The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-12-20
GREAT ORE VALUE
OF CHINO MINE
Walkers Letter Enters Into
Estimate of Values and
Future Profits.
ORE OF GOOD GRADE
Mill Within Year to Be Hand
ling Five Thousand
Tons a Day.
ORE OF GOOD GRADE

George L. Walker expects the Chino
company 10 have its 500o-top concentrat-
inc plant In fun operation within year.
which viii give the company an annual
conner production OF about o0.ooo.ooO
pounds. There are Si,000,o0o tons OF 2.2i
per cent copper orc developed on this New
Mexico propcr;5. and additional ore that
runs from % TO l.5o pcr ccnta copper.
In his last copper letter Mr. Walker saws
in part:
As soon as Chino demonstrates that IL
can handle LA per cent ore at n nront,
considerable tonnage already proved up
can he added To the $4,000. 600 so far re-
ported Il Is quite probable. therefore.
that i'm the working out Of deposits Chino
viii mine 10000. 600 tons or more OF 2
per cent orc and produce aDproaimateIy
p 000. 600 900 pounds of copper This should
result In total net earnings dn SO dnrinS m ,ne !iie
the cost nt cents and the selling. price
at IL cents z pound. or SI26 in dividends
Tor each OF Cbno's 100000 shares.
Forty Years Supply.
Milling 5000 tons daily. Il will require
tents OF 7o,oo0,oo0 tons OF ore. II would
mean an average output or s9,ooo.oO0
pounds OF copper md net earnings or 81
share annually. With full aliowanee ior
amortization at per cent, this would give
Chino stock n net value OF $40 q share.
should it's copper be sold at 10 cents.
earnings would approximate slAo,ooO.Ooo,
or sI share annually for forty years.
n total OF $50 per share, Amortized AZ
The same rate. the stock would now ap-
pear 10 have a net value OF $50 share,
provided copper is 10 average 10 cents
pound in the future.
The foregoing figures are based on my
own belief that all the commercial ore
will bc mined from the Chino property
down 10 an average Of per cent. Figured
on the manaeems statement OF o.
600, 900 tons OF 2.2t per cent ore, however.
the apparent value Of the stock. strangely
enough, Is a little greater. This grade
Of ore should permit OF thirty pounds
per ton recovery, total Of l.61i 5000
pounds AT cost or - cents II would
result in ultimate net earnings Of so2.,,
100000 SlI5 share on 13-cent and
Sl25.555o,0o0. OF Slo7 share on 15-cent
copper.
To mine and concentrate the $4,000. 900
would require only thrty-one years, the
production being 5i.250,0o0 pounds nm
nually and the net earnings s3.7o share
on l$;cent and So on l5-cent copper.
Amortzed for this shorter period at the
higher rate per year. the stock would ap-
pear to have net value Of S54 on Is and
S13 on l5-cent copper.
Low Mining Cost.
These figures may seem very big. but
there is no good reason 10 doubt that
they VIII be confirmed by operating re-
suits Chino is removing the Gaping and
extracting It's ores with steam shovels
at lower cost per ton than the enEi-
neers estimated before the work began.
II pays ONLY 10 cents a ton freight on its
ore 5Oo0-ton conccntrator IL big
enough 10 permit of all the known milling
economies. Its financing is completed.
its water supply Is now adequate, and its
concentrating practice Is declared TO be
success. This would seem 10 mean
that the element OF chance has been prac-
likely TO happen To prevent the stock from
advancing 10 double its present price.