The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1915-08-14
Buying and Selling of Ores

federal bureau of mines. Charles ii. Fulton. the author,
says:
The buying and selling of ores and metallurgical
products is a great and highly important business in the
United States, and one that concerns not only the miner
and the metallurgist but the industrial world in general.
In this paper the attempt is made to outline clearly its
underlying principles, the subject matter being based on
personal experience and investigation. The author has
endeavored to present the material impartially, and for
that reason many of the statements and figures regarding
metallurg1cal practice should be taken as illustrative rath-
er than as applying exactly to average operating condi-
tons. Moreover, the statements as to metal prices and
trade methods are to be considered as applying to normal
business, not to special conditions that have developed as
a result of the war in Europe. AS regards the style, tech
ncal words and phrases have been avoided as much as
possible in order to make the paper easily understood by
anyone who might be interested.
In estimating the value of an ore or an intermediate
inetanurgical product (other than a refined metaD the
basis used is the price of the refined metal at some prin-
cipal market center, such as New York, at the time the
valuation is made. The average price of all copper for
1913 was 1876 cents per pound, and for electrolytic copper
1900 cents per pound. The prices for other metals tor
The year 1914 were as follows:
Lead, 1862 cents per pound; spelter, 5.2I3 cents per
pound; silver, 548II cents per troy ounce. Gold has the
standard value, established by law, of $2o67 per troy
ounce.
If the metal contents, in pounds for the base metals
and in troy ounces for the precious metals, per a%voirdupois
ton be multiplied by the prevailing price of the refined
metals, the sum of the products will be the gross value of
the ore.
There is, however, a wide difference between the gross
and the net value of a ton of ore. From the gross value
must be deducted, first, the total cost of mining the ore,
dNu luCA lHC tOldl COol u CHdI e ~ dtAHC Will III
Guides some or all of the following items: Freight to
treatment plant, milling or smelling charge, charge to
compensate for losses of metal in treatment, charge for
penalties imposed on undesirable constituents IN the ore,
charge for freight to refining center, charge for refining
the metal, charge to cover the selling costs of the refined
metal. Which of these charges are imposed and what the
amount of each charge is depend ON the ore, the method
OF treatment and the number of firms that handle the ore
and metals in the process from ore to refined metal.
The types Of companies that handle ores and metal
lurgical products may be classified as follows:
l. Mining and smelling companies or mining and
milling companies, which control all the operations from
the mining of the ore to the production and selling of the
finished metal.
?. Mining companies, which mine and sell ore on
certain schedules to smelling and mining companies.
3. Custom smelters or mills which purchase ores and
also operate refineries and produce refined metals or sell
intermediate metallurgical products to refineries.
Concerns OF type 3 may control mines that furnish d
part of their ore supply.
4 Refining companies, which purchase metallurgical
products, such as matte, and crude metals, and some ores,
and produce refined metals.
$ Selling agencies, which place the refined metals on
the market. +.
1t is apparent that an ore or the products derived from
it may go through many hands before the finished metal
reaches the market, and that metalurgical business may be
complex. In this report the essentials of the commercial
side of metalurgical work are discussed in some detail.
Denver Mining Record: There is every indication
that Willard, one of Nevada's latest mining camps, is on
the map 20 stay. Since its first strike a few months ago,
development work has been steadily going forward and
prospectors have uncovered some promising ore
veins Ihe whole district gives evidence of being highly
mineralized with ore that persists and in many cases grows
better with depth. Late advices state that certain capital
lists are seriously contemplating the erection of a custom
mill at the camp, as there is enough ore in sight in the sur
rounding properties to keep it busy right along. The in
vestment OF funds in a project of this kind would clearly
prove that the promoters have absolute faith in the future
OF the new producing center. They have investigated
conditions at the camp and have had the privilege of see
ing Tor themselves what the various mines are doing
Their conclusions, therefore, are most gratifying and lead
to the hope that, with the passing of a few years, Willard
Will occupy a proud position among the famous big camps
o. n country. Ie1dV1IIe (r1nn1a Crao1