The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1919-02-04
COLDF|[[D CON. IS
UNDER new DEAL

Because of the great amount of in
terested manifested locally in changes
in the Goldfeld Consolidated Mines
Company, the following is reprinted
from the Goldfeld Tribune:
Rumors of a deal involving the
Goldfeld Consolidated Mines Com
pan have been current for the past
month, and the deal broke Friday
morning with the arrival here of II. G..
Mcmahon, manager of the Cracker
Jack company, who is generally con-
sidered one of the most energetic
men now operating in this district.
Pending the formation of a COM
pany to be known as the Goldfield
Mining Company, Mr.. Mcmahon has
taken over, through purchase, part of
the territory of the Consolidated and
has taken a %five-year lease on the
remainder. The personnel of the new
company will be announced in a few
days, according to Mr.. Mcmahon.
In discussing plans of the new or
ganization, Mr.. Mcmahon stated it
will be the policy of the company to
conduct a large amount of develop
ment work which the Consolidated
company did not feel like undertak-
ing with company funds, and lessees
could not undertake. The new COM
pany plans to develop the entire prop
erty on a comprehensive scale, so as
to make a good showing for prospec-
tive lessees, in the meantime extract
ing such ore of shipping grade as is
exposed in the work.
The company plans to take over all
activities of the Consolidated, includ-
ing surface equipment such as store
houses, and to purchase lumber and
all supplies in quantity, these sup
plies to be furnished to the lessees
practically at cost. The lessees will
then be charged for such material
and service as they use, including
hosting equipment and compressed
air. Every service possible, through
engineers and in other ways, will be
furnished lessees to aid them in their
operations, Mr.. Mcmahon said.
The royalty to be paid by sub
lessees will be from 20 to rs per cent
of the net returns from ore shipments
after payment Of, freight and treat
ment charges, with exception of cases
where ore assays $40 per ton or more,
in which ease 80 per cent will be
charged. This will be a matter in
which conditions in individual blocks
will be considered in determining the
royalty.
Sub-leases will be granted for a
minimum period of one year, and the
granting of leases for longer periods
will depend on conditions in the terri
tory sought by the lessee. There will
be no limit to the amount of money
any lessee can make. Mr.. Mcmahon
said: They will be permitted to make
a million if they can"
Present holders of leased blocks
will be given priority under the new
terms, and all other applications on
file will be considered according to
their priority, with due regard to the
responsibility of persons making APP
pllcation.
Tomorrow Qast Saturday, the Com
bination and Laguna shafts will be
open, although no compressed air will
be available for four or five days, as
a new and modern air compressor
will be installed to replace the pres
ent compressor, which, according to
Mr.. Mcmahon, is too expensive to OPP
crate. Other shafts will be opened
later.
The matter of determining to whom
leases will be granted will be acted
on Immediately, so lessees may start
operations with the installation of the
e compressor.
A. II. Lawry, superintendent of the
Consolidated Mines Company, made
the following statement:
"A new company formed of San
Francisco business men has pur-
chased a portion of the Goldfield Con-
solidated Mines Company property
and obtained a lease on the remain
der of its mines. The new company
will assume the responsibility of mine
operations on February /, and it is
understood it expects to conduct de-
velopment work theoretically and at
the same time suitcase portions of
the estate. H. G.. Mcmahon will be
the local representative of the new
company"