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Show I REPORT OF SOUTH UTflHJECEIVED Over Thirty-one Thousand Dollars Deficit in Past Fiscal Year. I COPPER PRICE TO HELP Detailed Information on 'All Phases of Company Is Generously Gen-erously Given. Shareholder of tho South Utah aiIno3 and Smelters arc In roceipt of tho report of operations for the year cndlnc Juno 30. 1912, showing a net Ios3 In this period of J31.113.03. Tho report in thorough, and whlia somo hopo in held out of some ultimata success, ono can hardly over-como over-como tho Inclination to measure results gained by expectations in regard to something -which, at ono timo, gave promise of being ono of tho most re-markablo re-markablo copper propositions In tho world. Tho report of production from tho general gen-eral manager covers tho period from September Sep-tember 1, 1010. to June 30, 1012. During tho eighteen months previous to this tho mill was 6hut down to enablo certain in-novationn in-novationn to ba made. The company milled 426,002 tons of oro in thi3 period xnentioned. the average copper content 'being 1.142 per cent. Tho ore contalnod P,727,:'35 pounds of coppor, and 2J.061.94 tons of concentrates averaging e.-ias por cent copper were produced. The amount of copper In the concentrates wna o.M7,-383 o.M7,-383 pounds; the ounces silver, -17,002,32; ounces gold, 2,113.5-iO. Net Smelter Returns. The company shipped 701.48 tons of crudo oro averaging 12.30 per cent cop-par. cop-par. 2.201 ouncos sllvor and 0.0533 ounces gold per ton. Tho total shipments of crude ore and concentrates measured 34.-763.42 34.-763.42 tons, containing a irrand total of 1 6,921,864 pounds of copper, 48,548,35 ounces silver and 2.440.96L ounces gold. The net smoltcr returns In coppor wero O.B27.S10 poimde, $1S.930.22 worth of gold (2.449061 ounces) and 43.691-71 ouncoa silver Tho ratio of concentration was l.'.al tons into one, and tho averago mill recovery was 59.00 por cent 9?B1& d"r'"S this period wore: Mining, 5356,024.63: milling, ?2SG,S05.83; miscellaneous. miscel-laneous. $106,512.39: smelting, 5200,115.29, of which $90,686.09 was charged to freight and refining; total credits, $92,-148.19. $92,-148.19. leaving tho net cost of operation 5S&I, 309.95. or f 2.0005 per ton. and the cost per pound of copper. 50.1550. The mill requires equipment for finer gradlnc to make a. better saving and to rohandlo any of tho tailings whloh run about 1 per cent copper. As to oro reserves, re-serves, tho manager says; As to Ore Reserves. Owing to the faot that too much was ospected of the largo caves on ho 609. 604 and 700 levels, tne mine has UttJo ore rescrvo developed. These raves at present contain about C00,-000 C00,-000 tons of 1.6 per cent ore, but the waste Is mixing with this ore to Buch an extont as to probably cause tho loss of the greater part of It. This tonnage consists mainly of a great number of big pillars left between caved or waste-filled square set fitopes. None of this oro is visible or accessible nnd there Is no way of nscortaining when the waste will make the oro in tho caves too low grado to mine. I bellevo that wo can recover from tho old part of the mine, abovo tho 700 level, about 100,-000 100,-000 tons running 1 por cent copper or better, but the Information regarding this ore is not definite enough to strictly classify It as an ore reserve. Between tho 700 and 800 levels tho main ore body contains 00,000 tons of I.r per cent ore, 55 per cent of which will be broken in the etopes and tho remainder caved. Tho French ore body between tho 700 and 600 levels contains 15,000 tons of 1.4 per cent ore, of which 4000 tons is at present broken in the stopes. Possible Reserves. Under tho classification of possible ore, tho manager cnys: Tho No. 2 French ore body is the ? JH'orolsing find of the year. This body lias been oponed on the 600 level for a length of 125 feet and a width of 135 feet. As yet the oro body has not been reached on any other levol, buL we are drifting towards to-wards it on the COO and 200 levels. This body extends In an east and west direction, and only the south wall h33 been found. The main west development drift and the north crosscut are both In ore averaging Lt per cent. This ore is in virgin ground to the surface, and If Its development de-velopment on tho other levels is as favorable as on the 600 lovel, it will be a big ossot to tho mine At present pres-ent each foot of height proved in this pro bods means a reserve of io50 tons. This ore body averages, including a bunch of low rrado in tho center, a little better than 1 per cent copper. iaPItS"? f f6Z between the 700 and S00 levels has not been reached, but will probably contain about 90.000 tone. The big ore body "P?hicIL;w?3" ,f K0 Krade on tho 300 f?d JlS? lSTdr- but low grade on the 500, 600 and 700 levels, will prob-mef-6 between the 700 and $00 levels. The 700 level shows up considerably batter than the 600 level. Tho main oTe body which contained good ore from tho 500 level to tho surface, will probably prove disappointing disap-pointing on the 000 level. So far as opened on this level, the oro Is small In size and of low grade. The report sets forth that while the Cactus ore presents to unusual dlfflcul- ties In milling, it contains a high percentage per-centage of iron which prevents th making mak-ing of high grado concentrate. Tho mill recovery of 1 per cent ore can bo Increased In-creased about 10 per cent by regrlndlng tho Jig tails and treating the product on flnn tables and vannors. The facilities facili-ties for this finer grinding and other troatment are not now present. The management is handicapped in minng by tho scattered character of ores for the caving system and by the fact that development is not further ahead of extraction. ex-traction. The French body is more satisfactory sat-isfactory In this regard- The company was further hampered b7 the price of copper, securing an avorage of 13.'45 cents per pound during tho period, so the higher copper market had. not been felt In this time. Tho following financial statement i given: Invested Assets. lining property, plant and development at Newhoute. h it July l, 1911. , tiotosa it TcducU-Procceds of boilers sold '.'.'.'.'.'.1'.'.'.'. i'Mo'.on Fumituro and fixtures at Xew York 3,,0'soo"no Convertible gold bonds (S. U. M. & S.) i d by '00 company u.QQO.OO Current Assets. Inventory of copper on hand and gold and sllvor un- settled for u s 59. M Mine supplies on hand !..T!" IfiWoi T&JZ??' ,U A & S. L. R. IL advance account ... 20,,470.gl unexpired insurance Yti A faundry debtors 785' Caeh at banks and trust companies I.!!"! I7,443!ll H'j rs r . ' ' 15.50095 I Deficit. ct operating loss at Juno 30. 1911 S M 29 7ft n NCt 1030 twelve months ended Juno 30, 1513 ...... 31,113js H' 118,353.63 Hi Capital Liabilities. Hi Authorized capital stock t -nn nnn aa i Capital stock issued: J.op.000.00 Outstanding Juno 30. 1911 3 US onn no Issued In exchange for convertible Income 6 per cent ,,"B'tU0'TO H-' gold bonds, due 1930 ..l ui.ooo.00 Hj 1 CWLllb!?. DC0 6 cent gold bonds due 1930: " ?3.?2?,i00.00 ' Outstanding Juno 30, 1911 llK2rwmnA H ' Lxchanged for capital stock as above niloooioo n . T . , M.x. ' Jf,O71.O00.00 Current Liabilities. i j Mine vouchors payable t sti -n 1 crrucd taxes on tuino property , , 'si"so 1 Sundry aceoutrts paablo 5!S69!46 X C j,7o .56 J,333,723.E$ |