| OCR Text |
Show 61 a pound of Vg05 content in the ore. After the larger and more accessible ore bodies had been mined out a freight bonus was added to the purchase price of the ore to stimulate production. The policy of the company was to encourage exploration for and mining of vanadium ore, as in this way its own ore was conserved and the outlook for a more substantial source of supply of ore was improved. About 1939 or 1940 the Vanadium Corporation of America started operation of a mill at Naturita, A few years later in response to heavy demands for vanadium during the war other mills were built, but the general situation for the small producer remained unchanged. The purchase of ore by a central mill is not limited to the vanadium industry, but the peculiar nature of the vanadium deposits naturally introduced another element that bearp directly on valuation of vanadium-bearing areas. The vanadium ore bodies are small and irregular, which means that considerable time and a high cost are involved in thftir discovery and development. Many prospects must be examined and explored to discover one or possibly two ore bodies that will not only defray the cost of the failures but in addition furnish sufficient profit to be an incentive that will outweigh the risks of exploration and development. The larger companies with staffs of technically trained and experienced men were ever on the lookout for the more promising deposits, which they sought to purchase |
