The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1923-04-05
.REPORTOF CALLAHAN
FOR THE PAST YEAR
ADD TO ORE RESERVES
Conditions Galena and Plans
for Speeding Up Develop
ment of the Property
ADD TO ORE RESERVES

e TINE REPORT of the Callahan
e Hnc-Lead company for the
year ending December 81. 1922.
which incmdes a review of op-
erations during the year by John
Borg president; report on properties
by c. W. Newton, general manager:
and financial report by ii. T. McAlee-
/ kin, treasurer As a center piece the
report has twO-page view of the
surface plant and buildings at the
Callahan mine. The first ten months
OF the year operations were confined
mainly to Development Actual ship
ments were resumed on November Is
and from that time to the close of the
year 272S tons of zinc concentrates
and 1856 tons of lead were shipped.
The ratio OF concentration was 4.76
tons to one as compared with 3.24
tons in 1920. Zinc recovery declined
from S4.44 per cent to 1892 per cent
which is explained by shortage of
water during the winter months
President Borg states that an extern
sive plan Of exploration and develop
ment is planned for 1928, which is
expected to make important additions
to ore reserves. President Borg re-
fers to the acquisition of the Galena
Mining company, of which he says:
Increase Earning Power.
Commercial ore has been develop
ed on five levels, and plans have been
made to prosecute comprehensive
program Tor the rapid development of
the Galena properties, in order to
place them on productive and earn
ing basis as soon as is consistent
with sound mining practice. Your
management is of the opinion that
the newly acquired Galena properties
will be a material factor in the future
earning power of your company
New Sales Contracts.
Prior to the resumption of ship
ments in November, your manage
ment closed a new contract with the
American Smelling & Refining COM
pany under the terms of which that
company viii purchase our entire out
put OF lead-silver concentrates for u
period of five years from November
Is, 1922. A material saving has been
established over our former contract
A new contract with the Grasselli
Chemical company for the purchase
of our entire output of zinc concen-
trates for a two-year period was also
consummated during the period.
Freight Rates.
"A factor of considerable import
ance III the future operations OF your
company is the reduction in freight
rates from far western points Freight
costs on our zinc output have been
reduced from $3.50 to $3.50 per ton
Under the terms of our new lead con-
tract with the American Smelling &
Refining company our lead product is
now shipped to East Helena. Mon
tana, which point takes an everage
freight rate Of about 81 per ton as
against a minimum rate of about S13
per ton when our product was deliv-
cradle at Pueblo, Colo, under the
terms of our previous contract.
Metal Markets.
The past year has witnessed re-
markable improvement in metal mar
ket conditions As forecast in our
last annual report, there has been
progressive expansion in the demand
for zinc and lead, with the result that
surplus stocks of these metals in the
hands of refineries and smelters are
now at the lowest point in years. This
has caused a corresponding advance
in the market price for these metals,
with the result that zinc has advanc-
ed from a low of 4.2 in 1921 to a pres
ent level of rs cents per pound. Dur
ing the same period the price of lead
has advanced from a low of 4.6 to q
present level of So cents per pound.
Price levels are now at the highest
point in three years. and authorities
in the non ferrous metal industry are
of the opinion that these prices will
be maintained during the current
year.
Financial.
There has been material i'm
provement in the financial position of
your company during the year. Cur
rent assets are now s1.175,O73.S3 as
against total current liabilities of S76,-
114.95, which represents a ratio of Is
to /. Your company has no funded
Indebtedness, and has net current as
sets amounting to $1,O9S95sSS."
Managers Report.
c. w. Newton. general manager Of
the Callahan mine, gives in consider
able detail the development work ac-
complished. and states that in No
vember and December the mill han
died approximately 600 tons Of ore
day. the mill feed averaging about
6h per cent lead and 101s per cent