Gilpin observer., 1920-05-06
GENERAL MINING REVIEW
Secretary Tomblin Predicts that
Mining is Coming Back and all
Past Records Will Be Exceeded.

not the only, leading industry of
the country that did not greatly
profit thereby. The reason for this
generally speaking, was that the
prices established by the govern
ment for the metals was out of
proportion to the cost of mining
them, while the acute labor short
age, low efficiency and high wage
scale operated to curtail output
as well as adding to the cost of
production.
The metal mining industry is
now emerging from one of the
most trying periods in it's history.
Gradually the shackles which
hampered production during the
war period are being thrown off,
and the present year promises to
mark very decided increase in
the output of Colorado mines.
With removal of government
restrictions it is obvious that
prices for metals must move up
to the cost of producing them, in
Guiding margin of profit for the
miner, or mining will cease. 1t is
unthinkable that economic condi-
tions will not eventually be ad-
justed to again foster the devel-
opment of the mineral resources
of the country.
Not only is there a promise that
most of the factors which have
brought about conditions border
ing upon absolute disaster to the
industry will soon be eliminated,
but there are indications that the
penduluA is to swing to the other
extreme, and that mining activity
thruout the western states will,
in the not remote future, exceed
all past records.
With an established demand for
metals greatly in excess of pre-
war periods, call which can not
be denied, prices must automatic
ally reach the point where it is
profitable to mine them. This con-
dition will be established with the
adjustment to peace conditions
which is gradually taking place.
Prices for all metals excepting
gold are slowly advancing and re-
lief for the gold miner seems
near.
The silver situation holds out
much that is encouraging. The
low price for the white metal
prior to the war resulted in the
closing down of many of these
properties long before the ore
bodies were exhausted. These
properties are now being rehabili-
tated and Colorado will show a
very substantial increase in its
output of silver this year.
Realizing that relief from the
distressing conditions affecting
the industry must come, sooner or
later, the leading mining compan-
les are sending out their engin-
eers, and in practically every min
ing district of the state these
scouts are investigating every
mining property on the market
that holds any promise of poten-
tial production. New companies
are forming to operate old proper
ties long idle, and there is
scarcely a mining district in the
state which does not promise
greater activity during the COM
ing year than for long time.
A review of conditions in the
mining counties of the state show
a surprising number of new pro-
jects and disclose activities which
can not fail to very materially in
crease the mineral output of the
state over that of 1919.
Possibly no mining district in
the state suffered more under war
conditions than Gilpin county.
For many years mining opera
tions here have been conducted
chiefly by small companies with
limited treasury reserves, and
when, under war conditions oper-
ating costs amounted to more than
was received for the ores, mine
after mine shut down. Company
operation practically ceased and
mining became confined almost en-
tirely to leasers, who gophered for
ore that was Improbable to mine
on company account.
During the past six months
there has been much to indicate
that Gilpin county is we'll on the
way to general revival of min
ing activity. Many new compan-