Show I 1 i 1 AN INTERESTING STORY I J 1 I i i i I I Manager Newhouse Submits iHs 3 L i-Hs Report 1 I I 1 j iJ f i ki t r I i ENLIGHTENS STOCKHOLDERS i 11 i I r I f t Assures Thom That Next Yoar r Will Be Good One I L I I Hns Contracted With the United 4 Strtcs Smelting Company for Delivery h1 l De-livery ot1 boo Tons of Ore 1 v 1 i The report which his just been forwarded I for-warded by Manager Newhouse for the i enlightenment of its shareholders l tells stor and affords assurance I a most Interesting story t surance that It will next year be among i the most formidable of the big camp of copper gold ana silver kt In my last annual rcprt says Mr Ncwhouse you were advised that I there was blocked out In one mile 1113 j 71C tons of ore that the only obstacles I I i to the conversion OL this ore Into money i i I was the lack of shipping and smelting I facilities I then suggested that these i 1 problems must be solved by securing q i 3 the best method of transportation and the erection of our own smelter This 4 i suggestion involved the expenditure of I L a large sum of money which the com I 11 nanv was unnrenared to meet To raise I I 1 fresh capital for the purposes named I I i would Impose a serious burden uppn I I I our shareholders h I Happily the situation In regard to r I these obstacles has changed to our advantage ad-vantage During the past six months I I 1 have been negotiating with the Copper i i I Cop-per Belt Railway company for the extension t ex-tension of Its line a distance of three J t miles to our Armstrong No 1 tunnel J 71 I The railway company haying satisfied itself by a thorough examination as to I t I the quantity and value of the ore contained 1 con-tained In our properties entered into a e contract with us for the conveyance of I J our entire product for the period of two years at the rate of 15 cents per ton 4 c which with the rates charged by the I Rio Grande Western Railway company affords uy a very convenient and economical 1 r1 eco-nomical mode of transportation II il The ore will be loaded at the portal p I of our working tunnel upon cars having l i a capacity of fifty tons each and will I l be discharged therefrom directly Into Ic the bins of the smelter The extension t J I of this railway along the mountainside I mountain-side on Il 7Y per cent grade through L the solid rock was very costly nothing t 1 but the great amount of ore III our 1 mine and the expectation of business from the Highland Boy and Tampa mines beyond would justify the railway t 1 rail-way company In Incurring this enormous I1 q enor-mous expense The line will bt completed t 1L com-pleted during the present month when 1 J shipments from OUI properties will be l I regular and continuous I Heretofore I could not contract with I the smelters for the treatment of our I 1 product unon terms 1 which I deemed I reasonable and therefore In my last f 1 report I recommended the erection oft of-t our own smelter Now the smelters are J In the active pursuit of our ore and 1 have been able to make contracts with II p them almost us advantageous to us as I I If we owned and operated our own I 1 plant I We have recently contracted with r the United States Smelting company for the delivery to it of 1000 tons of ore i ip I containing not less than 5 per cent copper t I cop-per Nearly COO tons of this ore have r been delivered which will yield to our company a net profit of over 12 I per L ton We have also contracted with the 1 Bingham Copper and Gold Mining company I com-pany for the delivery to it of 200 tons t I per day for a period of two years of ore containing not less than U per cent copt cop-t per shipments to commence on the date i 4 of the completion of the railway to the lj I mine On this grade of ore under the 6Ir fl terms of the contract a net profit will I jf accrue to our company of 53 to 5 per t i ton This profit should be increased t 1 If our ore maintain a high excess of Iron We are at libery to make contracts con-tracts for additional deliveries and will I i do so from time to time as our Interests t In demand By these contracts we have obviated the necessity for raising capital to i n construct con-struct our own smelting plant and the t11 building and maintenance of tramways 1 and are enabled to derive an immediate I revenue from our product at t minimum I mini-mum cost of transportation and treat I meat Should it become necessary or desirable to eroct our own plant for I 91 the reduction of our ore or to contract r j with othor smellers the contracts al i ready manic wIll not interfere because t I we are prepared to furnish GOO tons per I I day in addition to the amount required by our agreement with the Uingham o Copper and Gold Mining company We have always regarded our r ore as I neutral In character containing about j an equal amount of silica and Iron but 1 l I on the ore already shipped we have discovered I dis-covered an excess of about 17 per cent f 4 I l iron The smelters pay us 10 cents per i unit premium on the excess of Iron over silica On the ore shipped and settled for we hue received from the smelter 170 per ton on this account 111 our contract with the Biugluun company that company is allowed a profit of si per ton for smelting but where our ore contains such a large excess of iron over silica the cost of treatment is much loss I by reason oC he t payment to us of the premium mentioned Tt remains re-mains to be determined when the larger shipments are made whether the iron excess will be uniformly maintained The total cost ol the operations of the company during the past year was S1732J93 1 In extending the Armstrong No 2 tunnel which Is 750 feel below the Work tunnel we passed through two bodies of ore one of which is thirtytwo feet and the other fifty feet In width and are new and Independent ore bodies There has not been sufficient work done upon them to determine their value In the fourth annual report I stated that a careful estimate of the ore insight in-sight based upon the actual showing in the mine at that time was 3113710 tons This estimate was arrived at by figuring ten cubic feet to the ton By measurements since then ascertained ascer-tained by the extraction of ore we find that we should have figured upon the basis of eight cubic feet to the ton and thus figuring there should be added an additional 220000 tons The development during the past year has resulted In opening up 335000 additional tons enabling us at this time to conservatively estimate the quantity = of ore In sight at l50S71i tons The ore disclosed by the explorations during the year should average 4 1 per cent copper or better In driving from our crosscut No Ito I-to crosscut No 2 in the Work tunnel we have found In the mass of medium grade ore large quantities of high grade ore containing from 20 to in I percent per-cent copper with gold and silver value averaging 5 per ton but until sloping is done and shipments made upon a large scale we cannot speak accurately ac-curately as to the quantity of this grade of ore In estimating the tonnage of 1 per cent copper ore we have not included in-cluded the assays on this highgrade ore In our estimates heretofore of the value of our ore we have figured upon one ounce silver per ton but returns from ore already shipped show over two ounces Our gold values have also increased In-creased as shown by the smelter returns re-turns In preparing our slopes for shipment from No 1 crosscut of the Peabody tunnel the ore which r have heretofore reported as 2 per cent copper changed to 9 1 J pur cent and the entire 1 slope is now in oro of that grade From the foregoing statements It will be apparent that our company has entered upon an era of prosperity which 1 i confidently assert wiil continue for years to come We have explored but a small portion of our territory To the east of cur present workings our vein can be traced t a distance of 1100 feet In ground wholly unexplored To the north and south we have a large acreage of virgin ground which we have reason to believe contains other veins and mineral deposits When we consider con-sider the vast extent of ore bodies already al-ready exposed the depths as yet undetermined unde-termined wo have the right to assume that our company is the owner of one of the bonanza mines of America Mr Newhouse congratulates the company com-pany upon Hit excellent condition of the mine at this lime and holds out the assurance that there will be a piece of money on the counter next season r |