Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1909-04-12
CHAFEY MINES
IN BIG MERGER
CAPITALISTS ENTER DEAL IN
v0LvlNG MILLIONS
INCLUDES BLACK HOLE AND THE
GOLDEN BELL
Discoverer of District, Salt Lake and
San Francisco Men in Directorate.
Mine Produces 100000 in
Nine Months

GOLDFIELD. April 11.--A company
to be incorporated under the laws of
the state of Nevada is in process of
formation by Salt Lake and San Fran
cisco mining men and capitalists which
will be known as the Chafey Mines
company. The capital will be $1,000,-
900, divided into 100000 shares of
stock, par value 81 each. Out of this.
200,0 900 shares will be retained in the
treasury. There will be $4,000 shares
of this treasury stock placed locally,
and 1t will be issued under the guar
anty system, by which the purchaser
eventually will be able to secure his
purchase price back in case he so de-
sires.
This organization has taken over the
famous Black Hole mine of the Chafey
district, one of the greatest discoveries
of 1908 in Nevada mining and pro-
nounced by innumerable Salt Lake Wis
itors to be one of the good gold mines
of the state. This property was owned
by the Chafey-Sims company, an or
ganization also owning the Golden
Bell property, which comes into the
new organization. In addition TO
these two mines there are two other
groups of Chafey property included
among the assets of the Chafey Mines
company.
The Black Hole mine has produced
in the neighborhood of 100000, and is
in shape at present to whip out an
average of $1,000 worth of gold bullion
a day.
Two Undeveioped Groups
The mine has been developed by
means of a shaft to the 150-foot level
and by 45-foot tunnel. On the fifty
foot level from the shaft there has
been a total of 1886 feet of work done.
and 200 feet of work has been done
on the 100-foot level. all in ore.
The ore occurs in a contact vein
ranging from four to twelve feet in
width, the values of which, as shown
by the mill assay sheets for long
period past, average better than $500
a ton. The mine is equipped with
100 horsepower boiler, a 40 horsepower
steam hoist, two-drill compressor
and all the buildings essential for min
ing purposes. Owned by the company
is the forty-ton mill, and 1t Is WITHIN
the scope of present plans to install
another mill with twenty stamps, a
tramways from the mime TO the hill
sites and a power plant.
The Golden Bell property has been
opened by 1easers. tunnel has been
driven for 600 feet into the hill, the last
$50 feet being on the same vein de-
yeloped in the Black Hole mine.
crosscut tunnel has also been driven
and drifts run both ways on the ore
for distance aggregating 300 feet.
Three shafts have been sunk, all being
in ore One shaft is down 200 feet, the
second 100 feet and the third eighty
feet. Across the two properties the
Black Hole ore has been developed on
the surface for 1900 feet, ana that the
vein does extend to depth has been
.1o,,,or, ctrofad baynnd all doubt.
BY Shaft and Tunnel
The other two groups owned by the
company have not been treated TO
very extensive amount or development
work, but the surface showings are de-
scribed as being all that could be de-
sired.
There have been only two officials
agreed upon up to date, these being
q. S. Chafey, the discoverer of the dis
trict. who will serve in the capacity or
president, and Harry Oatter, who will
be secretary. 1t is not often that a new
organization is launched with two well
developed mines among its assets, and
the Salt Lakers interested are being
congratulated over their success IN
rounding out this deal. Chafey as
camp has been one of the main feat-
ures of Nevada mining since Ias'
lime. and the camp has been extreme
Nv well patronized by Utah capital. It
was the Black Hole mine which made
the camp possible, and there are few
mines in the country which can show
a net production of 100000 before the
expiration of three-quarters of a year
from, discovery and then leave full
years supply of ore blocked out in the
mine.
Arrangements have been made to
list fine Chafey mines stock in San
Francisco and Salt Lake City, while
It will be dealt in on the New York
curb.