Show ABOUT THE MINES OPERATING CO an interesting story of its organization and the famous old ontario mine on which it has a ten years lease worth of ore taken out by leasers leaders to date IENGLISH ENGLISH SYNDICATE WANTS THE KING and it has the price too negotiations said to be pending the smelters shelters Sm elters want zinc ores manager mcmillan optimistic over the daly west outlook in cottonwood the mines operating company which is now in control of tile the ontario ontario properties intends placing binm a comparatively few shares on the market and brokers dern bern and thomas of salt lake have sent out a report of the company showing tile the value of its holdings the 0 proposed system of operation estimate of I 1 profits etc which makes good reading below we give portions 1 of the report i the mines operating company owns a ten years lease on the property of the ontario out air ic silver mining com company n y which a also ipa includes tho the milling plant of that company in tile the camp ol oi park city utah 8 some ame three years ago clenry ill crowther Crow lher a well weil known mining engineer of i more inore than ordinary ability realized that the ontario com company parly had a valuable asset in what is called balled isotope fillings thesie fillings represented the low grade ore that was mined in alie early days of the property kii u what would have been hauled to the surface and thrown on the dump had it not been found more convenient to fill it back into the slopes atter alter the high grade ores had been extracted mr crowther figures that there are over I 1 tons of these fillings after sampling them and finding they could be shipped profitably he at once began negotiations t u soure lecure a lease on tile the property lie ile was successful in securing el a three years lease on desirable terms and at once commenced the sorting and shipping of tills this ore mr crowther formed a company and called it tile the crowther company after two years or of the three year lease leae llad had expired the crowther company realized the immense amount of values that could be extract extracted edan ani also the enormous project that had been undertaken in so short a time and further that it was ivas next to impossible to realize the big returns that could be reali ed on the investment negotiations were at once begun and a new lease secured tu to run ran for i or a term of ten years A new company was formed and as the mines operating company it took over the assets and liabilities of the crowther Crowt lier company and at once commenced opening 1 the mine and placing it in shape to produce a large daily tonna tonnage e of 0 ore the new lease gave the company the right to mine in the various faces of ore left standing in the mine th alie e 11 use se of the if mill and the exclusive right to all of the fillings in tile the property tile the new company started in to tc ship the ore direct to the smelter but found this method though profitable too expensive and soon realized that some better method would have to be arranged to handle the large 0 tonnage at larger I 1 profit up to this time thel the crowther company and the new operating compa company riv had shipped ore valued at it haca had expended in opening up the mine putting in new leading facilities ore bins tracks and other improvements and had also abio paid dividends from the net earnings I 1 the management began figuring on putting patting in a cyanide plant capable of handling at least a hundred tun tons oi of ore a day and reducing the ore to bullion on the ground the kind of a plant deemed necessary was found beyond the means of those icho formed the operating company up to tins tills time the company hao been practically a close corporation the class of mill necessary could nit be erected for leh leb than the proposition was taken to a man ed tobe one of the best bea practical cyaniding cyan iding 7 men in tills this pait of tye th e country and who had gained ined his experience through twenty years of handling lai low v grade ores by this method and making these ores pay dividends this man had the money and th eap exp experience ermence the operating company lacked it was for such a proposition as this that he has been searching se archin for a number of years during the past ten years ears he has probably a hundred properties with the view of purchasing them and has rejected them all us as not hot up to the standard li he set several months were spent in san sampling 1 I in measuring up and making exhaustive laboratory tests on the fillina A large number of railroad carloads were shipped to get as near as possible the exact average grade of the alie ore A model of tile the proposed P plant lant handled a urge large tonnage of the ore to prove that there was nothing 0 that could interfere with the extraction of the values by this method and then tile the contract was signed this man has agreed to erect a plant capable of handling tons of ore a day and as soon boon as possible there alter after to add to it another unit of tons making a total daily cIpa capacity city of tow tons ile he also further agreed to finance th thamine emilic and to place it on a paying basis I 1 at no further eust cost what everto the stockholders of tile the consideration of u this lie receives receives one per cent of the outstanding stock and at all times is is to have control another condition he imposed however was that tile the operating company must be turned over to him free from debt A short history of the ontario mine will give an idea as to how tile the values came to be 1 left c f t in tile the property the ontario mine was acquired in 1876 by senator george hearst father of tile present well known newspaper owner W K R hearst beai st and the revenue from this property probably formed the nucleus of the large fortune at present owned by him mr hearst a asmoel soe abed with him a number of others and organized tile the ontario silver mining Company which produced from T ts 1893 a gross output I 1 of near and paid in divi dividends denas dose close to 01 mining in early days was expensive and reports houed by the company show that fc iterating costs avera average 0 1 i ten and ores of a i 1 ss sg an tins this were not taken from the mine the high grade streaks were mined and the lower grade ores were thrown back into tile slopes II if A lee one of the best of our western mining engineers examined this property for the leasing company oom pany and atwould it would be perhaps best to quote from ins his report mr lees report reads owin owing to conditions no ore having a less value than 30 per ton was it was therefore necessary to mine and assort ore of this grade and discard ore having haing a less value per ton the ontario ore bodies are arc within an unusually stron strong 0 and well defined fault fissure and in what is teri termed lied a true fissure vein it has been opened or developed along the strike several thousand feet and 1500 1300 feut feet below the outcrop tile the vein proper is locally over feet in width more or less mineralized throughout hout but in common with veins like character the ili high h grade ores are concentrated in bands or streaks near the haug banging 0 or foot 1 oot walls with occasional occasional int bands these streaks or bands carrying I 1 the concentrated values were tile the ones mined by the ontario company in mining these the adjacent bands of lower grade were of necessity I 1 broken down tile the higher grade removed and marketed and the second class or at that time tile the noncommercial non commercial ore being left in the sto pes cis as til fillings lings this was doubt elss done with a view of removal later but at the time it was done to save the c expense of removal to the surface dumps ail and d for the further purpose of supporting the vein walls and the co consequent saving of expenses incident to timbering basing ins his opinion on nearly three years P 1 elierre eri erre in pe derai rai ing at the property with frum from 20 to 40 men henry M crowther a miri mining engineer says in his report on the mines operating company the ontario mines have produced over tons of ore therease there Ther eare are over JO 60 miles of tunnels nels sir ii tile the mine the main bonanza we control arenout feet in length and extend ironi from the foot level to the surface an and are from 2 t to 0 16 ivet feet in width it was from tile these se slopes that 80 per peri I 1 cent of the product came and practically all tile the profits 0 oar ur explorations indicate that there are behli bet en ein one and one and a third tons of fillings in the fato pesi and openings s of which elliel 30 per cent would be rejected as waste or c oarse coarse material under 8 ounces in silver leaving tons of line fine fillings of commercial value there is ia also considerable fecund ulas uld uro ore broken down in the mine mine that was ivas not rich enough to be taken out in the early days but which will now yield a profit it is reas reasonable unable to expect that systematic exploring 0 will open up more of the high grade bonanza slopes 1 I estimate as broken fillin fillings s in old slopes and openings 9 00 OUO tons averaging 0 ounces in silver and I 1 per cent lead being 7 per ton gross or there are tons averaging 03 ounces in gold 16 to 20 ounces in silver and 2 per cent lead being per ton gross value or richer portions of these fillings carry 25 to 40 ounces in silver and in gold tile the above makes a total value of about silver is figured at 50 cents net per ounce and gold 50 cents per ton toll of ore lead is not included during tile early days the mine produced and the same was reduced to bullion ore that averaged gilld a ton As time went on this gradually decreased until 30 ore was ivas handled which was the lowest average sent out by the mine continuing his report ili ali crowther says in mining such high values in early days the were filled with second class ore of which the crowther company has extracted from deeper levels as a test s which was ivas shipped to the smelters shelters sm elters a product that carried as high as ounces in silver ounces in gold and 25 per cent lead or 2247 per ton smelter value to as low as 14 ounces in silver an all avera average a r i railroad ear car lots lota carried ai 1 ounces in m silver ounces in in gold and some lead in addition addi tinn to tho the above shipments wo we have in the past few months sh ippel 1 75 railroad cars of fillini fillin gh ps from upper levels or 2500 dry tons of ore of an avera averta a e ut or ounce s in gold and ounces in n silver makin making 0 a total of fillin fillings S test shipments of ear car load luts lots ur or dry tons taken fron from fro n a dozen doten different dif terent lei cut slopes from froia widely separate portions of the mine from the toot foot level to feet above the buo foot level these fillings shipments were partly coarse screened in tile the or put over coarse grizzles grizz lys to remove the large chunks of waste and also to enable larger pieces of rich ore to be picked out but fully 2000 tons were shipped without screening or even sorting 0 of any wu nature we find that the were not carefully mined and there is considerable rich ore in the second class fillings the slopes range from two to 16 tout feet in width while five feet is is above an average width after making 42 tests on crude fillings as well as fillings crushed to various meshes and also thoroughly examining exam miu the property and ore shipment ship meno made mr lee made a careful report on the milling process at the property pro perit N in his experiments carried on at the university of utah mr lee was assisted by bf prof holt mr lee declares that he determined the gross value of the ore fillings as a whole determining in the same from smelter receipts and that there is an average gross value of per ton wh while ile this value is as near commercial as may be obtained says mr lee it is more apt to be under than over the average for the reason that the interior of the large bonanza have not yet been opened and the fillings from ore having a sipping average of over per ton may ill ay be reasonably expected to be richer than from ore shipped having 0 an ave average r a e value from 30 to 50 per ton after reading the extracts from reports by A rs lee and crowther you can readily see sec that stock in such an enterprise cannot help but be a winning ven tare nire and you will no doubt be surprised to learn that wo we propose to td sell this stock for fifty continued on page seven ABOUT THE MINES OPERATING CO continued from page I 1 cents a share mr lees estimate of values is probably the most conserva conservative five and if we figure that the leasing company during the nine years that still remains can extract these values it will mean an enormous di dividend vi return on your investment the company is capitalized f for or one million shares including the stock we have to sell there will I 1 be outstanding shares of this thia amount if only tile the 1911 1944 19 11 net is returned to acci holders li they would still receive a share on their investment sir mr crowther Crow lher figures that tile the mining cost will be less than 10 while mr lees figures give it at a ton mr lee figures his in milling illing and marketing at and his saving at only SO 60 per c cent ent we believe lie ile has been more than conservative in these figures and that they will be reduced materially no e estimate tin late of any kind hind has been made 01 ol tile the ore left standing t in the mine and allowing for a limited amount the dividend returns fron this there should be well above I 1 a share during the life of i the lease the new plant for i handlin handling 0 the ore is already in the course of construction and the I 1 company promises its completion by the first of july we have had some experience in the i length I 1 of time it takes to con coil 1 a mill and believe that au I 1 gust 1 will probably be nearer the date of its completion A I 1 cyanide plant needs but little I 1 i breaking in and should almost at once commence the saving of values therefore we figure that before the end of this year tile the company will commence the payment of dividends with a ton plant these payments should not be less than five cents a quarter and with the doubling of the capacity the dividends should also near nearly ly double this is the best proposition it has ever been our fortune to place before the public practically a sure iv minnei the element of chance is eliminated the ore i is s mined not pro ble ale ore but broken dov down n ready to haul out of the mine the values have been tested and d a milling plant has proven that these values ean can be we can see no risk in th thia n proposal tion and believe you will aars pith with v us that none bett bettt r lias has ever been brought to your attention there are just two hundred of these reports issued we p propose to sell these shares to the first ones ordering them we would like to have you write us regarding P this company and if you wish us to reserve shares until y you ou can get further information we shall be glad to do so in any event we ve should like to hear from you even if you are not i a position to take up any of this stock regarding zinc ores the strength streng ib a oll zinc in the metal marketis is giving an impetus to utah uta mines in which kinc zinc is a product byproduct by where in many instances it was previously a detriment tri ment th greater part of tile the utah product cri of zinc comas cohues from the parl park city daly judge and daly west ars the principal shippers of zinc or on particularly the former daly judge stooped stop ped jed shipping zinc mui inia adling last october and at tile the first of the year had 1136 tons toils piled up awaiting 0 more favorably conditions since that time however it has resh resumed nied |