The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1916-07-20
THE PRICE Of ZINC AND ITS EFFECT ON
MINES Of THE COEUR D'ALENE DISTRICT
INTERSTATE CALLAHAN COULD EARN A WITH
sPELTER BELOW cENTs-NEW DEMANDS FOR THE
WILL HELP MAINTAIN THE PRICE.

The drop in the price of spelter that
has been a feature of the metal mar
ket during the past few weeks has
created much discussion as to its
probable effect upon zinc mining in
the Coeur d'Alene district. The best
authorities on the subject seem to be
of the opinion that spelter will not
again go above 10 cents and probably
not that high; at the same time they
are equally confident that it will not
decline to the low level that prevail
ed before the war; This opinion is
justified by several circumstances that
have a direct bearing on the con-
sumption of zinc. outside the war
demand the last few years have wit
messed a large increase in the use Of
zinc for galvapizing and in the man
ufacture of paints, and new uses are
being found that will materially in
crease the consumption. After the
war is ever it is probable that the
countries of Europe will for several
years have to look to this country for
pari of their zine supply for 1t is
hardly to be expected THAI the zinc
mining and smer.ng industry Of Bel
gium ard Germany can be sufficient
" lestC red to meet the requirements
of rehuiif'rg. Another 70 3tar tia.
promises to play an important part n
maintaining the market for spelter is
the preparedness program which has
been adopted by the government. Just
how much zinc is consumed in the
construction of war ships is not
known, but aside from that, prepar-
edness means the manufacture of
vast reserve of shells for all kinds of
guns, and this will consume an enor-
nous amount of zinc. Under the cir
eumstances the outlook for zinc is not
bad. The unheard of prices created
by the war will never come again, but
all indications point to the mainten
ance of a steady price that will main
tain Coeur d'Alene mines on highly
profitable basis and encourage the de-
yelopment of new properties.
Interstate Callahan.
The large earning of the Interstate
Callahan mine and its rapid advance
ment in q brief period from a prospect
to the third place among the zinc pro-
ducers of the United States naturally
lend interest to the effect of lower
prices upon its earnings. According to
an estimate given below based upon
average prices Of zinc and lead for
ten years preceding the European war,
the big Interstate Callahan mine
could show net earnings of over ST.
100000 per year if those prices were
now restored. While a return to those
prices is not anticipated, the figures
are highly reassuring and indicate that
Coeur d'Alene zinc miners have moth
ing to fear in the return to normal
prices. The statement regarding the
Interstate Callahan is taken from
Skillings Mining Review, of Duluth,
and it is assumed that the informa-
ton comes from an official source:
"Ore reserves in Interstate Callahan
mine are substantially the same now
as a year ago, which is a good show
ing. in the face of high pitch of pro-
duction for the past IS months. The
ore reserves are estimated at $4,000
tons, averaging 25 per cent zinc. Plans
are being perfected for the installation
nP n1o a tbn mill and
it is estimated that it will add 400 tons
per month to the production of con-
centrates. Plans for the construction
of a new mill upon a site which has
already been acquired are being pre-
pared The site is at Enavile, Idaho
A reserve fund of 100000 to defray
the cost of the mill has been created.
Looking ahead to the time that
prices of zinc and lead will arrive at
what may be considered normal levels
it will be of interest to consider In
terstate Callahan conservatively.
"The average price of zinc for the
ten years Immediately prior to the
European war, viz, 1904 to 1914, was
56775 cents. The average price of
lead during the same period was A.
54S cents and of silver, 1854 cents
per ounce. The company has con-
tract for the sale of its entire output
OF zinc crude ores and concentrates
for a period of ten years, beginning
September 22, and contract for
it's entire output of lead crude and
concentrates for period Of five years,
from September /, 1916. At the terms
of those contracts and at the average
normal prices of metals above stated,