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Show SOUTH HECLA HAS Ml REPORT Assessment Levied for Six Cents a Share Thai Work May Begin. AFFAIRS ARE EXPLAINED Proposed Merger Deal and Its Non-Completion to Date Is Given. Asaeaament No. I, sailing for eent a s'nre hag been e!ed by the South HeClS Mining companv. whieh Is delinquent on Februarv 2", the tale di i--uic set fr,r March SI. A-'-oinpativlng the notice of jiieh neiiori. the board of directors Issues a Btataniant, and there Is also a statement state-ment h President Watson, recommending recommend-ing that development work ho started in various parts of the mine, especially on what Is known a the Winner flfsttre. Me points out that a'l the building and equipment are In flret-olejaaTconfcltibh, re-cjuirlng re-cjuirlng no rlclav or expense in this dire. di-re. -lion. , , The board of directors In then statement state-ment av . Herewith 1? submitted for your Information Infor-mation the report of the business "f the mine from September 15, 1010. to December De-cember II. Ml. with n statement of the financial condition of the comoanv Work Already Done. There were 4 1 r, fet of drifts nnd sixlv- two feet of raises driven for the purpose of exploration, considerable Umbering has been dOOfl In the Qulncy adll and ah-o in the DwyOr adit. In drifting on toe Wedge fissure it was necessary to do considerable timbering: In all there were 138 bsu of timber placed In the rariou workings of the mln" therefore all un-derground un-derground workinc arc In a good condition. condi-tion. Two small Shipments of ore were mane, one of carbonate ore and one of sulphide sul-phide ore. 'ihe shipment of carbonate ore was taken from the Wedge flaaUr on ihe Dwyer level, the wet welghl of this snlpmehl being 70.700 pounds, less I Ji.h pei eent molOttire oi drv weight of ..re. f...2pi pounds, whi.-h assayed as foj-lows; foj-lows; Gold. 00 ounces: sliver. 20.30 ounces; cooper, .f uer eent: Insoluable, 14.4 pet eent- Iron, lsT. per cent, r gross v. line per Ion. $1.".. les Miulllng Charge per ton of 10.01, less freight from sampler to smelter per ton. Nol proceeds pro-ceeds from itneltes p r ion. $11.95. or tO' tal proceeds from smelter for shipment, :::.n.04. The shipment of sulphide ore was n-oni ihe pen Harrison fissure on the Dwyer level, thr wot weight of Ibis shipment being 40.100 pounds, less 4.r, per cent moisture or dry welghl of ore 38.26G . pounds, whh-h assayed -ts follow: Silver. 1 20.04 otinces: coppar: 6.56 ner cenl; In-soioble, In-soioble, 0.0 par cent: iron. icr cent, or grOSI alue per ton 130.06, l-?s mei-Ing mei-Ing C-harge per (OP 1 .75. Isr- freleht from sampler to smelter per ton, tl, Net procc-r-.i- from -ov-her per ton, 117.91, or total proceeds from smeller for shipment. ship-ment. j.14 1 . r.. Deal for Property. These (wo shipments were made, for the purpose of testing out the mih in the above-named veins. More shipments would have been made ,md more cxplora- i tlon work would hav been done, oul in February lOlt, your company entered ) into h contract for the transfer Of all of Its property and property Interests In exchange for 120.000 share of the capl-! capl-! tal slock Of a new corpora t ion With a capital stock ol 16.000,000 divided Into 1,000.000 shares oi the par Value of each, and w'.irn said new corporation shall have acquired ail of the property and property Interests of Hie Otv Rooks Mining company, s Utah corporation, and all "f the property and property intereis of the Qrlsaiy Mining company Wyonrp i ing corporation in exchange for 300.000 i :.: Of the capital BtOCg Of sold new corporation In the aggregate, and when said new corporation shall have in Its treasury $600,000 In cash from the ,aie of 200,000 shares of Its sto, k. then the Soutn Jlerla Mining company would thereupon convey its property to t v said new corporation. f"d not otherwise, in May, 1911. H looked as if said nea corporation cor-poration would be organised and ftnanced as tier our Contract, and he 'board of duel., is. bel loving that said new corporation cor-poration would be organized and financed Ihey deemed It advisable to discontinue Operations and ordered all work stop!"-, at the mi'ie. pending the outcome of the merger. The time limit of the contract has expired and nothing has ber-u done. !nou..e,i herewith vou will And a notice ri an assessment, levied on Ihe lfilh lav Of Januarv-. 1312 Financial report from September 15, 1910, to December SI, 1911: Cash Receipts Krom sales of 31.0000 1 share treasury stock $ 10.609.20 From boarding house 1.170.10 From crude ore ri ;i From nP lo.OoO 00 Tola! $ 83406M Cash Disbursements. Mining supplies $ 189 .59 Assaving U.oi) Office expense 150.00 Tit;, and ground 26.40 Taxes 109.90 I General expenses 217.70 Powei and I'ghi 997.50 Boarding house r.2ir.7.' Payroll ss::.on . Tee hone expense f:;.u Ore hauling ?2::.K Stoplng .... P'.K.C! i Interest 817.04 Schedule N". 1 . . . 7.540 f;: i.egui expanse i Cash n hand 101 99 Total i 8&M6.08 'Indebtedness of south Columbus ., .,;l,ate, and Hnsiinied hv South le. ., . Resources Mln-' and plant . . . . . . . V.'Oo.noo . r,0 Ticmxui v stock. :f I Mhare C7K fI3 . Title and ground V.rJ'.'.4! Maohlnery and bull din gl .... yj.wn.ou HoMnlinc bouse Inventory .... Jl.'j.sc ' Warehouse loventorj' 3.154.00 ; Furniture nd tl"ir"- ... . :.l'l.ofi Accounts laaiatvsble 97.10 ' "a-h on hand . . I"H.!a 1 T'-tsi $Ai:-.3:.T.?i Liabilities. I Capital stock jjooooe.oo : Note 10. 000. on i Bin pavabts :.?.. .i Total $&12.ift3.94 ; Surplus of as "f S.r.i'.ft.OO Orsnd total 9115,959.94 |