The Alaska daily empire., 1915-07-23
PRESIDENT HAYDEN SECURES
 LACKING PROPERTIES
(InierUiel0 Il B0ston Nelcs Bureau. Julv I2l


 Charles Hayden, president of the Alaska Gold Mines Company, who, with Managing Director Jackling, has just returned from their annual visit to the properties under their charge, says:
 "The Alaska Gold property is com ing along splendidly- well within the original estimates of cost and ma terially bettering these estimates in the cost of operation and metallurgi- cal result The method of treatment of the ore is an innovation in gold mining. but it is a decided commercial success.
 "The first section of the mill has treated right along in excess of 2500 tons of ore per day showing that with four sections completed 10000 tons per day and probably more can be handled. The production has been increasing very rapidly and in June the mill treated 9O.79O tons of ore. From the first of June. with on- ly the one section in operation. over 25OO tons were treated daily; in the middle of the month, when part of the second section went into opera tion over $500 tons were daily put through. while at present in excess of 4.OOO tons are going through ev- cry 24 hours. Within a few days it will reach over 5000 tons.
 "We expect to start operating the third section during the latter part of August. and chat section will gradual ly work up to 25Oo tons per day, so that after September we should be treating 750O tons daily.
 When the equipment of Alaska Gold was commenced it was on the basis of 5000 tons per dayl, with a power development to correspond. We figured on coco horse power develop ment, or about one horse power per ton of ore. lt seems safe to figure now, however, that We will require but three-fourths horse power per ton SO that the three sections of the mill which will be running full by Septem- ber can be taken care of by the Sal mon Creek developement- of 5000 horse power
 "As we shall have a lO.OOO-ton mill we have started a new power devel- opment at Annex Creek This is a most satisfactory find. and will start with lower installation Of 4OOO horse power. which with the Salmon Creek will give all the power neces- sary for the 1O.OOO-ton mill This Annex Creek development will be all ready for use by the first of January coincidently with the completion of the fourth section of the mill The Salmon Creek development is a great success. and when we were there the water was up to the top of the dam and overflowing -165 feet
 That there may be no erroneous impression regarding the plans for Alaska Gold. 1t should be understood that there is no intention for a year at least of increasing the mill capac- ity from the 10000 tons which will e ready on January 1st Alaska Goldb can supply ore for a 10000 or even a SO.OOO ton mill. We believe that the conservative course is to operate a 10000 ton mill steadily for three or four months so that we shall know positively what the operating results are. Then Alaska Gold can immed- lately begin to pay dividends from the profits accruing from the opera ton Of the 10000 tonp lant
 ''We see no reason why the inau- guration Of dividends should not oc- cur next July. After that should the stockholders decide to so on with the enlargement of the milling capac- ity. coincidently the second power in- stallation at Annex Creek will be made. giving 1000 additional horse power. which with the development at Gold Creekh will amply take care of a 10000 ton mill
 "As the entire development of AL aska-under ground and on the sur face-has been on larger scale than was first anticipatedh is now appears that when the four-section mill and addition horse power are completed at the end of the year, we will have expended about S1.OOO,OO0 in addi- ton to the funds already raised. If this excess expenditure is capitalized through a bond issued all of the earn ings of the first mill installation will be available for dividends from the start