44

district with the result that we have opened a promising vein near
the old Concepcion workings. Upon this we have driven 85 ft.,
the ore holding strong up to the Headings.

In the Mina Grande, or 900 Cross—Cut, a vein has been opened
which appears to be the extension of the San Vicente, Upon this
we now have a stope 140 ft. long. Should this hold to the old
San Vicente workings, we have before us more than 1,000 ft.
of ore- bearing ground.

Numerous other small veins and outcrops have been opened
by our prospect work, several of which carry values and will be
followed in the coming year.

The ore reserves indicated in last report, although measured
and taken with the greatest care, and figured upon the same basis
as used in previous years, failed for the first time to respond to
the estimate made. The veins narrowed as the stopes went up¬
ward, and in the territory above the 700 and goo levels, the veins
proved not only narrower, but the ore lower in grade. Aluch
that we counted upon in our prospect reserves above 900 level
wdll not pay to mine. This was unlooked for. There was nothing
in the veins before us, and upon which we based the estimate, to
warn that either the size or values would change as they went
upwards. The result is a falling off in quantity of ore in reserve
from that reported in October last.

While we cannot at the present time look to the upper Zone for
the ore which it then promised, the new development in the
Guadalupe to the East and Socorro to the North, both lying in
the ore-bearing region already proved, should go far to again
build up the ore reserves in the coming year.

TRAMWAY AND SORTING PLANT.

The statements show the increased tonnage carried over the
Tramway, and that cost of transporting same was reduced 31
cents per ton.