Year: 1879

not yet reached hanging wall; average value of ore exposed at this point $50 per ton.

 Crescent No. s has just been started on the cropping of the. vein at a point 200 feet east of No. '. At present exposed two feet of very rich

 ore, showing chloride of silver visible to the eye. This two feet of ore aver ages $l66 per ton, and it is probable that we shall develope a much greater width of ore as we continue crOss-cut- ting. Both these veins (the front and back will be cut at a depth of lS5

 feet vertical by the tunnel which we are now driving north from the south side of Hermosa hill. This tunnel in run of 750 feet will cut through the entire east end of the hill and will give Us perfect air connection and very ma terially reduce the expenses of mining and open up vast amount of profit able ore. From the very abundant float ore which exists on the south side of the hill l consider it highly prob able that this tunnel will cut a third and parallel vein of ore. On the front vein the length of ore chute now open ed at surface is about 600 feet: on the back vein about 400 feet. From this

 point west for a considerable distance mo effort has yet been made to explore the ground, but on the Salvador claim, fourteen hundred feet west, the outcrOp is very bold, the ore identical in its characteristics with the Harshaw and existing in large quantities. Exposed by two shafts and long cross-cut. This gives the ore bearing ground that much additional length, and renders it al- most certain that with more leisure for prospecting this interesting ground other ore exposures will be made. The cost of mining, milling and transportation on the medium grade ore, 1 estimate at S15 per ton of 2000 pounds. On the high grade ore the expenses may be put at S20 on ac- count of the greater care and time required in milling. While the mine is essentially high grade mine, such bodies of medium ore as have been exposed in Nos. and ' will yield al very considerable additional profit. In point of fact, even $50 ore in this district will be both valuable and profitable. All the ores exposed are, free milling, and easily crushed wet, Ia good 2O-stamp, wet, mill will easily handle 2,000 tons per month. Al though time has not yet permitted, a thorough exploration of the Sal yadOr 1 consider it a very valuable property, the assay value of the diff ferent ore exposures already made are Sl34, STA, s39, SGT and S73 per ton. The other mines belonging to the group have been little prOspected and are so far without especial merit, ex- cepting the Scotia. This claim, which is the Eastern Extension of the Her mesa, and SO far shows only low grade ore, 1 consider a mine of consider able prospective value and worthy of vigorous development.

 W ood of the best quality (OaE, jun iper, and pinon) is extremely abun- dant and accessible. Our millSite .(3{ of a mile down grade from the mines) carries sufficient water for a 20stamp mill Heavy timber within eighteen miles of the mines When l first took charge of the property there was only one opening made in ore During the seventy-five days GOV ering the working bond and under the instructions received to crowd the work of exploration have worked every man OOtainable and the result has been to expose an amount of ore far in excess of what any one was justified in expecting from the modest surface showing, and in a very short time to enormously increase the value of the property"

 Accompanying the report is a long list of assays, representing the value of ore from the different faces, and dumps of each cut. Assays of single pieces or specimens are not reported. In every case the assays given are of large average working samples. The San Francisco owners have ad vanced the ideas of the value of the property in response to the develop ments made, and the stock is now closely held and at high figures.