Show Steen Tells of Mine Merger By Dy Robert nobert W. W Bernick Tribune D Business Editor I Mining millionaire Charles A. A Steen of ot Reno Nev Ner recently announced an and merger plans for fot three Parking Park Mining Min MID firms he heads New heads New ing Co East ast Utah Mining Co o. o and Grand Deposit Mining Co lie He also aleo told of ot Important gold and silver sUver developments at al Mammoth Mine In Utah and of ot silver sUver In New Mexico Mr Steen tl said ld that not only would economies be effected In inthe i ithe th the NeW Park merger but that by Joining the properties of ot the three firms greater by stockholders of ot the companies would be enjoyed New Park he said Bald has made major discoveries of gold ore In Inthe inthe inthe the Mammoth Unit project in Juab County East Utah has a high grade silver prospect in n New Mexico and Grand Deposit now has Income from Its mining contracts on the uranium property In Utah from Atlas Corp Discussed Mr Steen also disclosed that directors of ot Now New Park and Standard Stand ard and Metals Moab were discussing discuss ing a merger Any merger with Standard would follow tollow completion comple comple- ton tion of amalgamation of New Park East Utah and Grand Deposit De posit he said said He lIe announced announced Immediate transfer trans fer of offices of ot East Utah and New Park to Reno Nev Nov where Grand Deposit has operating I I headquarters We will tie In all ail of at our properties prop with a teletype system from Reno he said A registration calling for tor merger mer mere ger of the companies Is being prepared for tor the Securities and Exchange Commission Appropriate ate letters to share holders holders' are being drafted and will swill be sent as soon as ae possible he added The dates for tor meetings of stock stockholder stockholder stockholder holder approval of the mergers will be set shortly he said Mr Steen is is' a principal l shareholder share hare holder in New Park and Grand Deposit and New Park controls much of ot East Utah He also is a major stockholder in Standard I Metals Corp I Shares Exchange It is the proposal of management manage managed went men that four shares shares' of East Utah Mining be exchanged for forone forone forone one share shar of f New Park New Park is listed on the American Stock Exchange and Grand Deposit Deposit De De- posit and East Utah are listed on the Salt Lake Stock Exchange These ratios were established on basis of property valuations on prevailing prices of shares br or breach at each of the firms and the number number num ber her of shares outstanding outs Following the merger w Park would have around four million million mil mU- lion shares outstanding and a total capitalization of around 10 million shares I Mr Mr Steen also announced the results of ot first phase develop 1 J men went ment at the Mammoth Mine unit in the Eureka district of Juab County where gold sliver has been developed He disclosed more details on the silver prospect prospect prospect pros pros- I in the Bonito Valley near Ruidoso in southeastern New Mexico in which East Utah New Park and Grand Deposit all have interests New Park Mining Co operator of the Mammoth Unit has developed developed developed de- de I the main Mammoth shaft by feet teet and completed a I toot loot crosscut to the ore zone I indicated by previous drilling i iThe The second phase of development development develop develop- develop 1 I ment has now begun Mr Steen said and the ore has been opened open open- ed for 43 93 feet teet along its strike open open-I Vein widths have been increased from six feet to more than 20 feet at t the present drift face tace The ton ton bulk sample cample of the theare theore theore ore are from the gold gold silver ore zone was shipped to the Bauer Utah mill of Combined Metals Reduction Co High Value of Gold and Silver This sample was waa taken because the hand samples from the ore oro zone showed amazingly high val vat values ties ues in gold and silver sliver he said The samples from the bulk shipment to the Bauer Dauer mill shows show showed ed nearly an ounce of at gold o of an ounce 12 ounces of at sliver silver 18 ounces of at copper all an product produce producing ing a gross vale of at a ton ton The ore at the end of the drift drUt drifton on the foot 2600 level is now I 1 showing a 20 toot tac face The Mammoth Mine Is a historic his his- I tone gold producer which in the early days of ot Utah mining produced produced pro pro- du ed more than 18 million dollars dol lars lam In In values from a Do system of pipe deposition An Important characteristic of the new find is that there is ore are I above and below the ore zone intersected by the foot 2600 level drift and it is in vein type de de' dePosition position Mr Steen said that second I Ic phase development would Involve c cutting of a drill diamond station on the 2600 foot level From this station core drilling will fan out at depth seeking extensions of the vein One Important objective will twill be determination of ot potential potential poten bedding of at the silver gold copper copper deposition in the Ophir formation on what would be beabout beabout beabout about the foot 2900 level of at the Mammoth Mine New Park Even Basis New Park Mining Co In its Us agreement with participants inthe in inthe inthe the Mammoth mining unit unit unit-in- in including eluding Mammoth Mining Co Utah Consolidated Mining Co Gold Chain Mining Co etc re recovers re- re covers all costs of expansion and development Thereafter New Park splits on on 50 basis with the Mammoth Unit members participating participating par par- In their share on basis of amount of ot property committed to that unit I I I We intend to stockpile ore from the present area of development development develop develop- ment Mr Steen said Present I plans call for the complete development development de de- de of this ore are body by drifting raising and drilling he said Other areas of Interest in the Mammoth Unit will also be Investigated Investigated investigated in In- as conditions permit he said Down in southeastern New Mexico East Utah New Park and Grand Deposit have staked I about two and one-half one square miles in mining claims in Bonito Valley 14 miles mlles northwest of Ruidoso in Valencia County The crow or peak of the locations was staked on behalf of East Utah with New Park Part and Grand Deposit claims located outward outward out out- outward ward from th these e holdings East Utah owns 59 claims including including in in- the Silver Spoon and Crow properties New Park 23 claims and Grand Deposit 77 II claims The Martha Washington Crow and Silver Salyer Bar claims were acquired by negotiation Mr Steen told The Tribune that he was unable to release location lo foe cation of ot the previously announced ed silver allver prospect for fear that others would preempt potential properties as a result of a claims race In any event he said I am profiting in this regard by my experience in the Bl B Indian uranium district of Utah when I could have hue staked it all But 1 I left a good deal of ot property to others Mr Mr Steen said Strange as s it may seem the I Ruidoso Bonito-Ruidoso discoveries are not far from main highways and ami andare andare are in the Lincoln National Forest Forest For For- est visited annually by thousands thousands thousands thou thou- sands of persons Claims Survey Validation of locations was completed on Aug 11 1963 The claims survey suney including laying of ot corners and cutting of at lines Unes has been completed on more than 60 claims Work on some 20 other claims claims's is nearly finished he said The two claims of t present primary primary mary Interest are the Silver Sliver Spoon and Crow claims which are separated by about two and andone one one halt half miles mUM An indication of at the potentials of ot the Ruidoso silver sUver prospect is 18 a provided by dumps from a gold mining operation in the early catly Mr Steen reported that two dump samples assayed over ounces of ot silver allver a surta surface e sample sam pie on the Silver Spoon ran 25 ounces in silver and a fourth sample from a narrow vein assay ed cd more than ounces of sil ver vet It was the presence of the native silver which initially attracted attracted at at- Mr Steen and his geologists geologists to the properties At present a foot toot drift has exposed a thin seam of ot silver averaging in to assay about 31 ounces of at silver a ton in ina width a foot five over about feet in strike length The face In both ends of the drift is In ore ore are Meanwhile a diamond drill hole holo Number One has been sunk at a degree 60 angle on the Silver Spoon claim at right angles an anglee glee to the vein It was laid out to Intercept the vein at a depth of feet below below below be be- low the surface Mr Steen said This drill hole has now reached a length of and three tenths feet and the footage from 96 90 and tenths nine to 97 94 and four four- tenths feet shows breccia with disseminated ruby silver and Argentite ar ar- I silver sulphides From 98 OS and tenths to 99 and one one- tenth feet is breccia with vein vein- lets Jets of argentite and showings exist in cores picked up between and tenths nine feet to and three tenths feet The total core width of at the vein Is six feet teet This indicates the vein is substantially wider at depth than on the surface The driving of at the drill hole continues Crow Structure With regard to the Crow claim diamond drilling began Aug 10 1963 in a series of holes designed to cut the Crow structure at or more feet below the surface Mr Steen said The main drift in this property is being widened through slab bing and feet of such work has hae been finished Modern mining machinery Is being installed in the enlarged drift The objective here said Mr Mr Steen is to reach and develop develop de de- elop a previously exposed long foot-long high grade ore chute Mr Steen said the Bonito Valley Valley Valley Val Val- ley properties are composed of a series of 5 5 to foot 10 wide veins which run parallel over a foot strike The Silver Sliver Spoon and Crow structures are well defined and thero there are other similar structures on the properties staked staked ed by engineers for East Utah New Park and Grand Deposit he said I Ke he e had this statement regardIng regardIng regarding regard regard- Ing the New Park Standard merger merger mer mere ger discussions Standard Metals Corp and New Park Mining Co have both agreed to investigate the desir I ability of ot merging the two com come panics Independent appraisers I will be engaged to appraise vanous vari van various various ous properties of both companies and their potential before any I affirmative action is taken he said I Charles A A. A Steen a poor boy from w west Texas astounded the mining world in the by his discovery of the uranium mine in Utah's Big Indian Dis Dis- tri c t. t lIe He He has hae since disposed of most I of ot his uranium holdings in multi multi- million dollar transactions with I Atlas Corp But Buthis his ne new discoveries of gold and silver silver in in Utah and New Mexico Mexico Mex Mex- ico leo have again animated the mining industry and added anew to the legends about the 43 year old petroleum geologist t. t |