The Pioche record. [volume] (Pioche, Nev.) 1908-1925, 1920-10-22
INTERESTING REPORT
On BLACK METAL


During the frst six months. opera
tions were carried on to q very great
owing to Inadequate ma
chinsry. resulting In considerable loss
OF time and great expense to the comp
any During this period IL was very
dimcuit to get such machinery as wa
needed: however the equipment has
been gradually improved until ut the
present time two complete units are
installed. either OF which has the cap
acity necessary to furnish sufilcient
power and air for the mine operations.
The cost Of this extara equipment In
approximately $4,000.
The mine proper has been put In
good physical condition. Hundreds of
feet of pipe and rails were Installed
along with new ladderways and thu
chutes
More commercial ore Ii exposed nj
the present time than when operations
began. The mine has been opened from
surface to the 800 level. and for ap-
proximatsly TOO feet on the dip of the
holdings on the 325-foot level Tn
connection with the last named level.
It should be noted that. In addition to
the average grade ore taken from here.
ifty four tons Of high-grade ore was
shipped that sho wed returns to your
company Of S17.0O0. This ore occurred
in pocket In the low grade. condi-
tion warrant the management In ex-
pecting more OF It.
Considering the large amount Of ore
shipped. II would seem reasonable
profit should have been realised ms
tead Of q loss. To those familiar with
conditions In connection with the op-
Grafton Of mine during the past year
little explanation Ii necessary. ~ they
fully appreciate the difficulties the ma
nagsment Of mining companies have
hod to contend with. Mining . low
grade ore body. similar to yours. II .
matter Of manufacturing A survey o.
mines that are paying dividends show
Of them to be In this class.and that the
net profit per ton 10 small Overhead
In fixed In an operation OF this kind
railroad tieups. car shortages. ineh-
cient labor and inability to get sum
| cient men to work at over half capac-
lty. are the principal items that wiped
out the profit Of your company. ir
one instance alone. railroad della,
4 cost your company over 100000
The present mining cost Is arount
IS per ton. This cost should be and
can be. with . reasonable amount o
development. reduced to $3.50. Dur
ing the past thirty days we have no
ticed material change OF condition
In our favor. and we are looking for
ward with a great deal of confidence
that the next year will be profitabi
one for your company. At meetinl
Of the board of directors held May 2s
1t was recommended that the capita
stock Of the Black Metal mines incor
porated, be increased to $l.s90.000 wit
same par vilue. thus increasing the ca
pital 100000 or 10000 shares Of tn
stock. To carry this into effect q spe
cial meeting or the stockholders wa
called to met June I, 1920. This meet
Ing was attended by large majorit
Of the outstanding stockholders an
, the recommendation of the board wa
, put into effect.
, The condition Of the stock marke
instead of improving as was confdentl
, expected. gradually got worse. unit
II reached a point where It was pra,
ically impossible to sell any treasur
stock at a price the company deeme
even fair sacrifice: consequent
I none of the stock has been sold TT
only other present means to secure II
money to pay the obligations of Il
company Is by assessing the stock.
- Accordingly the board met on Oct
ber IL. 1920. and after careful cons
:, deration. decided to levy an asses
ment Of two cents per share upon Il
4. outstanding capital stock. The obi
I, cations Of the company are about q
. 10000. An auditor Is now working
the company's books and financi
= statement Of the company will be fu
nished to stockholders as soon as 4
+. audit Is completed.
1t might be of interest to you to he
that the Bristol Silver Mines Compan
owning property adjoining the Bla
. Metal has taken over cOnsideraf
. amount of Black Metal stock. Lat
an agreement may be made to contin
. a drift on the 900 foot level Of your pr
perty through to their ground. anne
,s ing much deeper than their pree
). working, and bring them direct to I
railroad on the Black Metal side.
= The prosecution of this work will
VelOp COuot0cidUtC ouiVaHt ~
Black Metal ground and no doubt q
en- up valuable ore bdies such as M
!, being mined by the Bristol Silver \
!, mes Company
Fluxing ore produced and SHIPPED
:, the Black Metal Mines company. whi
. is operating its property situated ne
:. Phoebe. has totaled since April. l!
1862 tons. with a total net smell
value of S1l1.074.1s according to q
port issued by the board Of directo
- That part Of the report which treats
mine conditions reads as fillows:
:. 1.-THE production from the mine
been 1902 tons OF flux ore with
total net smelter value of @l1l.07A
1e FOR SALE-Two frame houses
ell Delmar. Nevada. II you are interes
p address p. O. Box i0i. Phoebe
., Lost on Monday evening a pair
q, mems brown gloves Thought to
:, lost at movies. Win Finder please
turn to the Record office. as they
valued as gift?
:. William s. Haufler expects 10 70
"A Salt Lake next week where he will
main for few days and will undel
. slight operation to one Of his ja
ar Bill assures his many friends that
o. operation In question is not serious
G that h0 ,vtV1 onrra honA h~A>>r :.