Bisbee daily review., 1912-12-01
ANNUAL REPORT
 FUR SHANNON
General Manager Bennie Tells of Important Explo- ration and Develop
 ment of Past Year
ENCOURAGING RESULT

ENCOURAGING RESULT
 The annual report of the shannon Copper company for the fiscal year ended Aug Sl, 1912. shows net oper atlng profits of S560,5I5 Adding other income of SEQ 400 and Sl5.T23 profits earned by the Shannon Ari- zOna railways, the total ne. profits for the year were S5s6I3S,
 The balance sheet shows cash. copper on hand and accounts re eeivable of S6l1 .726 against which are current liabilities or SS26,s54
 The directors announce that the fiscal year has been changed to cor respond with the calendar year SO that the next annual report will coy- CT the sixteen months ending Dec. S1. 1913
 General manager Bonnie iu his rC port says; Considerable absye lei ayeTa"e expenditures were en.sil-i. on exploration aud deyelOpmca,, T .. o51 feet Of wo~x dliyen durins lhG year Of this +6l0 f-et of drii 5 were dG.Nen on tne O"Gr levels. TsG fcci on the upper levels, 47OO feet on the intermediate levels and SSQ feet CD outside workings.
 Developments on the lower levels Of the mine have been of. yer9 encouraging nature, and whilst at present we are only mining l25 tons per day from these levels, we aa- ticipate doubling this output in he very near future.
 Developments on the outside claims will. be continued during the coming year. Nothing Of any consequence has been opened up from our previous developments. tnt we consider there is still possibility of good ore beng obtained in quantity from the Fl Paso and adjoining claims.
 3mpOTtant new work 10 be com 1nenced during the coming year VII be an exploratory tunnel to be dgiF- eR from a point 25 feet above our dre bins in Chase Creek for d dis tepce of i500 feet, crosscutting our main ore Formations at a depth Jf aQ0 feet vertically below our Carter level. This tunnel was contemplated ten years ago. and whilst discussed at various times since then, it Is only now that we consider ourselves warranted in recommending it as a iustifiable development scheme.
 Our past policy Of confining devel- opment expenditures to searching inT new ores instead Of opening dp known ore bodies has been continued during the year and as already stated, with gratifying results, espe- cially in our lower levels In pTevi- ous reports it was pointed out t would be very expensive proposi- tion for us to open ore reserves, with m adEunra hot aF proXimately estimating the same
 Geological conditions are better understood as each year passes, and 1t is this better understanding. added to results Of recent developments that warrants our statement that there is a probability of an extended life 10 the shannon mines which was heretofore doubted.
 Our costs of mining per ton were lower by s cents than those Of the year previous, the saving being in lower cost of extraction and cheaper mining timbers. This saving would have been greater. but We increased our miners wages in June, thus add ing 10 our labor bill We also mad an additional expenditure of cents per ton on ore extracted in develop ments
 Our total costs. therefore were approximately the. same as last year. During the coming year we do not anticipate there will be any material change in our costs. The only addi. tional extra expenditure contemplat- ed is for a new office for engineers and superintendents, our present quarters being overCrowded
 There have been few changes in our blast furnaces plant: the plant was thoroughly oyerhauIed, and Is now in first class condition Our costs of smelling were materially re- duced, due to the reduction in amount of coke and fluxes used. and less cost of power.
 During the coming year expcIi- ments in the use of basic, instead of acid-lined conyerters will be car- Tied out. and we anticipate mate rial reduction in our converting costs. These experiments will be undertak- en as soon as We install a new blow ing engine, which we consider now as essential.
 The costs of concentrating show a marked improvement over the preyi- ous year. The supply of concentrate ing ores is, however. very irregular iE quantity, and our costs Of operat- ing. therefore, are much higher than they otherwise would be. We hope 70 remedy these conditions daring the coming year.
 The power plant, including pamp- ing, has been kept in first rate con