MR. DOWN’S REPORT.

To the DIRECTORS of the THARSIS SULPHUR & COPPER CO. LIMITED. THARSIS MINE, 9th October, 1867.

GENTLEMEN,

In accordance with Mr. VEREL’s request to Mr. LE BOURG of the 25th ultimo, I send you the following Report of work done on the Mine since we took possession on the 1st December, 1866, to 31st August, 1867:—

OPEN CAST. On the 1st December, 1866, there were available above the water level 58,133 cubic metres of Ore. This, at 4 tons to the metre, is equal to 232,532 tons. From the 1st December to the 31st August, we have taken from this stock 34,720 tons, leaving a balance of 197,812 tons. During the nine months we have uncovered and unwatered 64,637 metres of Ore, which, at 4 tons to the metre, is equal to 258,548 tons. This, added to 197,812 = 456,360 tons, as stock in reserve at 31st August, or 223,828 tons more than when we took possession of the Mine. The cost of raising and taking these 34,720 tons of Ore to the Teleras or Plaza (not including the royalty) has been 25.36 reals per ton, which covers the total cost of removal of overburden, and also all the expenses of sinking new and old shafts for Norias, and driving level for unwatering the lode to greater depth, as shown by tracing enclosed, as well as driving 240 metres of adit level on the back of the north wall of the lode, which has been an expensive piece of necessary work, and from which we derive no benefit at present. This is preparatory work for the development of the Mine when the Railway is completed. Enclosed I send you tracing of open-cast, showing the Works as they are at present.

We have taken from the underground workings 44,226 tons of Ore, at a cost (not including royalty) of 19.17 reals per ton, delivered at the Teleras or Plaza, making a total of Ore raised from the Mine in nine months’ working: Open Cast, 34,720 tons; Underground, 44,226 tons; Total, 78,946 tons. The Ore which has been sent to the Teleras cost 33.10 reals per ton, including royalty (9.50 reals). The Ore which has been sent to England, 165.44 reals per ton f.o.b. at Huelva, including royalty. We have also taken out about 1,450 tons of small Ore from the Mine, the expenses of which are included in the cost, but the Ore is not taken into account. We have also about 3,000 tons now lying in the Mine, not taken into this account.

DESMONTE. We have been taking off the overburden at the rate of 9,500 metres a month. We have had for the last eight months a very hard rock to contend with on the north side of the cutting, but we are now getting well through this ground, and consequently the expense will be very considerably reduced in the next year.

TELERAS. 34,500 tons of Ore have been delivered here at a cost, including royalty (9.50 reals), of 33.10 per ton. Expenses of Calcining, 5.96. Total Cost of Calcined Ore, 39.06.

DISSOLVING AND PRECIPITATING WORKS. 45,635 tons of calcined Ore have been delivered from the Teleras to this department, which produced 1,596 T., 598 K. of Cascara, at a cost, including value of Ore, of 2,044.40 reals per ton of Cascara. In this amount there has been included the cost of repairing the Dam (50,000 reals or more). We have also added to these works about 800 metres of Canals, the cost of which has been carried to Plant Account.

SMELTING WORKS. Received from precipitating department 1,558 T., 667 K. of Cascara, which produced 994 T., 708 K. of Copper.

NEW PRECIPITATING WORKS. We are getting on with the machinery as fast as we can, and hope to be ready for work early in November.

COMBINED FURNACE. The chimney is up, and we hope to get the furnace finished, and fire in it this month.

TUNNEL. I estimate that we have about two-thirds of the excavations done. The timber men have got communication through the broken place, and we are now opening up the cutting to the eastern entrance. As soon as this is done, we shall prepare to get the masons to work about the arching, &c.

BRICK WORKS. One kiln of brick (16,000) has been burned, and we find that a good common brick can be made with clay found on a spot near the Mine. We shall require a machine to grind the clay, as it contains a considerable quantity of schists and sand—all of which will make good brick when ground down with the clay. The Norias and other Plant are in good working order.

I am, GENTLEMEN, Your obedient Servant, THOS. DOWN. (MEMO. — 1 Real equal to 2 1/2d. or 95 Reals to the £ Sterling.)