Gilpin observer., 1910-01-27
BIG MINING MERGER.
Valuable Properties are Consolidated
and Company Organized to operate
Most Important Transaction Of
the Year.


ed in the last twelve months was
contaminated in Denver yesterday.
The chief factors have labored for
seven or eight years to bring 1t
about, as now constituted, owing to
the number of ownerships involved
and disagreements both as to plans
and the expediency of the merger.
But 1t is now in full force and ef-
feet and in the aftermath we shall
witness it's widespread influence upon
other groups of mines in that coun-
ty that to be made largely profitable
should, and probably will, be combin-
ed under single corporation.
The new organization bears the
title Union Pacific Railway, Mining
& Milling company, in which both
Gilpin and Denver men are large fac
tors.
1t has taken over the Kip, Leavitt.
Union, Vasa. Elliot, Gregory Second.
the U. s. M. mines, No. 1, the Cen
tennial tunnel. the Mountain City and
the Leavitt mill site, comprising an
area of vein-ribbed ground 5000 by
600 feet in the heart OF the famous
Gregory district, lying midway be-
tween Black Hawk and Central City.
The section is literally filled with
lodes, most Of which have been ex-
plotted.
The merger includes a 45-stamp
mill of the rapid drop type, in Greg
ory gulch. that is in superior condi-
ton for the work that will be requir-
ed OF 1t. This mill is to be equipped
with electric power and a cyanding
attachment will probably be con-
structed for ores that are readily
amenable to that form of treatment.
The building is of stone and one of
the finest in the country.
Some of these mines were located
in the earliest periods Of gold dis
covery-that is to say, in 1s5s-So.
John Kip being among the first to
claim some of them, and who in as
sociation with Bella S. Buell., perform
ed the original exploratory work that
demonstrated their value. Mr.. Buell.
was also one of the organizers and
large shareholders in the First
National bank OF Denver in 1865.
The various claims are credited
with an output of s2,000,000 Jack
Mellor. Mr.. Buell. and perhaps half
dozen others realized handsome
fortunes out Of these. The entire pro-
duct was taken from shoots opened
above the 5OOfoot levels.
Under the new regime now definite
ly established, this property should
exceed all prior records of produc-
be operated in conjunction under a
well devised system directed by a
single administrative head.
The underground conditions are in
shape for extensive work by crosscut
ting, lengthening Of levels and uprais-
ing thereby rendering available for
extractions large bodies of ore known
to exist within the contemplated
sphere OF action. The main shaft is
at present 700 feet deep. 1t will be
Stul uOWh " a oSPeh VA tpSVO ASSs sss
rapidly as possible. Arrangements for
these improvements were made in the
initial financing Of the company.
The major Importance Of this con-
solidation to the mining industry OF
Gilpin county lies in the fact that
here is great tract Of splendidly
mineralized ground in the very center
OF the county, that has been filled
with water and almost entirely un-
tenanted, certainly non-productive for
the last twenty years, largely be-
cause 1t has until now been impos-
sible to make a satisfactory combina-
tion of the various interests.
The mines enumerated herein Will
in the future be exploited In conjunc-
ton; the lower grades OF ore will be
milled on the ground, the higher pro-
ducts going to the smelters. When the
developments outlined shall have
been completed the output should be
about 200 tons per diem. The machin-
cry equipment Is ample for all pur-
poses, including powerful pumps. The
management states that any ore
carrying SO per ton and over can be
worked at profit. The average mill
ing grade Is about $13 per ton, the
smelling grade carrying from $50 up
to 5000, averaging around $s5. The
location is an ideal one as to surface
conditions, with the Colorado &
Southern railway close at hand. As to
the men in control, they are strong
enough financially to carry any