The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1908-12-05

PAohnOs
few feet of a fortune.
1t is the intention of this Company to continue the tunnel and
cut these veins as soon as possible, AMI with this end in view a
contract for the continuation of the tunnel has been let and the
property has been equipped with the necessary tools and supplies
and work has commenced driving the tunnel ahead as fast as men
and money can do it.
Equipments
The present equipments of the mine consist of ore cars, track
rails, blacksmith tools, and a lot of small mining tools, such as are
necessary in doing mining work. Also some cabins for Winter
quarters for the miners have been built As soon as the veins are
encountered, it is the intention of the Company to erect a power
plant and carry on the work of developing and extracting the ore
on as large a scale as the property justifes.
Transportation Facilities
The Wolverine group is located about one and onefourth miles
from the nearest railroad spur on the Eureka & Paisade Railroad,
and the freight charges from that point to the nearest smelters'
which are at Salt Lake City, Utah, ranges from $3.50 per ton, &C
cording to the grade of the IRE and its value.
The freight rates r based on a sliding scale, the higher the
value of the ore, the higher is the charge for transportation.
Investment Realizations
Inasmuch as we have only to drive the tunnel a distance of $50
feet, and in consideration of the accessibility to a shipping point,
the property being only one and a quarter miles from a railroad, we
should begin shipping ore by January l, 1909, and should receive
our first smelter returns by February /, 1909.
Inasmuch as the veins in the Eureka district and on the
Wolverine group are very large, varying from four to eighteen feet
in width, we can take out a large tonnage at once, and as the ore
has a value of from $50 to 5000 per ton in gold, silver and lead, we
will receive a large income from our first months production.
Let us take, for an illustration, a production from the Wolver-
inc No. l vein, which will be the first vein encountered and is as
sumed to be six feet wide where the tunnel will cut ita It a depth OF
about 500 feet. This vein, running full length of the claim, which
is 1900 feet long, with an average depth from the surface OF 5000
feet, would contain a gross tonnage Of 100000 tons, and as that
class of ore is easily and cheaply mined, We can, by working three
shifts of miners every twenty-four hours, break down and ship an
average of 80 tons per day, which will be increased as fast as more
room is made for men to work. That tonnage will give us an out
put of 900 tons the first 80 days.
Ores from the Wolverine group which have been tested had
values as follows
Gold, liz or at $40 per or. equals. ........S 22O
Silver, 1851 o. at sO.514 per or, equals 80. $3.50
Lead, 71.3 per cent at SOTO per unit, equals 7130
Total. .s14926
This ore is also heavily impregnated with carbonate of iron
running about Is per cent, with about 10 per cent silica, and as thu
smelters pay a royalty of from 40 cents to so per unit for all irol
in excess of the silica for fuxing purposes, W. will receive abou
SO. 20 per ton in addition to the other values in the ore, which woul
give us a gross income of $15246 per ton. From that amount mus
be deducted $50 per ton mining charges, $3.50 per ton hauling
charges, $6.75 per ton railroad freight charges from Eureka to Sal
Lake City, our shipping points, and about $2 per ton for smeltn
charges, making a total of $21 rs for expenses of mining. freightn
and smelling the ore, leaving us a net profit of $13O.n per ton, or
net profit of Sill 500 the first month.
AS we do not need to spend very much money for outside min
improvements or machinery, we will take 100000 of our frs
earnings and distribute that amount among our outstanding stock a
a dividend, and as we only need about $4,000 with which to start thl
enterprise and finish the tunnel, we will not have to sell a great da
of our treasury stock. Only about 5000 shares, Hence, Their
will not be more than 1870, 900 shares out of our entire capita
stock of FIVE million shares entitled to participate in the dividends
you would therefore receive nearly four cents on every share Q
stock you owned.
Your First Dividend
Which should arrive about February 10, 1909, on
One thousand shares would be 5 As
Two thousand shares would be 90