Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1935-12-07


at Landusky and the ores hauled By wagon
Whltcomb was Ia charge OF operations.
shaft was sunk several hundred feet below
the tunnel level and at that depth the values
were mainly silver The teaching plant could
not extract the silver values and finally was
shut down, after the company had paid more
than 100000 in dividends.
The Ruby Gulch Co. had distributed its
August shares 70 it's stockholders, Of which
B. D. Phillips vas the largest. Several year s..
later the August AEining Co. built 9 fine
grinding cyanide plant TO treat the silver
ores found at the depth and the taihngs
from the concentrating plant. During tnat
period the writer was employed By the August
Co first as metallurgist, then min Buperin-
tendent and finally general superintendent
This operation was only moderately success
full as silver during that period was selling
at an average Of 46 cents per ounce and our
output was about 600 ounces per day. Phil
Iips at that time bought control OF the August
Co The writer. at the request Of Mr.. Whit
comb, sampled and explored some OF the
workings farthest north and found some high
grade and medium grade gold ore which
looked very promising. However. Phillips did
not care to go further with such exploration
works and the August Was shut down for
number Of years. during which time Phillips
died
A few years ago. Mr.. whitcomb obtained
an option on the property and organi2ed the
Little Ben Mining Co. a corporation with
100 600 shares and at this writing 10 stock
holders, although there we're only six stock
holders IN the beginning. Work was started
at the northern end OF the property and true
to the romance OF the district bonanza ore
again was encountered
The first car shipped by the Little Ben
brought returns Of $4,000. and the next car
more than $1,000 Enough ore was shipped to
pay the option price on the property, repay
the stockholders nearly their entire invest
ment and build q coarse-crushlng, cyanide
teaching plant close to mine operations on
top Of the mountains The capacity Of this
plant was recently increased to $50 tons per
day, the mill heads running from 81 to $40
per ton and the monthly bullion output above
$4,000. p. A. Wickham, Los Angeles mining
engineer. is general manager and the stock
holders include Charles Whitcomb and wife,
George MCGEE Of Helena. Charles and Mar
garet Powers, Aubrey and Norman Hotter Of
Helena. Ray j. Macdonald. Butte capitalist,
John Corette. attorney for the Anaconda
Copper Mining CO. ana James 1. Flnlen
vice president of the Metals Bank & Trust
Co. Butte.
Ruby GuIch Mine
Work was commenced in the Alabama claim
in 1899 and BY the turn Of the century the
Alder Gulch Mining Co. was working the
Pole dulch group above Zortman. IT 1904
Whitcomb and Phillips organized the Ruby
GuIch Mining Co with 100000 shares. Of
which Phillips owned little more than two
thirds. They purchased the Alabama and the
Alder Gulch Co. and from time to time
took over other properties until they had a
group Of 30 patented claims. A i00-ton mill
Was built In 1905. which was later enlarged
and burned down in 1910 This was replaced
by a coarse-crushing, cyanide teaching plant
OF 600 tons daily capacity, the mill being
built and operated for six years by Milton
I. Leydie. mining engineer, who came there
from the Black hills. A tunnel was driven 500
feet below the crest Of the Alabama work
ings. The Ruby mine was opened BY q large
tTsnIa hr4 usarau Asfr4s4 al
feet below the surface. Both haulage tunnels
we're equipped with electric locomotive trolley
line haulage systems. Several million tons
of low grade ore were developed.
In q typical month. there were mined and
milled 10000 tons OF ore with heads OF s215,
tails IS cents and mining and milling costs
about s1.05 PER ton, giving monthly profit
of about 600 dividend was paid each
month. About 1900. 900 tons we're put through
the last mill and over 1000, 600 paid in div
fdends to Whitcomb and Phillips and some
minor stockholders
During the early 1s20's when labor and ma
terial costs started skyward. the mill was
shut down. During the shutdown the mill
burned and Phillips passed away.
Shortly after Phillips death his so per-
cent interest was sold TO Nose Zimmerman,
st. Paul capitalist. and some stock also
passed 10 the portfolio Of Stems Brothers
Helmers, Inc. internationally known con-
tractors and railroad builders Of st. Paul.
Whitcomb held the remaining portion.
AitnOuen tine Sb. faul STOCKHOLDERS were
wealthy, they did not care to resume opera
tions and It was difficult to obtain from
them an option on their holdings at any
reasonable figure. Zimmerman died a few
years ago and left the First National Bank
g. Trust Co. Of Minneapolis as one Of his
executors.
After negotiating three months, the writer.
in December, 1884 obtained an option for IS
months on Zimmerman estate holdings,
through negotiations with the heirs and
the aforementioned bank The property was
reopened in January 1885. and high grade
ore was opened north Of the main Ruby
glory hole and additional claims taken up,
This high grade ore came from a new and
unexpected source and the first car shipped
contained 1871 tons Of a clayey gouge, con-
tanning more than 20 percent moisture. This
clay contained manganese oxide, mourite Of
. purplish color and gold telluride The 1874
tons gave net smelter returns Of SO, 1ss-
Further cars OF rich ore we're shipped and
stiH are being shipped and rich body OF
ore was opened in the Alabama claim.
The 10 months option was exercised and
paid for in five months and in the early part
of June. this year, the writer was elected
president Of the company. Charles Whltcomb.
vice president and general manager. and Err