New-York tribune., 1917-12-25
Cobalt Producers
Await Fixing OF
Price for Silver
Mining Camps in Northern
Ontario Show Increased
Activity
ISpeciaL Correspondence

Especial COTTeSp0HdeHCel
TORONTO, Dec. 2i.-Producing Co
bait mining companies have been wait
ing for some definite decision to be ar
rived at concerning the fixing oil the
price Of silver metal. A study OF the
silver market has persuaded the on
tario mining men that the price basis
when settled on will be materially
higher than the level ruling at the
present time. One indication Of this
is the fact that during the past month
SHIPMENTS of ore from the Cobalt camp
have fallen off materially, while ac-
nal development is actively going for
ward
With the silver supply from Mexico
cut off Tor the time being and the
absolute necessity of having increased
amounts of silver metal TO supplement
the gold holdings Of the warning ma
tions, Cobalt producers are convinced
that the price of silver at anything
like Sc cents per ounce is imprac-
ticable, especially when operating
costs of mining companies have been
mounting. The fact that the British
and United States governments are
planning to purchase in cooperation
100 1000 900 ounces of silver during 1918
in face of an admitted world shortage
seems TO substantiate their argument.
Output Holds Up Well
Cobalt will play an important part
in supplying the silver requirements
Of the Allied nations. II was taken for
granted some time ago that the CO.
bait camp had passed its zenith as a
producer. Comparative production fig
ures seemed to give a basis for this
belief. In the year 1911 the output OF
the camp was 1907 900 ounces, which
was a high record, and since that time
the production has gradually declined
until the total in 1916 was 20,000,00O
ounces. In spite of the fact that OPP
erations were seriously hampered this
year as a result of shortage of eff
cient labor at the mines, the production
of 1917 will be about equal to last
year. Cobalt's output during the first
nine months of the current year
amounted to 15,236,000 ounces, as
against 16,2O3,OOO ounces during the
corresponding period year ago. Pro-
duction during the first six weeks Of
the final quarter was exceptionally
heavy. and diminished only when the
price of the precious metal broke be-
low 90 cents.
Cobalt mines have been prospering
as result Of the relatively high prices
ruling for silver metal this year. In
spite Of the decrease in production
during the first nine months of 1917,
amounting to 9G7, 900 ounces. the value
Of the output was 512,00l 900. or S2.-
25l 900 more than in 1916. The total
value for the calendar year will be,
with one or .wo exceptions, the high
est in the history of the camp.
To Work Low Grade Ores
In spite of the decline of some Cobalt
companies. the camp (Which has given
to the world no less than 274,000000
ounces OF silver since its discovery in
1903. valued at Sl52 100000, some $751;
100000 Of which was distributed in
dividends) is by no means near the
end of its productice days. Hitherto
the methods utilized at Cobalt have
permitted the production of silver
from only comparatively high-grade
ores. The result is that large ore
bodies have been left in the dumps
and in the walls of the underground
workings. The new oil-hotation proc
ess has rendered not only these ores
but the accumulation of shines from
the operations Of thirteen years avail
able for further treatment. The shines.
or mill-offal alone, contain something
like 20,O00,000 ounces of silver. AL
ready eight Cobalt companies have
installed oil-hotation plants and others
are planning to follow suit.
Many of the old companies of Cobalt
have large ore reserves left. The Nip
issing. for instance, has ore contain
ing over 100000 ounces of silver in
reserve. The Mckinley DGrragh- Saw
age mine has located between 250
and 45O foot levels of their property