MINEBK00451

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

m~...
REPORT OF
The Smuggler Union 1Kining Company,
FOR THE YEAR ENDING APRIL 30, 1903.
To the Stocb-bolders of The Smuggler Union 1i4ining Compare}•:
The following is submitted as the report of the operations of the Company for the
year ending April 30, 1903
During its fiscal year ending April 30, 1903, the Company mined and milled, or
sold, 114,419 tons of ore. Its gross receipts were $635,530.07 of which $10,185.02 vas
paid by the lessees as royalties. The operating expenses. at the mine were $605,150.50,
leaving a mining profit of $30,379.•57. The interest on our Debentures and general
expenses (including interest due on loans) reduces this profit to a loss of $3,378.02.
2244 feet of development was made in the mine during the year, the expense of
which ($20,594.70) is included in the amount above stated for operating expenses.
Our ore reserves April 30, 1903 are computed as follows : Positive ore blocked out,
283,600 tons; probable ore partly blocked out 3.51,100 tons; possible ore, above Penn.
Tunnel level 1,000.,000 tons.
Comparing the above estimate with that contained in the plan furnished with the
President's report for the year ending April 30, 1902, it will be seen that the estimate of
positive and probable ore, inscribed on that plan, is considerably reduced. This
reduction is mainly due to the exclusion of the ore contained in the old dump piles of
the Sheridan and Mendota mines which were included last year in the amounts stated
on the plan referred to. Conservatism seems to require the exclusion of these dumps
on account of the fall in the price of silver which has made it unprofitable to mill the
material in them_
Another fact which has reduced the present estimate of the ore reserves is that the
vein has proven to be narrower in the northern part of the property than it was in the
parts exposed at date of last year's report.
During the year there were produced 21,792 ounces of gold and 637,121 ounces of
silver. The average price obtained for the silver was 49t/a cents per ounce which was
lower than the price received in any previous year. Although the gold yields the larger
part of the value recovered from the ore, the value of silver plays an important part in
determining our profits.
On account of the low price of silver during the year, our receipts were only $5.55
per ton of ore, as against a cost of $5.29, leaving a profit of only 26 cents per ton. Dur-
ing the year the price of silver varied from 46g/b to 54s/a cents per ounce. At the close
of the year it was 54t/x cents per ounce.