Indicated and inferred reserves in the two counties are estimated at 1,713,000 tons of a 0.25 percent UO, grade.

Analysis of situation.-The shallow deposits in Karnes County can be easily and quickly mined but the total present developed reserves will not support a mill. The majority of the reserves are in Duval County and must be mined by underground methods. The logical site for a mill is Duval County with the ores from Karnes County transported for processing, a distance of some 90 miles. Based upon the total ore reserves and mining conditions a mill having a capacity of about 600 tons of ore per day is indicated.

Spokane district, Washington

Situation. Indicated and inferred ore reserves in the district on November 1, 1957, are estimated at 1,038,000 tons assaying 0.19 percent U3O8.

Present mill capacity is approximately 400 tons per day, of which 100 tons per day are available for custom ores.

Analysis of situation.-The mill capacity at the plant near Ford, Wash., should be adequate to process all presently indicated and inferred ores in the district by early 1965.

The only large reserve of independent ore developed on November 1, 1957, is held by one company, with small reserves held by a second company. Based upon information available to the AEC, exploration by other operators has not been successful in developing any significant tonnage of commercial grade ore. Heavy surface cover has made prospecting and exploration difficult in this

area.

Twenty-five percent of the milling capacity is available to independent producers who control only 18 percent of the existing ore reserves.

Uraniferous lignites, North Dakota-South Dakota

Situation. The uraniferous lignites have no market at present since they cannot be processed in any mill currently operating or under construction. Special milling methods have had to be developed.

Although our data on private drilling is incomplete, information that has been presented indicates that the developed and partially developed ore reserves may approximate 500,000 tons having a grade of approximately 0.20 percent UsOs with a potential, based upon present geological studies, of an additional 500,000 to 1,000,000 tons. Because there have been no commercial mining or milling operations, estimates of the economic reserves-material that can be mined and milled profitably-are not as firm as the estimates of the ore reserves in other areas where cost information on mining and milling is available.

A firm milling proposal has been submitted to the Commission offering concentrate at a competitive price. The proposed mill would have a capacity to process 600 tons of lignite per day and this appears to be the minimum size for economic operation.

Uravan Mineral Belt, Colo.

Situation. Total milling capacity at the Uravan, Rifle, Durango, and Grand Junction mills is 2,580 tons per day. Of this capacity approximately 2,300 tons per day is available for processing the Uravan Mineral Belt ores. Some of the uranium-vanadium ore processed by these mills comes from mines outside of the

area.

Available indicated and inferred ore reserves in the district comprising the Uravan Mineral Belt are estimated to be 3,256,000 tons as of November 1, 1957, having a grade of approximately 0.30 percent U3O8.

Because of the nature of the deposits opportunity for development of ore reserves in advance of mining is limited. Much of the ore is discovered in connection with mining of known deposits. While the November 1957 ore reserves might appear to be sufficient to supply the mills only until April 1961, ultimate ore reserves are expected to meet requirements of existing mills for a much longer period.

This area has the largest number of small uranium producers of any area. Of the 555 independent uranium mines which produced less than 1,000 tons per year in fiscal year 1957, 207 are in the Uravan Mineral Belt.

Analysis of situation. Mills are purchasing all amenable ores offered for sale and should continue to do so. This ready purchase is necessary because of the erratic nature of the deposits requiring a slow mining rate and a resultant uncertain daily production from any one mine.

The milling companies in this area adjust production from captive mines to allow purchase of independent ores.

The four mills in the area are designed to recover vanadium as well as uranium from the carnotite ores found in the district. The quantities of uranium that might be produced after March 31, 1962, may be affected by the industrial requirements for vanadium since the Commission has no commitment to pur chase V2Os after that date.

White Canyon-Monument Valley, southeastern Utah and northern Arizona

Situation.-Indicated and inferred reserves are estimated at 1,869,000 tons as of November 1, 1957, assaying 0.28 percent UsOs. Reserves of the Monument No. 2 mine of Vanadium Corporation of America, which contains high vanadium ores, are not included in this total. Monument No. 2 ore is being processed at the Durango mill.

The present mill capacity is 775 tons per day, of which 155 tons is available for custom ores.

Analysis of situation.-At the time the Mexican Hat mill contract was negotiated, the milling company controlled the only large ore reserve blocks on which a milling operation could be based. Two large deposits and numerous small deposits have been developed since then by other companies. At present independent mining companies control more than half of the known reserves. Milling capacity is sufficient to permit the treatment by mid-1964 of all ores developed prior to November 1, 1957, at an economic mining rate if arrangements can be made to provide a larger percentage of the mill capacity for custom ores. Purchase of independent ores at a higher rate would extend the life of captive mines into the post-1962 period.

Wyoming

Situation.-Present mill capacity is inadequate to process the indicated and inferred ore reserves of central and northern Wyoming at a rate that will allow many of the mining companies to mine their ores economically. When mills now under construction are ni operation, milling capacity for the area will be approximately 1,845 tons per day, of which 654 tons per day is reserved for custom ore.

Indicated and inferred reserves in this district as of November 1, 1957, are estimated at 8,722,000 tons, of which 4,777,000 tons are controlled by independent producers. The grade is approximately 0.24 percent UзOs.

Analysis of situation.-A large part of the November 1957 reserves are comparatively low grade and shallow. Most of thees deposits will be mined by openpit methods that require the use of large excavating equipment. The pits must be operated at a large daily tonnage rate to achieve reasonable costs.

Several of the operators control more than one deposit. By scheduling mining operations from a limited number of pits, an even flow of ore to the mills could be maintained, and the deposits could be mined out in an orderly manner. The earliest dates by which the November 1957 ore reserves could be milled with the present milling capacity is shown in the following tabulation:

An additional 1,700 tons per day milling capacity is needed to allow mining operations in the district to be maintained at a reasonably economic rate and to provide for moderate adjustment in the scheduling of mine operations. Such addition would provide a market before December 1966 for the greater part of the reserves of November 1957.

APPENDIX 10

[Press release No. 139, April 2, 1958. From the offices of the Joint Committee on Atomic Energy]

JOINT COMMITTEE MAKES PUBLIC THE REPORT BY AEC ON DOMESTIC MINING AND MILLING PROBLEMS

Congressman Carl T. Durham, chairman of the Joint Committee on Atomic Energy, and Senator Albert Gore, chairman of the Subcommittee on Raw Materials, announced that they have received today from the AEC its report to the Joint Committee on domestic mining and milling problems, and that they are making it available to the public immediately, together with the AEC letter transmitting the report.

The report and letter will be distributed by the Joint Committee to all representatives of the uranium mining and milling industry who testified before the committee during the public hearings on February 24 and 25, 1958.

Any persons desiring to comment on the AEC report are requested to forward them in writing to the Joint Committee by April 25, 1958.

In connection with the report, Senator Gore said:

"Our subcommittee would be glad to receive any comments from members of the industry or of the public. After receiving such comments, the subcommittee will decide whether to hold any further public hearings, and whether legislation is necessary."