Arizona republican., 1917-08-27

I communication sent by him recently to the Magnate office in the east He says in part:
 ''The first hole drilled on Magnate ground has verified the opinion ex- pressed by me, that surface conditions clearly indicate the existence of body of ore in several of the claims similar fin character and copper content to that of the well known porphyry cop per mines of this country.
 "The drill reached the sulphide ma terial at water level eight feet below the surface This material carries low copper values, which increased gradu- ally with depth until at 160 feet down, five feet of six per cent copper ore is shown by the assay returns Of the drll-h sample. Sixty feet of this class of ore averaging POS per cent copper or nearly AZ pounds of copper 1 per ton, was cut before the underlying primary material below the secondar- | ily enriched zone was reached.
 "The presence of this two per cent i ore in one hole is good proof that i deposit of porphyry copper ore exists i but it does not enable an engineer to estimate tonnage of ore develoed. This must be based on three or more holes, since only the ore between the holes can be considered as developed.
 'The second hole, now being drilled.
 which is 55 feet deep today is going
 down at the rate of twenty feet each day. and the fragments from the drlli hole already show sulphides indicating
 a probable greater thickness of ore than in the first hole.
 Experience at Miami, Ray, Chino
 and other mines has shown that de-
 posits of this class are generally ex-
 tensive and cover a number of acres
 alx m
 drilling to actually determine the acre
 age underlaid by ore and its copper
 content and of course the total ton .
 mage. Such work eliminates the usual mining chance quite as SATISFACTORILY
 as if the mine carried coal.
 'The grade of ore averaging two per !. cent copper is fully up to that or Kay and other producing mines, ana much
 exceeds the new properties under ue =
 velonment in South America and in other places where the ore averages
 less than one per cent or twenty
 nounds of copper per ton, and can pc nrofitably mined by underground work
 even with 15 cent copper
 cc-eolid>-ed Arizona Srrelfina
 Within a few months it is thought
 that the shares of thlS company "h'
 he mt on a dividend basis of at lea s' [ \ as the present rate of disbursement Y Three new coasters at the company smelter will be in operation Within r few months. and the additional earn ! ings looked for there will be from $3o, . coo 10 sSO.OO0 a month. Figuring on f this basis. and with copper at 70 cents ' a pound or better. as it is expected lo he the earnings would be in excess ol , s2 900 900 annually. which would pt ' inst grounds for considering eo cehlS share dividends very conservative,
 Even at present, the company coul1 I afford higher dividends, it was salu T Cor with S1 1,SOO, 900 in the treasury, ana e only sSOO.OOO against this to meet tne
 contract in building the new roasteis ss, , T there would he $1,000.000 avallapie to, M h dividends This would be ample io' 0 the proposed rate of disbursement. e The policy of the present manase .al roent in smeIting custom ore. lhstea' f of giving fuller attention to the con 0 nany's1own mining and the sineit1.at pa : pf it's own ore. is to be changed. ne o, : edinstments ar of costs will he maae oi O 2 better financial basis by the ne" Ill C terestS.