Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1936-11-14

miner does not receive SIS per ogAnes
for his gold. as there are certain Hzmeskas
I losses which must be deducted OF
that account he receives from So 30 *
s33 per ounce dependent upon tne SIS.
say of his ores, the higher grades re-.
I ceiving the higher prices per ounce
( With a mill producing gold bullion, khg
4 cold is shipped TO the mint and So
/ per ounce, less a very small deduction
4 Is received. With the lower grade oEes
+ the smelter metal deduction makes
very little difference, but with the
( higher grade ores 1t makes 8 very ap-
/ preciable difference. For instance. the
1 Ruby Gulch Mining Co., before start
I ing its present mill last April, shipped
( about $500 ounces Of gold IN the shape
I Of high grade ore. One car shipped
1 contained about 20 tons, the ore assay
/ ing around IS ounces Of gold per ton
for which approximately $50 per ounce
was received. This loss of So per ounce
meant a total reduction of about 81 100
/ for the car. It usually Is more econ017-
fcal to mill such ore and produce bull
lion rather than ship to the sznelter
although tailings losses Of a mill must
be figured in against smelter metal
deduction, freight and smelter treat
ment charges.
There has been, in this and other
districts, much talk Of having the gov
eminent build custom smelter and
pay higher prices for gold and silver
than our present smelters do. Such q
project is unfeasible from a metallur-
gical standpoint and hence from a fl
nancial standpoint, as a smelter, TO run
economically, WOULD have to produce
either copper or lead, which are the
gathering media in the furnace and
there is plenty of refined copper in the
world now and enough lead smelters.
Placer Mines Succeed
There also is more activity in our
gold placer mines than there has been
in years, most of the placer production
coming from large dradges which
handle, daily, large amounts Of gravel.
In Alder Gulch near Virginia City, the
HUMPHREYS Gold Corporation is hand
ling 5000 yards per day. At Gold Greek
the Yuba Associates and Gold Greek
Mining Co. are handling a large yard
age and the last named company re-
Gently declared a dividend. Porter
Brothers are working the end of Last
Chance gulch north of Helena and
Winston Bros. have been operating for
a number of years in the Prickly Pear
creek bottom from East Helena TO
Clancy. A number of smaller machine
placer operations are working near
Avon and Helmville and innumerable
individual placer miners are working
by hand and by cradles and machine
rockers in many Of the g1lches IN
western Montana.
For the past few years 1t has been
more difficult to finance q mining OPP
GRAFTON than at any time in modern
mining history. This is due to the pres
ent economic condition Of this country
and the passing of new federal Sc
curities laws. 1t is my belief that the
new federal securities act of 1888, even
tually will be a good thing for the min
ing industry, but right now it is de-
feating its own purpose, in measure.
and it is nearly impossible to legiti-
mately finance a primary mining ven
ture by selling stock to the public.
Financing Needed
If it were not for the dearth of fl
nancing, we probably would have the
greatest gold and silver mining boom
in American history at this time.
The Reconstruction Finance Corpor-
alton will make loans up to $40, 900 to
mines that have q good showing and
need further development. but all Of
this money must go towards mine de-
velopment only That is known as a
Glass "B" loan. Glass "A" loans of
unlimited amounts are granted to
proven mines that desire to build mills
and other plants to come into produc-
ton or to enlarge existing production.
Financial ROmances
In the opening and working of some
of Montana's gold mines there have
been some sensational developments
and financial romances, none Of which
were widely heralded. The HUMPHREYS
Gold Corporation decided to rework
Alder Gulch, near Virginia City, where
hand workers and electric dredges al
ready had gone over the ground. With
the new price of gold the HUMPHREYS
engineers estimated there still were
profits to be cleaned. They received q
loan of $250,O00 from the r. F. @. ana
installed several carloads of machinery.
They repaid the loan in less than two
years and still have many more years
of profitable working ahead Of them.
Porter Brothers. contractors, bor-
rowed $4,000 from the r. F. G. and
built a dredge north Of Helena. Ihey
also repaid the loan in a short time
and can operate at a profit for long
time to come.
Little Ben Mine
The Little Ben Mining Co, in the
Little Rockies, bought its mine and
paid so percent of the purchase price
| from the first carload Of ore shipped
During a period Of g few years the
company, out of production, paid foi
/ It's mine built 150-ton min and power
plant. paid It's original stockholders
/ back their entire investment and has 9
fat balance in the bank. In the same
| district the Ruby Gulch Mining Co
! aid practically the same thing. the re-
! cent operation. which began in Janu-
arv. 1885. being started by two meL
with a cash outlay Of only $1,000. Witt
this as q starter that company shipped
/ Ssr-t. r5a cyoId ore with an ASSAY