The daily Alaskan., 1921-05-12
GASTINEAU IS
 THROUGH WORK
Big Mining Company Will Abandon It's Perseverance, Mine and Mill
 ing Plant at Thanc

that the Alaska Gastineau Company
 would close it's mining and milling
 operations at Perseverance and
 Thane on or about the last of this
 month. What mining and milling equipment that can not be used in tHe contemplated manufacture of nu.p aud ra"cr by the interests
 ..G D. di-4@atIed and sold. At the present time approximately 400 men are employed in the various actiyi- ties of the company which has been running on q reduced scale since the carrying away of a power line scv- eral weeks ago by a snow slide.
 The following is a stateIUenr of closing and short history of tbe OD- erations of the company. as given out for publication by Mr. Jackson:
 T have been instructed to publish the following statement:
 The management of the Alaska Gold Mines Company Cthe holding company for the Alaska Gastineau Mining Company, announces that iu accordance with the forecast given in the annual report recent! issued it has become necessity tn dls-ou- Jmue mining anl milling operations at or about the end of May. During the intervening period production and treatment of ore will b. con- timed on a reduced tonnaae scale, and at the samH time the comp0ny's plants. improyem suls aad materials will be arranged aud assembled for most economical production uuGl they can be covered 10 urLc: uge or sold. As further stated iD tie annual report negotiations are under way toward tine creation by other iu- tcrests of d wood pulp and paper in- lgstry al the location of the present mul and for the purpose primarily of best utilizing the company's Iydro-clecric developments. Fur ,hcr steps are also being taken tor ward the sale of mine equipment and such portions of other facilities and materials us would not be useful in ,.e pulp and paper csJabHsAmcut'
 rgE-fn,.,- ,F t.,rtpup,.
 The following is a brief history of the operations of the Alaska Gasti- ucau Mining Company from the year 1912 10 date:
 During the year 1912 the Alaska Gold Mines Company was organized as holding company to finance the development Of the property of the Alaska Ggstineau Mining Company
 !uated near Juneau, Alaska. Active was started about the u.ddle Of 1912, consisting of fully the mine for a production uj 1000 tons of ore per day, deVel- upiUg and eQuipping certain water powers equal to 10000 horsepower md building q mill of a G,OO0-tons per day capacity.
 The mill was started up on March 4. 1915, and has operated contiuu- oUsly tO the present date. During his period total of 1l.7lI,134 tons of ore have been mined and mil.ed for a gross recovery of $9,- 5US,IGS.
 During the years 1915, 1916 and lgl7. when prices of materials used had not been to a great extent af- tected by the World War, quite 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 10 be felt iu this district, resulting in a great scarcity of labor and consequent re- dGc.iOu tonnage of about so per cent. From 1918 to date Q consid- erable amount of money has been lost, as shown by the company's an nual reports, this loss being entirely caused by the war, which resulted ill a scarcity of labor and an increase iu the cost of all material and sup plies over 100 percent. It is esti- mated 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 q ton. which would have resulted in a gain of about $1,S00,- o00 on the tonnage milled.
 From the No. 10 level of the Per severance mine to the surface, about 70 per cent. of the ore occurred ill the soft slate, and 30 per cent. in the hard metta-gabbro and schist. But below this level a very much larger portion of the ore passed into the hard gabbro adding considerably 10 the costs of mining. During the past two years the companys officials have realized that this hard ore