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DEVELOPMENT.
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<br />This line of work has been vigorously prosecuted as will be seen by the fact that the report
<br />of tltc Superintendent shows 7,41 t feet (almost t% miles) having been accomplished under this head
<br />during the year. ATeedless to say, the result ]ras been of the most gratifying nature, for while a ven•
<br />handsome production has Ueen made, I feelrjustified, in.saying,that for every dollar extracted during the
<br />year, five dollars have been added`lb~the oi'e•reservesrrt tht minei'~r~portion of the sensational develop-
<br />ment has occurred on the Soo-foot level where w•e have driven about 2;o feet on the richest and best shoot
<br />of ore which the property has ever known, and the drift still continues in ore of excellent grade. This
<br />occurs in rebel is known as the C. Ih. & N. vein.
<br />I beg to call attention to the fact that tlris is zoo-feet below the sea-level point at which the
<br />Government experts predicted that the values in the Cripple Creek District would begin to,diminish.
<br />further north in this same vein,. a ncw• and strictly virgin mine has been opened in the Morning
<br />Star claim of this Compan}•; three levels are being driven through this territory.which are augmenting
<br />dre ore resen•es at an astonishingly rapid rate; the fourth, or boo-foot, level is also being pushed in that
<br />direction and has recently entered:'the,;ore bodp:; ,No, orej is being extracted from these
<br />new finds other than that which is• necessary in running the drifts. The contour of the surface
<br />is such thaC about 20o feet arc gained- in depth, so that our Goo-foot level will haVc 'attaiiicd a depth
<br />of about 80o feet in the Morning Smr claim. This ore undoubtedly extends to or near Qie surface,
<br />and he body of it being of phcnominal' dimensions and excellent grade, means more for the future of
<br />the mine than the average person can readily comprehend.
<br />P&ODUCTION.
<br />Your attention is directed to the item of Ore Sales on Ute first page of the Treasurer's report,
<br />which shows a gross production of $r,3;~;933.rt for something over zo,ooo tons of ore, of the mag-
<br />uificent avenge grade of $GG.Sa per ton, including that shipped by leasers, the Company shipments
<br />averaging $yp.89 per ton: This, I think, is the highest average for any pear in the history of the mine,
<br />the increase io the gross production being especially worthy of. notice. This report in its entirety is
<br />an' interesting document, but I wish to call your especial attention to the items in the "Summary"
<br />report on the last page, showing a net profit of $768,8oz:38 being ;G.y per cent. profit on the business
<br />of the Coropany. This is a record entirely new to the mining business of Cripple Creek, and in elf
<br />probability will not be surpassed in years to come by any but the El Paso Company.
<br />Comparative statement of production:
<br />For the year ending February rtth; tgor . .....................$ stygoo.53
<br />For the year ending February Loth, rgo2, .......... i .......... 30'1,443.44
<br />For the year ending February gtlytgo3; ...._.... ~. .... 470,755.75'
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<br />For the year ending February 8th, r9o~ . ..................... 583,44955
<br />For the year ending January 3rst, tqo; . .. . . ... . . .. . ... • •, . • • • 1,355,935.11
<br />As the foregoing statement of production. would indicate,. this, Company has been one of grore-
<br />ing importance, eadt year showing a marked increase over theone justpreccding, and the conditions
<br />c~isting fully warrant the statement that the year upon which we are just entering, will greatly sur-
<br />pass the Uusiness and results of last year. The tonnage will -far exceed that of tlre; year ,just. closed:
<br />likewise the gross and net productions, and I feel justified in saying drat the dividend rate will Ue in-
<br />creased in the course of a very few months, whidr, however, rests entirely with your .Board of Di-
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<br />In conclusion, permit.me to say, that, with the mine and treasury in excellent condition, the in-
<br />crcasedfacilities for the economical handling, of the product, the labor and water problems nodlonger
<br />a menace, I feel that the prosperity of your Company has only fairly begun..
<br />Very respectfully, ,
<br />- S. S. LERNARD,•
<br />Presidunb
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