MINERAL INDUSTRY OF NEW MEXICO 
567 
 
uranium-ore processing operations accounted for about 2 percent of output.
This molybdenum was contained in uranium ores mined in McKinley County. The
ores were processed at the uranium mill of Kerr-McGee Corp. in the Ambrosia
Lake district. 
 According to the annual report of Molycorp, 9.4 million pounds of molybdenum
was produced. Most of the concentrates were shipped to Pennsylvania for treatment.
From the open pit mine, 3.9 million tons of ore was milled at a daily rate
of 10,800 tons. Output was below expectations mainly due to the difficult
milling characteristics of ore from the eastern section of the pit. Feasibility
studies continued to be made on the possibility of increasing production.
Significant extensions of the mineralized zone were confirmed during a development
drilling program west of the pit. 
 Bear Creek Mining Co., exploration si~bsidiary of Kennecott Copper Corp.,
applied to the Federal Forest Service for permission to build an access road
to a molybdenum deposit discovered in the White Mountain Wilderness, Lincoln
County. Extent of the deposit was to be delineated by additional exploration
work. Reportedly, not all of the molybdenum occurrence was within the wilderness
area. 
 The molybdenum concentrates from the Chino copper mine were sent to the
Utah plant of Kennecott Copper Corp. for processing. Rhenium also was recovered
from these concentrates. 
 Sllver.—A 35-percent decrease (86,000 ounces) in the amount of silver
produced (157,000 ounces in 1967) was mainly a result of the labor strike
in the copper industry. The metal continued to be produced principally as
a *byproduct of the treatment of ores also containing gold, copper, lead,
or zinc. All of the mines listed in the discussion of copper, with the exception
of the leaching operations, had byproduct silver production. In addition,
silver was recovered at the Royal John mine operated by Westamerica Mining
and Milling, Inc., in Grant County, at the Maude mine operated by Little
Idaho Mining Co. in Lincoln County, and at the H. E. L. D. mine and Little
Boy Blue mine operated by H. E. L. D. & Co. and Jimmie Zook, respectively,
in Sierra County. Nearly all of the output was from Grant, Socorro, and Hidalgo
Counties. 
 Exploration activities were undertaken in the major silver mining districts,
because silver prices were the highest registered since 1964. No new silver
mines were reported opened, however. The average price of silver was $1549
per ounce, compared with $1293 in 1964 through 1966. 
 
 Tin.—Although no tin was produced, exploration and development work
was continued at the properties of Sierra Associates near the western Sierra
County boundary. The property had formerly been controlled by Anommco, Inc.
Anommco had shipped concentrates in 1966. 
 
 Uranium.—Uranium (recoverable uranium oxide) was produced from 47
operations compared with 57 in 1966, and production gained 20 percent as
activities of the industry were increased to meet expanding commitments to
the nuclear electric-power market. Production of 1 L2, million pounds of
uranium oxide (U3O~) compared with a recent low of 9.0 million pounds in
1965. 
 Most of the uranium production (82 percent) came from the 40 operations
in McKinley County. San Juan County had four operations and Valencia County
had three. 
 Since the big uranium ore discoveries of the 1950's production has been
recorded from about 225 mines. All of the large mines, those from which total
ore output exceeded 1 million tons, were still in production at yearend.
These mines were Sections 22, 24, and 30 of Kerr-McGee Corp.; Section 23
of Homestake-Sapin Partners; and the Jackpile-Paguate open pit mine of The
Anaconda Company. 
 United Nuclear Corp. announced that beginning in early 1968 one, and possibly
two, 1,800-foot shafts were to be sunk at the newly discovered uranium deposits
near Church Rock, 7 miles east of Gallup in McKinley County and about 45
miles west of the Ambrosia Lake mining district. A uranium ore processing
mill would be constructed if sufficient ore reserves were delineated. 
 Kerr-McGee Corp. announced that encouraging results were obtained from a
drilling program in the Church Rock area on the Navajo Indian Reservation.
These properties are north of and adjacent to the United Nuclear properties.
An announcement also was made that a uranium mine, the company's sixth in
the district,