From product 1,430 tons base bullion at refining-works, Newark, New 504,800 00 1,126,158 89 For books and stationery... 291 75 For express charges, revenue-stamps, newspapers, franks, &c. For traveling expenses superintendent.. 1,411 41 143 50 411, 479 47 For San Francisco office-counter, desk, safe, carpets, &c.. 540 00 802 37 1,342 37 Receipts and disbursements from July 7, 1870, to September 30, 1871. Receipts: For sales of material.. For exchange on coin-drafts.. For proceeds of 2,038 tons of bullion refined For value of 1,420 tons of bullion at works, Newark, and en route $159 60 1,923 62 619,275 67 504, 800.00 1, 126, 158 89 $45, 222 42 107,512 19 411, 479 47 19, 669 94 10,885 89 1,342 37 Expense of extracting and hauling to furnaces 18,847 tons of ore is.. $107,512 19 3,100 00 104, 412 19 Eighteen thousand eight hundred and twenty-five tons of ore reduced, produce 3,468 tons of base bullion, or 5.75 tons of ore produce 1 ton of bullion, at a cost of $135.70. W. W. TRAYLOR, Secretary. Later in the year, and during the first months of 1872, the company discovered extraordinarily large and valuable bodies of ore in the Lawton tunnel. My correspondent writes in regard to these in March: "I have just visited the stopes connected with the Lawton tunnel, and am now fully convinced that the new discoveries are indeed immensely valuable and extensive, though they hardly come up to the extravagant estimate made by the local newspaper."* Ruby Hill is a spur of the Diamond Range. Its general trend is north-northwest to south-southeast. The old openings of the Eureka Consolidated, as well as those of the Richmond and Tip-Top, are on the western, the new ones on the eastern slope. The strike of the ore-body is nearly east and west, and its dip about 45 degrees to the northeast. For this reason ore was first discovered on the western slope of the hill, * The estimate referred to was, I think, something like $20,000,000 worth of ore in sight. H. Ex. 211—12 where the vein crops out. The main or Lawton tunnel, the mouth of which is toward the town, (on eastern slope of hill,) is now in over 600 feet, and passes 120 feet to the north of the Keyes shaft, between it and the Windsail shaft. At its end it is in ore. The first ore was met with about 300 feet from the mouth of the tunnel in the K K claim. The shafts mentioned above are connected by galleries, and from the main tunnel runs a short side tunnel into the Sentinel grounds. The main object of the tunnel is, therefore, to transport through it all the ores from the works connected with the two shafts named and from the Sentinel claim. From the mouth of the tunnel the ore is to be transported by means of a narrow-gauge railroad, which is to run along the Jackson grade to the smelting-works. On the back trip the trains are to bring water and supplies to the mines, where the erection of powerful hoistingworks is contemplated as soon as stopes are opened below the level of the tunnel. The Keyes shaft is now 175 feet deep, and serves as the main hoistingshaft for the old works. These are to the largest extent in a broken quartzite which crops out below the Nugget and Savage, on the western slope of the hill, and, to judge from its dip, can only be reached at greater depth on the eastern slope. The so-called cap-rock of the orebed is limestone. The ore-body itself, though it exhibits a certain regularity, is neither a cross-vein nor a contact-vein, and I cannot give it any better name than that of ore-bed or zone. Horses of a broken limestone, with every stratification, are frequently met with; also cavities. with splendid druses of wulfenite, (molybdate of lead,) calespar, arago nite, quartz, and, lately, malachite and azurite. The approach to the vein-matter is first distinguished by a yellow color of the first dense, afterwards broken limestone, next by a stronger impregnation of pulverulent brown and yellow iron-ore and stripes of the first. Finally, the ore-body proper, brown iron-ore, with impregnations and bands of mimetite, carbonate of lead, massicot, or lead-ocher, &c., is reached. While on the western slope, besides the yellow mimetite, (Buckeye,) large masses of solid carbonate of lead, with the so-called "black carbonate" (which is probably a new mineral) and little galena, (Champion,) were found. The ores encountered on the eastern slope in the ironstained masses, which are poorer in lead, are principally highly argentiferous galena and "black carbonate” in lumps and nests of often over a hundred-weight.* For this reason there is now much more base bullion produced than formerly. Seven tons of ore produce now one ton of lead, while formerly it required 10 to 12 tons. The Marcellina, belonging to another company, has only spurs from the ore-body of the Sentinel. Opposite the Marcellina, and divided from it by the gulch, is the Carson mine, and adjacent to this are the mines of the Phenix and Jackson Companies. The latter has been prospecting since February, 1871, but has so far found no ore. The K K has large masses of ore in sight, galena and "black carbonate." It is expected that this claim will consolidate with the Carson and other mines, and, with the furnaces of the Buttercup Company, will be soon thrown into one company, to be incorporated in San Francisco. The time for redemption of its property, accorded to the Buttercup Company, is drawing to a close. The Eureka Consolidated intends to tear down during the next summer the two remnants of former times, furnace No. 1, (built under Buel,) and No. 3, (built by Liebenau,) and to * The "black carbonate " above referred to is no carbonate at all, but more probably boulangerite, or a new mineral analogous in composition and origin to stetefeldtite. I have seen no analysis as yet. replace them by two new and larger furnaces, so that the capacity of the smelting-works will then be 200 tons per day. No. 2 was built in December, after the pattern of the new ones, (see article on "Metallurgy" in this report,) but has square corners, and is a little smaller. It has four tuyeres, of 3 inches mouth, works very well, and smelts 30 tons per day. At the Richmond smelting-works they are still building energetically. These works will undoubtedly be the best and most perfect in the State, but it remains to be seen by the results of the future whether these very large expenditures are justified. The Phenix smelting-works, with their two furnaces, are still idle, because the machinery for the hoisting-works of the Adams and Farron mines has not yet arrived, and the mines can therefore not be worked. At the 15-stamp Lemon Mill (formerly the Metropolitan of Shermantown) Mr. John Howell is now putting up a White's cylinder roastingfurnace, and it is expected that the mill will soon be in working order. Besides the Adams Hill Company there is now another company located on Adams Hill. This is the Star Consolidated, a San Francisco corporation, which has bought several mines on the quartz belt of that hill. They have beautiful horn-silver ores, but as to the quantity I am not informed. All the signs point to an enormous industrial increase during the coming year, especially if capitalists should take up the Prospect Hill mines. The Richmond property has been transferred to English hands during the year, and the new company is still building on it very extensive smelting-works. The product of this property during the year appears in the appended statement of the product of the district. The monthly product of the Eureka Consolidated Company during the year ending December 31, 1871, was as follows: The average contents in gold and silver for the whole yearly product may be safely set down as $250 per ton. Adding $100 per ton for the lead, we have a gross value of $1,110,314.10. Until the end of May only the three smallest furnaces were alternately running, (two running at a time, while one was being repaired.) Since then four have been working at a time, while one was standing idle. In January, 1872, the consumption of the Eureka Consolidated smeltingworks, with four furnaces running, was 142 tons of ore and 4,000 bushels of coal per day. The production was about 15 tons of base bullion, |