F 845 BIG SMOKY SILVER MINING CO. BANCiOFT LilRAHY University of California • Berkeley Digitized by the Internet Archive in 2007 with funding from IVIicrosoft Corporation http://www.archive.org/details/bigsmokysilvermiOObigsrich ^^: BIG SMOKY ilver pittitt^ 0j0mpttjj, JNTKATA.!)^. (M JERSEY CITY: PRINTED BY JOHN H. LYON. 1866. \i •^ -^KT ^^i %^ BIG SMOKY NEVA.!)^. JERSEY CITY: PRINTED BY JOHN H. LYON 1866. BIG SMOKY 2^^, SILVER MINING COMPANY, Capital Stock, . • . . $600,000, DIVIDED INTO 20,000 SHARERS, $30 EACH. WORKIIVO CAPITAL., #160,000. SMOKY YALLEY MINING DISTEIOT, LANDER COUNTY, NEVADA. DSTo. 71 Broad^svay, Ne^vs^ York City. OFFICERS : MOSES CHAMBERLAIN, President. ADON SMITH, Jr., Yice President. WM. H. DUDLEY, Secretary. JOSEPH B. HOYT, Treasurer. H. W. JOHNSON, Attorney. TRUSTEES : MOSES CHAMBERLIN, Ill West Foett second St. ADON SMITH, Jr., ... - 10 South St. WM. H. DUDLEY, 71 Broadway. JOSEPH B. HOYT, Hott Bros., 28 Spruce St. H. W. JOHNSON, 37 Wall St. A. W. BUDLONG, West Twentysecond St., N. R. JAMES GOPSILL, 1 ExcnANQE Place, Jersey City. v^iA)iuij ^1 -■\o)\'ovi(\^^ -iri BIG SMOKY SILYER MINING COMPANY. ^> ♦ •^ ORGANIZATION. This Company was organized under the general in- corporating laws of the State of New York, in accor- dance with the provisions of the Act, entitled "An act to authorize the formation of corporations for Man- ufacturing, Mining, Mechanical, or Chemical purposes," passed February fth, 1848, with a full paid Capital Stock of $600,000, divided into 20,000 shares of $30 each, for the purpose of carrying on the business of Silver Mining in the State of Nevada. PROPERTY. The mining property embraced in the corporation consists of the celebrated "Big Smoky Mine," situ- ated on the east side of the mountain bordering the great Smoky Yalley in Lander county, Nevada. This mine was discovered and located on the 13 th day of March, 1863, by seven persons, and contains 1400 lineal feet upon the lode, and varies in width on the out-crop of the vein from 30 to 60 feet, rising in places to the height of upwards of 20 feet, showing itself prominently the full length of the mine. It is situated in the town of Geneva, about 12 miles from the City of Austin, Reese River, and four miles from the overland mail and stage road, and telegraph line to San Francisco. It is easy of access for any kind of freight which can be transported upon wagons, deliverable directly 6 upon the property of the Company, thereby possessing the advantage of quick communication and ready sup ■ plies. The Company also own a fine timber tract of 421 acres, through which the vein runs, together with 136 acres, enclosing a water right of one mile in length with a fall of 75 feet, running upwards of 150 inches of water, mill measurement. CLIMATE AND PRODUCTIONS. The climate of Reese River is delightful, Austin lying three hundred and ninety miles west from Salt Lake City, and about one hundred miles farther south than the city of New York. Snow is rarely seen in the valleys, and the month of April generally finds but little on the mountain tops. Mining operations are carried on at all seasons alike. Rich agricultural lands are found in the valleys, once thought to be worthless, but now producing vegetables of all kinds in great abundance. Last year one thousand acres in one valley sown to barley, produced from 30 to 50 bushels per acre. As a general thing wood and water are scarce, the usual feature of a rich mineral section. About seven miles from the mill are found inexhaustable supplies of salt, which is so necessary in the reduction of silver ores, and from which the mills of Reese River are supplied. From ten to twenty per cent of salt is added to the pulverized ore before roasting, having the effect of developing through the heat, a chlorine gas, which has a strong affinity for silver, and forms after desul- phurization, a chloride of silver. The base metals are thereby mostly volatilized, or driven off in a vapor, thus becoming separated from the silver, which is then readily amalgamated in the pans by the use of quicksilver. PACIFIC RAIL ROAD. The Pacific Rail Road now nearly completed into Nevada, adds a new and valuable feature to the mining localities on its route. The Nevada mountains scaled, the level route from Austin to Virginia City, 166 miles farther east, will be but a short and easy task, but little preparation being required the full distance. The eastern end of the road now at Ft. Kearney, 800 miles from Salt Lake City, and 1190 miles from Aus- tin, is over the great western plains a large portion of the distance, requiring but little preparation to be placed in complete running order. The original estimate of the company to have the road fully equipped to San Francisco during the sea- son of 1868, seems now probable, although a couple of seasons may be required for its final completion. Thus will Austin soon receive the full benefit of trade and communication, and only six days ride from the city of New York. The immense advantage of posses sing property thus situated must be apparent ; not only in the safety and security of the property itself from depredations and accidents, incident to a new sec- tion, but in being under the immediate control of the shareholders, and where daily and immediate informa- tion can be obtained of the progress and prosperity of the company's operations. TITLE TO THE PROPERTY. The discovery and location of this mine was made- previous to that of any other mine in the district, lying upon the eastern side and slope of the mountains bor- dering Smoky Valley, and was also the first choice of location upon the Big Smoky Lode ; consequently it holds a priority of right over all other mining inte- rests in its vicinity, and there can therefore never be any dispute or cloud upon its title, which was obtained in accordance with the district and state laws, and by virtue of which the owners have always held a full and quiet possession of it. The same title possessed by the original company has been transferred to the Big Smoky Company, whose Agent and Superintend- ent is now in full possession of the mine. DEVELOPMENT OF THE MINE. The mine was at first developed somewhat slowly ; but by the aid of capital, during the last year the opening of the vein has been completed, with such re- sults as to prove that there is probably no more valu- able mine on the Pacific coast ; and that it is worthy of being called as Mr. Walter W. Palmer, the former superintendent of the great Ophir mine terms it, " the King Mine of the Pacific coast." The most important work of the company is their last tunnel 342 feet in length, which pierces the lode at a depth of 148 feet from the surface. The lode at. this point is 28 feet in thickness, and has beautiful and well defined walls, with six inches of clay lying upon each side of the vein, proving conclusively that it is a true fissure vein, and an original and primitive formation. Its richest pay streak is ten feet thick, and upwards of 200 tons of ore is now lying at the mouth of the tunnel, ready for the machinery to extract the precious metal. The Everett Company adjoining, towards the valley, have an incline by which they are working their mine, about 75 feet from the Big Smoky Company's line, and about 3D0 feet from their tunnel. The vein where pierced by them in two different places is 34 feet in thickness, and after striking water they found the ores rich in gold as well as silver. The present tunnel of the Company has pierced the vein above water, consequently its richest ores are yet to be disclosed by deeper developments of the mine. A new surveyed tunnel, commencing a short dis- tance from the bank of the stream, and running a dis- tance of about 1200 feet, strikes the vein 566 feet below the surface. When the very steep ascent of the vein up the side of the mountain is taken into consid- eration, giving an average of upwards of 600 feet in height of the vein above the proposed tunnel, abun- dantly draining the whole mine above it, some estimate can be formed of its true value and capacity for pro- ducing ore for a long period of time. 20 cubic feet of ore being required for a ton's weight,* we have an aggregate amount of over 400,000 tons to be extract- ed from this channel of 10 feet. The average width of the vein may safely be placed at 30 feet, which will give a total of about a million and a quarter of tons of ore to be extracted from the full width of the vein or channel of 30 feet. By the aid of machinery for drain- ing and hoisting, at least 1200 feet of perpendicular vein, (the same depth attained in the Hay ward Mine, Cal.) may be easily taken from below the tunnel, giving upwards of 1600 feet of perpendicular vein matter of sulphuret ore, or a total production of 5,000,000 tons. VALUE OF THE ORES. The value of these ores as taken from the present tunnel, show an average assay of $235 per ton, from the 10 feet portion of the mine, being its best ore. This result was from the average mass of crushed ore at the mill, after it was prepared for amalgamating. These figures and results are taken from the old Com- pany's records of July 1865, in which month the open- ing of the mine was completed and the ore worked at the Butte Quartz mill near Austin City.f The gross proceeds of this crushing (two tons of average ore), was $96 per ton, being less than half the silver contained in the ore. This result was attributed by the superintendent of the mill, to his being unac- quainted with the peculiar nature of the ore before working it, zinc being found in combination with the other metals, which though easily worked when under- stood, required a different treatment which this work- ing had developed. He proposed to work the rock at another trial to within twenty per cent, of the fire * Miners estimate 16 solid cubic feet before extracting, or 20 cubic feet meas- ured in the cord, a cord weighing 8 tons. f See statement of Mr. Morris, President Butte Mill. 10 assay, obtaining thereby $188 per ton. The Company feeling confident of realizing at least $100 per ton by a proper selection of their ores as the lowest possible result, decided to erect a mill of their own upon the mine, thereby saving the enormous expense of $75 per ton charged by the mill for working their rock. The actual cost of working these ores will not vary much from $20 per ton, the roasting process being a heavy item of the expense. In comparing the value of these ores, attention might be called to the quarterly report of the Gould & Curry Company, ending March 31st, 1865, as required by the laws of Nevada, and which give as their production, "9,041 tons, yielding $477,183.98, being an average of $52.78 per ton," and costing an average of about $12 per ton for working.* It may be a matter of interest to present a compari- son between the large and small class of mineral veins of Navada, as proved by the actual production in bullion ; the statements being obtained from the books of the Assessors of the two sections represented, end- ing January 1st, 1866. The six companies situated upon the Comstock Lode, and lying within the city limits of Virginia City, produced in the third quarter of 1865, $7,168,- 000, being $14,336,000 for the six months ending January 1st, 1866. The ores producing this result yielded about $40 per ton, one half being profit. During the same period there was produced from the Reese River Mines, (57 in number), $364,453, the ores averaging $150 41 per ton. This result shows a comparison of $2,389,333, to each company upon the large vein, to $6,393, from each of the small ones. This difierence is due to the enormous " quantity " of ore produced in the one, and the small amount in the other. The Hayward mine of California is now paying * See list of Washoe Mines. 11 $35,000 monthly to its owners, in gold ; a profit equal to 24 per cent, upon a cash capital in gold coin of $1,750,000. This mine is now worked from a depth of 1200 feet, the vein being 25 feet in thickness, and from which 100 tons of ore are produced daily, yield- ing an average profit of $15 per ton. From San Francisco advices of the 9th of July, 1866, we note that the yield of the mines was never better. The receipts of the past month of June, in bullion, gives the Hale & Norcross Mine, $100,000; Savage Mine, $130,000 ; Crown Point Mine, $105,000 ; Gould & Curry Mine, $146,000 ; Imperial Mine, $61,- 000 ; Yellow Jacket Mine, $260,000. Companies possessitig such vast bodies of ore, which can be worked at even a very small profit, can always realize enormous dividends, and with a certainty of continuance. This important feature of mining is presented as the great and general characteristics of all mining coun- tries, not simply in our own states and territories, but in all parts of the globe, the same general principles bringing like results. The profits of mining are not so much the result of very rich ores, as upon the great and " permanent sup- ply," which pays a comparatively moderate profit. This is a fact worthy of consideration in connection with the mining interest, and may be considered one of the principal reasons of the many failures of mining companies. With a constant working of twenty tons of ore per day, it is believed that the stockholders of the Big Smoky will realize monthly dividends, aggregating yearly the capital stock of the company. No cal- culations have been made thus far upon the water or sulphuret ores of the mine found below the water level, "^ and which are universally estimated by the •The term " water level," refers to the point in the vein where the water is first encountered permanently, requiring thereafter a continual drainage of the mine in the extraction of its ores. The ores taken out of this water are 12 mining and mill men of Reese River, to contain more than double the amount of silver, than is found above this point while in a chloride or antimonial state. SUPERINTENDENT. The Company have secured the services of Mr. Gorham H. Moore, of Austin City, who spent about three months of the present year in New York, where his acquaintance was first made by the trustees. Mr. Moore was among the early pioneers of California, having been a resident on the Pacific coast since 1850, and for the last five years has been a resident of Ne- vada, and directly interested in the extensive mining and milling interests of the Comstock Mines. He was intimately known by the secretary during his residence in Nevada, and it is but just to say, that great satisfac- tion is felt by the Company in having secured his ser- vices, not more for his abundant capabilities of filling the position than, for his sterling integrity of character. Success and sound judgment have been prominent features of Mr. Moore's life on the Pacific coast, ; and his predilections for this particular mine since its first discovery, a fact well known to his friends at Austin, explains the reason of his accepting the position, and serves to inspire additional confidence in its future prosperity. THE MILL. The Company have made arrangements for a first class 20 stamp Quartz Mill with Mr. Cyrus Palmer, of the Miners Foundry, San Francisco. Mr. Palmer's atten- tion has been exclusively devoted to the building of called " Sulphuret Ores." The Big Smoky mine will have 400 feet of this class of ore above the new tunnel, and drained by it ; and can easily reach a farther depth of 1200 feet below this point, by the use of machinery for hoist- ing and draining, acquiring thereby the same depth attained as in the Hay- ward mine, which recently sold, according to report, for nearly $2,000,000 m gold. 13 quartz machinery for fourteen years, and his practical knowledge and long experience in this particular branch, enables him to furnish the splendid machinery which his establishment produces, and which has given such universal satisfaction. The twelve to sixteen years of experience of the foundries of the Pacific coast, which have made quartz-milling machi- nery a speciality for most of the time, enables them to furnish superior machinery for practical mining pur- poses. Another advantage lies in the fact, of being able to obtain duplicate machinery in case of any ac- cident to the mill. An hour's ride of the Superintend- ent, from the mill to Austin, places him in telegraphic communication with the foundry, and three days by express, places the. new machinery in his possession. No "new processes," or " new crushers," not in general use among the mill men of Nevada, will be adopted to ruin the prospects of the Company. New crushing inventions are not required in making mining success- ful, the present cost by a stamp battery being only about three dollars per ton ; a machine so simple in its construction as to be within easy control of ordinary laborers, and not liable to get out of order. The great secret so much desired, and of such im- mense value in quartz mining, is in bringing to light some new and " practical method " of saving the metal after the ore is pulverized ; the loss here generally ranging between 20 and 40 per cent of the fire assay. The methods now in use among the mill men in Navada, are the only methods which are safe for practical use. The mill men of Washoe, especially those who are directly interested in the Comstock mines, (the majori- ty of whom have also had many years of experience in California mining,) naturally pursue such a course as secures to themselves the greatest amount of profit on their investments ; especially after having spent immense sums in experimenting upon new theories and processes. The present course pursued by them is the result of daily experience among each other. u The Big Smoky Mill will have twenty stamps of 800 lbs weight each, the four mortars for the stamps weighing 3700 lbs each. Two fan-blowers in front of the mortars will keep the screens free from the pul- verized ore. Twelve Wheeler pans will be put into the mill, eight for regular use, and four for reserve and for a longer amalgamation of a high grade of selected ores. A sixty horse power engine, with two sets of tubular boilers for alternate use 45 x 16, will be used to obviate any delay in running the mill which might occur by breaking, cleaning, or otherwise. The roasting furnaces will be ample for roasting twen- ty tons per day. The ore will be run from the mine directly into the mill, which will be situated only a few hundred feet from the mouth of the new tunnel, the advantages of which will be readily appreciated. SALE OF ORES. Another feature of revenue to the Company, lies in their ability of supplying large quantities of ore to mill and mining companies, there being many such oppor- tunities, caused by various reasons, being more especi- ally the case with companies possessing narrow veins, causing them for the time being to seek supplies from other sources than their own. The Company have already opportunites of thus furnishing supplies on long contracts, receiving a share of the gross receipts in bullion. They will endeavor to induce around them from time to time as many companies as they may be able to supply. They will also afford most excellent opportunities for individual enterprises in building mills, wholly disconnected from mining lodes of their own, but based upon contracts with the Company for a supply of ores to be worked upon shares, giving a sure and remunerative return to both parties. The company will be able to supply from one to two hun- dred tons of ore daily as soon as sufficient room can be made in the mine for the employment of the work- men required. 15 REPORT OF JOHN S. MORRIS, ESQ. CoRTLANDT Street Hotel, N. Y., Feb. 13, 1866. To the Big Smoky Silver Mining Co., N. Y, : Gentlemen — By request of your Secretary, I take pleas- ure in making a statement relative to the working of the Big Smoky Company's ores at the Butte Mill, near Austin, Keese River, of which at that time I had the honor of being Presi- dent. There were two tons of the ore worked at onr mill, which were delivered there by the company then working tlie mine, known as the Smoky Valley Gold and Silver Mining Co., and which was brought for the purpose of ascertaining the true value of the rock by actual returns from the mill. The result obtained was only a trifle over $96 per ton, which much disappointed us as the appearance of the ore indicated much larger returns. From each bucket of ore, as it was taken from the battery, was saved a small sample for assay, while the mass of the rock was roasted for amalgamating. An accurate assay of these samples combined was made, giving $235 per ton. This loss of about $139 per ton was caused by the pres- ence of zinc in combination with other metals, which by our manner of roasting the ore was driven off, so as to carry this body of silver, or most of it with the zinc. This loss could have been easily saved, had we understood the true character of the ore ; a knowledge which can only be ob- tained by similar practical tests, but when once understood renders these ores easy and simple in their reduction, the zinc not being a difficult metal to manage when once under- stood. I have no hesitation in saying that the Big Smoky ore can be worked to within 20 per cent, of the fire assay without any difficulty, and I offered at the time to work a few hun- dred tons for them, guaranteeing to work to within 20 per cent, of the fire assay. Had not the Company then decided to secure the build- ing of a mill for themselves on their mine, they could have taken their ores to Austin for reduction at a large profit, and have secured thereby a mill from those profits, and in about the same time that they will do by securing capital to do it for them ; and without losing a large portion of a valu- able property. 16 The ores from your mine are of a very solid character, and the mineral is very evenly distributed^ and I would recommend carefully roasting them always, and when once thoroughly understood by your Superintendent, the results must be satisfactory. 1 should consider that with a 20 stamp mill well con- structed, and the mill and mine well managed by practical and energetic men, that the estimates made in your report were below the actual facts to be realized. The ores are there in large quantities and they are undoubt- edly rich, but care and good judgment combined with energy are necessary for successful results like all valuable enter- prises, the greater their magnitude and value, the more cau- tion required. But while I think the average yield of the ores will much exceed the estimates you have made, I think the cost of work- ing them for at least two years yet, will be about $30 per ton, on account of the very high prices of labor there, as well as the heavy expense of roasting these particular ores, which will be necessary to their proper reduction. Yery respectfully yours, John S. Morris. LETTER FROM EX-SHERIFF MOORE, OF NEVADA. :t^Ew York City, Feb. 19, 1866. To the Secretary of the Big Smohy Silver Mining Co., 71 Broadway, JT. Y. : Dear Sir — From our acquaintance for a number of years, it affords me pleasure to give your Company the benefit of any knowledge which I may have of this property ; but I make no profession to deep science in geology or metallurgy, and have more confidence myself in the judgment of men who have been practically engaged in quartz mining for years, than in those who base their opinions upon theory and science. For sixteen years I have devoted my time exclu- sively to quartz mining, except the two terms of my service as sheriff in Nevada, and have universally found that the men in whose judgment I could place the most confidence, were men of this class. I have known the Big Smoky Mine since its first discov- ery ; and after the vein was opened by the present tunnel, I examined it carefully, obtaining many assays of the ore in the tunnel for my own satisfaction, and which ranged from 17 $250 to $700 per ton. Hio^hcr estimates might truthfullj and safely be made of the yield of the ore per ton than you have made; and I think your Company will be agreeably disappointed in this respect. The ores are of the " Antimonial Sulphnret" class so friable, and the water level will no doubt disclose masses of pure antimonial ore, streaks of which already appear several inches in thickness in the bottom of the tunnel, indicating the close proximity of water. Yeins of this character of ore always increase in richness the deeper they are opened into water. I have taken large specimens of native silver ore from the vein in the tunnel. The Big Smoky Mine can easily be made as productive as any mine on the Pacific coast, and perhaps I may safely say, second to none, a fact which must impress itself upon the mind of any person who examines its favorable situation for deep mining and drain- ing, the mammoth proportions of the vein, the ore in masses now in sight, the wood and water, and the ease of communi- cation in all re.^pects for a company's operations. The working of the ore in the Butte Mill, as appears in Mr. Morris' statement may be relied upon. I have known him for many years as a successful and practical miner, and he is a gentleman of undoubted ability and integrity. Most respectfully yours, GOKHAM H. MOOBE. REPORTS OF PROFESSORS PALMER AND VEATCH. In investigating the merits of this mine, the Direct- ors decided to obtain if possible the opinion of Mr. Walter W. Palmer, the former superintendent of the Ophir Mine at Virginia City, Nevada, and now a resi- dent of San Francisco, a gentleman who stands among the first as authority upon mining, geological and min- eralogical developments in the United States. And also of Dr. John A. Yeatch, whose experience and ability upon the subject has always secured for him the confidence and esteem of the mining community at large. Mr. Palmer was especially requested by telegraph to San Francisco, to report to the Company his opinion of the mine, which was received. The full correspondence appears with his report to them. 2 18 REPORT OF PROF. WALTER W. PALMER. " San Francisco, ^Uh Nov. 1865. To Moses Chamberlain, Esq., New York : Sir — I am in receipt of your telegram as follows : New York, 22c? Nov. 1865. " To Walter W. Palmer, San Francisco : Send your report of the Smoky Yalley Mine, Reese River, immediately by telegraph, and one report by mail. Moses Chamberlain." San Francisco, md. 1865. " To Moses Chamberlain, New York : Examined Smoky carefully, prospects remarkably good, promises to be one of the best mines in Nevada. Particu- lars by mail. Walter W. Palmer." " Particulars — The Smoky ledge is situated near Geneva, in one of the canons cutting into the Toiyabe Range from Smoky Yalley. Austin, the principal towns of Central Ne- vada, is in an opposite canon entering the range named Reese River Yalley. The distance between the two towns across the ridge, will be about seven jniles, but by the pre- sent road about fourteen miles. The two valleys named run parallel for a distance of nearly two hundred miles, divided by the Toiyabe range which rises from two to three thousand feet above them, its base varying in width from twelve to twenty miles, courses nearly north and south, and Austin occupies nearly a central position and on the overland road. The formation of Austin on the west, or Reese River side, is granite^ that of Geneva on the east or Smoky Yalley side, slate. The Reese River veins are generally small and rich, those of the slate on the east side, or Smoky Yalley, are very large and promise to be permanently abundant in their yield of ore. " The Smoky ledge " appears to me to be one of the best of them, and has had a little work done upon it, both in the Smoky mine and in the Everett immediately east. The 19 Gonrse of it 13 nearly west, with a dip of ^S*^ to the north, into the hill, considered by miners to be itself a recommen- dation for deep mining. More work underground is required to enable me to give the width of the vein ; at the surface it measures from 40 feet to 60 feet, without counting parallel branches, which are likely at no great depth to incorporate themselves with tbe main body, feed it and give it additional width. I saw a very fair show of ore in the tunnel driven in from the south in the Smok}^ Co.'s ground, which tunnel cats tlie vein about one hundred and forty feet below the cropp.ings, and I also saw some good cropping shews in the Everett ground on the same vein. I have seldom seen so good a shew follow such a small amount of work. The Smoky Co. claim 1,400 feet of the choice ground. Every feature in and about this vein appears to me to justify its selection for the operations of a mining company. With a mill, I think the mine will require very little further help to enable it to develope itself. The water power in the neighborhood of the claim can be often re- peated over mills of ten stamps capacity ; one should be erected at once, then mining recommenced and others, (per- haps steam mills) as they may be required, erected. I think that the first outlay should be in the erection of a mill, whether it shall be a steam mill or a water mill, a small mill or a large one is a matter of small importance ; it is simply a tool to continue the development of a large mineral vein, and one which promises to be exceedingly valuable, KtspectfuUy submitted, Walt. W. Falmee. eepokt of prof. john a. veatch. Gentlemen : In answer to your inquiry relative to the Big Smoky Mine of Lander county, Nevada, I beg leave to state as follows : The above lode is situated in the Smoky Valley mining district, in the Toiyabe mountain range. The village of Geneva lies within a few hundred feet of the lode, a fine stream of water known as Birch creek running between it and the mine. I was informed that one mile of this stream had been obtained for the use and benefit of the Company and mine. The vein or lode is one of those heavy developments oc- casionally encountered in the State of Nevada, which has 20 astonished the world with the quantity and value of their ores, such for instance as the Comstock and Nevada Giant. The outcrop shows a breadth of upwards of 30 feet, its strike being north-easterly and south-westerly, and dip about 45^ east. A tunnel has cut the vein as I am informed from valid authority, at a depth of 148 feet below the surface, encount- ering vein matter 28 feet in thickness, with a " pay streak" ten feet wide. The tunnel was not completed at the time of my last visit to the mine, but has since pierced the ore channel, and the developments fully justify the promise manifested on the out-cropping. , The erection of a mill of the capacity of 50 tons per day, would be justified at once by the quantity of ore in sight, and a calculation is easily made of the result of such an establishment. I know of no mine in the State of Nevada more conveniently situated for working. The precipitous character of the mountain imme- diately in front of the lode, will enable it to be reached at a depth of upwards of 500 feet, with a tunnel but a little over 1,000 feet in length. The road from Geneva to Austin is excellent, a distance of only 12 miles, connecting with the great daily overland mail stages and overland telegraph to San Francisco. The character of the lode is a true fissure vein, as is proved by the " clay casing" on each side of the vein mat- ter where cut by the tunnel. Its being a fissure vein gives confidence in its permanency ^and persistency in depth, such veins never having been exhausted. The elements of success are evidently combined in this mine and its surroundings, and only await capital and skill to bring its riches to the surface. It may be well to also speak of the quantity of ore obtainable from a channel 10 feet wide and 1400 feet in length, and of a height of 148 feet. The area would fur- nish nearly i^00,000 tons,' of the value of $20,000,000, at $100 per ton. I refrain from any geological observations or speculations, as the practical man is only interested in the one question, " Is the metal there ?" If th.e metal exists, it matters not what the age of the formation, or what name science may have imparted. Very respectfully yours, John A. Yeatch, Mining Engineer and Assay er^ late of Austin, N. 21 CONCLUSION. In presenting the foregoing facts relating to the Big Smoky Silver Mining Company's property, the Direc- tors have endeavored to present a plain statement of the facts pertaining to it, which they have been able to obtain from reliable sources, together with the sci- entific reports of Professors Palmer and Yeatch, both gentlemen of high standing and reputation, entitling them to the fullest confidence in their evidence and reports. ' The report of Mr. Morris is worthy of a careful perusal, not only as an evidence of the future great- ness of the mine, but in comparison with the previous statements made to the public. With an abundant treasury, the Directors have the fullest confidence in making this property one among the great silver producing mines of Nevada. The management of the mine and building of the mill will be entrusted to the hands of reliable and ca- pable men, whose past success and experience in silver mining entitles them to the full confidence of the board. The evidence given of the truthfulness of the repre- sentations made, as well as the reputation of the parties interested, not only its managers but those who have become identified with its interests by investment, will commend themselves to the consideration of capitalists, that no fancy picture has been drawn or unwarranted estimates made, and that the enterprise will be vigor- ously prosecuted in good faith for the best interests of the stockholders. The mine at the present time evidently shows but a limited amount of concentrated rich ores, compared with what will be seen by vigorous developments to greater depths (as is already proved by the develop- ment of valuable ores in large quantities in the Everett Co.'s portion of the vein previously mentioned), and after a sufficient number of drifts and galleries shall 22 have been opened, whereby an increasing force of workmen may be continually employed. Enough mineral however has already been disclosed in large quantities to fully warrant the highest hopes and confi- dence of its future increase in extent and richness, as well as to warrant the present operations of the Com- pany ; opinions also warranted by the fact of the con- tinued increase in richness of the vein from its out-crop to its present point of development where pierced by its tunnel, the results of the working of which, appears in the statements already given. Rarely has a vien of any magnitude been found at the present day, or either mentioned in history, where sufficient bodies of rich available ores are found upon the surface or out-crop of the lode, to make it at once remunerative ; and still more rare have been the num- ber of paying silver mines in the world, where some exceeding rich rock did not appear on its surface. Three points only, upon the great Comstock Lode at Yirginia City, of great richness of ores were found, and only a few feet on either of them out of a full length of over 16,000 feet on the lode, yet these evi- dences, (to wit, in the Gold Hill, Gould & Curry, and Mexican, in the Ophir claim), led to the succeeding prosperity and productions of silver in Washoe, whose history is already well known. The simple fact of the presence of such rich rock in small quantities, com- pared with the large mass of ore in sight, led to the wild excitement in silver mining in 1860 in Nevada, and the supposition that all quartz veins would prove silver mines, induced speculation until actual development proved the incorrectness of the theory, and led to the collapse which soon followed. This first choice of location upon the lode, the Big Smoky Co.'s portion of the vein, showing various stratas and pockets of immensely rich rock, reaching as high as $10,000 per ton of choice samples, has always been an evidence to the community and those acquainted with it of its great value. Its present development, 23 has given the conclusive evidence of its enormous rej sources and established the fact of its value, which has opened the way for surrounding it with the aid of capital to make those resources at once available. Two years of hard toil and patient perseverance, has thus placed it among the giant interests of the State, which it so justly merits. The melancholy fact cannot be denied that many worthless mines have been sold in the East for large amounts by dishonest and unprincipled persons, but this fact does not make good mines any less valuable, or in the least retard the sure and increasing flow of bullion from them. If the generations past, could, with their ignorance and in their simple and primitive manner of working, extract the fabulous amounts of silver, which they are shown to have produced by our extracts from authority universally acknowledged, and from mines no richer nor more extensive than many in our State, what can intelligence and enter- prise, aided by our vastly improved machinery, and the present experience of our American people accom- plish, when once they fully appreciate and vigorous-^ ly prosecute the development of this, one of our most vital interests in the accumulation of wealth, not only to individuals but to us as a nation. For further information upon the subject of silver mining, we submit a few extracts, giving general in- formation of the improvements and progress of the Reese River mining section, the opinions of the lead- ing men of Nevada as seen in Gov. Blaisdel's message, and a few statistics from history, of the past produc- tion of the precious metals. The geological evidences of the permanency and formation of true fissure lodes given, will be found a matter of interest in compari- son with the Big Smoky mine. PEODTJCTION OF THE COMSTOCK MINES. We present a statement of the production of some 24 of the principal mines situated upon the Comstock Lode of Nevada. Their great value for the last five years, as well as the millions paid to their stockhold- ers in dividends, are facts well known to the public. " Yield of the Washoe Mines. — The State of Nevada taxes mines and requires a quarterly statement of the yield. The following is a statement of the mines in Storey county (which includes Virginia and Gold Hill), for the quarter ending March 31st : Company. Tons. Av. Yield. Gross Val. Bacon M.