The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-06-14
UTAH CON. MINES
ARE DISCUSSED
Plans of Company-PaSt and
Probable Future Earning
Capacity.

Utah Consolidated has made payment
OF % per rent of the purchase price of the
smelter site which It took under option
some time ago in Tooele county. The
company will make other payments as
they come due. and win be prepared TO
erect a new smelling plant there pro-
vided II is forced to vacate its present
location. saws George L. Walker in the
Boston Commercial
Many of the farmers and land owners
in the vicinity of its smelter have eX-
pressed disposition to make some kind
of a settlement with the company, and
10 permit 1t to continue operations. The
management is willing TO pay well for
this privilege. The difficulty which
stands in the way Of such an agreement,
however. is the fact that any individual
land owner could refuse to become q par
~. TO It, and afterward sue the company on
his own account. Unless the farmers are
able to get together and act unitedly,
therefore, Utah Consolidated will prob
ably build new smelter in Tooele coun-
~ within g. year or two.
VIII Take Custom Ores.
II new plant is built. it will prob
ably have an initial capacity of ! 80 tons
Of ore daily. Utah Consolidated will in
crease the output of its own mine from
500 tons, its present production, TO LOCO
LUIS udiiyt anu VIII arrange u HdHUlS
about $50 tons of custom ores daily from
TOnopah and other districts which pro-
duce ores carrying a high excess of sill
lea: The treatment charge on such ores.
including penalties, ranges from IS to s12
per tOn.s and Utah Consolidated own
ores carry a sufficient excess of iron and
sulphur so that the company will be able
TO treat the tonnage OF silicious ores
mentioned without the use of any addi-
tional fluxes The cost of such treatment
therefore, will not exceed $50 per ton.
resulting in a net profit of $1.O00 to s.. 500
per day.
Cost of New SmeIter.
The estimated cost of the 1250-ton
smelter is S1,250.OO0. This estimate covers
the cost of tramWay also. The present
tramway would be removed. to the oppo-
site side of the mountain range and eX-
tended directly down to the smelling
plant. An arrangement would be made
10 hoist the ore up an incline tram to a
point few hundred feet above the tun-
mel and there transfer it to the semi
gravity tramway which would convey it
TO the smelter. II is estimated that this
would enable the company TO transport
its ore from its mine to the smeter at a
gross cost of 10 to Is cents per ton,
whereas the present expense of ira mining
and railroad freight aggregates 10 cents
per ton.
Company's Earning Capacity.
II will be seem therefore. that Utah
Consolidated could probably reduce Oper-
ating expenses in different directions at
least 81 per ton OF ore treated. There is
a possibility that its profit from the treat
ment Of custom ores and its income from
the gold and silver contents of it's own
ores would pay it's total operating ex-
penses, and leave for net earnings the
gross value of all the copper produced.
This would mean net earnings of ST. per
share OF more on a lucent copper mar
ket. and between SIC and 81 per share on
a 25-Cent copper market
Proposed Deep Tunnel.
The proposed deep working tunnel to
penetrate the mountain from the west
side, a little above the new smelter site.
and enter the Utah Consolidated mining
property leo feet below its present work
ings. will not be started for two or three
wears, If ever. With the waste heat from
the furnaces of its new plant the COMPANY
VIII generate steam power and convert IL
into electricity which will serve all pu--
poses for power at the smelter. operate
it's tramway. and light and furnish power
- operate its mines. In addition to this
there will probably be sufficient surplus
pover to run drills in the proposed deep
working tunnel This is a matter. how
new smelter is in operation. provided one
Sc built.
To Explore New Territory.
1t is the intention of the management
TO extend exploratory drifts beyond the
famous 1874 fault" this summer, under
its mining claims to the west and to
ascertain definitely whether ore deposits
of value exist there. It Is known that
AT least one large body of copper ore ex-
tends beyond this fault, and a drift which
entered the west country last year en-
cOuntered a shoot of high-grade lead
silver ore which will be developed in the
near future and the output shipped to the
custom lead smelters. This ore will |
yield splendid profit
AS to the value of the ores OF the Utah
Consolidated mine at great depth IL NAV
be stated that some of the richest ore
ever developed in the property is now
showing IN its deepest workings On the |
tom tunnel Is about y of / per cent lower
in copper than on the level above There |
IS good ground for the belief that there
IS between 100000 and 1900 900 tons of |
ore in existence above the bottom of the
mine, or more than sufficient to Weld
In profits the total present market value
of stock, with interest
Past Earnings and Surplus.
More conclusive than any idle specula |
ton as to the average grade OF its ore at |
varying depths. however are the figures
presented in Utah Consoldated's annual |
reports The average yield of its ore in |
the year 1904 was % pounds of conner IN |
the ton; in 1895. 6O.3 pounds and i'm 1905 |
62.4 pounds This certainly does not in |
dictate diminishing values with depth
Utah Consolidated sold its copper at |
an average or B.9 cents per pound last |
year, and earned 50. net per Share over |
and above all construction. IL has sold |
one-half of this years production already
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