Analysis of a Mining Engineer's Report Accompanying Application for License to Sell Mining Stock in California

THIS paper discusses what mining reports should contain when presented to the California State Corporation Department, to accompany applications for the sale of stock to the general public, but the principles involved apply to mine financing everywhere. Such reports should 'be as clear and concise as possible, endeavoring to tell the truth in as few words as necessary. Should the engineer be aware that his report is to be used in connection with the sale of stock to the general public, he should consider the public as his client as well as the person who actually employs him. It is always required that the engineer be favorably known and of recognized standing. The following points should be given careful attention : 1. A legal description and location of the property. 2. Transportation conditions, and how they may be expected to affect the operating costs. 3. A brief history of the property, its production record as to tonnage, grade, and character of the ore should be given. Should the property have suspended operations for any reason, this should be given. Any details of former operating costs should be given, especially as to how any improvement could be made, due to better methods which might be employed.' 4. The main geological features and whether they are such as to lead the engineer to believe that the mine may possibly 'be exhausted or the ore of such grade as to be no longer profitable. If he considers them favorable, he should give his reasons for the belief that further development work may produce profitable results. A map showing these features should be submitted, and it is not necessary that such map be highly colored or contain any more than the essential matters. 5. Other mines in the district, or those with similar