The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1914-03-21
STOCKHOLDERS HOLD ANNUAL MEETING

Continued from page one)
shafts, total production and costs by
months, Stopping. development work,
etc. In his report, General Manager
Burch, in part, says:
Operating conditions in the mines
during the past year have been far
from ideal, and are becoming IN
c~reasingly more difficult. This is due
to the fact that in the early opera
tions. selective mining was prac-
ticed and only the higher grade ore
extracted. The result is that 80 per
cen of our present tonnage is COM
ing from the pillars, ends and sides
of old slopes from which the higher
grade ore has been removed.
Notwithstanding this handicap,
mining costs increased only 5000
per ton over the previous year, be-
ing s3.41 per ton, as against 1899
for the year 1912.
On the other hand, the cost of
milling, including concentrate treat
ment, was reduced sO.17 per ton and
general expense S0.14. The latter
item was augmented by the settle
ment of damage suits, some of which
were based upon claims dating back
as far as 1909, and by the increased
expense incident to payments under
the workman's compensation act
which went into effect July 1st.
IT,, u.aro alcN inornocnd nv tho cot
Element of claims for back taxes for
the years 1911 and 1912, arising
from the state tax commissions in
depreciation of the law as applied to
separate milling organizations. To-
tai operating costs, including both
construction and the full cost of
marketing the ore shipped. were
$6.3S per ton, as against 1922 per
ton for the preceding year, being a
reduction of 1854 per ton.
The lower grade of ore mined au-
tomatically reduced the bullion tax,
and the cost of freight and treat
ment for the concentrates was en-
tirely eliminated by the use of the
roasting plant which commenced OPP
Grafton during the preceding year.
Costs for new construction, 5000
per ton, were also low. being on
fined chiefly to a new pumping sys-
tenn for the Grizzly Bear shaft.
1t has not been considered ad-
visable in the past to attempt an
estimate of total ore deposits in both
shape and value. The following es-
innate, therefore, refers to measure
able orebodies, exposed on two or
more sides. Ore SO developed is
estimated as follows:
Milling Ore $500. 1875, 00U Tons
Shipping Ore - 1000 Tons
Total ....... 10000 Tons
The average grade of this ore is
approximately the same as OF that
mined during the past nine months.
In addition to this measurable tom
mage, ONE ore has been exposed on
one side only, by drifts and cross
cuts, and while these exposures GER
tainly meal a material addition,
which should be classed as ore part
curately estimate it's extent would
be futile at this time. While no es-
innate of developed ore was made
at the beginning of the year, it is
believed from an inspection made
shortly after that date, that the
measurable ore reserves are larger
at the end of the year than at it's be-
ginning.
Naturally this condition reduces
the area of unexplored territory
within which it is possible to find
new orebodies. In the upper levels
of the mines, from which milling
ore is produced, a great deal of
family prospective territory has
been eliminated by the explorations
of the past year, and the develop
ment work, which has proved most
productive during this period has
been that of cutting into still smaller
blocks the larger sections of ground
within the known ore bearing ter
ritory. This policy will be continued.
In the lower levels, shipping ore.
only, is found; and our own expert
ence, as we'll as that of some of our
neighbors, teaches us that our posi-
bilities in that direction are by no
mean exhausted, but development
there, on account of heat and water
and the large territory to be covered,
is necessarily slow.
Large bodies OF low grade ore
have frequently been referred to in
previous reports, and, while it is
true that We are now mining the
ere as it comes, so long as each ore
body mined yields. as d whole, a
margin of profit; it is also true that
the mines contain large masses OF
rock, the gross contents of which,
per ton, are far below our present
uorkiup costs nor ton E~xnprimpntS