mining activities uranium income from uranium in 1969 declined substantially from the prior year the pounds shipped were maintained but margins declined sharply because the in creases in prices to private consumers failed to offset the drastic decline in price determined by a formula in the contract on our deliveries to the atomic energy commission furthermore the failure of new nuclear generating plants to come into production as scheduled has post poned the anticipated increase in uranium consumption and softened the demand in the near future however the long range outlook remains most promising lucky me mine the open pit mining and milling of uranium ores in the gas hills area of wyoming yielded profits that were lower than the prior year due primarily to the price reduction applicable to the sales of uranium oxide to the atomic energy commission aec approximately 412 000 tons of ore were processed through the 1,200 ton per day acid ieach ion ex change lucky me mill this fiscal year which produced 2.2 million pounds of uao in concentrate deliveries to the aec to taled 976,000 pounds with the balance shipped to private companies contracts and letters of intent for future sales of uranium oxide in concentrate for the period of 1970 through 1975 approxi mate 13.0 million pounds of u-sos the re maining shipments of 1,038,000 pounds to the aec under original contracts for 16.8 million pounds will be completed by jan uary 1 1971 with 12 million pounds sched uled for delivery to various private com panies with substantial tonnage of good grade uranium bearing material in the gas hills area under the control of the company if as anticipated the indicated expansion of new nuclear power plant programs pro ceed the company is confident that sub stantial additional sales of uranium con centrate can be consummated top at our lucky me mine near of a geiger counter preparatory of the deposits bottom : refueling of a 44 yard s ratio ; at luc ning p erton wyom ough the use raper during night overburden at the processed through the lucky me u3oe in concentrate called yelk shirley basin mine the company com menced mining operations in the shirley basin area of wyoming near medicine bow in 1960 originally by underground methods but presently by solution mining the product produced has been proc essed through the lucky me mill early this year the company started the con struction of a 1,200 ton a day mill and related facilities at shirley basin with ca pacity for producing 2.3 million pounds of usos per annum the company plans to engage in open pit mining operations discontinuing solution mining construc tion is expected to be completed in 1971 approximately 20 million yards of over burden will be removed prior to the begin ning of mining operations with nearly 9.3 million yards stripped at the close of this fiscal year the total cost of the mill and pre-mine stripping is estimated at approx imately 20 million the significant quantity of uranium bearing material at shirley basin that can be mined using presently known open-pit methods provides a solid basis for opti mism on the future profitability of this operation other properties the company controls considerable acreages through its own mining claims and options on claims of others where exploration for uranium bearing materials is being conducted such exploration areas include the gas hills and shirley basin districts as well as other areas where the company has acquired land or exploration rights