The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1921-04-07
CALLAHAN COMPANY
OPERATIONS IN 1920



creased from % per cent of the tota
in 1919 to about 80 per cent of oui
total shipments in 1920 The higher
zinc recovery obtained from our ores
is evidenced by the fact that the me-
tallic content of our zinc product has
increased from As per cent TO SO pei
cent during the past year which is
an additional saving of 100 pounds
per ton of concentrates shipped.
Having established this addition
al recovery in our zinc product, we
are of the further opinion that a few
slight changes to our flotation plant
viii result in a similar increased re-
covery of our lead content. and be-
fore production is resumed several
new notation machines will be add
cd to this department of our reduc-
ton plant, to secure the desired re-
suits.
Underground Development.
THE scarcity of mine labor, coupled
with a high wage scale and low eff
cheney during the past year and the
necessity of using all available men
To- mine ore in the Slopes. made it
inadvisable to attempt extensive new
development work during the period.
However the main shaft was CON
tinued to the No 10 level and the
crosscut driven on this level to cut
the vein. which was found to be more
promising on this level than on the
preceding one The work of drifting
on this vein is now in progress. and
to date the drift has been extended
for a length of 100 feet in good zinc
lead ore. averaging about 4 feet i'm
width AS soon as the drifts. both
east and west are completed. raises
will be driven through the ore to the
No. Q level above. and the main shaft
will be sunk another 200 feet to the
o. II level below
1.-THE work of developing the ore
body on the 400 level in the Chicago |
Boston property is proceeding rapid
W. under the direction of our general
manager.
New Properties.
During the past year our com |
pany has consummated the purchase |
of controlling interest (51 per cent? /
pany. and also a controlling interest
$50 per cent? i'm the Kilbuck Mining
Company Limited, both of which are
lead silver properties the former
owning approximately $50 acres and
the latter about 100 acres. located
about two miles from Wallace, in the
Occur d'Alene mining district Idaho.
The future possibilities of these new
acquisitions are large and the ore
bodies contained therein are more
fully described under their proper
heads in the accompanying report by
our general manager under whose
supervision the present campaign of
development at depth is being prose-
cuted.
Metal Markets.
During the first half of 1920 high
prices for zinc and lead prevailed.
with good earnings for all the zinc
lead producers During the last half
Of the year however the opposite
condition obtained with the result
that most of the mines of the cOun-
try were forced to either curtail OPP
eiations or to suspend production en-
tirely
1.-THE principal cause for the decline
in zinc-lead prices was the importa {
ton of these metals from foreign q
countries Foreign producers of these
metals with their lower wage scale, S
with the fact that the recent
world war has resulted in the demon e
aIization of rates of foreign exchange Il
have been able to ship their product v
to this country at prices considerably
below domestic production costs. AS @
an example, German producer can J
ship through Belgium 70 this coun- i
try and sell zinc at, or slightly below u
his cost of production. and receive
payment in American dollars for his
He can then take his g
American dollars and buy German 2
marks in New York at less than 10
per cent of their normal pre-war
value and thereby make a profit by o
reason of the present favorable rates Il
Of exchange. As a result of this con- t'
dition. 95 per cent of the zinc prOduc-
ers of this country recently appeared o
before the house committee on ways n
and means in an effort to secure an "
advance in the existing protective lt
tariff on zinc, from 10 per cent ad le
valorem to > cents per pound. At the t.
present selling prices for the metal 81
the old rate is equivalent to only one O.
half cent per pound. and it is there n
fore evident that the higher rate ask
ed for is necessary in order to enable ii
American producers to compete with Il
foreign shippers until such time as "a
The present low rate of exchange ap- cl
a condition more nearly OF
normal q
Favorable Factors. "
Another factor which should re- 81
suit in higher prices of zinc and lead ~
turing the coming year is the proba- te
,ility of the resumption of building
md housing construction on a large N