NEPTUNE GOLD MINING COMPANY

Annual Report for the Year 1950

To the Shareholders:

Summary of the report of Mr. C. E. Nelson, General Man¬
ager, for the calendar year 1950, is as follows:

"As mentioned in the annual report for 1949 the
height of the storage dam at the Siempre Viva hydro¬
electric power plant was raised to give increased water
storage. As a result no delays to operations were experi¬
enced during the dry season of 1950 due to lack of
power. The ability to operate the mines and mill without
interruption enabled lower operating costs to be attained
as compared with previous years.

During 1950, 14,309 feet of <levelopment work
were accomplished in the Neptune group of mines, of
which 9,903 feet, or 69.4 percent were in ore. In addi¬
tion, 4,058 feet of diamond drilling were completed.

Production figures for the vear 1950 compared with
1949 are:

Contents  of   Bullion
Produced and  Shipped
 

Year
 

Tons
Milled
 

Average Ozs.
Gold per Ton
 

Ozs. Gold
 

Ozs. Silver
 

1950
1949
 

260,129
252,560
 

0.303
0,288
 

71,961
65,112
 

76,122
83,713
 

In the Neptune group of mines the estimated total
of assured, probable and prospective ore as of Deceniber
31, 1950 is 1,296,220 tons, averaging 0.287 ounces gold
per ton.

Since May 26, 1945 the property of the Compania
Minas Matagalpa has been operated under a profit-
sharing agreement under which that company received
30 percent of the profits. This agreement was terminated
on March 31, 1950 as it was no longer possible to oper¬
ate this small low grade property at a profit.

During the period January 1, 1950 until March
31, 19,50 there were milled at Matagalpa 8,250 tons
assaying 0.168 ounces gold. Production from this ton¬
nage amounted to 1,159 ounces gold and 1,847 ounces
silver."

The Directors take this opportunity to congratulate Mr.
Nelson and his staff on the results achieved during the year.

On Januarv 1, 1950 there were outstanding $800,000 par
value Ten Year'Five Percent Notes. On April 1, 1950, $400,000
of this principal amount were paid at par wdth accrued interest.
The balance of $400,000 par value was paid at par with accrued
interest on December 22, 1950.

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