Eureka weekly sentinel. [volume] (Eureka, Nev.) 1887-1902, 1891-11-07

Annual Repers Of Pre.,dep, FRI,

To the stockholders Of the Eureka
Consolidated Mining Company Gentle
men,; The business Of the company
during the past year has not resulted
as favorably as was anticipated. The
mine has yielded well in quantity, but
the grade of the ore has been low,
averaging about ten and one-half
ounces silver, six dollars gold and
eight per cent lead.
In view Of the low rate Of silver, the
profits which can be realized on this
grade OF ore, have been materially re-
duced. Our furnaces have been in
operation about seven months, work.
ing not only ores extracted from the
mine, but also outside ores which we
purchased. Competition with Eastern
smelters raised the price OF these ores
to such an extent that but lit
tie profit has resulted therefrom.
We have, therefore, concluded TO
discontinue the purchase Of outside
ores, and those from our mine
being insufficient TO keep our furnaces
running, We have shut them down for
the present.
We believe that it will be more
advantageous for us TO ship our ore,
and have obtained rates which will en-
able us to do so az a profit, and there
fore we shall continue so to do so long
as it will be remunerative. By this
means, we can very much reduce our
expenses at Eureka and can dispense
with the employment OF a considerable
portion Of our staff at that place. We
car also reduce our force and ex-
penses in this city.
During the past year our expenses
at Eureka for keeping the works,
shafts and machinery in good repair,
we're considerable. We we're also
subjected to heavy legal expenses
which were due, in a great measure,
TO the timber suits.
Our net resources at the present
time are $84 800 81 in bank and in
other available assets, a great part of
which will be turned into cash within
the ensuing month. We are confident
we can realize on these assets a sum
in excess OF the amount at which they
were inventoried. Our lead on hand
is figured at forty dollars per ton at
Eureka, but under a present selling con
tract, will net over sixty dollars.
The suits against us, mentioned in
my last annual report have resulted
favorably TO this company. The
Arents suit for alleged infringement of
patent, was decided in our favor. An
appeal has been taken, and we are
advised that it will be several years
before the case is reached for hearing in
the United States Supreme Court.
The Government timber suits have
been dismissed and an Act has been
passed by Congress under which this
company will be enabled TO use ali
timber which it may require for its
business.
AS TO the operations OF the mine, l
suggest that part of the cash reserve
fund now on hand, be used in working
below the ninth, and down to the
water line, thoroughly prospecting
that portion Of the mine. For this
purpose the hosting works and ma
chinery, which have been in use at the
smelling works, can be replaced at the
mine.
II we should be so fortunate as to
open up a substantial supply OF ore in
that ground. we would be encouraged
to again start smelling and refining. |
| confess, however, that the prospects
of finding a considerable body OF ore
are not very encouraging, unless we
can unite with the Richmond Com
panv in pumping out our respective
mines, thereby enabling us to pros |
pect below the present water line; We
have not. as yet, accomplished any
thing with them in that direction.
The reports of the Secretary, Fore
at the mine, furnace and refinery, |
are submitted herewith, and to which
| beg TO refer you, for further ex-
PLANTATION OF the result of the business
the company during the past year.
Respectfully submitted,
WIN. FRIES, President.