Budget Control At the Hollinger Mine

"THE HOLLINGER MINE has been producing gold and by-product silver almost continuously for forty-eight years. The value of current production is $10,000,000 annually from one million tons of ore. Its management •has, particularly over the past decade, increasingly . concerned itself with the problem of profitable operation in a time of steadily rising costs and a fixed price of gold. At one period in the life of the mine, before World War II, production resulted in yearly profit margins that were stable and relatively thick. In winning gold from a series of inconsistent vertical ore lenses, operating management was much better protected than it is today against a general rise in cost or dip in grade of ore. The tissue-like thinness of present-day margins demand more careful handling. A sharp rise in costs, if protracted, could easily rip the tissue to shreds and close down the business. The counter-measure of raising grade and gutting the mine would bring on the end perhaps more rapidly, without having contributed much to the recovery of our national re-sources, nor to community welfare. The alternative is to keep costs under control."