LeMars, Iowa, March 6th, 1914

I herewith send you the report of your Company, for the last year. I have delayed in sending this report, for the reason that I was waiting until I got matters arranged for the treatment of our low-grade ores at a mill near our mine. I am glad to say that this arrangement is completed, and the lessees are to install a tram from the mine, to this mill, which they rent, and will tram the low-grade ore up to $6 per ton to this mill. They have all arrangements made for this, and I see no reason now, why it should not go along.

Miners & Officials posing on dump bridge
at Headframe of Gold Sovereign Mine.

Nothing can be done in way of shipping this low-grade ore to the mills out of the district, and all depends on what we save over the cost of handling, as to what we will get. If the lessees can make a little money we will get our royalty with no risk to our company. Therefore I can say, if we do not get something out of this ore there is nothing can be gotten out of it at all, in my opinion.

Mr. Rapp was given a seat on our board of directors, as stated to you in the call, and I feel if we can now stop all contention in our company it will be to the best interests of all the stockholders.

Stockholders get tired of continued contention in any company, and it is to the best interests of all, to stop it. Mr. Rapp is a large holder in the company, so he has agreed to stop all contention and work with me for the interest of all, and I think this the best way.

You will note in the treasurer's report, the salary account, which is for nearly two years, as we let the salaries stand in 1912, to send you a dividend. We are out of debt, and with the outlook now for the treatment of our low-grade ores, I think it very bright indeed.

We have ore enough to run this mill for ten years, I believe, and if it is a success, you can rest assured you will share in the success. This is about all I can say as to that.

Our shaft was sunk 100 feet this last year, so that much is accomplished. All the time we will be shipping low-grade ore, we will be hunting higher grade ore, and hope of course to find it.

The ore shipments for 1913 were 4665 tons, 921 pounds, at an average value of $12.12 per ton. The shipments were quite large, you see, but expenses high, so there is little in it. We expect to treat 100 tons a day at the mill when we get started. They agree to start work in about 30 days on the tram.

I trust this report will meet with your approval, and that we may be able to make a better showing this year, but we will be fully one third of the year in getting all ready to treat the ore, so please be patient for we are doing the best we can for you.

Yours truly,
O. H. HINDS, President.

Number of shares in Treasury, 195,228.

H. L. SHEPHERD, Treasurer.