ORECiON CiEOLOCiY published by the Oregon Department of Geology and Mineral Industries VOLUME 44 , NUMBER 4 APRIL 1982 !' OREGON GEOLOGY OIL AND GAS NEWS (ISSN 0164-3304) Mist Gas Field: Reichhold Energy Corporation continues to be the only VOLUME 44, NUMBER 4 APRIL 1982 active operator in the Mist Gas Field at present. The company Published monthly by the State of Oregon Department of recently finished the redrill of Columbia County 41-2 in sec. 2, Geology and Mineral Industries (Volumes I through 40 were en­ T. 6 N., R. 5 W. The redrill, which reached a depth of 3,040 ft, titled The Ore Bin). was abandoned as a dry hole. Reichhold then moved the Taylor Drilling Company rig to Columbia County 12-9, a well drilled in 1980, and redrilled it to a depth of 2,917 ft. This Governing Board redrill, too, was dry. C. Stanley Rasmussen ........................... Baker Allen P. Stinchfield ........................ North Bend Donald A. Haagensen. .. Portland Columbia County: About 10 mi southeast of production at Mist, Reichhold State Geologist . .. Donald A. Hull is rigging up to drill Columbia County 32-26. Located near the town of Pittsburg, this well is planned for 6,500 ft of depth. Deputy State Geologist. .. John D. Beaulieu Depending on the results, the well may be followed by one or two others in the area. Editor ................................... BeverlyF. Vogt State Lands lease sale: Main Office: 1005 State Office Building, Portland 97201, phone On February 24 and 25, the Oregon Division of State (503) 229-5580. Lands held an oil and gas lease auction in Portland. O ... er 75 Baker Field Office: 2033 First Street, Baker 97814, phone (503) people were present for bidding on 115,533 acres of state prop­ 523-3133. erty in 15 counties. Bonus bids brought in over $590,000 on Howard C. Brooks, Resident Geologist 212 of the 311 parcels offered; parcels without bids were awarded to the applicant for the annual rental fee of $1 per Grants Pass Field Office: 312 S.E. "H" Street, Grants Pass 97526, acre. phone (503) 476-2496. The highest bid was $215 per acre offered by Marathon Len Ramp, Resident Geologist for a 280-acre tract in Columbia County. Other acreage in Oregon's only gas-producing county went to Nahama and Mined Land Reclamation Program: 1129 S.E. Santiam Road, Weagant for $200 per acre. Albany 97321, phone (503) 967-2039. Paul F. Lawson, Supervisor Elsewhere in the state, bids were far lower. In Washington County, adjacent to Columbia County, several companies Subscription rates: I year, $4.00; 3 years, $10.00. Single issues, competed for acreage, with most of it going to Universal $.40 at counter, $.75 mailed. Resources for as high as $62 per acre. Other bidders included Available back issues of The Ore Bin: $.25 at counter, $.75 Conoco, Marathon, and Nahama and Weagant. mailed. Central Oregon acreage was sought after by several bid­ ders, including Anderson Oil Properties, Depco, EMEFCO, Address subscription orders, renewals, and changes of address Shell Oil, Texaco, Tyrex, and Universal. Anderson was suc­ to Oregon Geology, 1005 State Office Building, Portland, OR cessful in leasing over 7,000 acres in Gilliam and Morrow 97201. Counties at offers averaging about $14 an acre. Depco leased Send news, notices, meeting announcements, articles for publi­ all 13 parcels of submerged and submersible land under the cation, and editorial correspondence to the editor, Portland of­ Columbia River, Gilliam County. fice. The Department encourages author-initiated peer review Remaining acreage, mainly in Harney, Malheur, and for technical articles prior to submission. Any review should be Lake Counties, was awarded to the applicant or went for bids noted in the acknowledgments. of only a few dollars an acre. Garth Tallman, Jerry Ryan, Inca Oil and Gas, and Anschutz Corporation took most of the Permission is granted to reprint information contained herein. acreage in these counties for no bid. Credit given to the Oregon Department of Geology and Mineral Lease sale results may be obtained from the Division of Industries for compiling this information will be appreciated. State Lands, 1445 State Street, Salem, Oregon 97310, phone (503) 378-3805. Second class postage paid at Portland, Oregon. Postmaster: Send address changes to Oregon Geology, 1005 Northwest Association of Petroleum Landmen State Office Building, Portland, OR 97201. organize: After the lease sale discussed above, about 25 landmen, consultants, and attorneys gathered to form a Northwest Association of Petroleum Landmen for Oregon, Washington, COVER PHOTO and Idaho. They will try to affiliate with the nationwide Looking to south at 1,400-year-old Big Obsidian Flow in American Association of Petroleum Landmen. A temporary caldera of Newberry Volcano. Article beginning on page 44 committee was formed to organize the group. 0 discusses geothermal potential of this large Quaternary volcano located southeast of Bend in central Oregon. Some data used in article came from U.S. Geological Survey drilling site to left CONTENTS (east) of Big Obsidian Flow. Several of more than 400 cinder Mineral industry in Oregon, 1981 ............. .. 39 cones that occur on flanks of volcano can be seen in background. An estimate of the geothermal potential of Newberry Volcano, Oregon ................................................ 44 DOGAMI publishes new geologic map of Bourne quadrangle, eastern Oregon. .. 46 38 Meeting announcements. .. 46 Mineral industry in Oregon, 1981 by Len Ramp, Resident Ge%gist. Grants Pass Field Office; Howard C. Brooks, Resident Geologist, Baker Field Office; and Jerry J. Gray, Economic Ge%gist, Albany Field Office, Oregon Deportment a/Geology and Minera/Industries INTRODUCTION The to(a1 value of Oregon's 198 1 mineral production (pre­ liminary U.S. Bureau of Mines figures. revised; see Table 1) is down about five percen! from 1980 figures in spite of increased nickel production by the Hanna Mining Company's nickel mine and smelter al Nickel Mountain near Riddle. Production of most industrial minerals, especially sand and gravel, dropped in 1981 due to the depressed construction industry. Gold production was also down somewhat below the 1980 figure, which had been boosted by production from the Apple­ gate Dam project; funhermore, total value of gold production was significantly affected by the drop in gold price in 1981. Estimated total gold production figures for 1980 and 1981 (Table I) were derived by canvassing a number of individual producers. Table I also includes some additional estimated production figures from numerous small pan-time placer operators. An average value o f $600 per ounce was used for the 1980 figu re and $475 for 198 1. (These figures were ob­ tained by using the Handy and Harmon, New York, monthly price average in Engineering and Mining Journal.) METALS Gold placer mining continued at severaJ sites during 1981 . Veta Grande Corporation purchased the Mormon Basin and Gold dredges in lIIinois River just downstream from Basin Creek Placer Mines about 30 mi southeast of Baker. McCaleb Ranch, Josephine County. Both mines were active producers during 1980 and 1981 (Mine changed ownership during the year, was purchased by Oscar 10-). The Sucker Creek Gallagher Placer (Mine 4), which also Nukka. Gold production came from these and many other small placer operations, from a few small lode mines, and, as a Table I. Nonfuel mineral production in Oregon, major by-product, from the Iron Dyke Mine (Mine 8). 1980 and 1981 Mining at the Iron Dyke Mine in eastern Oregon con­ tinued during the year, with 40 employees producing about 75 1980 t981 ' tons per day of sulfide ore bearing gold, sil ver, and copper. Mineral Quantity Value Quantity Value The ore is hauled about 22 mi across the Snake River and up ($1,000) ($1,000) the Kleinschmidt Grade to the Silver King Mill at Cuprum, Clays (1,000 short tons) 172 '21 80 ISS Idaho. Gem stones NA 45O NA '00 In southwestern Oregon, the Hanna Mining Company's Gold - recoverable content 14,268 8,561 10,405 4,942 nickel mine and smelter at Nickel Mountain (Mine 2) con­ of ores, etc. (troy oz)' tinued production as the sole domestic source of nickel. The Nickel-content of ores and 14,653 W 15,608 W mine currently operates at the per-shift rate of 2,000 shon tons concentrates (short tons) of ore containing 0.87 percent nickel which is upgraded by Pumice (1,000 short tons) 1,090 2,734 96' 2,600 selective screening to provide a smelter-feed content of 0.97 percent. The smelter produces fer ronickel containing Sand and gravel (1,000 16,005 47,300 14,800 44,200 51-54 short tons) percent nickel. During the first few years of operation, which began in 1954, the initial grade of smelter feed was 1.5 percent Silver- recoverable content 1,000 17 W W nickel. Depletion of higher grade saprolitic and sil ica-boxwork of ores, etc. (troy oz) ore in the main orebody and increased use of ore from the Stone: satellite landslide orebodies has resulted in a steady decline in Crushed (1,000 short tons) 18,380 48,190 15, 100 40,900 grade during recent years. Dimension (1,000 short 231 247 tons) The Old Channel Placer Mine (Mine 3) near Galice was " " reactivated during the year by Wes Pieren. In this operation, Combined value of cement, XX 50,364 XX 56,480 bed rock and minor remnant gravels are ripped up, using a diatomite, lime, talc, and values indicated above by bulldozer, loader, and trucks, and run through a sluice. Water symbol W for the sluice is recycled from a settling pond with a large diesel-powered pump. Total XX 158, 168 XX 150,024 , 1980 and preliminary 198t data provided by U.S.