tS UNCLASSIFIED During the July-September quarter the three new mille Nsted below were brought into operation. Company Phillips Petroleum Co, Bomestake-Sapin Partners Cotter Corporation (Pilot Plant) Rated capacity Location (tons of ore per day) Grants, New Mexico 1,725 Grants, New Mexico 1,500 , Canon City, Colorado 50 " At the end of September, 21 mills having an aggregate processing rate of 16,250 tons per day were operating and 3 new mills with a total capacity of 4,000 tons of ore per day were under cor.struction. Ore fed to process during the July-September quarter totaled 1,428,000 tons, an increase of 5 percent over the quantity fed to process in the preceding quarter. Ore receipts during the quarter amounted to 1,358,900 tons, equivalent to an annual delivery rate of 5,436,000 tons. More than 98 percent of this ore was purchased by private buying stations. The AEC continued to operate ore-buying stations at Monticello, Utah, and Grants, New Mexico. It was announted in August that the purchase of ore at Grants would be discontin=ed on October 1, 1958. Operation of this ore~buying station is no longer required since the processing plants in the area are furnishing a market to independent producers of amenable ore. Limited Expansion of UraniumProcurement In A=zgust the AEC announced the execution of an amendment to its contract with the Texas-Zinc Minerals Corporation. The modified contract provides for (1) € tension of the agreemert from March 1962 to December 31, 1966, (2) the treatment of increased amcunts of ore from independent producers at the company’s mill at Mexican Hat, Utah, (3) the post- ponement of delivery of about 1. 500,000 pounds of U;O, beyond March 31, 1962, and (4) the purckase af AEC-onned s.uckpiles at White C «yon, Utah. This is the first such =: ‘ion by the AEC ts implement the policy announced April 2, 1958, of pr vicing a market for indepeadent miners in areas having ad-quate milling capacity but where th portion available for independent producers 1s insufficient. The possible need for similar :=visions of existing contracts with mill operators in some of the other areas was under soy. Cuntr-acts covering the major portion of the anticipated 3,300 tons of additional daily ore miliing cz Dacity were being negotiated. The additional milling capacity is to serve these areas ha. ing either no market or an inadequate market for ore reserves developed prior to November 1, 1957. Ore Resi rves Urazium ore reserves were estimated to be 82,000,000 tons averaging 0.28 percent U,O; on Septe= ber 30. This is an increase af about 4,000,000 tons over the June estimate. Much af this increase is in the Grants, New Mexico, district and is the result of private development work extending over a considerable period. In addition there were approximately 1,200,090 tons of cre in Government and private stockpiles. (End of UNCLASSIFIED section.) DOE ARCHIVES 6 pera og OE UNCLASSIFIED artment ° Ene ergy piston Coase — ~ Bree ry? o