Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-01-14


Mr.. Phillips declares that an investi-
CATION by competent engineers familiar
with porphyry mining has brought out
the following facts:
FROM ENGINEERS.
| Il. The contour of the ground at
| Bingham Is not adapted to steam
shovel work, while at Ely it Is
| "2- The Gaping TO be moved at
| Bingham Is nearly double the thick
| ness TO be removed at Ely. and ut
much greater cost.
"3. The Utah company Is obliged 10
| purchase surface rights from outsld-
| ers for dump room: while at ELY
| there is abundance of room Tor
| dumping waste.
"a The cost of transporting orc
at Bingham is much higher than at
Ely, Nevada Consolidated owning TO
It's own railroad.
"5, The steam shovel ore at Bling
ham is limited and short-livcd with
out combination with other proper
ties.
IS. Underground mining costs at
Bingham very high A largo eXpendi-
turo of money Is necessary to enable
tho company to reduce these costs.
81. The percentage OF copper in the
ore at Bingham Ia much lower than
per Is more difficult; the next extrac-
tion per ton at Ely Will be so per
cent greater than at the Utah mine.
49, a greater amount OF ground has
been prospected at Bingham, practical
ly defining their orebodies. while at
Ely only small area has thus far
been, prospectcd. Nevada Consolidated
has many times the Utah acreage.
"s. The Utah mill is in poor condi-
ton. requires an army of men TO
operate It. and in the near future large
expenditures for railroad and mill
equipment.
40. The Utah Copper company Is
obliged to pump all tho water used
In the mill at Garfield and suffers
from a scarcity of water at their Cop
perton mill.
I'll. The railways and mill are now
crowded to the limit, and any in
crease in production means either
sinking a shaft with at least an
S,000-foot tunnel, or an agreement to
use a tunnel of another mine. extend
ing the same from the present face
of the workings approximately 1.50o
feet and tapping Utalr's ground about
T50 feet below the present workings,
thereby necessltating driving an up
raise after the tunnel Is extended.
"12. Utah's copper is costing 1t 10
cents per pound: Nevada Consolidat-
eds SIX cents. both including over
burden charges.
"12. 'ITtah's present drainage tuu-
mel Is less than 100 feet below steam
shovel ground, and there Is big flow
of water underground. Prosecution of
work 100 feet below present excavation
means either expensive pumping plant
or now drainage tunnel
~ A lawsuit is now pending
against the company. involving heavy
damages. as a result of caving.
"15 Utah has no smelter-simply
n concentrating plant. The Nevada
Consolidated owns one OF the largest
smelters In the world.
CUMBERLAND ELY.
you are familiar with the condi-
tions at Nevada Consolidated as
given in the annual report issued on
Nov. l. Since that report. however.
we have taken over about 81 per
cent of the Cumberland Ely company.
and this mine ownership means a
reduction In costs as well as Increased
production when the two furnaces
now building arc completed in
February of this year. We thus secured
a most valuable equity In complete
railway and smelter. with all their
earnings. and an absolutely free hand
In our district. When our maximum
production Is reached We now know
with certainty that the cost of our
copper. including charges for stripping
the overburden, allowances for de-
probation on railway and smelter. Will
not exceed ~ cents per pound"
Nevada Consolidated and Cumberland
Ely ores blocked out are estimated at
81, ,000. 900, the latter companys ore
running at 1-3 per cent During the
past year the ore worked averaged 2.34
per cent copper. In addition to this 1t
is contcnded that the Nevada Consoll
dated has a low grade orc reserve OF
is, ,000. 900 tons of 1.25 per cent copper
During the past year 1t is contended
10 900 900 tons of ore were opened up and
that nothing but negligence will pro-
vent the management from opening up
20.000. 900 tons more In the next FIVE
years This would give $4,000. 900 tons
OF low grade averaging rs to IA per
cent copper.
NEVADA EARNINGS.
Nevada Consolidated, therefore un-
der full capacity of its present plant,
can ship 20, 900. 900 pounds OF copper dur
Ing 1910. At n cost of 61e cents and oil
q basis of 1917 cents per pound of cop
per sold. our profits would amount to
s4.960,000. On basis OF l4lA cents. the
profits would De So,bou,UVu, OF at lof2
cents the returns would be $1,000. 900.
An additional unit to tho smelter would
add at least 20 per cent TO these figures.
We are paying out today. on a basis
OF s1,50 per share. s3.O00000 1t can
easily be calculated that by July. 1910,
this dividend can be increased TO 50 per
share. or s4.000.O00. II Is entirely rea-
sonable to expect that by January. 1911.
We can pay $3.50 per share OF $1,000. 600
with strong possibilities OF 50 during
that year or even 81 in the years to
follow. On the present basis OF $3.50
per share a year on Nevada ConsolI-
dated it would require $7.000,00O to pay
proportionate dividend on 2.100,G 600
shares of Utah. which would be out
standing II the merger was effected.
on basis of 50 per share by Nevada it
would take $9,400.000 and on dividend
of only So share by Nevada, $l4. 900, 600
would be necessary II Utah paid Its pro-
portion"
Mr.. Phillips further contends that
there Is no record OF estimates made as
to the Utah Copper ore reserves by an
engineer who is not in some way con-
nectcd with the property and that one
able engineer has figured out a cost on