An exclusive two year permit to prospect for minerals other than oil and gas on 19,200 acres of tribal land on the Gila River Indian Community near Phoenix, Ariz., together with an option to lease, has been granted to Bear Creek Mining Co., Salt Lake City, Utah, the Department of the Interior announced today.
The company paid a bonus of $10,000 for the permit, which can be renewed for an additional two years with a further payment of $3 an acre for the acreage retained in prospecting. During each two-year period the company is required to spend $60,000 for prospecting and exploration.
Leases issued under the permit will provide for a graduated royalty schedule ranging from 5 percent on ores having a net smelter return of $5 per ton or less up to 25 percent for ores valued at over $35 per ton. Beginning with the fourth lease year, a minimum of royalty of $4 per acre will be required. Annual rental on the leased acreage will be $1 per acre.
The Bureau of Indian Affairs reports no previous mineral activity in the Gila River Indian Community.
