The Black Hills union and western stock review. [volume] (Rapid City, S.D.) 1904-19??, 1909-10-29
BIC COMPANY
ORGANIZED.
Robert Bunce Representing
English Syndicate is in
the Hills.
HAS UNIQUE PLAN 10 HELP aiming INDUSTRY

Diamond Drill Work on Elliptic Mine
is Stopped for the Winter
Months.
Robert Bunce, representative of an
English syndicate, has returned to the
Hills country and is now promoting
the organization of company for the
development of mining properties in
the Hills. He has organized what is
known as the Black Hills Develop
ment and Financial corporation for
the purpose of taking over mining
properties and operating them with
capital sufficient to meet all demands.
HOW IT is ORGANIZED.
The new company is capitalized at
So, 100000 in shares of one dollar each,
81, 100000 of which is to be used in
purchasing properties and the remain
der in cash for working and erecting
plants. The plan includes acquiring
as many good properties as possible
for the parent corporation out of the
81, 100000 shares, set aside for that
purpose. After floating the company
and subscribing stock, it is planned
to select the five most promising prop
critics and expend 100000 on each,
the treatment being handled with a
l,ooo-ton mill on the property show
ing the best development, later turn
ing that company into ubcompany,
and by Incorporating the sub COM
pany at double the figure that it cost
the parent company to buy, work and
erect plant on it, and sell half the
new company's stock, money can be
secured to adopt the same plan with
another property until all are put on
a paying basis.
BY this plan Mr.. Bunce expects the
parent company to retain a half in
terest in each of the subsidiary COM
panies and by spreading the expenses
over a number Of mines, to thus re-
duce the total.
The more mines taken over, the less
stock is given for each one. For in
stance with four companies in, $780,
600 worth Of stock would be given for
a fifth property, but for eight COM
panies just half that amount would be
given for a new property.
HE HAS GOOD BACKING.
Mr.. Bunce, who is president and
general. manager of the new company,
has the backing of both New York
and English capitalists. The head
offices are in Deadwood, R. w. Bow
er the promoter, being secretary. The
first company to be taken over was
the Monezuma in the Rockford dis
trict. Mr.. Bunce has been conduct
ing a series of samples and expert
mental work on this property all sum-
mer and was so well satisfied that he
concluded deal for its purchase this
week from the New York owners.
The Montzuma contains 1000 acres,
600 of which are patented and has two
well defined ledges showing and con-
siderable development work. Deals
are now pending for number of 9TH
er properties in the Hills.
QUIT WORK TILL SPRING
Diamond drill work on the ground
of the Elliptic Mining company north
west of Deadwood has been abandoned
for the winter, but will be resumed
next spring as soon as the weather
will permit. The work has been in
charge Of ID. j. Tynon, who has sunk
three holes, two of them to a depth
of l 1000 feet, and a third to depth
Of 500 feet, but the company has de-
clined to disclose the nature of the
ores although it was reported some
time ago that vertical quartz ledge
containing free gold had been pene-
trated but the report was never con-
tirmed or denied.
The diamond drill work on the El-
liptic was decided upon when the
shaft, at depth of so feet, struck
the quartz formation and the indi.
cations were that the same formations
existed on the Elliptic ground as OF
J, the North Homestake and other prop
critics on the other side of the fault
1t was then decided to investigate TIN
! underlying slate formation, and th'
drill was first sunk from the bottom
of the shaft and then later from tw,
other points south Of the shaft. Th
: result of the drill work, when it /
known, will prove Of Importance t
. this section.
PLAN TO REDUCE COSTS.
Manager Gray Of the Wasp No.
property, in the Yellow Creek district
4 is working on plan to reduce til
), mining and milling cost of handlin
{ ore to 81 per ton. The company whic
! holds the record as one of the mos
economical low grade propositions il
! the Hills, is not far above the 81 poin
] right now. The Wasp works an ope
cut and the system has been SO car,