The Alaska daily empire., 1921-05-05
CASTINEAU MINE TO CLOSE DOWN
 AT END OF MAY
Mining Machinery to Be Dis mantled to Make Way for
 Pulp Making Enterprise.
(Continued From Page OneD

FTOfn PISP tInet developing the mine for produc- tion of 8,000 tons of ore per day, developing and equipping certain wa ter powers equal to 10000 horse power and building mill of 5000 tors per day capacity.
 "The mill was started up on Marh 1. 1915. and has operated continu ously to the present date. During this period total of 11.71113 tons or ore have been mined and milled for gross recovery of s9,5OS, S,16S.OO.
 Effects of War
 During the years&'1915, 1916 and 1917. when prices of materials used mad not been to. a great exent af- fected by the World War, quite a nice profit was made, and the inter- est on the company's bonds was paid during this period. About 1918 the effects of the war began to be felt in this district. resulting in great scarcity of labor and consequent re- iuction in tonnage of about 30 per cent. From 1918 to date 3 cons1d- crable amount of money has been lost as shown by the companys an- nual reports, this loss being entire ly caused by the war, which resulted in a scarcity of labor and an in crease in the cost of all material and supplies over 100 per cent. 1t is estimated that had the 1915 prices of material, supplies and labor been maintained throughout the six years of operation, the actual operating costs would have been reduced over 15 cents per ton, which would have resulted in a gain of about $1,S00,- 0O000 on the tonnage milled.
 From the No 10 level of the Per sevedance mine to the surface, about | 70 per cent of the ore occurred in the soft slate, and 30 per cent in the hard gabbro and schist. But below this level a very much larger portion of the ore passed into the hard gabbro, adding considerably i to the costs of mining. During the past two years the company's offic- ials have realized that this hard ore could not be mined at profit with the present high prices of all sup plies. and therefore no development has been carried out for a consider able period It was therefore decid- ed about a year ago to finish all the stopes in the upper levels. and draw out the ore. This program has been completed, and while many millions of tons of low-grade ore are broken in the mine, this ore cannot be drawn out and milled to show a profit with the present high prizes of all supplies.
 Low Operating Costs
 The mill was originally designed for 5000 tons per day. but it has been demonstrated on many occas- ions that it is capable of continuous operation on basis, of 10000 tons per day With this tonnage, very low operating costs are obtained.
 Some three years ago the manage ment of the Alaska Gastineau Min ing Company fully realized that it would be impossible to continue op- erations indefinitely with the high prices of all material and low grade of the ore. A thorough investigation was therefore started of the possi- bilities of utilizing the company's hydro-electric power for the manu- facture of wood pulp and paper These possibilities have been fully investigated by two sets of compe- tent engineers, and they reported very favorably on the project. Ne gotiations are under way with East ern capitalists at the present time looking towards the establishment of pulp and paper industry at Thane, and it is hoped that these will be satisfactorily consummated very shortly, and construction work start ed for the establishment of this in dustry.
 Trying Period
 During the past three years we nave passed through a very trying operating period. Costs of all SUD- plies have been very high. labor shortage has been acute and labor turnover very great necessitating the breaking in of new mel continually. In fact, operations during this period were only possible due to the splen- did organization of operating offic- ials which the company had built up Tn which every man strove to main tam the highest efficiency in his de partment thus reducing costs and enabling operations to be continued. | It Is very much to be regretted that | the closing down of the Alaska Cas- tineau Mining Company's operations VIII mean the disbs nding of this fine force of men. ,s,s.sh