The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1909-02-13
PLAY OUT?

TONOPAHS PLAY OUT?
SELF STYLED consulting mining engineer. writing to h New York Min
q and Engineering Journal from the safor retreat IF pal0 Alto California
4 = says that pota mine in Tonopah will pay on 5ocent silver, per-
hap' the ronopah Mining cOmpanys property He likewise h"alds thu Mons
gomcry shoshone, which is m Of the great mines of Southern Nevada, as a
failure A IS showing the gentleman's very correct knowledge a % what he
precious metals in Nevada, when every m who has read the papers at all knows
thu. Nye county vas hrstd during 1908 in point of production, by quite a comfort
able margin.
AS tt the Tonopah mines: A little oer a year ago he Tonopah Mining
company vas in debt sOme hundreds If thousands Of dollars a. a result of the
construction " its big mill Il Mllers. Today the company is tut of debt and
has a record v and above this of paying s75oooo in dividends to its stock
1sos-and with silver at 70 cents-n is surpassed only by the Homestake in
South Dakota. the Bunker Hin and Sullivan in Idaho. and the rreadwen in
Alaska. The T0nopah comes fourth. and then is followed by the Portland at
Cripple Greek. with s25oooo less dividends in 1908 han the Tonopah Mining
The Montana o. ronopah company a year g som 100000 % its
magnificent mill and equipment on its ground at ronopsh- Today it is practically
nut OF debt md its underground physical condition is looking better evryd day.
their ores. the Midway nov has $4,000 cash in Its treasury, a gain OF $4,000
cash in the wear: the MacNamara which had a depleteat treasury at The begin.
bagatalo of s35ooo in its treasury; the West End practically wiped out its debt
of $4,000 during the year and The Belmont showed a net profit O. $l6aooo-ah
To get down to tn physical facts which show how far from the closure Of
the ronopah mines 5ocent silver actually comes: It is a well recognized fact
among those who now anything of the Tonopah district that the ores mnned
gold, and the balance " $50, silver, per tn hi is with silver at 81 cns pr
fine ounce. This gives a metal content in each tor # ore Of about half ounce
Taking tho Montana of Tonopah as al example of the Tonopah mines, its
40 stamps are crushing scme 200 tons Of pre- per day-using round figures With
$50 ere this gives daily return o. approximately 5000 ounces of silver worth at
SO cents $4,000, and 100 cunces Of gold. worth $4,000. per day-a total mill output
the ore which is handled by the MOntana-the same appertainng to the r0nopan
Mining company, both OF thesec companies having their mills This makes a
mining and milling cost at the Montana of $l4Oo per day. leaving a profit Of
s 1900 per day. Should silver go to 55 cents per ounce, the profit would be in
creased by We cents OF each Of the 1000 unces Of silver produced per day
just 500. Should silver drop to As cents he profit would be decreased just 500
per day., an b. bt $4,000. Should silver go to IS cents per ounce-wmch it
never wil-thcn the value OF the snver contents extracted from thu days rn of
ore would fall to $4,000 per day leaving a nett profit overm mining and milling of
1880 pr day. Does that look Ike shutting down? OF course thu shrinkase in
silver values would mean that the stockholders would lot receive as much return
for their investment as they would with silver at rs cents-bu tut they are not
losing money.
We have used the Montana as N example # what $50 ore is doing lin rono-
pah. The shipping mines are shipping IRE CT much higher value than that, at the
same time arc eiher leaving in the slopes or placing OF dumps great quantities
of ore which will run from $40 to $40 per ton When they get their W mills
or effect a consolidation agreement and buld a mill which will handle the ore.
from the several properties, they will work up tms. low grade ore The Montana
is not now handling $50 ore in its mill, but has found that it effects a greater
saving percentage and can work up practically every pound of ore in the min
by keeping its ore run at a value of between SIS n $14 per- on. This is being
done. With a mill output Of 200 tos of SIS ore per day, IN a mining and mill.
ing cost CT 81 pert ton, or $1,400 per day. the company is making a profit If $1,000
per day, or S438O00 per y@r-neary so per cent of its capitalization of
$ 100000. With silver a % cents per ounce, the ore which is TO- worth SIS
would be wortho nethrd less-for the gold value remains the same-and the
mill would grind out $685. 900 profit during the year for the mine owners, OF al
qures, it can raise the average value o its milling ore to the $50 mark.
and in addition are laying VI reserves Of lower grade ore against the time when
they shall have mills. Let silver go to 25 cents ant their shipping ore still re-
turns them So pert ton profit.
Although wages in Tcnopah are high as compared to those mining sections
of other states, drainage is no problem, an the physical condition of the mines Is
such that every dollar spent underground results in actual IRE production. The
greater psrto # tho work which, is being done in the Tonopah mines which have
no mills, however, is development work, they milling just enough oret to keep the
mines running to lay up some treasury funds. 1t is the sur@t way to make
big mines, n when these properties tmd their mills, Or a combined mill, It
will be with tn assurance an safefeeing engendered by the sight of ore bodies
blocked nut Ct sufficient extent to keep the mill or mills running fer many years