The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-02-17
FURTHER FACTS ON
CONSOLIDATED MINES
Eastern Writer'S Views OH Min.
ing as Performed at
Utah Copper.

George l.. walker. the copper expert,
says:
Utah Copper, with the Boston Consol-
idated property included, is unqucstlona-
hly ono OF the biggest copper mines In
the world. 1t is reasonable to estima tc
a total OF 200. 600. 900 tons of orc in the
consolidated property carrying an aver
age OF IL per cent copper The average
yield OF this ore should be at least %
pounds of copper TO the ton or a total
OF 100000, 600 pounds. Figuring AN
average proht Of cents per pound. the
total profit TO come from the treatment
OF all this orc would amount 10 $3.50 600. =
puo, AS the Company's 1.ll8,000 shares
az 500 represent market valne of only
Hoo.92".OOV, or about % per cent OF the
apparent ultimate profit, the stock has
an investment element or margin of
safety, which should make II especially
altrbctiV" Ia the move conservative ella SIS
OF mining Investors
"A good deal has been said recently
concerning the practice OF tho manage
ment OF carrying as credit portion Of
W" current heavy expenditures for strip
pns or unc9vcring its orc bodies The
claim Is made that the expense Of this
Stripping should he charged against tho
COST OF making copper al the present
timc. AS matter OF fact the company
Is now removing considerably more th0n
one ton of oVerburdcn for every ton OF
ore II Is mining. AS the ovcrburdcn aver.
ages about 20 feet ihiCk. while the ore
varies from 80 To- $50 feet each ton of
ovcrburdcn practically covers four tons
OF orc. The cost OF removing ono ton OF
oVerhurdcn. therefore. should be charged
against the cost of making the copper
contained in four tons OF ore The man
aSeW"nts policy OF carrying a portion
OF oyerburden expense during this period
while several times as much orc is being
uncovered ds is being Diincd mas not the
object In view ot making tho cost OF
copper appear low bur Is intended n
keep stockholders Informed of what the
actual average cost of making copper Is
anu VIII bc during the HE OF the mine.
Equal to Shaft Work.
The reason for carrying port Of
IN" charge OF removing oyHrburdcn as a
credit unrll II can be spread evenly over
the cost OF mining orc may hc illustrated
by the development ct mine at Lake
superior Butte or elsewhere which oppr-
ates on deep vein system. II is the
custom In such districts TO first sink and
equip shafts and open mp tho ore pre-
paratory 10 mining. Al this expense is
usually charged TO capital account. After
poductlon begins, however. tho cost of
deepening the shafts the extension Of
new levels. etc. is charged against the
cost of making copper.
''In tho case of Ctah Copper the re-
noval Of the ovcrburdcn by steam shov
cls preparatory To extracting the ore by
the same method Is equivalent 10 shaft
sinking. Utah Copper Is practically doing
It's initial development work and mining
at the same time. While in the case OF
the shaft mine the expense OF initial de-
Vclopment Is charged 10 capital account.
however Utah Copper proposes ultimately
10 charge practically all OF this expense
against the cost Of making copper. Stock
holders have reason TO he thankful that
the management Is sufficiently honest TO
Insist that this oyerburdcp account be
spread evenly and fairly over the cost Of
mining. An INSCRIPTIONS management
could remove ovorbur6cn on a very cX
tensive scale. charge the whole expense
TO current account and. by making the
copper mined now apparently cost II or
l3 cents pound. discourage stockholders
and buy in the stock for small fraction
OF its actual value.
Before Boston Consolidated began TO
mill any OF its porphyry ore at all IL re-
moved millions OF tons of ovcrburden with
steam Sshoycls. This has been charged
TO capital account already, and the guam
tity removed will not have 10 be removed
again. The work was not finished, hut
the quantity remaining probably repre-
sonts not over one tor OF overburden to
six or eight tons OF ore. The expense Of
the stripping already done will be saved
10 the Utah Copper company"