The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1919-06-14
ROUND MOUNTAIN REPORT

tCOnIlOu6u ITOIu age OGCJ
to the extreme water shortage. This
condition was not local but extended
throughout all of the western states,
as those of you who are familiar
with the operations of hydro-electric
and other companies dependent upon
water supply are fully advised. We
had a very considerable snowfall
late in the season but too late to be
of much profit. However, it was
necessary for us to proceed with
placer operations and make the
most of conditions, as the world war
was at its height, money was diff
cult to procure and it was necessary
for us to make whatever profit we
could, despite adverse conditions
and high operating costs.
The operation of a placer mine is
similar to the operation of a milling
plant, insofar as labor is concerned,
as a certain number of men are re-
auired regardless of the amount OF
material handled, and a yardage
much greater than we moved IN
1918 could have been moved for
less than our 1918 expense. had we
had an adequate water supply. In
fact the labor cost of a placer mine
is in inverse ratio to the amoun OF
water, as water is utilized for the
handling of rocks and other pur-
poses for which labor has to be sub
stituted in case there is a water
shortage. 1t is also difficult to
keep any class of material properly
passing through a flume with a
small head of water.
As far as the 1919 season is con-
cerned it can be stated without, res
ervation that we nave had the great
est snowfall eve known in the
Round Mountain district and actual
measurements taken at various times
during the winter promise a full
head for four or five months, indi-
eating that we should have not less
than 200, 900 yards of material of a
value of more than 81 per yard.
Mention was made in the last an
nual report of the purchase of a
drilling rig for the purpose of drill
ing the banks ahead of the giants.
This drilling rig has since heen
A 70 tho O anlnlinp Of nnr
placer area and the drill has been
in constant operation during the
past year determining definitely our
actual yardage and the value OF
same. With proper allowances and
with sufficient safety factors 100000
yards of material of a value of more
than 81 per yard were sampled and
proven in 1918. 1t car be definitely
stated that our original yardage es-
innate of 10000 yards of a value
of 81 per yard now seems conserva-
tive.
1t was decided not to proceed with
the building of a dam in Jefferson
CduyOu tdSt yCdl, az II ioh W
labor and supplies and the poor
water season made such a course in
advisable. However, plans are now
being made for a better equaliza-
ton of the Jefferson conyon water
supply which, when completed, will
have concluded our water develop
5000 DIn~n nc f0C &c Un- VInuF fhpm
at this time.
1t is my opinion that a fixed price
for gold is rapidly becoming an ad-
vantage instead of a disadvantage,
as it has been in the past. This,
together with the fact that there
is urgent necessity for increased pro-
duction, makes the outlook for gold
mining better than it has been. for
the past few years. An evidence of
this is the fact that the federal gov
eminent has exempted gold mines
from the operation of the excess
profits tax.
We should this year liquidate the
payments due for the purchase OF
the Jefferson and Shoshone water
supply and pipe lines and other
property taken over from the Round
Mountain Power and Water COM
pany. This purchase was made in
1916 and aggregates $4,000.
While no dividends have been de-
clared for the past three years, it
should be gratifying to the stock
holders to know that our earnings
have enabled us to add $150,000 of
new assets to our capital account
and it now seems reasonably safe
to predict the resumption OF divid-
ends this year.
During the year the property of
the Gazabo Mill company, a sub
sidiary company of the Round Noun