The Elk Mountain pilot., 1903-10-13
NeWhouse Tunnel.

Idaho Springs correspondent of the
Denver News says:
The reports that the Newhouse tun-
mel is soon to resume driving at the
breast are vigorously denied by Man
ager l.. Hanchett He states that it is
true that there have been conferences
with the Saratoga representatives look
ing toward that end, but that no agree
ment has been reached and that the
indications are at present unfavorable
to an early agreement. These nego-
tiations have been carried on since the
time the breast operations were sus-
pended, In March, 1902. 1t was at that
time that the Newhouse tunnel people,
discouraged by the lack of support in
the tunnel SO far driven, suspended op-
erations and gave out the ultimatum
that no further driving would be done
until some agreement could be entered
into with the parties whose properties
ahead of the tunnel were to be cut.
The theory advanced by the tunnel
people was that in too many cases
they had drained properties and other
wise benefited them, added a material
value to them, without themselves re-
ceiving any assurance of support or
compensation in the near future. The
driving was then suspended, but the
work in the tunnel so far driven has
been more active since that time than
before. Big work was kept up by the
Sun & Moon until the strike last Feb
ruary and exceptionally large work
has been prosecuted by the Gem and
Consolidated Gem. including the run
ming of drifts and upraising. For this
work the company furnished COM
pressed air. and transportation of ores
and rock from the tunnel workings.
Meantime negotiations have been
conducted intermittently between the
tunnel management and the owners
of the Saratoga property. the first i'm
mine ahead of the present tunnel head
ing. 1t is estimated that it would cost
about $25, 900 to drive to the Saratoga,
and $4,000 more to make the connec-
ton. Propositions have been made
by the tunnel folks to do this driving
on a royalty basis, the figures of which
have never been made public, but the
Saratoga people have not deemed 1t ad-
visable to accept the propositions up
to this time. Disinterested parties who
are familiar with the situation. how
ever, state that 1t is only question OF
time when the matter will be accom-
plished and that it Will not be long
before the big bore is again driving
towards Quartz hill in Gilpin county.
The work of the Consolidated Gem,
which justifies the present plans for
a mill of over 800 tons capacity, is alb
solutely proving the value of the big
mining tunnel. and the example will
unquestionably be followed by other
properties already cut and ahead of the
Newhouse enterprise. That the product
of the proposed mill from the known
ore body of the Gem will be greater
than that of either Gilpin or Clear
Creek counties entire to-day is enough
to prove the value of the tunnel to the
really big mines of the two counties
and to make safe the prediction that
1t is only a question of short time
until an agreement will be reached,
not alone with the Saratoga. but with
the other properties ahead of the pres
ent tunnel heading. 1t is stated that
in the Saratoga there are immense
bodies of SIS ore and that under the
shaft system 1t is very close PROPOSE
ton. even owning their pyritic smelter
at Golden. to produce the ore at
profit. The advantages to accrue from
tunnel work are self-evident.
To illustrate the advantages of the
big tunnel proposition to a mining ter
ritory, some very important hgures
have recently been suggested. A well
known mining man. who has been ia
miliar with the values of the district
for years. states that the mines along
the line of the Newhouse tunnel that
could have been bought when that pro-
ject first started. twelve years ago, for
S200, 900. could not now be bought for
So 900 900. These figures have been
shown by the News reporter to num-
Der of the conservative men of the dis
trict who are familiar with the values,
and they are universally pronounced as
very conservative. This shows an in
crease in the valuation of the mines of
2,400 per cent. during that time. or
over 200 per cent. per annum. Part of
this remarkable increase in valuation
is due, of course, to the development of
the properties by the shaft method but
major portion of the enhancement
must be accredited to the great tunnel
projects direct influence. Besides this.
from the precedent of the Newhouse
other similar enterprises have been in
augurated in various parts of the dis
trict and every portion of Clear Creek
and Gilpin counties must eventually
reap like benefit from the increased
valuation.