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That's an old Schaefer beer can that my grandpa cut the top off so he could spit his dip into it....must've fallen off the gunnel 30 odd years ago. Nevermind, it's too small...LOL.
Acually....does the hole go all the way through or is like a cup and sealed on the bottom. Look at the sides closely, is there anywhere that looks like something was broken off...look near the bottom. If it has a base, is there writing or an imprint of some kind...even a symbol perhaps?
It looks like a cermic crucible used in the processing of ore. Given it's small size, it would be used for smelting a precious metal such as gold. Was there any mining activity near the location where it was found? Since mercury may have been used in the process, I wouldn't recommend drinking from it.