Studies were conducted by the Bureau of Mines to develop a method for fabricating sm-co permanent magnets. This method consisted of arc-melting, crushing and grinding the alloy, alining and pressing the powder, and sintering the green compacts. Results indicated that the optimum composition was 36.7 +/- 0.3 Weight-percent sm and 63.3 +/- 0.3 Weight-percent carbon monoxide This composition was obtained by blending together sm2co7 and smco5. The maximum values experimentally obtained were mhc = 27.4 Koe, bhc = 7,510 oe, br = 7,810 g, and (bh)max = 15.1 Mgoe. The optimum sintering temperatures and grinding times for maximum mhc and (bh)max were determined. Lowering the grinding temperature from 0 deg to -60 deg c resulted in a significant increase of magnetic properties.