The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1909-12-17

Says LIE DSufGI MluluS IhSCOiu
in an article on the porphyrys:
The pre-eminent fact, that dis
tinguishes large disseminated cop
per ore deposits from other types
of copper mines is that they can
be fairly estimated by means of
the drill, although not with the
same accuracy that must result from
the sinking Of shafts, the running
of levels and the blocking out of
the ore for immediate production.
OF the nine examples of this type
of mines cited in the table of
figures that accompanies this COM
ment, only two have blocked out
their ores to any large extent but
the mining men who have charge
of the others r reasonably con-
tent with the demonstration that
have been made by means of drill
holes. This method of locating
and determining the limits of the
ore bodies in advance of final de-
velopment gains in economy what it
loses in accuracy. The exceptions,
those that have followed the old
style mining methods, and the two
that fall in this class are Miami
and Ohio. This one feature of the
so-called porphyry copper mines is
the thing that emphasizes that
other important fact about them,
namely, that their tonnages may be
determined for many years in adj
vance of production, and the ele-
ment of doubt about the future ore
supply is so far reduced that it is
scarcely considered. The predestin-
ed history of these enterprises is
pretty well known by those who
are financially interested in them,
and this circumstance places them
in a class almost by themselves. 1t
constitutes, therefore, a very i'm
portant factor in the estimation of
the investment worth of the "por-
phyry" stocks. The reasonably ac-
curate knowledge of the future
productivity of a mine is an asset in
itself.
That phase of the investment in
this type of mines which relates
to the cost of producing copper is
frequently emphasized, and it is
true that one cents difference in the
production cost is a matter of great
moment, but the real emphasis,
less from the commercial than from
the financial point of view, should
perhaps be laid upon the supply of
ore which the investor has to look
forward to. 1t follows from this,
also, that the rate at which the sup
ply is exhausted or turned into a
marketable commodity is a con-
%sideration of Importance to the in
| weston.
The accompanying table of figures
is presented for the purpose of indi-
eating the stock market valuation
placed Upon the tonnages of cop
per ore known to exist in nine mines
selected for their size and degree
of progress toward production, if
not already producing. These valu-
atoms per ton of ore are offered in
the light of the other three impor-
tant factors, the recoverable copper
content of the ore, the cost of pro-
duction and the rate of exhaustion
based upon present or prospective
milling facilities. Manifestly the
rate of exhaustion is somewhat in
1uenced by the financial resources
of the corporations, though no at
tempt is made to give data of this
character, except by approximation.
This is done in column four of the
table, in connection with the neces-
sary deductions to eliminate all
value except the basic asset ore.
These deductions, in the case of Cir
oux, include an estimate of the value
of it's Mexican property, which is
not here regarded.
The use of estimates is to a large
extent necessary in setting forth the
data here sought for the purpose OF
illustration. The approximations are
! considered fair for the uses to which
they are put. Only four Of the nine
enterprises have yet produced, and OF
these, Ohio has barely started. In
one case, that of Giroux,-the figures
are decidedly abnormal, insofar as
they affect the valuation of its ore.
1t is not possible, of course, that the
value of its known tonnage could be
greater than the expected profit
ltherefrom. The discrepancy partly
| arises from the circumstances that
the company is believed to possess
far greater resources than can now
be admitted to exist. 1t Is possible
also that enough has not been de-
Quoted to cover the elimination of
the Sultana mine of Mexico from this
computation. Moreover, it may be
said that Giroux has opened at
Ely the principal body Of high
grade ore. Finally, 1t may be said
that Giroux has figured very promi-
nently as an Amalgamated property
in connection with the much dis
cussed copper merger. The deduc-
lions for other properties include the
estimated value of mills, shelters,
railroads, ETC., as well as cash re-
sources.
Next to Giroux, here described
as abnormal, Nevada Consolidated
enjoys the highest market valuation
per ton of known ore reserves, that
is, $1.54 a ton. The lowest is that
of Boston Consolidated, or 80 cents
a tho. Nevada Consolidate >ow