MINEBK00416

• County: San Miguel
• Document: Manager
• Suffix: A

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DI:VELOP~[IsNT.
~~ •~ Tho dovolopmont duriog rho poet year hoe boon 199 foot of cross cutting, 646 foot of now levels, 100 feet o[ upruisea and l,WJ
~~ ~ feet of now trnek Inid. Benides this dovolopmont work, wo hnvo repaired ovoc 1,000 feet a[ abates by ro-lining ¢nd ro-limbering, ro
'i I nm Flnd to state that all o[ rho mino workings aro in Food condition nt the present limo.
\) - A3IOUNT OT STOPING.
No hnvo eloped during the past year ^18,610 cubic foot o[ ground, this having produced 10,0^7 tone o! ore, o[ which 10,5;,
~__~` tone worn milled up to ilfnrch ], 1001, leaving 360 tone of oro wined and trammed and in rho bins on rho gret of ;lierc6.
COST OT PRODUCTION.
Coat par ton for labor and tramming ______________________ ______ __ ____________8 ~ 30
Crst pc: ton tor mino supplies of all kinde_________________•_•_--__--•••___._•_ 76
Cost per ton for development work______________________°'----•----------____ 34
Cast per ton for suporintendonco_______________________________••_•___•_••___- 1°
Coat per ton o[ milling, [or superintendmue, labor and supplios__ _____ ____ ______ i6
Cost par ton for usen}•ioF oro produced________________________________________ OG
Cost per ton for general expnneo ______________•_______••_______•••-___••______ 02
Total coat fur mining and milling, iucludinF all expense, per ton, for all
aro produced during rho year ________________________________ ____ ____ 8 d 3,3
Thin is taking into considorntion the total coat of everything outside of permanent equipment, which has nut entered into
rho cost o[ the oro mined and milled. During tha coming year I expect to materially reduce the coat of production of ore, anJ
especially the coat o[ milliuq, us during the poet your u•o huvo Loon hampered duriog the winter months for wutur for pos•cr par
peens. This wo oxpcet to remedy during the present seuaon by the ins[nlling o[ a steam plant to furnish this udditiennl pnaer
during rho reinter months. lly thin wu will bo able to mill u grad deal larger tannage o[ ore, and thereby muterinlly'reduce We
coat u[ milling. No can oleo reduw rho cost o[ mining, ns our gonond nxponses will not bo any grouter than they are ut the prat.
oat limo. rho only additional cxpensu thereto being the coat of lobar and supplies.
lluring the poet month, tehilu flniehinF n moss cut driven from the Terrible shot[ over to rho elope uu the Ida vein, ae
cut a new vein of about o0o foot in thickness, currying qui W high values. d fair overage sampling oI thin F;no ux the [ollocir.;
rusulls: Lrud, from t21 tu'39 per cont.; silver, from lOG to 111 ounces, and gold, from 81.00 to $O.GO per ton-or cnrq~inF t•nlues ut
over 8i;i per tun. On this vein we huvo drifted ut tlm present tuna only CO feet, and hnvo not done any sloping, us it has Is.n
impoasililo to de en thus htr un account of timbering and trnclr laying in rho cross cut, eo it is too early to matte a definite
ehttoment ns [o rho permanency or continuntiun oC this vein, ue it will take furtbor dm•elopmont to determine rho extent o!
the oro body. Tho chnructor a[ rho urn ie identical with tbxt [omnl in rho adjoining property, n•hich hue bacn worked tar
years +md has boon n heavy produceq nna rho strike of rho vein appears to Icad directly into their ground, en n•a hope thin
will pence to bo valuable. By the completion o[ this cross cut, and making connection n•ith the Terrible ehnit, see barn oblaimJ
ample vantilution in all ports o[ rho mien.
Of at•en morn importance :hnn lhu llnd just referred to, bne L'crn rho opening up o[ another entirely non• shoot on thelJs
rein of about I60 foot iu length. So eloping tehntoeor hue been done, but tea oro just getting ready to start sloping on this on
shoot, and hero already laid n [ruck and begun timbering.
During tba coming year wo e:peca to continuo lho development of tha mino on a much larger scale than llro pnxi. Bclvmn
Nos. 1 and 9 tunnels thorn ie u Lugo body of oro u•bich wu nnticipnW opening up during rho coming year. It will bu neceesar~ to
extend No. ^_ tunnel prububly'_'00 feet to get uudor this urn shout. This tee expect to du nt un early date, ue soon us wo install our
power drills.
RIiCO\[l[]sSDATIO\S TOIL TIIIr TPAR.
I would etrougly recommend that during the coming summer lho Company inahdl u steam plant in the mill o[ uheul the
following power--GU II. H engine, and from i6 to 801I. P. boiler. This would help out with our power for the winter months, eoJ
the coat of our fuel u•uuld not bo much tnoro than it bus boon during the post yonr in hooting rho mill by stoaos. 1Vo could use
rho eshnust steam and surplus steam [or heating purposes, ae troll us to keep rho wutur worm for rho bettor milling o[ the area.
I could nleo recommend that wa install our electric plant already purchased nt ne enrlyn date ns posaiblo, ne wo will therchy
bo anobled to dispense with ateum pow•or and rho coat o[ nn oagineor nt tlto mino for running the cruehor, ns part u[ tbia drdrir
plant which w•o hnvo already purchased coneiets o[ n a_.i EI. P. motor, with which wo intend to tun t6o cruehor plant ut lho mine.
SUPPL>;~[I;NTARY R);PORT.
I wieb to make n sport in addition to thot m¢do by rho Secrotury and Treneuror to rho etockholdera ptceont nt rho meeting.
Wo hnvo received by express from rho mino to-day, ono bar of Fold bullion nmouotinF to ^_385§ Duncan, Loring a raluatioo
of 83,600. No hnvo oleo two earn of concentrntee in transit to toe smelter, with an estimntad not value o[ about B1W. Is addition
to this, wo hnvo the 360 tone oC ore nlroudv mined and trammed and in t6o ore bins at rho mill. Thceo oro virtually net assets in
addition to that Fivon by lhn Secrotnry and Troneuror, and after paying all bills duo on rho 16th oC this month, would lean a
not amount in rho trennury of about 817,000 this day.
Ileepectfully submitted,
D. J. SAYEB, Manager.