The last quarter of 1938 sees the completion of Germany’s annexation of Czechoslovakia’s Sudetenland, and the rise of Japanese imperialism as Japanese troops occupying Canton, Hankou and Wuhan by the end of October. The famous Orson Welles’ broadcast of “War of the Worlds” panics a nation, the United States establishes a minimum wage and the country forbids child labour in factories.
However, in spite of, or perhaps because of, the aggression of Nazi Germany toward its neighbours, on December 6th France and Germany sign a non-attack treaty called the Ribbentrop-Bonnet Pact. As events soon clearly demonstrate, France and England share a wilful naiveté concerning Hitler and his Nazi Germany.
Meanwhile, back at the Desert Mine, ore milled during the quarter had another slight increase to 17,752 tons from the previous quarter of 17,654 tons. The grade of silver also improves to 12.90 oz/T from the previous quarter’s average of 11.72 oz/T, but gold decreases slightly from 0.051 oz/T to 0.043 oz/T.
Mill recovery is almost identical to the last quarter, with the production of 194,594 ounces of silver and 721.6 ounces of gold. Around November 1st a melting furnace is put in use, so most of the natal production reported for the 4th quarter is in bullion and not precipitates. The melting furnace provides a very considerable cost saving.
As in the previous reports, Joralemon demonstrates that the price of silver is never far from his mind. He writes, “December 20th, at the same time carrying on as much development as possible on lower levels, so that the mine might be in a position to greatly curtail expenses in the event of a drastic cut in the price of silver”.
An interesting fact starts to emerge in this report: without drilling as an exploration tool, mining is very dependent on good guesses and good luck. Joralemon tells us that development at the east end of the 5th and 6th levels added 100 feet or more of unusually rich ore to the stoping length, but that a steep fault cuts off the vein at the east end of this ore. He also hypotheses, “there should be a section beyond the fault, but it may be several hundred feet further east”. So, because he cannot drill he is faced with the prospect of drifting some distance only to find that there is no section beyond the fault. The fault is now frustrating him and leaving him with tough choices.
Joralemon reports that his efforts to renegotiate the lease and option have not yet been successful, but he remains hopeful. He says that until he gets new terms he will curtail development and mine out all available good ore as rapidly as possible.
As in the last report he assures his shareholders that equipment at the mine and mill is in very good condition, and no further capital expenditure is contemplated. The morale of the working force remains excellent.
Joralemon finishes his report by stating: “development on lower levels has not yet progressed far enough to allow a reliable ore estimate. Ore ready for stoping amounts to about 26,000 tons averaging 15 oz. silver and 0.05 oz. gold. Probable and possible ore should amount to much more than this tonnage, but it is not yet safe to give figures for the additional tonnage.”
Kevin Hull
