Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1935-12-28

These loans were TO be maze 10
tons, individuals and partnerships
milling or smelling ores" In this CO
to mean any native compound fro
commercially extracted at profit.
This means that properties con-
tanning coal or other nonmetallic
minerals, salts or similar sub
stances can not qualify for loans.
It is desired that the corporation be
given a mortgage on the mining prop
erty However If the property Is held
under lease or option to purchase, a
loan may be considered, provided that
the owner Of the property joins IN the
mortgage, or, provided that such owner
agrees to keep the lease in erect as
long as any part OF the loan Is OUT
standing and to subordinate all land or
royalty payments to the loan. The rate
Of interest for both types of loan is SO.
AS most mines were not sufficiently
developed to meet these conditions, eff
forts to liberalize the provisions Of the
act were Immediately started, with the
result that on Jan. /, 1885, the Seventy
fourth congress passed an amendment
providing that the Reconstruction FL
nance Corporation Is authorized and
empowered also to make loans to cor
porations, individuals and partnerships
engaged in the development OF a quartz
ledge or vein or other ore body or
placer deposit containing gold, silver
or tin or gold and silver, when, in the
opinion of the Reconstruction Finance
Corporation there is sufficient reason
TO believe that, through the use Of
such loan in the development Of q
lode. ledge or vein or mineral deposit
OF placer gravel deposit, there will be
developed a sufficient quantity of ore,
or placer deposits of a sufficient value
to pay q profit upon mining opera
tons: provided that not to exceed 800
900 shall be loaned to any corporation,
individual or partnership for such de-
velopment; provided further, that there
shall not be allocated sum in excess
Of $4,000"
In order to carry out the provisions
Of this amendment the Reconstruction
Finance Corporation has provided for
q Glass B or Development Loan. This
differs in many ways from the Cen
eral Mining Loan. In applying for
Glass A loan, for instance, the applic-
ant whose application has been APP
proved in Washington must provide
for the cost of an independent engi
neer's examination in advance while
examination of an approved Glass B
or Development loan is made by the
governments district supervising en-
gineer of the r. F.. c., and no payment
Is required Of the applicant unless the
loan Is granted. In that event reason
able amount to cover the cost of the
field work which may be necessary is
deducted from the loan.
Glass B loans will not be made for
the purpose Of grubstaking or prospect
ing or unwatering q mine or opening
up old workings, nor are these loans
available for determining treatment
processes or for the construction of
mills, smelters or refineries, or the
purchase Of mineral acreage. In order
to obtain one OF these loans It Is nee
eSSary that the applicant submit in |
formation to show that there is ore ex-
posed in the mine workings of its
property upon which development work
can be started. It is very important 1
that the application contain a map Of
the mine workings, upon which are
placed the location Of each sample
taken of this ore, the width of ore the
sample represents, and the assay values
Of the same. A description Of how these
samples were taken is also requested.
The proposed development should also
be Sketched on the map. All other +
questions should be as fully answered
as possible. Applications are sent to |
Washington where they are filed in the |
order in which they arrive and taken
out in turn for examination by a corps
Of examining engineers. These are all
western mining engineers who have had
wide experience in almost every min
ing district in the west. They are all
anxious to help the mining industry
as much as possible.
If the application is approved, the
applicant is notified and the district /
supervising engineer is authorized to
make an examination of the property
and report to the r. F. G. board In
Washington which then makes final
decision
Application forms have recently been
so that they are much easier
20 prepare. There Is now q Glass B
form as well as a much smaller Glass
A form. The application forms and In
formation Circular No. IA may be OBJ
tanned by writing to the r. F. G. Mine
Loan Division, 1925 II. ST., NV, Wash
ington, or, for Montana and Idaho,
by addressing August Grunert, Super
Ytsing Engineer, Mine Loan Division,
r. F. G. No. Is Edwards st., Helena,
Montana.
It is very important that applica-
tons be sent in as speedily as possible
90 that the routine Of examination can
be completed during the winter months
and work started as soon as weather
permits in the spring. If a great many
applications are sent into Washington
ia March and April, for instance, it
would cause considerable delay to the
applicants. At present it takes five to
SIX weeks to complete study of an
"A class b loan may be used to block
out ore IN a quartz lode or gravel in
4 placer deposit for the purpose of US
ing this blocked out ore or placer
gravel as security for Glass A loan.
which can be used for the construction
Of q mill or dredge or other treatment
plant. Both loans would then be re-
paid from the proceeds OF the mill or
ired0e with the payments conveniently
arranged so that all operating ex-
Denses could be met.
Anyone desiring information on how
10 make out applications Or advice on
heir particular problem can arrange
r0nfereT,ea with the district slfpervis-
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