Co., income of which was affected by reduction in Bunker .Hill dividends. Vitro Uranium Co. Changes Methods Vitro Uranium Co., Salt Lake operating division of Vitro Corporation of America, is engaged in an intense study concerning diversification into lines other than uranium reduction. A part of the survey covers possible use of additional circuits at the Salt Lake plant not devoted to uranium processing for employment in beneficiation of other metals or materials. Annual report of Vitro Corporation of America discloses: During 1957, studies were conducted looking toward diversification of the uranium companys activities. inese studies wm continued and intensified in the coming years. Vitro Uraniums contract for processing of uranium ores and sales of concentrates to the Atomic Energy Commission extend to March 31, 1962. The report notes the affiliated Vitro Minerals Co. last year acquired a large number of A ore claims in the Gas Hills district of Wyoming, bringing total claims owned or under option to more than 200 in this area. A total of 247,000 feet of exploratory drilling was conducted by the Salt -- Lake-base- d 1957. exploration firm in Steel Names New Manager U.S. Lawrence F. PROVO, Utah Black, general superintendent of Geneva Works, the wests largest integrated steel mill, was named Manager of Operations for U.S. Steels Columbia-Genev- a Steel Di- vision and Manager of Operations of the Columbia Iron Mining Company, it was announced today by Leslie B. Worthington, division president. A. E. Terry was named to succeed Mr. Black as Geneva general superintendent Carl J. Forkum will succeed Mr. Terry as assistant gneral superintendent at the big steel plant. A veteran steelmaker with more than 34 years experience with U.S. Steel, Mr. Black is a native of Donora, Pa. He began his career at the Donora zinc plant of the American Steel and Wire Company. He held various positions in the mechanical shops there, and was later promoted to field engineer of this plant While he served in this capacity he attended Carnegie Institute of Technology and was graduated with a B.S. degree in civil engineering in 1939. . |