| OCR Text |
Show 173 lands that on June 28, 1938 had a potential capacity for producing sufficient vanadium ore for a like profit. The actual percentage of gross value or net profit paid to the owner depends upon many individual factors which vary with the type of deposit. When an ore deposit such as lead, zinc, gold or silver is operated by others than the owner, it is customary for the operator to pay the owner from 10$ to 25$ of the net smelter returns derived from the recovery of the mineral substance. The Rifle deposit is of such proportions that any particular ore body developed in it Justified a mill to produce vanadium oxide concentrate which gives a more profitable product than the market value of the ore as mined. The net value of such concentrate is comparable to net smelter returns referred to above and an Informed owner of a large vanadium deposit would not consider a valuation of any other basis. Therefore, it is believed that a tribute of 15$ of the net profit would be an equitable payment to the owners of the mineral rights,. This percentage of the net profit of $9,000,000 is $1,350,000, which the writers consider the fair value as of June 28, 1938, for the subject land adjacent to the east and along the trend of the'ore body that was mined prior to 1932 by the United States Vanadium Corporation. An investor who paid $1,350,000 for this subject land would have to add in round numbers $1,000,000 for mine development and a mill for treating the ore to produce oxide concentrate for eastern markets. Assuming a ten-year period |
