Valdez daily prospector., 1917-09-04
B. F. M|LLARD
NOT RETURN
Mining Promoter States that He Fall
ed to Finance Mckinley Lake
Property
Seattle, WASH, Sept. 2, 1917.
Valdez Prospector,

NalQeZ fTOSpcCIOT,
Gentlemen:-I think 1t proper to
state to the citizens of Valdez why
am not returning this Fall. left
Valdez, about November LIST, last
year. for the sole purpose of float
ing the Mckinley Lake property and
stated to some of the boys that
would not return until had ample
money to put the property on its
feet.
l spent the first 6 months and
s25O0 without results, and I want to
say that it is impossible to success
fully float a low grade gold propo-
sition and I very much doubt If any
medium or high grade gold proper
ties have been successfully floated.
Incidentally, while I was East,
tried to consolidate the Galena Bay
and Nicolai properties into one COM
pany and after fooling away great
deal of time and spending a lot of
money, I finally received a wire to
come to Chicago and they would
probably consent to my proposition.
therefore took Charles Simenstead to
Chicago with me, paying all ex-
penses myself, and after several con-
ferences it was agreed that l could
organize a five million dollar corpo-
ration for the purpose of consolidat-
ing the above mentioned properties.
Five of the trustees signed the propo-
sition, and others had wired they
would agree to it, and I returned
home fully prepared to carry out my
end of the deal. All the trustees and
officers of the corporation were to be
in Chicago and Wisconsin. All l was
to do was to raise the money. On
reaching home, however, I found
telegram stating that complications
has arisen and not to go ahead until
further instructions, and the matter
rests at that point at the present
time.
Being eager for the filthy lucer and
not having much hope in consolidat-
ing the copper properties. and fully
realizing that it is suicidal to mine
gold at the present time, unless 1t is
very high grade, l turned my atten-
ton to Slver-lead properties in Brit
ish Columbia and / made two trips
over there to examine properties;
have practically closed deal for
property, which was mined in early
days and several million dollars
worth of ore extracted; it is we'll de-
veloped and equipped and has been
idle since 1904; out of one lot of 1O.-
500 tons, the smelter returns show
that they netted $539,000, and this
at prices of sic per ounce for sill
yer and / 1-2c per pound for lead,
and nothing for zinc at that time.
Today silver is 80 C, lead 10 1-2c,
zinc 1-2c per pound and figuring
silver at 75c, lead &c and zinc at sc,
they would have received, had they
separated the lead from the zinc,
about $1,30O,OO0.
900 tons of ore, just as good as they
mined, without running another foot
of tunnel and there is $6,00O,0OO
worth of ore, a practical proposition,
for a shaft has been sunk 264 feet
deep below the lower tunnel with
GOOD ore all the way down and there
is no reason why the vein should not
extend into the mountain at this
depth.
The total cost of mining, hauling
the ore to the railroad, 8 IL miles,
shipping and smelling will be $25 per
ton. and by sorting to 1, which will
be the practice until the property is
paid for, the ore will run $3.50 per
ton.
am organizing a million dollar
corporation and will offer 100000
shares at Csc per share. To the hold
ers of Granite Gold Mining Stock;
am offering to take 35 per cent of the
subscriptions for stock in the new
company, allowing so per share for
Granite, stock.
Understand. am not quitting Al
aska, but inasmuch as it does not pay
to mine gold and have been unable
: to consolidate the coppers. am com
pelled to turn my attention to some
thing else; next spring, as soon as
the snow is off, we will no doubt put
in a hydro-electric plant at the Gran
ite mine; they have taken oil off the
market, so we could not run oui