Document MJQGjaE25719RQgDJzKYm7LxL

FILE NAME Talc TALC DATE 1972 June 2 DOC TALC433 DOCUMENT DESCRIPTION Memo RE Standard Industrial Minerals White Eagle Talc June 2 1972 Mr. G. G. SchuknechtProducts Corporation Johns Manville Products Corporation Lompoc California 93436 Dear Jerry Subject Industrial Standard Standard Standard Standard Industrial Industrial Minerals White Eagle Talc With reference to our telephone discussion of May 30 on the above subject I have some notes that I discussed in fragmentawrayy with Perry Martinson while he was here Perry suggested that I communicate any notes have to you with a copy to him This letter is to bring you up to date at As I told you over the telephone Standard Industrial Minerals has been mining and stockpiling White Eagle Talc Zurich California for our account in 1,000- lots We are just now starting on the second thousand tons which wepay for as shipment is made to us in Los Angeles at 34.50 per ton f.o. Zurich We have all been concerned here with the problem of tremolite in talc and we are getting increasing call for tremolite talc Accordingly I contacted Don Brandt at Standard's Reno office about two weeks ago and suggested that he give some thought to further quantities us I also had another purpinohasvie ng a discussion with him to call attention to impurities occurring in the talc White other than tremolite We have used Eagle Talc in the past and are still cosm^'tic using it for our No. 140 series talcs as well asfor DESERTALC USP us impurities Dick Lamar has been tellitnhagt White Eagle Talc carries that ee downgradiet as tocol andogrr it AccordingDlicyk sampled very thoroughly two recent shipmentosf White Eagle crude talc and made some identifications and in recommendations two reports dated May and May 16 1972. am enclosing copies of these reports Oddly enough we have been able to pass USP tests because the talc is very low in acid solubles although it is not a pure steatti alt c eas such any rate it the only source of talc we have that is tremolite Accord- for ingly in order to do a little planning the future I asked Don Brandt come so down and see me when convenient that I could show him sample Dick = with some referred to and discuss p- urity ofproduct him as well as to make plans for future quantities ee a Ea urls Don came down on May and brought with him Mike Evasovic who is charge of their mine operations They were impressed with the reports and promised to . 000257 Mr. G.G. Schuknecht Johns Manville Products Corporation June 2 1972 improve their sorting so that on future stockpiles they could eliminate some of the - questionable products asked them quantity they might require to give us what exclusive rights to the of the mine , they did not want to output but selves for the reasonthat they told me they had discussed the matter with other they serious people besides us However he did indicate that they would give con- sideration to protecting us on an annual contract fora minimum of 100 tons month and a maximum of 500 tons per month Beyond that they want to be fr sell elsewhere if we could not take more than the maximun per | At the present time the mine is closed closed down and will not be reopened until they they they They they '. get further orders state that they will have to spend about 10,000 to imim- prove the mine andto provide for a second second way out For this reason they have to be assured of enough tonnage to justify the expenditure Standard Industrial Minerals has the White Eagle mine under lease for the life of the mine from its ownere United Sierra Division of Cyprus MinesMines Sierra only gets a small royalty for the tale and has tried hard to break the lease but has lost in court battles their efforts to secure cancellation of the lease $ out to of has put tentative price on the lease us if it is transferable which seems me to be very high However they have of the feel strong heard restrictions and ina pretty position Standard million| tremolite ; Don confirmed thatNiggemyerof Calcite Corporation has no interest innor con- tract with themcovering the White Eagle Talc He tells me that Niggemyer has just recently traded his stock in the Calcite Corporation for stock of Diversified from Earth Sciences He will continue to manage Calcite Corporation according the story we hear for a period of three years When he boughtthe mill at Laws Standard he did not buy any of the mines According to Don he does have an option to purchase clay and pyrophyllite from their other mines Niggemyer may be trying to horn in on the talc deal if he can smell a sale > assume that you are familiafarmiliar with the location of the White Eaglemine If not you can find it by taking the SalineValley Road out of Big Pine passing up | the first junction and remaining to theright into Saline Valley a total of 59 miles from Big Pine The roadis a dirt road sometimes maintained by the County but . is passable to most equipment This is a pretty long letter Jerry but Perry thought that it would be interesting to you because you will be functioning in an enjoyed operating way so far as this is We Perry this week andhope that with affiliation shall also be happy to work concerned our afiliation youin any We haveenjoyed will be of great way we can our meetings with mutual benefit . ' ., Yours very truly DESERT MINERALS Inc. : EJEllsworth EJEllsworth EJEllsworth EJEllsworth EJEllsworth EJEllsworth : jec mH . . a Enclosures : - ccs ccs P. Mr. Mr. P. A. Mertinson Mertinson Mr. Mr. EEaral rl B. Smith President President : oo 000258