A recent communication from our general manager, Mr. O. H. Stanley, reads as follows: “Development is progressing in a very satisfactory manner, and recent assays prove that my estimate, given in a former report, as to the average value of our ore was very conservative, and we may reasonably expect increased values as more depth is gained.” (Following is an extract of the report referred to in the above.) A mill run made some time ago showed values as follows: $16.40 in gold, 1½ per cent copper and 60 cents silver per ton, a total value of $22.40 per ton. Taking this conservative estimate as the average value of the ore, and counting only the ore available between the two points opened up upon the “Berry” and the “Berry Extension” workings, above the level of the “Berry Extension” tunnel, would give sufficient ore to keep a 100-ton plant working day and night for over 10 years. This large quantity of ore would be taken out without the use of hoisting or pumping machinery. This, together with every natural facility, such as water power, cheap fuel, and an abundance of timber, makes this an ideal location for the economic handling of ores. I would estimate that with a 100-ton reduction plant in operation, that the total cost of mining and reducing 100 tons of ore to 10 tons of concentrates, and the transportation, smelting and refining of same would be as follows: Mining and timbering, at $3.00 per ton $300 00 Crushing and concentrating, at $2.00 per ton 200 00 Freight, smelting and refining, 10 tons of concentrates, $24.00 240 00 per ton Daily expense $740 00 RECEIPTS. Ten tons of concentrates, at $224.00 per ton $2,240 00 Deduct daily expenses 740 00 Daily profit $1,500 00 [Illustration: The American’s Main Tunnel in Winter. Showing Monster Outcropping of Ore at the “American” Property.] The District in General. Wonderful progress has been made throughout the entire Rio Hondo District, but probably the most gigantic and successful mining enterprise in New Mexico is that the Fraser Mt. Company, which is a short distance south of the American. They have erected and put in successful operation a smelter and concentrating plant of 120 tons daily capacity, and the management is now perfecting plans to double the capacity of their works and to install a larger electric power plant. Recent advices from Mr. Harlan, President of the New Mexico and Pacific R. R., report rapid progress with the new railroad enterprise. We quote the following extracts from Mr. Harlan’s letter: