The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1913-04-17
FEDERAL C0MPANYS OPERATIONS FOR
PAST SIX MONTHS.--NEW PROPERTIES
ZINC PRODUCTION is lMPoRTANT-sELL IN OPEN MARKET
STAR AELENA.FRlsco GREEN
H,LL.CLEvELAND.

called the Cape Horn vein, recently
discovered therein, together with the
prospect of finding ore bodies in
second known vein, called the Black
Bear vein, should result in great bene-
fit and advantage to the Federal COM
pany.
Star Mining Property.
Between January 13 and March IA.
this year. negotiations We're concluded
with more than SO per cent of the
stockholders of the Star Mining COM
pany. whose property is situated near
the town of Mullan. Idaho, and adja-
cent to the Morning and You Like
mines OF the Federal company for an
option to purchase their stock in the
Star Mining company, conditioned up
on certain payments to be made and
work to be done by the Federal COM
pany, over period OF about three
years. The first payment was one
cent per share and did not exceed
$4,000. Under the terms of the OPP
tion, the Federal company has the
right to enter into the property Of the
Star company and do what explora-
ton and development work It consid-
ers necessary BY reason Of the fact
that the mining property Of the Star
!company Is contiguous to the Morn
ing mines of the Federal company,
| the development work upon the prop
erty Of the Star company can be ad-
vantageously and economically prose-
cuted by extending the work of the
Federal company In it's Morning mines
into the property Of the Star company.
For further information on the Star
we refer you to the enclosed report
Of Mr.. Bell
Flynn Group.
The Federal company has obtained
an option to purchase at least 81 per
cent of the capital stock of the Flynn
Group Mining company. Part Of this
stock has already been issued to the
stockholders of that company and
part of 1t is treasury stock. Under
the terms Of the option. the Federal
company has the right and privilege
of expending all the money paid by it
for the treasury stock in the develop
ment of the property owned by the
Flynn company This property Is ad-
jacent to the Frisco property and will
be developed by extension Of the un-
derground workings of the Frisco
Zinc Market and Federal Mines.
1t may be well to note here that the
ore bodies of the Frisco and Flynn
properties run very high in zinc,
which under present day methods Is
very profitable product zinc is now
, selling at an average price of cents
. pound more than lead.
The production Of zinc in the United
States in 1900 was 123.200 tons and
the consumption was 1O1,s00 tons. The
production in 1911 was 2s5,sO0 tons
and the consumption was 3l6,500 tons.
You will see from this the enormous
increase in the production and con-
sumption of zinc, but you vii! note
: also that great as the increase in the
!. production is, 1t has failed to keep mp
: with the consumption.
: The Federal company has no con-
: tract for its zinc ores and sells them
f in the open market. The zinc product
of the Morning mines goes at the
] present time to the plant of the Beer
: Sondheimer company at Bart]esvillc
e Okla.
\ 1t is expected that the company's
$ policy Of extending its holdings with
g out spending or risking any consider
: able amount of the company5 sur
/, plus will be continued.