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diff --git a/38903.txt b/38903.txt new file mode 100644 index 0000000..2378c87 --- /dev/null +++ b/38903.txt @@ -0,0 +1,4883 @@ +The Project Gutenberg EBook of The Business of Mining, by Arthur J. Hoskin + +This eBook is for the use of anyone anywhere at no cost and with +almost no restrictions whatsoever. You may copy it, give it away or +re-use it under the terms of the Project Gutenberg License included +with this eBook or online at www.gutenberg.org + + +Title: The Business of Mining + A brief non-technical exposition of the principles involved + in the profitable operation of mines + +Author: Arthur J. Hoskin + +Release Date: February 16, 2012 [EBook #38903] + +Language: English + +Character set encoding: ASCII + +*** START OF THIS PROJECT GUTENBERG EBOOK THE BUSINESS OF MINING *** + + + + +Produced by Eric Skeet and the Online Distributed +Proofreading Team at https://www.pgdp.net (This file was +produced from images generously made available by The +Internet Archive/American Libraries.) + + + + + + + + +Transcriber's Notes : +(1) Obvious misspellings, punctuation faults and misprints + have been corrected. +(2) Italic text is denoted by _underscores_ +(3) Subscripts are denoted by an _underscore followed by the symbol in {braces} +(4) "Par/Share" = Par Value per Share, in the table of share values + + +[Illustration: UTAH COPPER COMPANY'S OPEN PIT MINE, BINGHAM, UTAH. +This Mountain is Copper Ore.] + + + THE BUSINESS + OF MINING + + A BRIEF, NON-TECHNICAL EXPOSITION + OF THE PRINCIPLES INVOLVED IN THE + PROFITABLE OPERATION OF MINES + + BY + + ARTHUR J. HOSKIN, M.E., + + CONSULTING AND GENERAL MINING ENGINEER; WESTERN EDITOR, "MINES + AND MINERALS"; FORMERLY PROFESSOR OF MINING, COLORADO SCHOOL + OF MINES; MEMBER, AMERICAN INSTITUTE OF MINING ENGINEERS; + MEMBER, COLORADO SCIENTIFIC SOCIETY + + _WITH 16 FULL PAGE ILLUSTRATIONS AND ONE CHART_ + + [Illustration: Publisher's Logo] + + PHILADELPHIA & LONDON + + J. B. LIPPINCOTT COMPANY + + 1912 + + + + + COPYRIGHT, 1912, BY J. B. LIPPINCOTT COMPANY + + PUBLISHED JULY, 1912 + + PRINTED BY J. B. LIPPINCOTT COMPANY + + AT THE WASHINGTON SQUARE PRESS + + PHILADELPHIA, U.S.A. + + + + +CONTENTS + + + + CHAPTER PAGE + + INTRODUCTION 1 + + I. WHAT IS A MINE? 4 + + II. WHAT IS MINING? 12 + + III. THE ANTIQUITY OF MINING 22 + + IV. MINING'S PLACE IN COMMERCE 28 + + V. THE FINDING OF MINES 39 + + VI. MINING CLAIMS 46 + + VII. PLACERING 60 + + VIII. OPEN MINING 72 + + IX. CONSIDERATIONS PRECEDING THE OPENING OF MINES 78 + + X. MINE OPENINGS 93 + + XI. TYPES OF ORE BODIES 107 + + XII. THE QUESTIONS OF DEPTH AND GRADES OF ORE 115 + + XIII. VALUATION OF MINING PROPERTY 129 + + XIV. THE MINE PROMOTER 134 + + XV. INCORPORATION AND CAPITALIZATION 140 + + XVI. MINING INVESTMENTS 148 + + XVII. MINE EQUIPMENTS 154 + + XVIII. MINE MANAGEMENT 162 + + XIX. PRICES OF METALS 170 + + XX. MINE ACCOUNTING 179 + + XXI. INVESTMENT IN MINING STOCKS 185 + + XXII. THE MEN OF THE FUTURE IN MINING 202 + + XXIII. MISCELLANEOUS CONSIDERATIONS 210 + + CAPITALIZATION AND DIVIDENDS OF NORTH + AMERICAN METAL MINES 216 + + INDEX 221 + + + + +ILLUSTRATIONS + + + PAGE + UTAH COPPER COMPANY'S OPEN PIT MINE, BINGHAM, UTAH _Frontispiece_ + + HACKETT MINE AND MILL, JOPLIN, MO. 12 + + COAL WASHING PLANT, PANA, ILLINOIS 16 + + UNIVERSAL MINE, CLINTON, IND. 20 + + KENNEDY MINE, JACKSON, CAL. 30 + + A GILPIN COUNTY, COL., SCENE 52 + + DREDGES OF YUBA CONSOLIDATED GOLDFIELDS, HAMMONTON, + CAL. 66 + + THE SNOWSTORM PLACER, FAIRPLAY, COL. 70 + + STEAM SHOVELS AND CHURN DRILLS, COPPER FLAT, ELY, + NEV. 74 + + MILL OF THE PITTSBURG-SILVER PEAK GOLD MINING + CO., BLAIR, NEV. 88 + + MILLS AND SHAFT HOUSE OF DALY WEST MINE, PARK + CITY, UTAH 100 + + SHAFT NO. 3, TAMARACK MINING CO., CALUMET, MICH. 114 + + SMELTERY OF THE BALAKLALA CONSOLIDATED COPPER + CO., CORAM, CAL. 114 + + WASHOE REDUCTION WORKS OF THE ANACONDA COPPER + MINING CO., ANACONDA, MONT. 118 + + MILL OF THE ROODEPOORT-UNITED MINES, TRANSVAAL, + SOUTH AFRICA 148 + + SPRAY SHAFT HOUSE OF COPPER QUEEN CONSOLIDATED + MINING CO., BISBEE, ARIZ. 160 + + DIAGRAM OF METAL MARKET FOR ONE-THIRD OF A CENTURY 178 + + FLORENCE MINE AND MILL, GOLDFIELD, NEV. 200 + + + + +THE BUSINESS OF MINING + +INTRODUCTION + + +There is probably no line of human activity that is not beset with +malicious and ignorant intruders. The fact that any occupation or +business is really legitimate seems often to stimulate the operations of +these disreputable persons. + +Mining does not escape the application of this postulate. For ages, the +industry has afforded most fertile opportunities for the machinations of +the unscrupulous and the erring. Somehow, there weaves throughout the +history of mining a sort of magnetism rendering us unduly susceptible to +the allurements which are presented with every mining proposition. + +It is not, however, always intentional deceit that is perpetrated upon +the unwary. Often, mining failures result from actual ignorance of the +business upon the part of those entrusted with its conduct, or if not +from actual lack of knowledge, then from erroneous conceptions with the +consequent misapplication of honest endeavor. A victim of such misplaced +faith is perhaps more leniently inclined than is the person who has been +duped by a "shark," but the effect upon the great industry is hurtful in +either case. + +The purpose of this short monograph will be served if the author can +feel assured that his readers will finish its perusal with the belief +that mining may be followed as a business with just as much assurance of +success as attaches to any one of the many lines of industrial activity. +Many persons who have sustained losses in mining ventures deserve no +sympathy whatever, since they have not exercised even the simplest +precautions. So long as men--or women--will take as fact the word of any +untrained or inexperienced individual concerning investments, just so +long will there be resultant financial losses, no matter what the line +of business. Because there have been elements of chance observed in the +records of mining, this business appeals to the speculative side of our +human natures, with the result that untold numbers of individuals have +had ample reason to regret their ventures. But, as will be found in the +text matter, mining can be relied upon with precisely as much assurance +as can any other business. + +Nothing of a technical or engineering sort has been attempted herein, +the sole aim of the writer being to establish the reliability and the +credit of the mining industry as a whole by pointing out the lines of +conduct which should be followed by those who enter its precincts as +business people. When investors of small or large means will put their +money into mining projects with the same precautions that they would +exercise in placing their cash in other enterprises, they will be +rewarded with corresponding remuneration. In this firm conviction, then, +this little work is dedicated to the intelligence of American laymen in +mining matters. + + + + +I + +WHAT IS A MINE? + + +Before entering into a discussion of the economic features of the mining +industry, it will be well to be sure that we understand, definitely, +what is meant by mining. As one investigates the question, he is bound +to run across varying shades of meaning for the words _Mine_ and +_Mining_, and so we must pause long enough to define these words +according to the best usages. + +A search through works on mining written at various periods reveals +differing ideas that have prevailed among authors. Less than a hundred +years ago, it was said that a mine "consists of subterranean workings +from which valuable minerals are extracted." One early writer said that +a mine is one only when the operations are conducted in the absence of +daylight. As time has created new fields for the industry, we find that +ideas concerning the meaning of the word mine have necessarily altered, +until now (according to The Coal and Metal Miners' Pocketbook), we may +think of a mine as "any excavation made for the extraction of minerals." +Under this definition, we properly think of the rather unusual +operations of marketing coal right from the surface of the earth, in +eastern Kansas, as mining. There is, in this case, no covering of earth +above the workmen; neither are the operations necessarily carried on at +night to avoid the illumination of the sun. + +So, also, placers are now correctly spoken of as mines, although but a +few years ago there was drawn a strict line, eliminating such worked +deposits from the category of mines. One may still run across a few men +who are sticklers upon the point that a placer is not a mine. Throughout +the world, at the present time, there are many places where immense +deposits of valuable minerals are being excavated from open pits by +out-of-doors methods, and our common term for these places is mines. +Thus, in Minnesota, in that wonderful Lake Superior country, that is +famous as the world's greatest known producer of iron ore, tremendous +tonnages are handled every year by the modern steam shovel, which works +in natural light by day and by electric lamps at night. In Utah and +Nevada we find similar operations conducted in the excavation of copper +ores. In Australia, the famous Mount Morgan mine is using open air +methods in the mining of precious metal ore. + +But what about quarries from which are taken building stone, salt, +kaolin or clay? Are not such substances of the mineral kingdom? Here we +run across a hitch in the definition quoted above; for while we hear of +"salt mines" (not "salted mines"), our parlance has not, as yet, +warranted this term except for such excavations of salt as are carried +on in subterranean deposits; and it is quite out of place to speak of +stone or clay mines. + +Evidently we must pass through another transition in our conceptions +about mines, or we must permit quarries and pits to be included within +our realm of mines. At the present time, the prevailing practice of the +men best qualified in such matters is to designate as mines those +workings from which only coal, metallic ores, or gems are extracted. +Hence, we should not speak of a slate, sulphur, mica, clay or phosphate +mine. + +And yet, with all the above restriction in our nomenclature, we have not +reached one very important consideration, one which we have been +approaching for a number of years and which, of late, has been met and +forcibly applied by the best men in the profession of mining +engineering. + +An excavation that will produce coal, metals or gems is not necessarily +a mine. The simple fact that a man can get some gold-bearing dirt from a +hole in the ground does not mean that he has a mine. The occasional +finding of a diamond on the sidewalks of a great city does not give +anybody the impression that city sidewalks are diamond mines. There are +many places in which small amounts of combustible coal can be scratched +from its natural depository, but no company appears to think highly +enough of these seams to install machinery and to carry on operations. +In the eastern part of Kentucky there are well-defined deposits of +lead-bearing baryta, though, up to date, their development has not +proved successful. In Brazil there are known to be very rich areas of +placer ground, and still the deposits are not worked. A friend of the +writer discovered some very good gold-bearing gravels in Alaska, but he +was unable to mine. + +There is something besides the presence of valuable minerals and the +ability to win them from their natural matrices that is essential to a +mine. It is here, in our considerations of the mining industry, that we +come into real economic notions for the first time. Yes, according to +the latest ideas, we are wrong in stating that any worked or workable +mineral deposit is a mine, _if it does not contain possibilities of +profitable working_. This is now the prime thought of every up-to-date +mining manager or engineer. It is this notion that will distinguish a +mine from a prospect. The prospect may become a mine by proving itself +profitably workable: if it simply carries values which cannot be +realized to advantage, then it must continue as a mere prospect. There +are cases of properties which possess rich deposits and which are +loosely called mines. These properties may be observed to be erratic in +their productiveness, owing to the very pockety nature of the deposits; +and the owners, although they do, indeed, strike occasional handsome +bonanzas, expend all the profits of such finds--or even greater +amounts--in searching for other pockets. Is such work profitable? Is it +mining? + +The trouble with the cited placers of South America is that climatic, +hygienic and political conditions have been antagonistic to successful +working: the ground is rich, but it cannot be handled to make money. In +the case of the Alaska gravels, there was no available, though +essential, water supply. The Kentucky galena cannot be economically +separated from the containing heavy spar. Coal, which is sold at +comparatively low figures per ton, must be handled at the mines in +large quantities to pay, so that a thin seam or a scattered deposit is +not suitable for mining. + +Under these restrictions of our new definitions, we run across many +interesting points. For instance, one may ask the question about the old +abandoned hole in the ground which is occasionally found by prospectors, +"Is it a mine?" The answer can be simply another query as to whether the +hole was abandoned because it contained no value, or because, containing +value, it could not be profitably worked. As we think of mines nowadays, +we can conceive several reasons why, before the advent of transportation +lines and the invention of modern metallurgical processes and many forms +of labor-saving machinery now so common in and about mines, many very +rich deposits may have been necessarily forsaken by their discoverers. +But such a property would, if now worked, probably prove highly +profitable. We thus note that there exists some elasticity in the +meaning of the word mine. An unprofitable project at one time may +develop into a mine at a later period. Many gold mines have become +worthless propositions merely through changes in the ore that have +rendered further work unremunerative. + + + + +II + +WHAT IS MINING? + + +Having considered the accepted definition of a mine, let us now extend +our reasoning a little and inquire just what is meant by mining. At +first thought, one would say that mining is, in a broad sense, the art +or practice of excavating, at a profit, the ores of metals, the beds of +coal, the gravels of placers and the deposits containing precious +stones. Are we justified in letting this definition stand as it is? If +we do not make any change, we must exclude all quarries, sand banks, +clay pits, and the numerous sorts of works that are producing the +non-metallic minerals of commerce. Very well, since we find good usage +will warrant us, we will do so. + +[Illustration: HACKETT MINE AND MILL, JOPLIN, MISSOURI.] + +Still, there are other pertinent questions arising. Does the practice of +mining cover the treatment of the excavated products? Here we run across +a mooted point. The British and the American uses of the word mining +seem to be a bit different in this regard. Upon the Rand, South Africa, +a territory dominated by Englishmen, every mine is equipped with its own +mill, and all notions of mining cover the inseparable idea of local ore +treatment. Here, in our country, there are many, many mines which have +absolutely no means of treating their own products and the managers give +no thought whatever to metallurgical or milling lines. There are, on the +other hand, many companies that have erected private plants at their +mines for the extraction of metallic contents from the ores. Here it +may, or it may not, happen that the operations of mining are considered +as distinct from those of treatment. In some instances, as at the +Tonopah Mining Company's plants, there is separate superintendence of +the milling and the mining; but in the Joplin, Missouri, zinc region one +superintendent looks after the running of a mine and its omnipresent +mill. + +There may be drawn a sharp distinction between what is really mining and +what is the subsequent treatment of the ores for the extraction of +values. The latter field is denoted _Metallurgy_ when the operations are +of such a nature as to actually recover or extract metallic products or +metals. If the treatment process has for its object merely the rejection +of some of the worthless materials in the original ore, thus causing a +concentration of the valuable minerals, but without actually obtaining +any metal, then the term _Ore Dressing_ is warranted. At some mines, +there is maintained a practice of culling out, often by hand, a certain +percentage of the obviously worthless ingredients of the ore before +shipping the products to treatment plants. This is neither milling, +metallurgy, nor ore dressing, but is more properly called _Sorting_. It +is one of the operations connected with mining. Milling may be either +ore dressing or metallurgy. + +In the operations of placering, there is a simultaneous _excavation_ of +a deposit and an _extraction_ of the valuable contents. In this case, +shall we call the process mining or metallurgy? If it is a gold placer, +one may see the recovery of the metallic values. Here, the usage of the +majority of practical mining men will uphold us in always speaking of +the work as mining. + +In its original significance and use, metallurgy involved the use of +fire for the concentration and recovery of metals. With recent advances +in chemistry, there have been numerous discoveries of wet or fireless +methods for arriving at equivalent results, so that it is now perfectly +proper to allow the word metallurgy to cover such processes as +cyanidation, chlorination, electrolysis, and the host of new inventions +that are continually appearing. + +The writer has consulted a number of authorities on mining lines to +ascertain just what sort of a position to give to the practice of ore +dressing. Prof. Robert H. Richards, the head of the mining department in +the Massachusetts Institute of Technology, and the inventor of machines +which have made him famous among mining men, says, "Ore dressing is an +essential part of mining. The whole object of ore dressing is to remove +gangue before shipment and so save in freight and treatment charges." +Mr. A. G. Charleton, the eminent English mining engineer and author of +numerous books, in discussing this question, writes, "Personally, I am +of the opinion that ore dressing should be included in mining." One has +but to look through the catalogues of most of the American and foreign +mining schools to find that little or no line is drawn between the +courses in mining and metallurgy, and almost universally the dressing of +a mine's product is taken up as an inseparable part of mining. In a very +few exceptions, the courses of study are so planned as to draw an +imaginary line between mining and metallurgy, and in these instances, +ore dressing is placed with metallurgy only for convenience in the use +and arrangement of college laboratories. But, since it is a common +practice for mining companies to install plants right at the mines for +the purpose of diminishing the bulk of ore shipped and to thus save in +freight and custom treatment charges, mine superintendents and even the +common miners have become accustomed to thinking of such plants as +but units of the "mining" plants. At bituminous and anthracite mines +whose products contain objectionable amounts of impurities, it is a +common practice to subject the output to a _Washing_ to remove the +deleterious substances before shipment to the market. + +[Illustration: COAL WASHING PLANT, PANA, ILLINOIS.] + +In view, then, of these reasons, it is proper to decide that mining is a +term broad enough to cover the operations of extracting coal and +metallic ores from the ground and of preparing them for shipment or +metallurgical treatment. + +Coal is always coal, no matter in what thickness of deposit it is found. +It may not be minable coal because in thin seams or because so +intercalated with layers of slate or "bone," that the mine's mixture, or +so-called "run of mine," is not salable. But with metallic ores, we run +across an idea that is occupying the attention of many prominent +geologists and mining men. + +What is ore? This is a question to which there have been many attempted +answers. There has been an evolution of ideas, with a corresponding +gradation of definition. To set a uniform standard of thought upon this +point, officers of the United States Geological Survey, a few years ago, +proposed the following definition. It must be conceded that this +definition, while embodying many splendid features, is not altogether +exempt from criticism; but in the absence of anything better, we shall +not be very far in error if we use it: + +_Ore_ is a _natural_ aggregation of one or more _minerals_ from which +useful _metal_ may be _profitably_ extracted. + +There is, then, no such thing as "pay ore" or "non-pay ore," expressions +still quite common among miners and prospectors of the uneducated types. +Prof. James F. Kemp, probably America's best-posted writer upon the +subject, in an attempt to formulate one acceptable and unchangeable +meaning for the word ore, says, "In its technical sense, an ore is a +metalliferous mineral or an aggregate of such minerals, more or less +mixed with gangue, and capable of being won and treated at a profit. +The test of _yielding the metal or metals at a profit_ seems to me, in +the last analysis, the only feasible one to employ." This definition +eliminates one of the weak points in the first definition, namely, that +an ore must be an association of minerals: there are some common ores +(as for example, magnetite) which are not associations, but single +minerals. + +We now reach certain fundamental concepts which must be accepted by the +mining man who desires to be recognized as abreast of modern ideas. +Following the publication of Kemp's definition of ore, there was much +comment--as was anticipated--with the result that there has been noted a +vacancy in scientific matters and it has been thought proper to permit +another definition for purely scientific uses. This other definition of +ore will cover the materials or aggregates of minerals from which gem +stones and other valuable, but not metallic, substances are recovered. + +Let us recapitulate. An _ore_ must be an aggregate or association of +natural minerals, or a single mineral, from which metal may be +profitably recovered. _Mines_ are excavations in the earth from which +ore, coal or gems are taken. _Mining_ is the art or practice of +operating mines. + +Throughout the subject, we see the inseparable idea of _profit_. The +work of carrying on operations in a railroad tunnel is not mining; the +driving of adits through barren rocks to reach ore bodies is not mining; +the sinking of shafts through worthless "wash" or rocks with a view of +opening avenues for the removal of ore is not mining. Mining is carried +on only when ore is being produced. The wildcat practice of erecting +small, temporary plants and digging prospect holes can be condemned as +not being real mining. + +[Illustration: UNIVERSAL MINE (BITUMINOUS), CLINTON, INDIANA.] + +There is usually little question about the validity of a coal mining +proposition, since "the goods show for themselves." Comparatively few +cases of fraudulent ventures in coal properties are of record. The +product of a coal mine is ready for market just as soon as it is loaded +into railroad cars, the mining company receiving its pay, commonly, +upon its own recorded weights. There is no freight to pay, no waiting +for assays or analyses, and no settlements with mills or smelteries. +There are not the allurements for getting rich quickly in coal mining +that are so beguiling to the class of investors generally approached by +the promoters of mines(?). This must not be construed as stating that +nobody has ever been deceived in a coal mine proposition, for, indeed, +there have been many failures; however, they have been due, chiefly, to +auto-deception as to area, thickness or quality of the coal measures. + + + +III + +THE ANTIQUITY OF MINING. + + +Mining is believed to have been one of man's earliest occupations. In +historical writings, many of which date back into antiquity, there are +allusions, as well as direct statements, concerning the art and tasks of +obtaining valuable metals from Mother Earth. We are told that the very +ancient Egyptians made common use of metals and that they possessed +knowledge of certain metallurgical and metal-working processes (as for +example, the tempering of copper) which we, of today, cannot claim. Six +thousand years ago Egypt became a world power through her mining of +copper in the Sinai Peninsula. Iron implements found in the great Gizeh +Pyramid are supposed to date back to 4,000 B.C. Copper tools have been +found in the ruins of ancient Troy. In Assyria, a very good steel saw, +44 inches long, was taken from the ruins of Nimrod. Iron was utilized by +the Chinese some 2,000 years B.C. Near Delhi, India, there exists an +iron pillar, 22 feet long and weighing six tons, dating back to 400 B.C. +It is chiefly interesting in exhibiting an ancient knowledge of welding +which is the envy of our modern iron workers. If we accept the Hebrew +Scriptures, we must believe that mining was carried on in the time of +Tubalcain, spoken of in Genesis. The Old Testament contains numerous +verses referring to the mining of metals, the land of perfect abundance +being paraphrased in Deuteronomy thus: "Where the stones are of iron and +out of its hills are digged mines of brass." Coal was mined and used in +Greece in 1330 B.C. + +It is quite probable that gold was the earliest metal to be worked. +There are two good reasons for this assumption: First, gold was to be +found in the native state or as nuggets, thus requiring no reduction +process. Second, the ores of gold are usually less refractory than are +the ores of other metals. This is especially true of the oxidized ores +such as would naturally be discovered by primitive man. These facts, +together with the further properties of gold, _viz._, that its color is +attractive, that it resists corrosion or tarnish, and that it is easily +worked into ornaments or coin merely by hammering, make it highly +probable that humans early made use of this yellow material. + +We read in Job 28:1, that "gold is refined;" and modern investigations +tend to prove that the Ophir of Biblical reference is the southern +portion of Matabeleland or the Rhodesia of present fame among mining +regions. It is possible and quite probable that the great quantities of +gold used in the building and furnishing of King Solomon's Temple came +from the vicinity of the present city of Johannesburg. The "golden +fleece" of literature has been explained as a figure of speech for the +skins of sheep which were laid in troughs to catch gold upon the +principle of the riffle in a modern sluice-box. + +Copper was perhaps the second metal to be worked by man. As a rule, it, +also, is easily smelted from its ores; and, as above mentioned, we have +relics that give evidence of wonderful skill in working this metal in +times of remote antiquity. + +However, other metals are believed to have been mined, upon commercial +scales, before the Christian era. Silver and lead were handled in large +quantities from the mines of Laurium, Greece, in the sixth century B.C., +and the same mines are being worked to this day, the principal values +now being in the lead rather than, as formerly, in the white metal. The +Phoenicians, about 500 B.C., invaded Spain for gold, copper and +mercury, and Cornwall for tin and copper. The Almaden quicksilver mines +of Spain have been operated, almost incessantly, since 415 B.C., and in +the 16th century, A.D., the wealth of Europe's greatest family of +financiers, the Fuegers, was based upon the operation of this remarkable +deposit. + +Del Mar, in his _History of the Precious Metals_, says, "Desire for the +precious metals, rather than geographical researches or military +conquest, is the principal motive which has led to the dominion of the +earth by civilized races. Gold has invariably invited commerce, +invasion has followed commerce, and permanent occupation has completed +the process. It is the history of the past as well as of the present. +Scipio went to Africa, Caesar to Gaul, Columbus to America, Cortez to +Mexico, Pizarro to Peru, Clive to the conquest and Hastings to plunder +Bengal." + +Our own day has witnessed the subjugation of the Boer. Because of +Mexico's mineral wealth, many optimistic Americans are beginning to +prophesy the annexation of our sister republic. For gold, Englishmen +populated Australia in 1850, about the same time (1849) that we +witnessed the rush to California gold fields. Spaniards settled Central +and South American countries merely to gain the precious metals. It is +mining which has been responsible for the population of the arid, +southwestern portion of our own domain. + +In this, as in every other age of the world's development, we shall find +that the mining industry lies at the heart of all commerce. It is well +for the student of mining economics to fully appreciate this fact, for +it will whet his interest in this great world industry. + +"Truly, it has been a great seeking and finding. The story of mining may +have been staled by commonplace, and the romance of it dulled, often +enough, by greed; yet, in the main, it has linked the generations of +earth as with a golden thread--and if not golden only, then there has +been the red glint of copper or the white sheen of silver. Mining +districts may come and go, but mining remains."--(Editorial, +_Engineering and Mining Journal_). + + + + +IV + +MINING'S PLACE IN COMMERCE. + + +It is said that upon two of the world's commercial industries, every +other form of activity depends. These two fundamental industries are +agriculture and mining. Statisticians prove the above statement and the +further fact that these two dissimilar branches of civilization's +business are so closely related as to be quite inter-dependent. Strides +are made by one of these industries only when advance is noted in the +other. While it may not be possible to explain just why this is so, it +is worth our attention to consider some brief figures that show this +condition of affairs. + +The agitation conducted during the past few years, leading to the +establishment of a Bureau of Mines in the Department of the Interior, +attracted the thoughts of many students of economics who had not +previously or seriously considered the industry of mining. The delivery +of brilliant addresses showed that mining had been unjustly retarded. +While agriculture has for years been fostered by the government and with +remarkably satisfactory results, the great sister industry has been +required, until recently, to struggle along without any governmental +recognition in the matter of support. Yet it has forged its way in +unmistakable terms of progress and there was an insistent demand, among +those men particularly interested in the welfare of mining, for the +protection and the assistance which would and has now come through the +establishment of a governmental department. Various states have long +recognized the importance of the mining industry by the establishment of +departments. The Canadian and Mexican governments maintain very +creditable Departments of Mines. It was but a question of time until the +shortsightedness of our politicians (not our statesmen) was revealed, +and the mining industry has now come under the auspices of a federal +department. + +Taking the world as a whole, it would be hard to conceive the sum total +of annual mineral productions. The middle of the past century seems to +have been a critical period in the mining industry of the earth. There +was a great impetus given to mining by the greed for gold which caused +the settlement of our western states and the Australian states, as +already mentioned. But there gradually followed the opening up of mining +in many other and hitherto unpopulated and uncivilized portions of the +globe. The search for gold was successful. + +Prior to 1850, the production of gold had not kept pace with the +increase in population. Soon, however, it began to take leaps, in almost +geometrical ratios, until, by 1900, the annual production of gold +throughout the world was some 2,200 per cent. of the production for 1800 +(as nearly as may be ascertained). The 1900 gold production was of a +weight of about 400 tons, in round figures. During 1911, the world +produced approximately $470,000,000 (about 779 tons) in new gold +bullion. It is estimated that with a continuance of the remarkable +progress, the next 20 years will duplicate _the amount of gold now +known in the world_. _This means that the amount of gold which has been +accumulating from mining during the world's ages will be doubled during +a fraction of our lifetime._ This is significant of the world's +progress, in gold mining, at least. + +[Illustration: KENNEDY MINE, JACKSON, CALIFORNIA.] + +It seems coincidental that the rush for gold in 1849-50 should have been +almost simultaneous with the remarkable development of our other mineral +resources. All of our great discoveries of coal, oil, silver, iron, +lead, copper, and zinc can be said to have followed closely upon the +discovery of gold in California. It is not supposed that the discovery +of iron in northern Michigan in the early eighties had any connection +with the "Pike's-Peak-or-Bust" expeditions, nor that the opening and +development of the vast coal beds of Pennsylvania had any bearing on the +discoveries of lead and zinc in the great Mississippi Valley. But, on +the other hand, there can be traced a very intimate relation between the +finding of gold, silver, copper, and lead in the Rocky Mountain states +and the search for gold in California: the pioneers en route to the +coast were the discoverers and settlers in Colorado, Wyoming, Utah, and +Montana. + +Figures are not available for arriving at such striking or reliable +conclusions in regard to the world's production of metals other than +gold, but there is no logical reason to doubt that such increases have +been just as pronounced as in the case of the yellow metal. In fact, +there are good grounds for assuming that the figures for silver, lead, +iron, and zinc would show up even more spectacularly; while with coal, +we know that we are now in the greatest period of the world's +production. + +The United States leads the world in the production of the base metals, +such as copper, iron, manganese, lead, and zinc, taken collectively or +separately. Our country stands second in the production of the precious +metals, gold, platinum, and silver. We have the greatest variety of +mineral products, as well as the greatest production of complex ores, or +those carrying more than one valuable metal. We produce more copper +than the rest of the world combined. Although we stand in second place +when considering the production of gold, we still possess the Homestake +mine in the Black Hills, famous as being the gold mine with the greatest +tonnage in the world; and the Camp Bird mine, in the San Juan district +of Colorado, famous the world over for its highest average value of gold +ore. This great mine is now nearly exhausted and is about to close down +after making a wonderful record. + +South Africa produces the greatest amount of, and the purest, natural +gold in the world. Great Britain has an insignificant production of both +gold and copper, and still it is noteworthy that the English-speaking +nations control the world's production of both these metals. British and +American citizens own seven-eighths of the world's gold mines. England +stands second in the consumption of copper, which, of course, is mainly +imported. + +Russia controls the world's output of platinum, with very little +competition. In a similar manner, Canada has the control of nickel +production. Mexico, although not commonly regarded as a gold mining +country, is rapidly coming to the front and possesses the Esperanza +mine, said to be one of the most profitable gold mines in the world. + +To more emphatically show the importance of the mining industry, +especially in our own country, the following facts are taken from 1900 +census returns: Agriculture produces annually about $725 per capita; +mining, $1,910; and manufacturing, which is dependent upon the others, +$760. _The National Banker_ has said: "Statistics show that the combined +dividends paid by the gold and silver mining companies of the United +States are greater than the combined dividends paid by all of the +banking institutions of the country; and the combined dividends paid by +the copper mining companies of the United States exceed the combined +dividends paid by all of our railroads." + +There is one thought that will always comfort any person who is engaged +in furthering legitimate mining: Wealth acquired from a mine is not +wrested from any being but Mother Earth, and it is not, therefore, in +the class with the much discussed "tainted money" that is said to be +wrung from unfortunate human beings. + +The following tables are presented to give the reader ideas concerning +the productions of gold and silver during recent years. Among the +interesting points that may be noted are the following: + +The gold production of the world took a sudden drop in 1900, but it +immediately resumed its upward climb. During the decade from 1900 to +1910, this production increased over 81 per cent. + +There is a remarkable similarity noticeable in the gold productions of +the United States during the years 1910 and 1911. + +Without the notable increase in the gold output of the Transvaal in +1911, the world's total gold production for that year would have shown a +decrease. + +The silver production of the United States remained practically +unchanged during 1911. + + + GOLD PRODUCTION OF THE WORLD FOR 20 YEARS + + + 1892 $146,292,600 1902 $298,812,493 + 1893 158,437,551 1903 329,475,401 + 1894 182,509,283 1904 349,088,293 + 1895 198,995,741 1905 378,411,054 + 1896 211,242,081 1906 405,551,022 + 1897 237,833,984 1907 411,294,458 + 1898 287,327,833 1908 443,434,527 + 1899 311,505,947 1909 459,927,482 + 1900 258,829,703 1910 469,365,110 + 1901 260,877,429 1911 473,383,543 + + + UNITED STATES SILVER PRODUCTION + + (In Fine Ounces) + + + 1910 1911 + + Alabama 300 174 + Alaska 153,900 275,691 + Arizona 2,655,700 1,594,428 + California 1,791,600 2,727,336 + Colorado 8,523,000 7,530,940 + Georgia 300 225 + Idaho 7,027,000 7,507,802 + Illinois 2,100 4,648 + Michigan 262,200 507,234 + Maryland ...... 87 + Missouri 32,200 56,228 + Montana 12,282,900 11,116,778 + Nevada 12,366,000 10,651,571 + N. Mexico 779,000 1,142,335 + N. Carolina 8,300 2,227 + Oklahoma ...... 168,245 + Oregon 43,800 69,116 + Pennsylvania 700 13,262 + S. Carolina ...... 14 + S. Dakota 120,600 206,188 + Tennessee 69,800 126,683 + Texas 364,400 442,486 + Utah 10,445,900 12,679,633 + Virginia 200 45 + Washington 204,900 142,196 + Wyoming 1,300 1,009 + Porto Rico ...... 51 + Philippines 1,800 3,383 + Miscellaneous ...... 826,102 + ---------- ---------- + Total 57,137,900 57,796,117 + + + UNITED STATES GOLD PRODUCTION + (In Value) + + + 1910 1911 + + Alabama $32,900 $18,335 + Alaska 16,271,800 16,002,976 + Arizona 3,413,200 2,954,790 + California 20,441,400 20,310,987 + Colorado 20,526,500 19,153,860 + Georgia 24,000 30,532 + Idaho 1,035,000 1,169,261 + Illinois ------ 5,788 + Michigan ------ 20 + Maryland ------ 20 + Montana 3,720,400 3,169,840 + Nevada 18,783,700 18,968,578 + New Mexico 477,200 639,897 + N. Carolina 64,500 76,693 + Oklahoma ------ 30,698 + Oregon 681,400 599,235 + Pennsylvania 5,900 7,814 + S. Carolina 37,800 13,437 + S. Dakota 5,380,200 7,430,367 + Tennessee 2,800 14,140 + Texas 400 1,178 + Utah 4,312,700 4,709,747 + Virginia 900 4,300 + Washington 806,000 504,537 + Wyoming 4,100 18,791 + Porto Rico 1,000 2,191 + Philippines 154,400 130,501 + Miscellaneous ------ 265,013 + ----------- ----------- + Total $96,269,100 $96,233,528 + + + GOLD PRODUCTION OF THE WORLD + + + 1910 1911 + + Transvaal $155,730,260 $170,487,900 + United States including Alaska 96,269,100 96,233,528 + Australia 65,634,340 61,072,409 + Russia 43,168,389 40,600,000 + Mexico 24,073,100 19,500,000 + Rhodesia 12,607,791 13,045,100 + India 12,089,400 10,505,506 + Canada 10,224,910 10,646,000 + China 10,102,300 10,000,000 + Japan, East Indies, etc. 10,522,437 10,600,000 + West Africa 3,674,087 5,268,100 + Madagascar 2,149,721 1,900,000 + France 1,114,700 1,275,000 + Central and South America 14,886,234 15,000,000 + Other countries 7,118,841 7,250,000 + ------------ ------------ + Total $469,365,610 $473,383,543 + + + + +V + +THE FINDING OF MINES. + + +Mines are discovered in many ways. One hears much about prospecting, and +since this is a practice which is rapidly changing from a mystical to a +scientific basis, a few considerations will here be in order. + +Persons who have lived in mining communities are familiar with two types +of prospector, the roving and the settled. Somehow, when we think of the +former, there comes to mind a bearded, roughly clad man, usually +accompanied by a "jack" and both packing the outfit consisting of a few +tools, a pan, some blankets, a gun, and a supply of "grub." If we have +in mind the other type of prospector, we imagine him as living an +isolated life in a log cabin up in the hills, spending his daytime in +putting in a few, short drill-holes and blasting down a ton or two of +usually worthless rock in a "tunnel" or shallow shaft, confident that +each succeeding shot will disclose a treasure. + +Both of these types represent the utmost in optimism. These men endure +many hardships and privations, they can have little converse with other +humans, often they can see no provisions for the next day; in fact, they +receive few of the benefits of modern civilization--if we except the +food-preserving features. Still, a typical, old-style prospector keeps +on with absolute faith that fortune will smile tomorrow. We must reach +the conclusion that these uneducated men are led on by subtle beliefs +which, to a technically-trained man, seem like the rankest folly. They +are diviners, dreamers. They are disappearing now and, a generation +hence, there will be but memories of them. They are giving way to +successors of a different type. + +The newer kind of prospector is well educated, and, perchance, he is +rather youthful. His chances of success are many times those of the man +he supplants. Why? Because he is taking advantage of the work that has +been done by all former prospectors. He is guided by theories deduced +from observations through ages, and he has the advice of the best +contemporary men of experience in matters of geology as applied to +mining. In other words, he is a scientific prospector. + +The prospector of today has a general understanding of mineralogy and +geology; he must have knowledge of mining methods, so that he may know +whether a deposit, once found, can be exploited at a profit; he must be +ready to account for all discovered mineral bodies, and he must be +capable of applying theories to actualities. + +There are so many metals and minerals sought for the markets of the +world today that we see there are many fields of study and practice open +to prospectors. It is not the purpose here to explain the details of +scientific prospecting, for the study of this one subject would, in +itself, fill a volume. The object of the above remarks is to draw to the +attention of the economist the propriety (amounting almost to a +necessity) of giving heed to the findings of the educated, trained +searcher for mineral bodies, in preference to those of the illiterate +man who has furnished themes for artists, narrators, and dramatists, +because of his quaint characteristics. + +Some writers have classified mineral discoveries into Search, Chance and +Adventitious. + +_Search_ discoveries, being the rewards of earnest seeking, it is not +surprising that, under the past guide of notions and mysticism, the +percentage of such discoveries has been small. Under the new order of +things, with science as a guide, the percentage is growing and, in the +future, this kind of discovery will undoubtedly strongly outnumber the +others. + +_Chance_ discoveries are those that are made purely without +premeditation. They have been a dominant factor in the mineral +development of the past. The discovery of _gold_ in California came +about through the noticing of shiny, yellow flakes of metal in a ditch +leading to a saw-mill. The great _iron_ mines of the Mesabi Range were +found by the ore clinging to the roots of an overturned tree. The +Wallaroo _copper_ mine, the greatest in Australia, was discovered by the +green minerals brought to the surface in the excavations of a wombat. +The famous Sudbury _nickel-silver_ ore bodies were disclosed when making +a railroad cut on the Canadian Pacific Railroad. The Reddington +_quicksilver_ mine, in California, was similarly opened in a cut for a +wagon road. The mining of _silver_ at Catorce, Mexico, followed the +discovery of shining silver nuggets in the camp-fire of a native, who +had camped right upon a rich outcrop. The Kimberly _diamond_ mines are +said to have been disclosed by the burrowings of an ichneumon, which +fetched a brilliant stone to the sunlight. + +_Adventitious_ finds are such as occasionally occur when, while really +searching for, or actually mining, one metal, discovery is made of a +different metal, or possibly the same metal is found in an entirely +different kind of ore. The Comstock lode of Nevada was originally a +_search_ gold discovery, the gold having been sought and found by two +prospectors with ordinary gold pans. In their working to recover gold, +a black mineral and a yellow sand were discarded from the pans and +rockers. Curiosity of one man resulted in the identification of these +two minerals as ores of silver which henceforth were held as valuable as +the native gold. The Anaconda mine, at Butte, Montana, was located, and +for some time worked as a silver proposition; but the values gradually +changed with depth from silver to copper, until now silver is only a +valuable by-product. The rich lead-silver ores of Leadville were +discovered as _adventitious_ to the operation of the rich gold placers +in California Gulch. A heavy, troublesome rock which accumulated in the +sluices, much to the disgust of the miners, turned out to be cerussite, +a fine ore of lead. This same district now produces in commercial +amounts gold, silver, lead, iron, zinc, copper, and manganese. The +Treadwell mine on Douglas Island, Alaska, was first worked as a placer +and the values were found to extend downward into the underlying rock in +a place which proved to be an immense deposit of eruptive, gold-bearing +ore. + +As the old-fashioned, venturesome kind of prospecting has but recently +been crowded off the scene by the better, scientific kind, let us not +overlook the great discoveries that were made in the past before we had +applied "organized common sense" to such a field of activity. Those +original prospectors were searchers, hunters. They had no guides, but +they did accomplish a great deal, and their discoveries were rewards for +diligence and hard labor which were, to a great extent, often +misdirected. + + + + +VI + +MINING CLAIMS. + + +The process of acquiring title to mining property may be viewed from a +number of points. Such property is real estate and, as such, it may be +bought and sold or otherwise transferred exactly the same as farms or +city lots. + +The United States has constructed an elaborate system for the disposal +of its public lands to individuals, under various classifications, such +as homestead, desert land, timber and stone, timber culture, coal, +placer, and lode claims. Different rules apply to the filing upon, +improvement and patenting (acquiring deed from the Government) of these +various kinds of claims. The character of the lands in the public domain +is decided by the surveyors who execute contracts from the General Land +Office for subdividing or staking the country off into townships and +sections, according to our American system. In the return of each +surveyor's notes, he recommends the sale of the land according to his +judgment as to its highest value. There has naturally been a good deal +of erroneous conception upon these points, with the result that, often, +land has been later shown to be entirely different in its character from +the classification given to it by the contracting surveyor; for the +qualifications of such a person are not always of a high grade, when it +comes to geological questions. And yet, on the whole, the scheme has +worked out well and much fraud against the Government has been prevented +by the rigid practice. + +The Government prices for some of the various classes of land have been +as follows: agricultural, $1.25 per acre; coal, $10 per acre when the +land was not closer to a railroad than 15 miles, and $20 per acre when +it lay within this limit; placer, $2.50 per acre; lode, $5 per acre. +These have been the prices demanded for the land only; the payment of +these amounts, in many cases, has constituted a small fraction of the +expense of securing the original deeds from the Federal Government. + +Coal lands may be located very much the same as a homestead, with the +exception that residence upon the ground is not required, nor are +improvements essential. In cases of dispute as to priority of location, +the land office will recognize those claimants who have expended the +greater amounts in improvements. One citizen may locate but one claim of +160 acres. + +Since April 10, 1909, the Government has been disposing of its public +coal lands under a classification that takes note of many details. The +kind, grade, thickness, and purity of coal; the number of workable +seams; the depth; the features of local supply; transportation +facilities; and the average prices at which similar private tracts are +held, are among the items recognized in the classification. Probably no +two tracts will be sold at the same rate. In general, the new prices are +higher than the flat prices that formerly prevailed and some pieces of +land are now estimated as high as $175 per acre. In every case of +application to purchase coal land, hereafter, the area in question will +undergo inspection by Government experts and a price will then be +assessed. This law is being severely opposed as being unreasonably +severe, and its amendment may be looked for. + +Placer lands were formerly permitted to be taken up in any shape, the +boundary stakes being placed upon the ground in such a manner as to +include only the desirable area, which is usually of an alluvial nature +along some valley or gulch. This practice has been forbidden, however, +and a locator is now obliged to take up his land in quadrilateral tracts +conforming to the subdivisions of the so-called Public Survey. By this +rule, it is permissible to file upon land which is laid off into lots of +not less than 1/16 of a quarter section--or ten acres--and a claim may +be composed of such lots as lie contiguously and which may thus be +considered as one complete workable area. The claims are often of zigzag +or L shapes, but the locator is enabled, at the extra expense of +subdivision surveying, to avoid filing upon, and paying for, much ground +that he feels is not desirable in a placer claim. The Government does +not survey public domain into smaller tracts than quarter sections of +160 acres each, so that in the taking up of placers it often involves a +great deal of expense to carry the subdivisions upon the ground into +sufficient detail to ascertain the location of boundary corners. + +One person is entitled to as many placer claims as he desires. Each +claim of a single individual may contain not to exceed 20 acres and, as +said, it must be of one continuous area. Associations of citizens to the +number of eight may unite in the location of 160 acres, which will then +be held in equal and common interest by the several locators. The +restraint placed upon greed in the matter of locations, either placer or +lode, lies in certain expenses entailed in work or improvements upon the +land before patent may be issued and the legal requirement of the +performance of labor upon each claim amounting to $100 per annum. Also, +it is required that _bona fide_ values be disclosed upon the ground. For +each 20 acres located under the placer laws of the United States, not +less than $500 worth of improvements must be made before the issuance +of a patent. + +The legal (not the technical) definition of lode land covers all grounds +containing deposits of ore in its natural and original place of deposit. +Under the laws, therefore, a citizen may file upon a tract of land to +include a vein, lode, mass, chimney or any other form of ore body. The +laws were framed at a time when miners were familiar only with the +steep, tabular forms, synonymously termed veins or lodes in their +nomenclature, and there were introduced features which time and progress +in geological investigations have proved to be entirely unsuited to the +needs of locators in many districts. + +Our statutes provide that a lode claim may not exceed an area of 20,662 +acres, this being the area of a parallelogram 1,500 feet long by 600 +feet wide. The intention is to permit a discoverer to lay off a "lode +line" along the outcrop of his vein for a distance of 1,500 feet and, at +each end, to measure off, at right angles, a distance of 300 feet each +way, merely as assurance that he covers the entire thickness of his +lode. Since the surface contours of rugged country will crook the +outcrop of a dipping plane (such as we may imagine a vein to be) the +laws were constructed to permit a claim being laid off with angles or +bends in the boundaries so that the outcrop might be kept closely along +the middle of the claim. + +The above dimensions and area are the maximum permissible under the +Federal laws. The Government does not say that claims may not be less in +extent, anywhere, nor does it prevent states, counties or even mining +districts from making further limitations. In most of the western mining +states and territories that have applied the mining law, the full +maximum is allowed; but in Colorado no claim is legal if it exceeds a +width of 300 feet, while in four counties of the same state claims have +been restricted in width to 150 feet. By legislative enactment, since +September 1, 1911, claims in all counties of Colorado are permitted to +be taken up 300 feet in width. The citizens or miners of any new +district, in any state or territory, may elect to limit claims to any +size less than the maximum granted by the statutes and such a decision +will be recognized by courts as binding upon all comers. This is an +example of the rights of custom in establishing common law. In all +shapes and widths of lode claims, there is now the rigid restriction +that the two end-lines must be laid off exactly parallel. + +[Illustration: A GILPIN COUNTY, COLORADO, SCENE, Showing the Prize, +Gunnell, Concrete, Gold Collar, and Eureka Mines.] + +The laws of our country contemplate the right of any locator of a vein +to follow such vein down upon its dip, even if it extends beyond +vertical planes passed through the side boundaries. The vertical planes +through the end-lines, however, may not lawfully be penetrated in the +extraction of ore bodies. The application of this doctrine of +"extra-lateral rights" has led to innumerable controversies that have +crippled many worthy mining enterprises. The inevitable habit of +different veins to intersect, branch, unite, and in many other ways to +cause complications, has served no purpose but to delay operations, +cause legal warfare and embitter neighbors. So unjust have been courts' +decisions in interpreting the lax laws that various mining districts +have taken unto themselves the prerogative of deciding for themselves +what is justice to all concerned; and we therefore find that many +"camps" have unwritten laws under which claimants are restrained in +their underground operations, to the ground contained between vertical +planes _through all boundaries_, whether end or side. This is obviously +the only fair plan, and it is hoped that, whenever the legislators at +Washington get time to give to the matter the attention it deserves, our +nation will be favored with a revision of this and a number of other +objectionable mining laws which have retarded the industry. Ours is the +only country having laws permitting extra-lateral rights and, upon this +score, we are criticized by all foreigners. + +The Canadian government appears to leave the framing of mining laws to +the several provincial governments. Ontario and Quebec have very good +and simple laws relative to mining claims. In some respects the laws of +the two provinces are similar. For example, in each province a claim +must be laid out as a subdivision of the usual public survey and is +normally 40 acres in extent. Again, no prospecting or locating may be +done except by persons holding so-called miners' licenses or miners' +certificates, which cost $5 to $10 per year. No extra-lateral rights are +recognized. + +In Ontario, a patent may be applied for any time within 3-1/2 years of +the date of certificate of record, and the land is purchased outright by +the payment of $3 per acre. The patent thus obtained conveys no rights +to timber or water on the property. In Quebec, patents are never issued +and mining claims are held by a sort of lease, as it were. A license to +hold a mining claim costs a flat fee of $10, plus an extra fee of one +dollar per acre. At times, arrangements are made for holding and working +mining property upon a 3 per cent royalty basis. + +The Mexican laws permit the location of any number of claims by +individuals. A locator is required to employ an expert (_perito_) to +make a careful survey of his claims (_pertinencias_), which are taken up +in rectangular form. Measurements are according to the metric system, +and the unit of area is the _hectara_, which is the area of a square +with 100-meter (328-feet) sides, and is equivalent to 2.471 acres. The +government's sale price for mineral ground is 5 _pesos_ (about $2.50) +per hectare, or approximately one dollar, United States money, per acre. +The unit size of a claim is a hectare, and it thus comes about that the +words _pertinencia_ and _hectara_ are used somewhat synonymously. + +Under United States laws, the owner of agricultural land, if he has not +committed perjury in perfecting his title, will hold all minerals which +may be disclosed subsequently to the granting of his deed. The proof of +false representations will rescind any such patent and the ground will +revert to the Government and be again open to location. + +In the surveying and laying off of mineral claims for patent purposes, +the United States laws require the claimant to put the work into the +hands of a mineral surveyor. Such a surveyor may usually be engaged in +any mining district and he will hold a commission from the Department +of the Interior authorizing him to do this sort of work. He will have +passed certain examinations as to his capabilities and he will have +filed bonds in the sum of $5,000 for the faithful performance of his +duties to both the Government and his client. He receives no +compensation from the Government, and each claimant may make such terms +with him as are equitable. He must hold no interest, directly or +otherwise, in the property he surveys, nor is he permitted to file upon +any mineral land. If he undertakes a case for a client his duties +require him to survey the boundaries of every other mineral claim which +may be contiguous to, or conflicting with, the one in question, and his +maps must accurately show all such claims. His notes will contain +sufficient data to accurately convey the exact location, the chief +topographical features, the conflicts with all other locations, the +position, and description of all mining improvements, and many other +details which will be required in the final purchase of the land from +the Government. The surveyor's fee will vary from $50 to possibly $200 +for a single claim, much depending upon the nature of the survey, +whether simple or difficult, and upon local financial conditions and +competition. + +After the filing of the mineral surveyor's notes and plats with the +Surveyor-General, critical examination of the documents is made, and if +they are found to conform with all requirements, the case is "approved" +and it may then pass to the local land office of the district. Next +begins a publication period of sixty days, during which opportunity is +offered the public to enter objections to the issuance of a patent, +either for reasons of conflict or because of fraud. If no such adverse +proceedings are instituted, the patent will follow, in due time. + +The ultimate expense of securing a patent to a claim of, say, the +maximum area will not be less than $225, and it may run as high as $300 +if in a region difficult to survey or if there are a good many +conflicting surveys. + +A mineral surveyor is prohibited from acting as attorney for the +claimant in presenting his claims before the Land Office, so an +attorney's fee must be added to the above rough estimates. As a matter +of fact, although the surveyor does not nominally appear as the +attorney, in many a case it is he who makes out all of the documents to +be then signed by an attorney in fact. The laws are faulty in this +respect. The lawyer recognizes this fact and he asks the surveyor to +make out the many legal forms; for who is so fully cognizant of the +property and the desires of the claimant as the surveyor who has become +intimately acquainted with the premises, its workings, its desirable +features and everything concerned with the adjustment of conflicts? It +is to be expected that he could best protect the claimant's interests, +and it is wrong to retire him at this very critical time prescribed by a +foolish law. The fee of an additional man in the case is an unjust +burden upon the client. Land Office officials have recognized this fact. +They know that the best documents reaching their offices are those +prepared by mineral surveyors. + + + + +VII + +PLACERING. + + +Different writers hold the following slightly different definitions of a +placer: One says, "a placer is a surface _accumulation_ of minerals in +the wash of streams and seas," while another writes that a placer is "a +_place_ where surface depositions _are washed_ for valuable minerals, +such as gold, tin, tungsten, gems, etc." One definition conveys no +notion of the operations of mining, but is merely geological, while the +other involves the thought of the recovery of values. + +No matter how or where found, placers were all originally of surface +deposition. They are now found in gulches, canyons, valleys, ocean and +lake beaches, glacial drifts, and sometimes beneath eruptive flows. Such +placers as occupy the courses of streams are spoken of as gulch, valley, +bar, and bench placers. The meanings of the first three names are +obvious. By a bench placer is understood a deposit that was originally +the bed of a stream, but which, in the course of time, has been cut +down, or through, in such a manner as to leave a shelf or bench of the +"wash" hanging up some distance above the present base of the gulch or +valley. + +When such deposits that have been covered by lava flows are disclosed +and worked, they go by the name of "buried placers." They are, by no +means, uncommon, and typical "drift mines" of this sort are operated in +California and New Zealand. They present the novelty of working alluvial +deposits under cover of solid rocks, and they thus conform to one of the +early definitions of a mine, as previously given. Since the workings of +such subterranean placers are generally confined to an approximately +horizontal zone, the mine passages, to a certain degree, resemble those +of a coal mine. + +Placer deposits, being of a secondary nature, the materials are not in +the place nor form of the original components. The gravels and sands, +together with the valuable contents, probably originally existed in +some solid forms such as rocks or massive minerals. The primary +structures, in the course of ages and by atmospheric agencies, have been +disintegrated and carried by gravity and flowing water to lower levels. +The finer the decomposed material, the further it has been transported. + +If the original rocks carried gold, the flakes of the metal, being of +high specific gravity, would tend to settle to the bottom of the +channels and to be carried shorter distances than would the lighter, +non-metallic particles. The finer the gold, the more evenly will it be +distributed in the bed of gravel. Likewise, placers near the heads of +gulches, as a rule, carry coarser gold than those farther down stream. + +The valuable materials found in placers must, of necessity, be those +that possess the property of resisting corrosion and disintegration. The +minerals and metals are, therefore, of a very permanent character. + +Every find of "values" in a placer is unquestioned evidence that +somewhere, above the present deposit, there originally existed primary +depositions containing the valuable metals or minerals. The trail can +frequently be traced back to them. These so-called "mother lodes" are +not necessarily rich. In the case of gold, for instance, these original +deposits of ore may not carry the metal in coarse enough particles to be +visible and yet the placers may contain nuggets. There are numerous +theories proposed to account for this observed phenomenon, but we will +not discuss them here. The fact remains that nuggets have been actually +produced artificially in flowing water under conditions similar to +Nature's. + +The methods of prospecting and working placer ground have undergone many +improvements, but there are still many men practicing the primitive ways +of a generation ago. The use of devices of simple construction and for +operation by muscular effort is still familiar in many regions; and +there are good miners who cling to such practice in the belief that it +is the cheapest and truest way in which to ascertain the values of wash +deposits. Also, there are many placers of limited areas and irregular +shapes that cannot be well handled in any other manner. + +With a "pan," a man can wash, in ten hours, not over one cubic yard of +dirt; and to accomplish this amount of washing the ground must be very +loose and favorable. An ordinary ten-hour day's work is about 100 pans. +This is equivalent to about one-half of a cubic yard, which is the unit +of volume in all placering operations. One may thus readily arrive at +the cost of carrying on operations in this way. A cubic yard of ordinary +placer dirt is the equivalent of less than two tons. A _batea_ is the +Mexican equivalent for the American iron gold pan. It is a sort of +broad, conical, wooden bowl and its capacity is not equal to the pan. + +A "rocker" or "cradle" is a trough on rockers somewhat like the +old-fashioned child's cradle. In using it, a stream of water is caused +to flow into the device which has been nearly filled with gravel and the +miner gives it a rocking motion that causes the contents to classify or +stratify according to the laws of specific gravity. The valuable +particles, being the heaviest, will settle to the bottom, whence they +may be subsequently removed. A "long tom" is an inclined, narrow box set +stationary with a constant stream of water entering at the upper end. +Gravel is also shoveled into the device at the same point. The process +is more continuous than the preceding ones, the values accumulating at +the bottom of the lower end, while the upper layers of gravel are +carefully removed by skimming with shovels. The work will keep two men +busy and the capacity is correspondingly greater. With a long tom, two +men will ordinarily handle about five or six cubic yards in ten hours. + +Whenever deposits of a broad area, with considerable and uniform depth, +are thought to be valuable, it has become a practice to prove their +value by "prospect drilling." This is a mechanical method and one form +of apparatus employed is of the churn-drill type common throughout oil +and coal regions. With these portable machines, holes are put down to +bed-rock at intervals across the ground. As they are sunk, the holes are +cased with iron pipes, the drillings are carefully saved and washed, and +the values are estimated for each foot of descent. From the summation +and averages obtained from all the holes, a very fair knowledge of the +ground's worth can be obtained. + +Intensive placering is now the order of things and the marvelous +increase in the use of dredges attests the success which these "gold +ships" have attained. It is very interesting to watch the operations of +these huge boats loaded with ponderous machines, especially when they +are installed in inland regions or up in high mountain gulches. Yet +numbers of them are thus in steady use. Wherever suitable beds with a +tolerably uniform size of boulders and gravel are found, dams are built +to retain the flows of streams until ponds are created of sufficient +size to contain and float the barges. + +[Illustration: DREDGES OF YUBA CONSOLIDATED GOLDFIELDS, HAMMONTON, +CALIFORNIA.] + +Continual improvements are being made in the construction of these +mammoth machines with a view to economy in operations that will +result from greater capacities. All costs of placering are reckoned per +cubic yard washed. Costs have been rapidly dropping during the past +decade until now some companies, with extensive operations, are handling +dirt at not to exceed three cents per cubic yard for excavating, +washing, wasting the refuse, maintenance, repairs, labor, taxes, +interest on investment, and the depreciation of equipment. Such figures +will hold good only under very favorable natural conditions of ground +and climate such as prevail in California; they have not been attained +in the frigid regions of Alaska nor in the torrid South American +interior. In view of the wonderful improvements brought forth by +mechanical engineers, it is improper to deny that the future will bring +still further reductions in placer costs. On the contrary, the signs are +good for material reductions. + +Dredges are very costly in their installation. They are usually designed +to handle so many thousands of cubic yards per day. It has been stated, +as a fair but rough rule, that "bucket" dredges will average, in +initial cost, one dollar for every cubic yard the boats will handle per +month. Thus, if a dredge of this type is built to treat fifty or seventy +thousand cubic yards in a month, working steadily, the costs will be +respectively $50,000 or $70,000. Other types of dredges, known as the +"dipper" and the "suction," will cost less than the bucket type, but +have not gained general usage. + +"Hydraulicking" is extensively practiced. This term signifies the +working of placer deposits by water which is conducted through flumes +and pipe-lines and, by means of nozzles called "giants" or "monitors," +is directed, in huge jets, against the banks of gravel. These banks or +walls are thus torn down and, by the same water, the loosened, +disintegrated materials are caused to flow into and through long, +wooden, box-like troughs known as "sluices." The floors of these sluices +are paved with ribs, cleats or other obstructions termed "riffles" whose +function it is to retard and collect the heavy particles which may, +later, during the process of cleaning up, be removed as the valuable +product. The word "sluicing" is frequently used quite synonymously with +hydraulicking. + +Costs of this latter sort of placering are considerably higher than +those of dredging; but there are many deposits not adapted to dredging +operations that may be nicely worked by sluicing, so that there will +always be a field for this scheme. Average costs are difficult to obtain +since it happens that most of the companies now operating hydraulically +are secretive in their accounts. More labor is entailed, more time is +required, greater delay is occasioned in cleaning up, and the amount of +water used is much greater. Where water is abundant, this last item need +not be considered. It is well to remember that even a very large dredge, +while requiring a continual and large flow of water through its devices, +can still operate with just the water in which it floats, this water +being pumped and used repeatedly; whereas, in the case of hydraulic +mining, the water may be used but once and, consequently, there must be +a large supply and at a good head or pressure. + +But, in spite of these disparaging points, we find instances in which, +under peculiarly favorable conditions, hydraulicking has been carried on +at very low figures. E. B. Wilson says: "The yield of the gravel at +North Bloomfield was 7.75 cents per cubic yard; the cost of mining, 4.1 +cents per cubic yard. The yield per cubic yard of gravel at La Grange +was 10.19 cents, the cost of mining, 6 cents. The costs of mining at +these two mines would analyze about as follows: Labor, 60 per cent; +supplies, 17 per cent; water, 13 per cent; office, 10 per cent. Ground +carrying but 3.99 cents per cubic yard has been worked at a profit at +the first mine. With such a small margin to work on, it is evident that +skill and executive ability must be provided from the pipemen up." It is +claimed that an Idaho mine was worked profitably with less than two +cents value in the dirt, but this is to be regarded with some doubt. + +[Illustration: THE SNOWSTORM PLACER, FAIRPLAY, COLORADO. A Typical +Hydraulic Mine.] + +There are large deposits in the arid portions of the globe where water +for working is not obtainable. To meet such conditions, numerous +inventions continue to be placed upon the market. These devices are all +planned in such a way as to use very little or no water. If water is +required at all, the machines are expected to use it repeatedly. The +machines are built to effect the segregation of the precious contents +gravitationally, electrostatically, pneumatically, and by amalgamation +with mercury. It is too early to say how successful such devices will +prove in commercial operations. Because some of them have not "made +good" does not mean that genius will not yet cope with the situation; +and we look into the future to see large operations efficiently and +economically conducted by dry placer machinery. There are now no +authentic figures obtainable upon this question of dry placering costs. + + + + +VIII + +OPEN MINING. + + +Some mention has been already made of open mining. The greatest +development of this sort of mining has come about since the application +of the modern steam shovel to the excavation of ore. This practice was +an American innovation and it is being adopted throughout the world +wherever natural conditions will warrant. + +Within the past few years, immense bodies of iron ore have been +discovered in northern Minnesota and the adoption of these immense, +mechanically operated shovels has worked such economies in the mining of +this kind of ore that entirely new cost figures have been established +and tonnages are being produced which, a few years ago, would have +seemed unbelievable. There are about a dozen mines of this "open pit" +type that have each produced over a million tons of ore per year in a +season that must cease with the close of navigation on the Great Lakes. +One mine has shipped over three million tons a season. + +At the Utah Copper Company's mine in Bingham Canyon, Utah, a great +deposit of low grade, copper-bearing eruptive rock is being handled upon +a steep mountain-side by this same scheme. This ore averages a little +less than two per cent. in copper, but so economical is the handling of +it in such vast amounts that a neat profit is made above all mining, +transportation and milling charges. When the red metal sells at thirteen +cents per pound, the gross value of this ore is about $5.20 per ton. +This mine has maintained an output of ten thousand tons or more per day +over long periods. + +A famous gold mine in Queensland, Australia--the Mount Morgan--is also +being worked by steam shovel methods. The deposit is here in the form of +a small mountain and the operations are gradually razing this landmark +to the level of the surrounding plains. + +The mining of low-grade _gold_ ores by open-pit methods has taken hold +in America, and an example of the practice may be found at the Wasp No. +2 mine in the Black Hills. According to published accounts of the +operations of this company, all of the costs of mining and treating the +ore amount to only $1.02 per ton. The ore body is a bed of quartzite +lying nearly flat, and averaging in the neighborhood of only $2.50 per +ton in gold, the only mineral of value. The recovery of this metal is at +the rate of between 75 and 80 per cent. efficiency, or about $2 from +each ton. The net profit is therefore close to one dollar per ton. This +very modern scheme of mining has been made possible through the recent +advances made in the cyanidation of ore, and it is going to pave the way +for many more such mining plants. + +[Illustration: STEAM SHOVELS AND CHURN DRILLS, COPPER FLAT, ELY, +NEVADA.] + +The Nevada Consolidated Copper Company has conducted vast mining +operations "in the open" at Ely, Nevada, by the use of 95-ton shovels +having a capacity of two and one-half cubic yards per dip. One shovel +has handled as high as 2,800 cubic yards (the equivalent of about 5,500 +tons) in nine hours; but this must be recognized as an exceptional +run, and cannot be taken as an average. The ore has a thickness of about +200 feet and covers many acres. As in the majority of such properties, +there is here a large amount of "overburden" to be removed and disposed +of before the ore can be excavated. This process of uncovering the ore +body by the removal of the overburden is called "stripping." The cost +per ton of ore mined is said to average 55 cents. + +In an open mine there must be maintained a system of continually +changing tracks placed upon grades (sometimes rather steep) and with +sharp curves. With multiple switches, numbers of small locomotives are +kept busy pulling and pushing up and down the tracks with their strings +of loaded cars and replacing the "loads" with "empties." When such +operations are upon a mountain-side, a very beautiful panoramic view may +be had from the opposite side of the gulch. + +Generally, the ore material is disintegrated to some extent. In some +cases, it will actually crumble down before the advance of a steam +shovel. In other mines, it is necessary to drill large holes which are +loaded and blasted. + +It is becoming more and more important for the active mining man to post +himself upon the methods and economies of this latter-day mining +practice. The development of this open or surface mining has introduced +entirely new economic ideas. With no costs for timbering of mine +passages, for ventilation, or for hoisting, and with a very material +decrease in manual labor per ton mined, immense masses of rocks are now +really ore, although a few years ago they were nothing but lean, country +rock. + +In consequence of the success attained by the pioneers in this kind of +mining, there has been created a demand for properties possessing large +deposits of low grade ore that is workable on this intensive scale. +Copper properties have been holding a prominent place recently and +stockbrokers carry regular lists of "Porphyries," this nickname having +been coined to cover the companies operating in the low grade porphyry +ores of the Western United States. Not all of these porphyry companies +will use surface mining methods. Some companies in the Globe District of +Arizona have started extensive underground schemes for mining large +tonnages very cheaply by "caving" methods. + + + + +IX + +CONSIDERATIONS PRECEDING THE OPENING OF MINES. + + +The word "exploitation" is used by many mining men and engineers to +signify a plan of so opening up ore deposits as to render the contents +removable. The same persons use the word "mining" to mean the operations +involved in the actual extraction of the ore exploited. It is sometimes +difficult to draw any line between the meanings of these two words for, +as handled by different men, with varying shades of intention, they are +sometimes synonymous. Thus, if exploiting an underground mine, which +carries ore right from the surface, means developing the mine in such a +way as to provide for a large, steady production, it is difficult to see +why the ore taken out in this process cannot be said to be "mined." + +By "dead work" is usually meant that work of opening up a mine which +will put or keep it in a producing condition but which does not supply +any remuneration in the shape of ore (or coal). Again, as used by some +men, there is little distinction between this work and exploitation. +There may, however, be lines reasonably drawn between these three terms, +and therefore the following definitions are proposed: + +_Dead work_ is such work as is necessary to develop an ore body, but it +does not produce any ore. It may be prosecuted for drainage or +ventilation purposes or for creating passage-ways for men and products. + +_Exploitation_ is also work performed in opening up or developing a +property, but it does not contemplate the value of the extracted +materials which may, or may not, be of any commercial importance. +Indeed, much ore might be extracted during work which was carried on +merely to define extents or boundaries of ore bodies. In this last +supposition, the original sense of exploration is brought out and this +should serve to fix the definition clearly in mind. + +_Mining_ may be restricted to mean the methods and work involved in the +profitable production of the mine's ore (or coal). The term would not be +used to cover operations of shaft-sinking, tunneling, and the like, +unless such work be in the valuable materials. Mining may be said to +begin whenever there is produced an output upon which there is some +profit. Exploitation may be in valuable ground. If so, we may say that +mining is in progress during the exploitation. The driving of levels or +drifts in an ore body--or of entries in a bed of coal--produces the +valuable products of the mine, and we may, therefore, consider that +mining is taking place. + +The driving of a crosscut through barren rock to reach an ore body is +dead work; but the driving of a drift or level in a vein is either +exploitation or mining. Dead work produces _no_ ore. Exploitation may, +or may not, produce ore. Mining must produce ore. + +Throughout all of the above and the following discussion of this +chapter, the reader should bear in mind the point that the word "coal" +may be substituted for the word "ore" without altering the substance of +the definitions or the conclusions. + +Before a mine is opened up, the economist-manager will consider many +items. In the first place, care must be exercised in the _examination of +the title_ to the property. A mineral property may have passed through +the most complicated kind of transfers of fractional interests in the +title, just as is true with ordinary real estate. The abstract must be +traced back clear to the issuance of patent from the Government, and +then on back to the original location. With an undeveloped property (a +prospect), this precaution is essential to estop any possible +pretensions to ownership, by outside parties, in case the ground +subsequently turns out to be exceptionally valuable. It has often been +the case that no obstructions from any adverse claimants have been met +until owners have, in good faith and at great expense, developed +splendid mines. Then suits for possession or partial ownership have been +instituted, sometimes with marked success for the plaintiffs. There are +persons who make it a special line of business to examine titles to +mining property, and it is economy for the average manager to employ +such experienced men to attend to these matters. + +_Topographical considerations_ will hold a place in the study preceding +the opening of a new mine. The nature of the surface of the property and +the surrounding country will largely influence in the selection of the +proper site for the mine's mouth. Neglect upon this point has been a +common cause of failure in mining operations. + +A mine opening must be away from all dangers of snow-slides, +rock-slides, cloud-bursts and deluges from overflowing streams or +breaking dams. It may make a difference in the mine's ventilation as to +which direction the prevailing winds blow and therefore upon which side +of a hill the mouth be opened. + +_Transportation_ facilities must be given due thought. If means are not +already at hand, one must inquire into the feasibility of constructing +some form of carrier; and here, again, will enter the question of the +surface's contour. If a railroad is out of question, possibly an aerial +tramway may be constructed. These modern conveyances stop at no +obstacles of surface configuration and are dependent only upon the +necessity of having the point of delivery lower in altitude than the +point of loading at the mine. With some of the modern improvements in +these installations, mine products are being transported up-hill as well +as down-hill through the application of power. In mining regions, it is +generally the case that the mines, themselves, are above the settlements +in which are the railroads or treatment plants, so that the mine +products will transport readily by the natural force of gravity. + +_Climate_ holds an important place in the economics of mining. The +working of very rich pieces of ground may prove a losing proposition in +some portions of the world where the climatic conditions are such as to +render operations possible during only a very small portion of the year. +Extremes of heat or cold, malaria or other pestilential obstacles, long +rainy seasons with floods, and the hostility of native humans, beasts +or insects have accounted for the abandonment of seemingly attractive +mining projects. + +The question of _labor_ must be given due thought. It is true that the +best miners on earth are Americans. We do not deny that many of our +miners are of foreign birth, but the fact remains that they perform +better and more intelligent service than do their fellow countrymen who +have not been adopted into our country. Our men are in demand in the +mining development of foreign countries. An American mine manager will +always experience dissatisfaction while endeavoring to get, from natives +in foreign parts, the same efficiency that he is accustomed to receive +from the miners "at home." He may be paying a good deal less per capita +for such labor, but he finds he is actually paying more per ton of +output. + +Even within a single country, there are notable differences in the worth +of labor. The natives of some of the Mexican states are far preferable +to those of other states. Within the United States, there may be +discerned material differences between the efficiencies of the citizens +of various sections, when it comes to mining. One cannot procure as +competent miners in some of the agricultural states as in the typical +mining states. This is but to be expected. For instance, there are +deposits of lead ore in the "moonshine" regions of Kentucky which have +never been successfully worked, and the real cause of failure, in the +writer's belief, lies in the inability of superintendents to obtain real +miners either in that region or from the outside. The residents will +never become miners; outsiders will not enter for work under existing +sociological conditions. + +The question of _unionism_ is sometimes held by managers as a deciding +one when debating the opening of a mine. While there are those who will +broadly denounce such organizations, there may be found other and just +as successful mine operators who declare that the effects of union +control over their miners are beneficial to their companies' interests. +Probably the greatest objection to unionism raised by operators is that +they resent the dictation that accompanies the inauguration of union +rules in their mines. The owners and managers prefer to run their own +business to suit themselves. Some managers are so imbued with this +conviction of their own rights that they will refuse to open up mines +or, if they are operating, they will close down their mines before they +will submit to the demands made upon them by the union officials. + +On the other hand, there are mine managers who prefer the presence of +some central, labor-controlling body; for they believe that the men who +belong to such a large federation or organization will, and do, have +less complaint to make and therefore work more freely than is the case +with the independent laborers. The argument is that these union men are +satisfied because they feel that their interests are being looked after +with a sort of attention that they, individually, could not give. + +This is not a place to discuss the crimes that have been laid at the +doors of both the labor organizations and the mine owners' associations. +It is safe to assume that wrong has probably been done by both sides. +But it is furthermore right to believe that most of the crimes were not +authorized, nor recognized, by the officers or the majority of members +of either side. Individual members must not be taken as averages of the +membership in any kind of civil, social or political organization. + +It seems entirely wrong that _politics_ should enter into the +considerations of a mine manager whose operations are apparently so +apart from affairs of state; but the fact remains that there are places +where mining operations cannot be carried on without the good will of +certain officials of the state or national governments. It is not +advisable to enter into any compromising terms to gain privileges for +carrying on any legitimate business for there are other, better ways, +generally, of attaining the justice that is deserved. + +One must not omit to investigate the _sources of supply_ for all the +needs of a mine and its camp. There are many kinds of materials needed +to keep a mine going. Fuel, machinery, timber, water, food for men and +beasts, lumber, and all household furnishings and necessities must come +from some markets or natural sources. It behooves the cautious manager +to see that all these things may be had in ample amount and at figures +which will not prove annihilating to his business. + +In Utah, there are mines which have all their timbers framed in and +shipped from the forests of Oregon, the sawing and framing being done +before shipment to save on freight. The fir of Oregon is shipped to +distant Australia for mining purposes. The arid camps of Nevada get +their supplies of timber from the sister state, California. The Michigan +mines are fortunate in being in a lumber region. Colorado's metal mines +are more favored in the matter of timbers than are the coal mines of the +same state. Most of the coal mines are upon the barren plains, while the +metal mines are chiefly in the wooded mountains. + +[Illustration: MILL OF THE PITTSBURG-SILVER PEAK GOLD MINING CO., BLAIR, +NEVADA.] + +Water may be too scarce for the needs of a mine or its community. There +may not be sufficient to supply boilers or a mill, or for the domestic +purposes of the workers. On the other hand, water may be so abundant +in the mine workings as to prove a deterrent factor in profitable +operation. With shaft mines, having deep workings and low grades of ore, +if water must be delivered mechanically, the costs for such drainage are +frequently prohibitive of mining. Some mines, in arid regions, have been +fortunate in striking such flows of underground water that it has been +possible to operate mills right at the mines. In this way, the cost of +water hoisting has been more than compensated in the milling benefits +which, in turn, have decreased freights and treatment charges. + +_Machinery_ is usually purchased at centres of mining supplies and +manufactures. San Francisco, Los Angeles, Salt Lake City, Denver and +Chicago are the principal _rendezvous_ in the West for mining men in +need of machinery. Mexico City is, similarly, the outfitting point for +the mines of southern Mexico. The United States holds the supremacy of +the world in the matter of equipping mines and mills, large orders of +American-made mining machinery being shipped to even the antipodes. + +The nearer a property is to a depot of supplies, the less is bound to be +the cost of getting goods onto the ground. It is this last item--the +delivery of goods--that must be recognized as a very pertinent, and +sometimes a critical, factor upon the cost side of mining accounts. +Mines that are remote or in rugged countries are frequently dependent +upon animal transportation. In some cases, machinery going to the mines +must be so built that it may be taken apart into small portions suitable +for loading upon the backs of horses or burros, or even, in the Andes, +upon the frail llamas. + +Operations, if planned to be conducted for a long term of years and +therefore warranting the installation of large and expensive plants, +should be based upon the holding of extensive ore-bearing ground. Here +enters the notion of the _shape and size of a mining property_. + +With some kinds of mining ground, the best form for the holdings would +probably be a compact, approximately equilateral tract, covering a +reasonably large acreage. This would be the case with ores that occur in +sedimentary beds, for instance, where it is advisable to have the mining +plant centrally located so as to work expeditiously the entire area. +This would apply to a region like the Cripple Creek District, which +contains innumerable veins running in all directions but displaying no +outcrops. + +In other instances, the most desirable shape might be long, narrow +strips so laid off as to contain the strikes of persistent lodes or +veins, as those of the wonderful Comstock Lode region. It is not acreage +that counts here so much as lineal extent. + +In the Transvaal, land is held in rectangular blocks. The first owners +of the ground took it up for agricultural purposes. This same statement +is also true of the mining properties in the Joplin District of Missouri +and Kansas. + +In the case of the South African properties, every company has definite +boundaries to which operations may be planned. Hence it is possible for +the management to so plant any mine as to operate it at a given rate +for a predetermined life of the enterprise. The work is planned to +maintain a certain output that will exhaust the ore bodies in just so +many years, and all the equipment may thus be purchased with the +forecast that it will serve its purpose and perform its economic share +within the prescribed time. + +This notion will be more readily understood when we consider the various +types of ore bodies. With properties wherein there is no possible way of +predicting the number, size, and worth of discoverable ore bodies, the +life is wholly problematical and it is therefore difficult for a manager +to decide how much he should expend in the initial equipment. + + + + +X + +MINE OPENINGS. + + +In every new mining project, there is much to be considered concerning +the expediency of opening up through shafts, inclines or adits. More +attention has lately been given to this subject than formerly. There are +very good reasons for the selection of any one of these kinds of mine +openings. + +The words shaft, incline, and tunnel have been handled with careless +meanings by mining men. It is time that some definitions be accepted so +that everybody will use these terms with the same meanings. + +A shaft has loosely been any steep opening sunk through the ground. An +incline--sometimes spoken of also as an incline shaft--has been taken to +mean an opening resembling a shaft, but not very steep and not +approaching verticality. Right here, there has been too much latitude +of speech and it has entailed the necessity of many awkward +explanations. + +By a tunnel has been intended any (approximately) horizontal passageway +driven from the natural surface. Objection to this use of the word rests +in the strict definition of a tunnel, which states that it must have +both ends open to the natural surface of the earth, as for example, an +irrigation or a railroad tunnel. A level passageway which has but one +end open to daylight is not properly spoken of as a tunnel. In mining +practice, practically every horizontal opening of this nature is open at +only one end, and it is an adit rather than a tunnel. If the precaution +of speaking of it as a "mining tunnel" is observed, very well, for this +may be taken to be an expression synonymous with adit. The latter term +is, however, shorter and more correct. + +For the sake of a uniform usage, the following definitions are proposed. +Their use will conform with the usages of those well-informed persons +who adhere to correct speech. + +A _shaft_ is a truly vertical mine passage which may, or may not, be +sunk in or along an ore or a coal body. + +An _incline_ is any mine passage which occupies a sloping position and +which may, or may not, maintain a uniform inclination throughout its +length. It may be sunk along, or in, a pitching vein or seam and it may +thus conform to the irregularities of the dip of such body. It is +neither horizontal nor vertical. Such an inclined passage following a +seam of coal is known as a _slope_. + +It sometimes happens, especially in coal mining, that a sloping +passageway is driven through barren rock either to get at known bodies +by the shortest means or to establish uniform grades for tracks. In a +strict sense, these are not inclines or slopes, for they do not even +approximately follow, nor parallel, bodies of value. The miner's term +for such an opening is _rock slope_. + +An _adit_ or _mining tunnel_ is a horizontal opening driven from the +surface. If it be driven along an ore body, as a vein, it is properly +called a _vein adit_; if it is driven _across_ barren country to +intercept presumed or known bodies, it is spoken of as a _crosscut +adit_. All adits must be given a small amount of grade for drainage +necessities. + +Before getting underground we should consider what is required in the +way of opening our mine; what is positively known about our body of coal +or ore; and what conditions are liable to confront us later on. We must +consider the type of ore body; character of material to be extracted; +average thickness and hardness of the body; desired tonnage; power +facilities; probable surface and underground drainage to be maintained; +and dozens of other things which only the experienced man will think of +and appreciate. The right kind of a manager will know that he cannot +afford to overlook such points. + +Every case involves different contingencies, and therefore extreme +forethought must be given to the subject before deciding upon any +particular kind of an opening into the ground for mining purposes. This +remark does not apply to such openings as prospect drill-holes, +openings which are not for mining purposes, but for exploitation. +Assuming that sufficient data are known concerning the property to +warrant the expenditures incident to the making of a mine, the question +remains as to the best way of proceeding. + +It is a well-established fact that it is much cheaper to drive an adit +than to sink a shaft of equal transporting capacity. It is also cheaper +to drive an adit than to sink an incline. If the topography is such that +an adit can be driven into or beneath an ore body and thus expose it +from a low elevation, the temptation is strong and along lines of good +practice to do so. If the country is quite flat or nearly so, or, if the +surface is such that, while rough, an adit of reasonable length cannot +be driven to tap the valuable mineral and handle it economically, then +it is good practice to decide upon a shaft mine. + +An adit will not only be cheaper, foot for foot, than a shaft or +incline, but, if given the proper, slight grade, it will afford a +natural drainage outlet for all subsequent workings above its level. +The cost of pumping, as already suggested, may be a considerable item +and it may be a deciding factor in favor of an adit when this form of +opening is possible. + +Furthermore, an adit will obviate the installation and use of hoisting +machinery, and thus there may be maintained a greater efficiency in the +operating expense of the mine than would be possible with a shaft. + +Again, it is a simpler and cheaper matter to maintain a mining tunnel in +working shape than it is a shaft, particularly in bad ground. By the +settling or "working" of the ground, a shaft may be thrown perhaps but +slightly out of alignment and annoying interferences will be experienced +in hoisting, especially when rapid and uninterrupted hoisting is +necessary to maintain the desired output. While the same amount of +disturbance does take place in an adit, it is an easy matter to readjust +track grades while continuing regular haulage operations. + +The timbers, in the case of either a shaft or an adit, will require +occasional renewal, but the expense of such repairs is less in adits +than in shafts or inclines, while the delay to other operations of +mining, in the case of the adit, will be inappreciable. + +Topography has been referred to above, but it must be again briefly +mentioned. There are some places in which ore bodies extend to, or exist +at, such depths that adits could not be projected to get beneath enough +of the ore to warrant their construction. An adit mine is not a +practicable thing in a flat country like Nevada or the Rand, but in the +rough country of the San Juan it is the customary kind of a mine. In the +very early days of Comstock Lode mining, shafts were sunk by each of the +hundreds of companies. Before a great while, the advantages that would +accrue from having a deep "tunnel" became evident, and the famous Sutro +Tunnel, with its historic, checkered career, was driven. Although it +loomed up like a gigantic undertaking for that period, the immense +prospective or future value of it could not be denied. + +The following relative advantages of the several types of mine mouths +are in addition to those already given and are worth consideration: + +With an incline, the value of a tabular deposit is determined as work +progresses; the course and dip of the body will be known at all depths +along the incline; the body may be explored from the incline in both +directions, simultaneously, with a resulting doubling of the development +and production; all, or nearly all, the material removed is "vein stuff" +and its value may repay the sinking expenses; there is no losing of the +ore body unless a geological fault is met. + +With a shaft, more rapid hoisting is possible than with an incline; the +timbering labor is less than in the case of an incline, but greater than +in the case of an adit; with ground containing ore bodies in irregular +masses and at no uniform intervals, vertically or horizontally, stations +and levels may be started wherever desirable; the crosscuts which are +usually necessary to reach the bodies may disclose otherwise unknown +bodies. + +[Illustration: MILLS AND SHAFT HOUSE OF DALY WEST MINE, PARK CITY, +UTAH.] + +With a vein adit, the vein is prospected as work advances; the ore +removed may pay its own way, as it were; the drainage is automatic; ore +is transportable from the mine by haulage rather than by hoisting; the +ore in place is above the level and will handle itself to the outgoing +passage by gravity. + +With a crosscut adit, in addition to the last three advantages noted for +the vein adit, there is bound to be exploration of the ground upon at +least one side of the known body; there will generally be easier haulage +because of the straighter track, since an adit driven along a vein will +conform to the geological irregularities and the track is bound to be +more or less crooked. + +Without counting upon the doubtful success of the numerous propositions +in tunneling machines, but judging only from past experiences, we may +say that a shaft will cost about three times as much as a "tunnel" of +equal transporting capacity. If the ground is wet, the discrepancy in +first costs becomes much larger. In a remote region, with difficult +transportation of machinery and fuel, it may be better to drive and use +a long adit rather than a shallow shaft. An adit will transport more +product than will a shaft of equal dimensions. + +An adit may be driven to intercept a shaft and to serve as a sort of +artificial surface, as it were, and thus save expenses in pumping and in +hoisting up to the original collar of the shaft at the surface of the +ground. + +No matter how crooked an incline may be, it is possible to hoist ore in +conveyances known as skips, although the hoisting may be necessarily +somewhat slow. These same conveyances are useful for lowering and +hoisting men, and the parody, "Men go down to the mine in skips," here +finds its significance. The usual hoisting conveyances used in shafts +are known as cages. They usually produce less friction than do incline +skips. A skip in an incline must travel upon a track, while a cage, +somewhat resembling a passenger elevator, has no wheels, but slides upon +guides. However, an incline skip, because of the inclination of the +passage, does not exert the same dead weight upon the cable and +hoisting engine and hence these parts of the equipment may be made +correspondingly lighter. Skips for shafts are similar to cages in their +lack of wheels. + +Complete estimates of probable future requirements should be made before +a shaft is sunk. When it becomes necessary to enlarge a +single-compartment shaft to one with two compartments, the expense has +been found to exceed one-half the original cost of sinking; while, to +convert a one-compartment shaft into a three-compartment shaft costs +fully three-fourths of the original sinking expense. Approximately the +same ratios of cost will hold in the case of enlarging inclines. + +Character of ore sometimes influences the selection of the kind of +passageway. Some high grade, brittle ores must not be dumped nor handled +repeatedly, since values are lost in the "fines." Iron and copper ores +will not probably be injured by any amount of dumping. Coal should be +handled as few times as possible. In view of this fact, other things +being equal, adopt that system that will injure the ore or coal the +least. + +As a rule, workmen are safer in tunnels than in shafts, since there is +little danger from objects falling any great distance. Tiny bits of rock +have been known to kill men in shafts. On the other hand, there is less +liability of injury from falls of large rocks in shafts than in adits. +Roof falls are a very prolific source of mine accidents. + +The workmen of neighboring mines will often be able to give much +valuable information as to the proper procedure in opening a new +property. For instance, water levels, amounts and kinds of gases that +may be expected, the nature of the wall rocks, and other pertinent +points may be learned by interviewing the men who are employed in +adjacent mines. Still better information may be obtained by personal +visits to the underground workings of the nearby mines. In this +connection, one must not permit himself to be unduly influenced by the +prejudices or hobbies of the neighboring operators or their employes if +there is reason to suppose that such notions are contrary to good +practice. + +Due consideration must always be given to the selection of some method +of opening up what might be supposed will never amount to a great mine, +so that, should subsequent disclosures exceed expectations, enlargement +of the scale of operations can be advantageously effected. Always bear +in mind that legitimate mining is just as much a commercial enterprise +as is any other kind of business. The utmost concern for financial +showings must be constantly borne in mind. Select a scale of operations +consistent with the known--not the hoped-for--bodies of coal or ore; but +have a certain feature of elasticity about the plans that may take care +of future increase in business if found desirable. Do not "over-plant." +Never plant, at all, _prematurely_. It is better to postpone the +installation of the equipment until some specific facts are available. +Many companies have met defeat in the exhaustion of capital through the +purchase and installation of elaborate plants which were never +warranted. + +After a mine is once opened and preparations have all been perfected to +operate upon a certain scale of output, it is quite essential that +exploitation and production be maintained without material fluctuations, +if the greatest economy is to be attained. Exploitation, _i.e._, +development work, must be kept well in advance of actual mining +operations to assure plenty of working space for the extraction of the +normal output. + + + + +XI + +TYPES OF ORE BODIES. + + +It has been necessary, a number of times in this discussion, heretofore, +to make mention of kinds of ore bodies. It is well, at this time, to get +some fixed ideas concerning the leading types of bodies of minerals +which are extracted as ores. + +Because of the laxity in type differentiation which has prevailed among +miners and writers, the same geologists who have framed definitions of +ore, have also defined the various types of ore bodies. The definitions, +having been accepted by the leading mining geologists and engineers of +the present day, it is well for us to fall into line and to agree with +the authorities in such matters. + +A _vein_ is a _single, ore-bearing fissure_, generally, though not +necessarily, with at least one well-defined wall. + +When we run across a tabular-shaped deposit of ore that looks as though +it may have been put into a pre-existing fissure or chasm, the chances +are that it is a vein. But a vein must not be confounded with a dike. A +dike is a filling that has been injected, while molten or fluid, into an +open passageway or rupture across rocks, or into an opening which it +created for itself. A little examination of the material should tell, to +even the novice, whether or not the substance is of plutonic origin. The +filling of a vein is not eruptive, at all. Veins have been filled from +circulating aqueous solutions, by slow depositions, that have occupied +very long periods. + +A vein may be any thickness, since a fissure may have been opened to any +width. Hence, a vein may be as thin as a sheet of paper, or it may be a +hundred feet across. However, it is true that some wide veins have +resulted by a sort of enlargement from original thin seams. Very few of +the notable wide veins of the world are believed to have been created by +the filling up of chasms originally as wide as the present ore bodies. +But, in all cases of real veins, there were original fissures, +fractures or crevices which acted as channels for circulating solutions +that contained the materials which were left to make the vein matter. + +A _lode_ is an _assemblage of veins_ so closely spaced that the ground +between the veins becomes, in places, ore-bearing, and the entire width +of the aggregation becomes an ore body. + +A zone of sheeted rocks like schist or slate, if sufficiently +mineralized to warrant mining, would be a lode. Sometimes, in certain +districts, the earth's crust has been subjected to many approximately +parallel, closely-spaced fractures, and by the subsequent filling of +these cracks, with the accompanying corrosion of the walls and their +replacement by ore, extraction of the entire mass of rocks across a +considerable distance will be found to yield a profit. Any such body is +a lode. + +In the Cripple Creek District, the ground is criss-crossed in every +direction by tiny fissures which have resulted from the contraction of +the country rock, just as a bed of mud is fissured in the process of +drying up after a rain. Wherever these fissures are found in aggregates +that are closely spaced and in which a majority of the cracks have a +general trend so that the whole assemblage can be readily worked as one +mass, this whole body of fractured rock may be found worth mining and it +will then constitute a lode. It may be mentioned here that the so-called +ore of this district is not really ore according to the accepted +definition. The true ore, the filling of these innumerable, tiny cracks, +really constitutes but about five per cent. of the material that is +shipped as ore, but which is principally the "country rock" broken down +with the small volume of ore. + +In _legal_ phraseology, the word lode has come to include all sorts of +ore bodies. When the word is thus used, in a legal sense, it should not +be confused with the strictly technical meaning. + +It has been the fashion for prospectors to dilate upon the fact that +they have located "true fissure veins." This expression, formerly on the +tongues of most mining men in districts possessing veins at all, is now +obsolete and hence should be placed in the discard. There can be no +such thing as an "untrue" vein nor an "untrue" fissure. Neither can +there be any vein without a fissure. Therefore, if there is any vein, it +must be a real or true vein. Accordingly, the verbiage is to be +discouraged. The intention of a miner, in using this pet phrase, has +been to convey the impression that his vein extended downward, +indefinitely; there having arisen a notion that some veins are rather +superficial and liable to "peter out" at slight depths, while +others--the kind he invariably has located--persist both in size and +value to extreme depths. + +There are districts in which are found short fissures, generally +confined to certain horizons in sedimentary rocks, such as the +limestones of the great Mississippi Valley, from which are mined lead +and zinc ores. These are called "gash veins." These are always readily +recognized and there is not the slightest excuse for confusing them with +the fissures which are common to other kinds of rock formations. + +A _bed_ or _blanket vein_ is the term applied to any nearly flat +deposit conforming to the bedding. Such a body of ore must be in a +sedimentary series of rocks. Coal bodies are all of this type. Many +bodies of iron ore are also of this type. + +A _chimney_ is an ore body which has not the tabular form of a vein but +is rudely elliptical in outline, horizontally, and with a very +considerable vertical extent. A _stock_ is a similar body but it is of +still greater irregularity of boundary. + +These bodies are usually the filling of extinct volcanoes or geysers, +and therefore they are presumed to extend to very great depths. The +diamond mines of Kimberly, Africa, are of this type and the ore is a +sort of hardened geyserite or mud in which are enclosed the precious +gems. In Custer County, Colorado, the ore body of the Bassick Mine is a +conglomerate of rounded boulders of all sizes cemented together, +somewhat like concrete, by the materials which really carry the values. +This mass occupies an ancient volcanic neck or throat of a geyser, +probably the latter. The main portion of the Cripple Creek District is +the crater of a great prehistoric volcano. It might be called a great +chimney, but custom seems to limit the use of the word chimney to a +smaller body such as might be included in a single mining property. + +A _mass_ is a deposit whose irregularity of shape is so great that it +cannot be recognized as belonging to any of the types already mentioned. +Masses conform to no rules as to shape or size. They are usually the +result of a chemical dissolving of the original barren rocks with a +simultaneous or subsequent substitution of valuable materials. There are +many instances of ores that have been deposited, molecule by molecule, +replacing equal volumes of the previous rock, much upon the order of the +petrifaction of wood. Again, there are immense masses which are believed +to have accumulated in caves already dissolved out of the containing +rocks. + +While recent geological study of the districts in which such ore bodies +abound have disclosed numerous facts about their occurrence, there still +remains much conjecture concerning their origins, and we may still +believe that they do not conform to any rules as to regularity or size. +The ore bodies of Leadville are of this type, and they may be described +by the homely similes that they are as like and as unlike, and their +occurrences are about as regular, as potatoes in a hill. The potato-tops +give the farmer a suggestion as to where to dig. So, also, do certain +geological relations guide the miner. And yet a shaft may be sunk +hundreds of feet down among masses and not happen to penetrate a single +one. + +There are numerous recognized types of ore body not enumerated here; but +it is sufficient for the average layman in mining matters to understand +these few distinct types and to believe that all other types are +rarities, and are, as a general thing, but intermediate forms of those +defined. + +[Illustration: Shaft No. 3, TAMARACK MINING COMPANY, CALUMET, MICHIGAN.] + +[Illustration: SMELTERY OF THE BALAKLALA CONSOLIDATED COPPER CO., CORAM, +CALIFORNIA.] + + + + +XII + +THE QUESTIONS OF DEPTH AND GRADES OF ORE. + + +The prevailing belief of a few years ago that ore bodies always improve +with depth has been discredited. Not a single mining geologist will +longer maintain such a notion. The evidence of many thousands of mines +has refuted this older belief and it has been proven that quite the +opposite view is the correct one concerning changes of value with depth. +Values, instead of getting better, do actually, in the majority of +cases, grow poorer as depth is gained. + +President C. R. Van Hise, of the University of Wisconsin, was among the +early expounders of the newer theories to account for this fact. The +writer heard him state, years ago, before a scientific gathering (which, +at that time, was not quite ready to agree with him), that if he were +given his choice, he would much prefer to own the upper thousand feet of +the earth's crust than all the rest of the globe. In this remark, he +was referring only to mineral values, of course. + +This belief that the best values are to be found not far from the +surface has since become popular, for it is based upon proven facts. It +is not claimed that values are never mined below an elevation that is a +thousand feet from the surface. There are many mines, and great ones, +too, that are operating at depths greatly exceeding this distance; but +in these same mines there will be found valid reasons for not applying +the general statement to their particular cases. For instance, the great +copper mines of the Keweenaw Peninsula are productive at depths of a +mile or more from the surface; but we believe that here the ore must +have been originally deposited at, or near, the surface, that it was +then overlain with rock strata; and subsequently steeply tilted by earth +movements which carried some of the ore bodies down to the depths where +they are now found. + +The "reefs" or bankets of the Rand are so termed because these ore +bodies were undoubtedly ancient coast beaches or sea placers. The +gravel, sand, and gold particles were cemented together into a +conglomerate, then covered with many later sedimentaries, and finally +the continent of Africa was so raised or altered in some manner as to +bring these gold deposits into their present inland and tilted +positions. + +In veins or lodes, it is not supposed that ore-making minerals could +have been precipitated from solutions travelling either upward or +downward and obeying chemical laws if the depth were sufficient to +furnish great temperature or high rock and hydrostatic pressures. +Therefore minerals which were deposited from aqueous solutions rising +from depths, for example, must have retained their dissolved condition +until they ascended to horizons in which both pressure and temperature +were low enough to permit the precipitation and crystallization that +create ores. Contrarily, descending solutions must have given off their +contents before reaching the deep zones of heat and pressure, or not at +all. + +It is a quite common phenomenon to observe that the richest _gold_ ore +in a mine is found close to the surface, if not actually at "grass +roots." The explanation is simple. The gold, being the most stable of +the aggregate of minerals composing the original ore, has the better +resisted the corrosive attacks of atmospheric agencies and has remained +nearly intact, while its associated minerals have been dissolved or +altered and carried away. The same amount of gold remaining with a +diminished quantity of the worthless, non-metallic minerals--the +"gangue"--inevitably renders the ore richer per unit of weight (such as +a ton), although per unit of volume the value remains constant, or +nearly so, so far as the gold is concerned. + +But with other kinds of ore, as, for example, copper, the best grades +are found, not close to the surface but some two hundred or more feet +down. The explanation is that the minerals of copper are considerably +more soluble than the ordinary gangues and therefore the weathering and +oxidation that takes place in the upper horizons of ore bodies will +dissolve out the cupriferous compounds and thus deplete the +superficial ore. But, by the flowing of the copper solutions to a lower +zone, there occur certain reactions that reprecipitate the salts of +copper upon compounds of the metal already formed and we have instances +of the phenomenon known as "secondary enrichment." + +[Illustration: CONCENTRATOR DIVISION, WASHOE REDUCTION WORKS OF THE +ANACONDA COPPER MINING CO., ANACONDA, MONTANA. Largest Copper Works in +the World.] + +It was this very process that effected the changes in the character of +the ore in the famous Anaconda Mine, previously mentioned (page 44). The +locator's discovery was upon an outcrop rich in silver. Probably the +original compounds of the vein were of both silver and copper. The +silver was more stable against dissolution than was the copper, with the +result that the base metal was removed more rapidly and completely than +was the precious metal. The upper portion of the vein was therefore left +rich in silver, and low in copper. But, as depth of mining increased, +there was found a gradual diminution of the silver content with a +simultaneous increase in the copper. The mines of Butte have become +known as copper mines, and the wonderful records they have made are +ample testimony to the fact that the change in the prevailing metallic +values has not wrought serious havoc in the mining industry of the +district. + +Regarding the probability of veins persisting to great depths, there is +this thought suggested by J. E. Spurr: "Owing to the pressure exerted by +gravity, it is doubtless more difficult for a fissure to stay open in +depth than near the surface. The tendency is to press the sides +together. At a certain depth, it is probably the case that the pressure +and the plasticity resulting from this, together with the increase in +heat, makes it impossible for fissures, fractures or any openings to +exist." + +There are still many persons who are reluctant to let go of the +cherished notion about the improvement of ores with depth. But there is +no economy in deceiving one's self, and the wise thing to do is to +accept the truths as they are daily proven. It may be worth while to +again refer to the wonderful Camp Bird Mine. This mine was discovered +in its true worth years after it had been abandoned by early prospectors +because it lacked showy, base-metal minerals. However, since its true +merit has been recognized, it has maintained large and remarkably rich +annual outputs. As values were beginning to show a material decrease, +about five years ago, an experienced mining engineer of recognized +standing was engaged to give advice concerning the future exploitation +of the property. After exhaustive investigation of the ground, and in +the face of adverse opinions, he recommended the discontinuance of +further development in depth. At the same time, however, he advised the +exploitation of the ground laterally or along the strike of the very +persistent vein. His advice was followed and the company's stockholders +had reason to be advocates of the new theory; for a very reasonable +amount of horizontal development work opened up vast stores of rich gold +ore. + +And yet, notwithstanding this disquieting feature that seems to apply to +mining, there is comfort to be found in the consideration of the +exceptional cases. Every man may hope that when he locates a new mine he +is taking possession of a property that will have as extensive ore +bodies as those that have been proven to exist in the lead-silver mines +of Laurium, Greece, the quicksilver mines of Spain, or the copper and +tin mines of Cornwall. These mines are in lodes which have persisted and +have been mineralized to comparatively great depths, so that their +bottoms have not been reached. + +There is a modern idea that has taken root in the minds of mining men of +the last generation to the effect that the mines with rich ore are not +necessarily the ones with big profits. There are many men looking for +investments in mines whose contents are of low grade but in large bodies +readily worked. If a mine with rich ore can be found and the ore abounds +in such liberal amounts as to warrant the inauguration of a company with +the essential working equipment, such a proposition will naturally not +be turned down. However, the faith of some men is placed in those mines +that may be operated upon very large scales for long periods even if the +profit per ton be very small. With a large plant, the unit of expense, +_i.e._, the cost of mining per ton, is less than with a small mine. With +the assurance of regular outputs of ore of a reasonably uniform grade, +the milling equipment can be planned to handle a mine's product to the +greatest advantage. The Alaska-Treadwell Mine, on Douglas Island, is an +instance of a splendid property that has been continuously operated for +about a third of a century. The ore is low grade in gold but immense +dividends have been declared because the ore body, a tremendous mass of +eruptive rock, has lain in such a position that the owners found it +possible to excavate the stuff, to a great extent, by open-pit methods, +although not by using steam shovels. The ore is treated in a vast mill +contiguous to the mine. + +The Homestake, another gold mine, has an ore body quite dissimilar +geologically from, but of dimensions approximating those of, the +Treadwell. It is a great body of mineralized, crushed shales, standing +steeply in the shape of a lode and carrying about $3.75 per ton. It has +been followed down considerably over one thousand feet and although the +grade has dropped somewhat with depth, there are known to still be +millions of tons in reserve. According to estimates, the mine has enough +positive ore in reserve to keep the mill running at the rate of 4,000 +tons per day for several years even if no more ore were to be opened up. +This ore nets but 53 cents per ton above all mining and milling +expenses; but a little arithmetic will show that this mine is worth +twice as much as the mine that is producing, with more or less +regularity, an average daily output of, say, forty tons of high grade +ore upon which there is a net gain of $25 per ton, a figure that is +rather high for the average of so-called "high grade" mines. + +We must, therefore, decide that it is always wise to think twice before +condemning a mine because its grade of product is low. It is only +recently and by virtue of marked improvements in metallurgical +processes that many bodies of mineral have become "ore." Hence it is but +natural that many of the older miners fail to grasp the possibilities +that lie in such deposits. + +What is the line of value separating a low grade from a high grade of +precious metal ore? There is no uniform practice along this line. One +will notice that ores are nowadays spoken of as high grade that, before +the practice of mining these described meagre deposits, were reckoned as +low grade. This fact is due to two reasons, viz., the cheapening of +metallurgical operations, and the greater respect that is entertained +for ores of low metallic content. The Esperanza Mine, in Mexico, is +called a high-grade gold mine. Its ore has averaged about $33 per ton +and the profit therefrom about $19. The Oroya-Brownhill Mine, in western +Australia, has had ore that carried a value of about $22 per ton and +from it a profit of about $15 per ton was made. In the Cripple Creek +District, ores that run above $30 per ton are considered high grade. +This means that the average rich ore shipments of the district have a +gold content of about 1-1/2 ounces per ton. The expenses of mining, +freight, and treatment will probably total close to one-half the gross +value, or about $15 per ton. + +When one speaks of $30 or $40 ore as rich or high grade, it is not to be +inferred that there is no ore in the shipments which is not worth a +great deal more than this amount per ton. Such lots of ore will, no +doubt, contain a great many chunks that would assay many times the +average value. Such selected materials would not, however, be samples; +they would be what are called "specimens." The specimen has its place in +mine economic discussions because it furnishes the basis of operations +for the ubiquitous "high grader" with which nearly every new and rich +mining camp must contend. + +Some writers claim that the high grader is a product of modern +conditions; but we find that he has existed for such a long time that he +was given mention by the Scotch historian and scientist Andrew Ure, who +wrote of the precautions that were exercised in working the graphite +mines of England, a century ago, to prevent the pilfering of even this +comparatively low-grade material. Even the ignorant African natives of +today cannot be trusted to wear clothing while working in the diamond +mines. No, the cause of high grading is the innate greed of human beings +and it has existed from prehistoric time and among all peoples. + +In this discussion as to grades of ore, the question may arise as to +what might be reasonably considered the most attractive kind of a mining +proposition. This is too knotty a query to be answered in a few words. +There are so many different phases that must be given due weight. Every +mine is a problem in itself. The Minnesota mines afford the best +examples of profitable iron mining. Under the classification of +underground, tabular deposits such as veins or lodes, no matter in what +metals their values are found, Mr. T. A. Rickard believes that the ideal +mine would be one carrying ore worth $10 per ton, in a body five feet +thick, with costs not exceeding $5 per ton, and so mined as to keep one +million tons continually in reserve. According to these restrictions, he +thinks the Robinson Mine, of Johannesburg, will about fill the bill as +an ideal _gold_ mine. It has a deposit of about the right thickness to +avoid excessive timbering expense and this ore body is in such a vast, +continuous sheet that its superintendent can depend upon maintaining a +systematic development that will assure a constant supply of ore to the +immense mill for ten or twelve years in advance. This same ore averages +about fourteen pennyweights (approximately $14) per ton and upon this +there is assured a profit of over five dollars per ton. + + + + +XIII + +VALUATION OF MINING PROPERTY. + + +Whenever a piece of mining property is to change hands, it is the proper +procedure to employ an expert engineer to investigate the ground and the +improvements and so arrive at some estimate concerning its intrinsic +value. Nobody is infallible and it is a trite saying that "nobody can +see into a mine farther than the last drill hole." But there is a great +difference in the reliabilities of reports made by trained and by +untrained men. A self-styled "expert" of the type which is so abundant +in every new mining centre and about cities frequented by mining +investors will probably not be able to comprehend anything beyond his +vision; but the mining geologist and engineer--the man who has devoted +the better part of his life to study and experience along these +lines--will be able to reach conclusions upon which much reliance may +be placed. This fact has come to be recognized by the men who exercise +business judgment in their mining investments. + +The sampling of mines has been studied and improved upon by succeeding +engineers, until one may say that it is conducted along strictly +scientific lines. The old method of taking a sample of a mine by +scratching ore from the sides of a shaft from top to bottom and letting +the collected material at the bottom represent a fair average of the ore +body, has been relegated to its proper place in the evolution of mine +valuation. + +Without entering into a description of the methods now employed by the +best examiners of mines, let it be said that every scientific precaution +is taken to obtain representative portions of the ore bodies, at such +intervals as seem best in each particular case; that measurements and +assays are made for each and every sample taken and not for the +aggregate of all the samples; that no opportunity is allowed +unscrupulous persons to vitiate results in any manner; that a +professional engineer will not hold nor acquire, in any way, an +interest in any proposition which he examines; and that the report of a +reputable engineer is equally acceptable to the seller and to the +purchaser, no matter for whom the work is done. + +Much discussion has prevailed as to the best means of estimating the +amount and the value of ore in unbroken reserves. Associated with these +beneficial disputes, there has been a further controversy as to the +correct classification for reserves of unbroken ore. It is now conceded +among mining men and engineers to be improper to longer make use of the +meaningless but tongue-worn expression "ore in sight" as signifying any +known or unknown volumes of ore in the ground. The only ore in sight is +that which has been hoisted or which has been broken and stored +underground. Well-known engineers have proposed the following +expressions: + +To denote the contents of ore bodies which have been exposed on four +sides, we may say _ore blocked out_, _positive ore_ or _ore developed_; +for bodies exposed upon three sides, it is considered correct to +describe the contents as _ore partly blocked_; for such bodies as are +proved upon two sides only, the terms _ore faces_, _ore developing_ or +_probable ore_ are appropriate; while in speaking of all ore that may be +expected or suspected, but which is beyond the last exposures, we may +use the expressions _ore expectant_ and _possible ore_. + +When it comes to the question of placing a value upon an undeveloped +property--one in which there is little, or no, development work or +exploitation--it takes more than the ability of the common "expert" of +the curbstone variety to arrive at any dependable figures. Without any +exposures, except those that may have been produced by Nature, and +perhaps with no guidance from facts that might be obtainable were there +adjoining mines, one might suppose that the whole matter would resolve +itself into mysticism. Right here is where the trained man best shows +his ability. + +The greatest error of the usual investor in mining schemes is to rely +upon either no report at all or upon a worthless one furnished by an +impostor. _In no sort of a mining proposition is a reliable report so +essential as when one is contemplating the purchase of a "prospect."_ +Successful engineers, whose predictions concerning such properties have +come true, are sometimes complimented (?) by being accused of possessing +intuition or prophetic vision. Call this ability what we will, we must +admit that _education and training_ give certain qualifications that +will enable a man to arrive at conclusions which, in the majority of +cases, will be found to wear. + + + + +XIV + +THE MINE PROMOTER. + + +With the thought that has justly been given to the place occupied (or +that should be occupied) in the world's financial and economic affairs +by legitimate mining, there has developed a well-founded stigma upon the +operations of a class of persons who have styled themselves by what was +formerly considered a worthy title, that of "promoters." Since men have +found that it is as possible to go into a mining deal with the same +chances for success as attach to any other line of investment; since it +has been proved that real, worthy mining property does not require the +exertions of many middlemen to obtain capital for its development; and +since it has usually turned out that these "promoters" have handed the +hot end of deals to their investors, it is not to be wondered that some +sort of a brand would attach itself to the men who are not in the +business to benefit the industry of mining in the least, but really for +the selfish gains which they can pocket at the expense of the industry. + +These men are legion. The mails are laden with their seductive letters +and "literature." Brokerage firms are numbered among these leeches on +legitimate mining. Charlatans appear almost daily upon mining scenes. +The men who engage in these deplorable practices are not from any one +walk in life: they spring up from various branches of our social +structure. The general public has learned that a very prominent Boston +magnate will not scruple to promote a mining property even though it +lacks the merit essential in attracting the conservative capitalist. +Thousands of people of small means throughout the United States and +Canada have been recipients of nicely worded and familiarly-addressed +letters signed by the son of a famous American author. This son, himself +a writer of some repute, presumed to speak to his "friends" concerning a +mining property which he promoted and into which he was glad to allow +them to get with him "on the ground floor." He frankly stated that he +was not offering such privileges to the big capitalists. He inwardly +knew that such men do not require holdings in the Cobalt or any other +region. Through the splendid work carried on by the Government postal +authorities many of these frauds have been exposed and the perpetrators +brought to justice. In January, 1912, the above-mentioned author, +together with a number of his ilk, were brought before the Federal Grand +Jury, and found guilty. + +It is not the men of great capital who are induced, as a rule, into the +deals of the "promoter." It is usually the common people, the persons of +small means who have saved up a little spare money from which they hope +to realize competencies for rainy days--a class of beings inexperienced +in investments--who become the dupes of the promoter. + +There have been notable exceptions to the statement that capitalists do +not yield to the seductions of these men, but recurrences are liable to +be few. The great business man is fortified by experience against forms +of treachery and he is, therefore, not so susceptible to the allurements +of any "promotion," be it mining or otherwise. + +If one investigates these advertised mining "promotions," he will often +find that the money paid in by the small investors purchases a very +small portion only of the capitalization. The men who conceived the +scheme of "promoting" a concern have carefully arranged to hold a +majority of the stock, so that should there, by any chance, prove to be +a mine, they are the ones who will reap the greatest benefits. Further, +it often transpires that the contributions of cash that purchase the +small interests do not perform the function of development for which the +stock was ostensibly put upon the market. Perhaps somebody has a desire +to get rich quickly. The operations of such frauds are so obscured and +so complex to the average individual that sufficient evidence can seldom +be procured to prove any violation of law. + +A witty newspaper paragrapher once remarked that out in Nevada the old +adage "Death loves a shining mark" was changed to "Death loves a mining +shark." It would seem, however, that if Death were to love the person +bearing the odious, well-understood title of "shark" enough to claim him +early, the business of mining would be materially benefited. The +post-office officials of the United States are to be commended for their +efforts at curbing the despicable operations of these fakirs. +Occasionally the papers come out with the news that a firm's offices +have been raided and their business stopped. These news items fall as +awakeners upon the hundreds of gullible, middle-class persons all over +the country who are known to actually force their cash remittances upon +these fraudulent operators, much upon the plan of a department store's +supposed bargain sale. + +In spite of the "bad name" that has been attached to the persons engaged +in starting up enterprises, there is a real need for more activity in +the matter of inaugurating real, legitimate mining enterprises. Persons +who devote their brains and energies in the direction of furthering +worthy mining propositions do really "promote" the interests of such +companies. What shall such persons be called if not "promoters"? There +does not seem to be any other word that expresses the occupation of such +persons. The real solution of this dilemma in which the honest men +engaged in such work find themselves placed is to denounce, forcefully, +the charlatan as being not a real promoter but a gross misrepresentation +of one. + +Let us, therefore, remove the odium from this title and give our +approbation to those persons who are earnestly endeavoring, by honest +means, to place mining enterprises upon strictly business-like footings. +The mining industry needs promotion and promoters. + + + + +XV + +INCORPORATION AND CAPITALIZATION. + + +Let us consider the legitimate financing of a new or a reorganized, +worthy, mining proposition. It is the universal custom to own and work a +mine under the laws that govern a corporation and, for this reason, the +mining man of the day is familiar with the practices of incorporating. + +It is something of a question at the start to decide what is a fair +price to fix upon a property as a whole--that is, to decide what the +capitalization should be. There is no rule to be followed in this +matter. Some organizers will decide to capitalize at what is expected +will be the value of the property after some time. Other men will stick +to the idea that it is the proper thing to capitalize for what the +property will invoice at the time. The higher the capital stock, the +greater number of shares there are for sale, usually. With a +conservative capitalization, there may be fewer shares for sale, but +each share is worth correspondingly more and the chances are much better +for an advance in the price per share whenever the mine becomes +productive. There are investors who will carefully investigate this +feature and will shun any mining stock which has any appearance of +over-capitalization. It would be well if all investors were to follow +this precaution. + +But what about the price at which to capitalize a prospect? By a +prospect we here mean a property that has been favorably reported upon +as worthy of development but in which, up to date, there is little, if +any, showing of values or reserves. The engineer's report has +recommended the property as containing the possibilities of a mine. How +much is it worth? Can he or can anybody even roughly estimate the sum? +An engineer frequently does fix the sale-purchase price of a property, +but it is not so usual for him to decide upon a valuation for +capitalization. A very good guess may be made, perhaps, if there are +similar and neighboring properties which have been developed. + +Assuming a prospect that has been reliably reported to the owners as +possessing the earmarks of a mine and as warranting expenditures for +exploitation, upon what basis should a company be capitalized? If the +owners of the property have capital, the chances are that they will not +care to share their holdings with other parties. But very frequently +worthy "prospects" are held by men of no means, and in order to develop +their mines the owners feel the necessity of cooperation with parties +who can furnish working funds. In every such instance, there will arise +this debate as to the proper basis of capitalization. + +There is no human means of arriving at a _close_ valuation of any +prospect, so it becomes a matter of pure judgment as to future +probabilities and the possibility of placing the stock at the most +advantageous price. A company will, therefore, be stocked for some round +number of shares, say 100,000, upon which some empirical par valuation, +say $1, is placed per share. This is not to be understood as stating nor +assuming that the property has a present valuation equalling the par of +the entire capitalization. Who would assert that any mere prospect ever +had such a value as $100,000? No, it is not the intention of the +organizers to claim that the ground is worth the par valuation; but some +start must be made and so, in the absence of something precise, round +numbers are made to do service. + +Stock is then offered at figures much below the par valuation and in +such quantities as will maintain sufficient capital in the treasury of +the new concern to get the property's exploitation under way and to so +sustain it as to make the prospect grow into a mine. + +If shares are offered at 10 cents, it does not mean that a prospect is +worth even that valuation. It does mean (we are considering now only the +operations of honest concerns) that the men who are managing affairs +believe that the sale of so many shares at ten cents each will furnish +adequate means for the development and equipment of the mine. Therefore, +there is a _prospective_ valuation placed upon all such enterprises. + +Is an investment in such a company to be considered as gambling? If +there have been sound assurances from reliable examiners concerning the +likelihood of the ground carrying the essentials of a mine and the only +uncertain element is the ultimate magnitude of the mine, then we might +say that the investment is not a gamble at all, since there is no chance +to lose. The purchase of such stock is a very sane investment and there +is no telling what the returns may reach. + +When incorporating a new company, it has become the fashion for the +owners of the ground to exchange their titles for certain specified +fractional interests in the company. This is effected usually by going +through the formality of having the owners sell their holdings outright +for the entire issue of the capital stock. Then, according to +prearranged agreements, these owners donate to the treasury of the +company a portion of this capital stock to be henceforth termed +"treasury stock." The first step makes the capital stock "fully paid +for," since it has been accepted in full payment for the property. The +second step supplies the company with the necessary means for raising +funds to develop. + +There can be no reasonable objection to this practice. But there is much +criticism of the usual apportionment of the owners' and the treasury +stock. It is agreed that the incorporators are, as a rule, greedy in +this respect, since they generally issue more than 50 per cent. (and +frequently 60 per cent.) of the capital stock to themselves and expect +to float the project to success upon the money derivable from the sale +of the balance or treasury stock. + +Is a mere prospect, even under the best natural conditions, plus the +effort incidental to the organization of a mining company, worth +one-half or more of a producing mine? During an extended experience in +the business of converting discoveries into patented claims and +prospects into mines, the writer has found that _there is never an owner +who is willing to sell a developed mine for twice the price he had set +upon the original prospect_. The valuation of his holdings goes up by +greater multiples than mere doubling or even trebling and it is a rare +thing to find a man willing to sell out a proved mine at less than ten +times the prevailing valuation that would have been placed upon the same +piece of property before its development. + +Hence, there is no propriety in the act of self-appropriating half the +capital stock by the organizers. Investors should be wary about taking +interests in companies which have been so organized. If an owner +believes that a mine is worth ten times as much as a prospect, let him +be consistent and offer his undeveloped property for a tithe of the +capital stock in the anticipated mine. If he has a worthy piece of +ground, he will reap the same benefits as the holders of the stock who +place their cash against his title to a tract of virgin territory. If he +will not thus act fairly, it indicates either a questionable piece of +property or an avidity undesirable in a partner. It is accordingly +advisable to shun offerings in such concerns. + +Another matter to be considered here is that of overloading a fairly +good mining enterprise with so much capital investment that the +property cannot be made to pay proper dividends and fair interest on the +capital. Many worthy, though perhaps small, mining concerns have made +failures through a disregard for this economic feature. The proper +adjustment of this matter is a serious thing and it should not be passed +over lightly. Investors should look into this phase of mining +thoroughly. + + + + +XVI + +MINING INVESTMENTS. + + +One should be able to establish, in his mind, a distinction between the +value of investments in operating mines and in prospective mines; and he +should likewise be competent to fix some difference in his attitude when +purchasing the stocks in these dissimilar projects. One should invest in +an established mine with the same business precautions that would guide +him in buying an interest in a mercantile establishment. + +It is possible to obtain, through competent engineers, the approximate +present valuation and the probable life of any mine and thus to arrive +at conservative figures that will govern one's investments. But, when +debating the purchase of stock in a prospect, a man should learn all the +available facts concerning the geology and the organizers and should +then decide, in his own way, whether he cares to make the purchase. Even +the prospects offering the finest inducements have been known to +disappoint, just as some less promising prospects have occasionally +exceeded expectations. + +[Illustration: MILL OF THE ROODEPOORT-UNITED MINES, TRANSVAAL, SOUTH +AFRICA.] + +So, while there are certain safeguards to investments, there should also +be accepted the uncertainties which must accompany the placing of faith +in unseen things. + +The same general rules for business success will attend both commercial +and mining enterprises. Any incorporation must be handled according to +recognized, successful methods, no matter what its scope or activity. In +most lines of business, there is a likelihood of growth with longevity, +there being no reason to limit the life of the usual mercantile +business. With advancing years, a manufacturing company, for instance, +with good management, will establish a reputation and will gradually +increase its business and its stock in trade. But with a mine, the +business is one which is most successful only when actually depleting +the assets at the most rapid rate. With some kinds of mines such as +coal, placer, iron or the "reef" gold mines of the Rand, the life can +be very accurately forecast and all activities may be planned for +specified periods. + +In some kinds of mining ground--as for instance, the irregular masses of +Leadville or the crooked and uncertain veins of Tonopah--there can be no +predictions that will reliably or even approximately decide the probable +life of the mining activities of any company. The duration of mines of +this second class is wholly problematical. A few years ago, there was +much discussion of this subject and one writer, who had collected +statistics over an extended period and covering various kinds of mines, +arrived at the conclusion that the average life of a mine is about +eleven years. J. P. Wallace, in his work, _Ore Deposits for the +Practical Miner_, in discussing this point says, "The average mine, if +continuously worked, seldom lasts longer than three to five years. A +mine is valuable not for what it has produced, but for what it is +capable of producing." This opinion cannot be borne out by facts, for +the brevity he ascribes to the average mine is altogether unreasonable +and his statement is pessimistic. The cases of mines which have petered +out in three or five years are exceptionally few. It must be that the +experiences of this author have been in "pockety" districts, for he +could not have lived in any of the worthy mining camps of the world very +long and have come away with any such notion. + +To take care of this intrinsic feature of mining, and to place +propositions fairly before the public, there should be attention given +to the matter of recovering the invested capital before the expiration +of activities through the exhaustion of mining assets, the ore bodies. +This practice, known as "amortization," is being given more and more +consideration as people come to realize this peculiarity of mining. Some +companies are now so organized and managed that there is a guaranteed +refund, at stated periods, or whenever profits have accrued, of +fractions of the invested capital with accumulated interest thereon. +These funds are calculated to continue over the number of years which it +is presumed the mines will live so that upon the cessation of mining, +the owners of the stocks will have been completely reimbursed with their +original outlay in addition to the dividends that have resulted from the +success of the enterprise. It is here that the problem of the life of a +mine enters into economics, and it is important that it be given its due +share of study. Amortization is not of American origin and it has not +been adopted in this country to the extent which it is bound to be in +the future. + +One means of providing against an extinction of a mining company's +activity with the exhaustion of the ore bodies in the mines is to +provide new mining territory to which operations may be transferred at +the proper time. This plan has been very successfully carried out by a +number of large mining companies. When a mining company has been +maintaining its identity for a considerable period, it has reached a +very desirable stage of economy in the make-up of its various lists of +officials, superintendents and engineers. All this efficiency can be +very readily transferred to the operation of virgin mining property. +Often much of the equipment of a mine can be moved and used again. When +a mine is known to be nearing its finish, there is a hesitancy on the +part of the owners in replenishing the equipment and sometimes the +mining is kept up through the use of worn-out, inefficient apparatus +when, were the owners expecting to continue mining, they would purchase +and install the new equipment when it is needed. + +One company in the San Juan region of Colorado prepared for the +contingency by purchasing neighboring property to which it moved its +operations. Another large company bought a large piece of mining +property in Mexico, although its initial operations were in Colorado. +Placer mining companies frequently dismantle, move and re-erect +dredges. + + + + +XVII + +MINE EQUIPMENTS. + + +There is a constant tendency toward the adoption of machinery for the +performance of every mining act which, formerly, was done by manual or +animal labor. There are good reasons for this tendency. Good, trained +labor is scarce; wages are slowly but gradually rising; ores of lower +grade must be mined, and the tonnages must be correspondingly greater. +The increased economy in production can be brought about by the adoption +of devices that will supplant, and even excel, muscular effort. + +A machine can now be installed and can be operated by a single man to +perform the work formerly done by many men. There have been machines +invented to entirely, or partially, perform every operation in and +around mines, and one might imagine an ideal mine in which all such +machines were installed. But even there, we should have to grant the +presence of some few men, for it would not be possible to keep all the +machines working without human, intelligent control. In such a mine, it +might be possible to maintain a large production with very few laborers +or overseers. Fewer men means less wages, less labor trouble, fewer +fatalities, and less time occupied in handling men into and out of the +workings. + +In some ways, copper mines are ahead of gold mines in their equipment. +Coal mines have adopted car loaders which as yet and without any very +good reasons metal mines have not. + +Plants for mines must utilize the same sources of power as are used by +any other plants. Steam and water have been the usual forms, but +electricity is gaining in favor in places where it can be cheaply +obtained. At a coal mine, we naturally expect to see all the power +generated through the combustion of coal under boilers. At metal +mines--which are frequently remote from sources of coal supply--we run +across the use of expensive coal for all power purposes. When it is +possible to obtain a sufficient supply and head, water is adopted to +furnish the required power for operation. At mines, with water +sufficient to produce a part only of the needed power, we may see both +steam and water power utilized. In the cases of some mines which are +distant from sources of both coal and water supply, power is generated +at points where stores of natural energy are available for use and the +power is transmitted (usually as electricity, sometimes as compressed +air) over long distances to the mines. + +Some mines cannot be economically operated without the treatment of the +ores upon, or close to, the mining property. With certain sorts of +low-grade ore, or with those kinds of ores that may be concentrated +before shipment, provision should be early made for the erection of +appropriately designed mills. We say the subject should be considered +early, but we do not advocate the premature erection of any mill. The +hills of the Western mining states are dotted with monuments to men's +error in this particular. Here and there (not in our own country alone, +but throughout the mining world) one may run across an abandoned mine +plant, a complete mill, a smeltery, a railroad or an aerial tramway, all +prematurely provided for outputs which failed to materialize. + +There are men still trying to succeed in the mining business while +thinking it is essential in mining that a complete plant be the first +thing given attention. Upon the showing in a ten-foot hole, such men +will induce capital to take interests enough to provide the wherewithal +for purchasing and installing an equipment capable of handling and +treating the output of a big mine. This is a grievous mistake that comes +about through misconceptions. It is often true that ores of the kind +these mines are expected to produce should be treated upon the ground. +But it is also true, and far more essential, that there be enough ore to +supply the treatment works. It is rank folly then to spend the money +needed to make a mine upon a plant to handle the product. Money should +be spent, first, in exploitation and proving the value of a property. If +the proof is forthcoming, it is then time enough to erect the plant. +Meanwhile, during the development stages of a mine, the proper amount of +experimentation can be conducted to ascertain the correct process for +treating the ore. If ores are produced in abundance, they may be shipped +for treatment in custom works until such time as the company's own plant +is ready; or the ores may be stocked up for emergency mill supply at +future times when it may be compulsory to curtail the mine production +because of accidents or other unforeseen causes. + +One who considers these matters from an economic standpoint will +recognize that there must exist some proper ratio of mine output to +treatment capacity. Just what this relationship is constitutes a serious +problem for each particular mine and there cannot be stated any +ironclad rules that may be applied to all cases. + +In the first place, we believe _a mine will be operated at its greatest +economy when it is making its largest and most regular output_. This +being the case, we must agree that the plant and mill must be capable of +taking care of this maximum output. It would then seem axiomatic that +the equipment must be calculated according to the mine's capabilities. +But, in the youth of a mine, how are we to know what its mature capacity +will be? Here comes the rub. + +Very nice discussions along this line have been indulged in by British +and American representative mining men. When speaking of operations that +are typical of some foreign mining districts and especially those that +possess ore-bodies whose extents are readily calculated, no clever +prophecy is required to ascertain the proper amount of equipment. But +there are many regions, especially in our own country, where nobody can +predict, with any degree of accuracy, how extensive will prove to be +the natural reserves of any mine. It is in such places as these that +hard study and careful guessing are needed, and we are inclined to agree +with George J. Bancroft when he says, "To my mind, there is more credit +due to those who take up the hard propositions and make them pay than to +those who exploit bonanzas along purely scientific lines. The first +usually require energy, sagacity, perseverance and, very often, daring; +while the others need chiefly cool calculation." + +It is a safe practice, throughout the world, whenever there is no +absolute means of reaching figures of a mine's ultimate production, to +erect the treatment installations in units. By a "unit" is here meant +the outfit of machinery and the other equipment which will handle a +specified round number of tons per day. In some districts, a unit will +be for the treatment of 10 tons; in other districts this number may run +up to 100 tons. In the plans provisions are made for additions, from +time to time, as mining development warrants. Very much the same scheme +should be followed in the erection of the plant for carrying on the +operations, which are strictly those of obtaining the ore from the +earth. That is, mining equipment, as well as the milling equipment, +should be on a flexible plan so as to be readily adapted to an increased +scale of operation. There must be space provided for harmonious +additions to the initial plant whenever such extra parts are required. + +[Illustration: SPRAY SHAFT HOUSE OF COPPER QUEEN CONSOLIDATED MINING +CO., BISBEE, ARIZONA.] + + + + +XVIII + +MINE MANAGEMENT. + + +No matter how splendid a company's holdings may be naturally, there +cannot be expected any profits from the workings of the deposits if +there be not a sound business management. H. C. Hoover, the prominent +mining engineer and mine manager, says, "Good mine management is based +upon three elements: first, sound engineering; second, proper +coordination and efficiency of every human unit; third, economy in the +purchase and consumption of supplies." And he goes on to emphasize the +fact that "no complete manual will ever be published upon 'How to Become +a Good Mine Manager.'" In view of this damper upon good intentions one +might possess, and granting that the subject is one that cannot be +taught (except along very general lines possibly), no attempt will be +made to enter into arguments concerning this important subject of Mine +Management. + +Good administrative ability can be improved by cultivation just as can +an individual of the vegetable kingdom; but there must first be the +existent, innate ability. No man should attempt such a hard proposition +as the management of a mine, with its varied phases of activity, unless +he has found himself possessing the fundamentals that go to assure +success in managerial positions. Furthermore, he should not think, +because he has been successful in running a clothing business or any +other mercantile line, that he is certain to succeed in running a mine. + +The duties of directors and president are pretty much the same in all +sorts of incorporations. But, while there are many mining companies--and +successful ones, too--that hold upon their directorates men who probably +never saw a mine prior to their present ventures, it may still be stated +that it is obviously advisable to select for such places men who have +knowledge and sound ideas concerning the industry of mining. To be sure, +if they are ignorant along mining lines, they can, and often do, place +the blame for their shortcomings upon their manager, their consulting +engineer, or their superintendent. But this is not an auspicious state +of affairs and it were well for stockholders to see to it that they +elect to the directorate men who are cognizant of mining economics. + +The well-organized mining concerns of today maintain their engineering +staffs just as completely as do other great technical businesses. The +engineer is a very important man in mining affairs. His duties are +probably more varied than those that appertain to any other sort of +engineering. His operations will extend into the realms of the +mechanical, the civil, the chemical, the metallurgical, the hydraulic, +and the electrical engineers. He must be posted along the latest +conceptions in geology, mineralogy, and physics. Besides he should be an +accurate and rapid mathematician and draftsman. + +The manager finds in the engineer his most helpful and trusted aid. +Often the engineer performs many of the functions usually attaching to +the office of manager and, in the absence of the latter person, he may +attend to all of the management. As stated above, the qualities that +make a good manager are inherent; hence, to a certain extent, we may +hold the deduction that good mining engineers, also, must possess innate +qualities. Yet there may be pointed out this distinction between the +make-up of a good man for manager and that of a good mining engineer: +one, as said, cannot learn his business except through his own +experience, while the other can receive vast benefit by _study_ of a +theoretical nature and by _practice_. + +Lately, there is much said about the _consulting_ mining engineer. His +field of usefulness is broad. He can be asked to add his opinions and +recommendations to those of the regular engineer, at any time; he can be +used at times when the duties are too much for the resident engineer; he +can be called upon to substitute; he need not live near the property, +but may visit it periodically. Thus, while his retention is deemed +remunerative, his services are available at a fractional part of what +he would demand if he were employed exclusively by the company. + +Under ordinary working conditions, it should be considered just as +essential for a mine to take an occasional inventory as it is for a +mercantile establishment. In truth, there is far more need in mining +operations of the knowledge thus derived than in any other business. In +mining, as already suggested, the business is one of selling off the +stock in trade without replenishing it. The opening of more reserves of +ore is not bringing more goods into the stock, but it may be likened to +simply unpacking more goods in the storehouse. No new reserve can be +added--they can simply be found and unpacked, as it were. + +This finding entails the greatest amount of concern, and upon its +successful practice depends the life of the mine. The presumption is +strong that many mines have been abandoned while they really contained +possibilities; but lack of knowledge of things geological, or perhaps +failures to explore, permitted the operators to remain ignorant of the +splendid assets that were available. Proof of this error has been found +in many mines that have been subsequently re-opened. + +The work of sizing up the quantity and the value of available ore is +known as sampling. It is not well to limit the practice of sampling to +the times only when a sale is contemplated. Reports based upon careful +sampling should be issued frequently. Some companies employ men whose +sole occupation is the daily sampling of every working face. The assay +results obtained from the collected samples inform the superintendent +just "how the stuff is holding up" throughout the mine and he governs +his work accordingly. At longer intervals, the engineer should go into +the work more thoroughly by not only taking very careful, scientific +samples (not the usual "grab" samples taken by the daily sampler) but +also by making careful memoranda of the physical appearances of the ore +with its thickness and all geological data that will tend to throw light +upon the permanency of each body. The engineer's monthly report will +then be a substantial guide to the manager and the directors. + +Managers, too, are expected to make periodical reports--monthly, +quarterly, or annually--to the directors who, in turn, issue reports to +the stockholders. The reports of managers and directors are not usually +technical in their nature, although sometimes it is the practice of a +manager to attach the engineer's report to his own for the perusal of +such readers as may desire to dip into the technical affairs of the +operations. Usually, the directors' reports are of a simple, financial +nature, stating the conditions of affairs in plain business language to +the persons whose cash has been invested in the enterprise. + +It may happen that, for some reason, a special report is desired by the +directors who may be contemplating some consolidation or other financial +move and both the manager and the engineer will be required to furnish +detailed statements concerning their respective branches. If a sale is +planned, it may be that not only the company's engineer, but very +probably another engineer engaged by the contemplative purchaser, will +make examinations. They may work together or separately, as best suits +them mutually, but it is upon the reports issued by them that the +satisfactory price for the exchange of title is based. + + + + +XIX + +PRICES OF METALS. + + +There is only one product of mines that has a constant market value, +viz., gold. The precious metals, gold, silver, and platinum, are sold by +the Troy ounce: the base metals are all handled and dealt with on +avoirdupois weights. Copper, lead, zinc, tin, and nickel are quoted in +cents per pound avoirdupois. Iron and manganese are curiously sold by +mines to smelting companies on the ton of ore basis. + +Since gold has been found in every known rock of every geologic age and +is of world-wide distribution; since it possesses physical properties +that long ago placed it at the head of the list of desirable metals; and +further, since it does not occur in very condensed amounts, generally; +this metal was selected as the standard of value by which the worth of +every other commodity in the world is fixed. It must therefore be +possessed of a fixed market value, and one never looks for quotations +on pure gold. The price of pure gold is set at $20.6718. This very +peculiar value is known as the "mint value," and is the price which the +Government of the United States pays for all of its coinage gold. Among +miners, as a rule, the price is thought of as $20 per ounce, and this is +probably because this is more nearly the actual return the miner has +been accustomed to obtain from companies who have bought and treated his +ores. Most all the gold produced in the world is associated with other +metals, such as silver, copper, or platinum, so that the bullion +recovered in milling or smelting will usually contain the gold alloyed +with such other metals and the gold is said to be not "fine," or pure. +The fineness of gold in the metallic state is expressed in two ways. +Jewelers have the carat system, while mints use the decimal system in +expressing such degrees of purity. Pure gold is 24-carat fine. An alloy +of 3 parts gold and 1 part copper would be considered as 18-carat gold. +In the decimal system, pure gold is called 1,000 fine, and the various +degrees of purity are then expressed in their true proportional amounts. +Thus the same alloy as cited above would be called 750 fine gold. + +Silver has a fluctuating market value although attempts have been made, +at times, to establish its value at some fixed ratio to the value of +gold. In fact, a reader may occasionally run across statistics of silver +production in which it appears as though there were a fixed value for +the metal, but this will be found to be due to the use of what is known +as the "coinage value," which is $1.29198. This figure will be +recognized as our old acquaintance, "16 to 1," _i.e._, this price for +silver being one-sixteenth of the fixed price for gold. There is +actually no such fixation, and prices for silver are established every +business day of the year in the great metal markets of the world, London +and New York. + +Platinum has been increasing in market value during recent years and the +quotations have ranged up so high that it is now more than twice as +valuable as gold. The reasons for this high price are that the +production of the metal is limited, whereas the uses for the metal have +been increasing. The greatest production of this metal is in the Ural +Mountains of Russia, and the output from this region is handled by a few +concerns who virtually possess a monopoly. These companies are able to +maintain the production practically constant and to cause the market +price to fluctuate. + +Tin is found in commercial amounts in but very few regions. There is but +one mineral mined as an ore of tin, viz., cassiterite, the oxide, which +is 78 per cent tin. Tin is found in both veins and placers and the great +bulk of the metal is now being derived from the latter type of bodies in +the Malay Peninsula and the Straits of the East Indies. Formerly, +Cornwall produced the world's supply, from veins. Although the United +States consumes 35 per cent to 40 per cent of the world's production, +the country does not produce 1 per cent of this production. Since the +main source of our tin is British territory, the markets are controlled +by London, and quotations are issued daily from that center. Such +quotations are given in units of English money per long ton (2240 +pounds) of metal. However, prices are also quoted at New York, daily, in +cents per pound, and there is a real difference in value between the two +quotations to take care of freights and duty. For instance, on a certain +date, quotations were L190 10s, and 42c. The average price during 1911 +in New York was 42.281 cents. + +The chief supply of nickel now comes from the Canadian districts of +Cobalt and Sudbury, where this metal occurs accompanying rich silver +deposits. The metal is sold by the pound avoirdupois and prices in +January, 1912, ranged from 40c. to 50c. + +Tungsten is a metal which has been finding more and more uses of late +years, but the production has remained quite limited. Three-quarters of +the world's total production in 1911 came from a small district in +Boulder County. Colorado. The quotations on this metal are given in +dollars per ton of concentrated ore, and the price is for a certain +percentage of WO_{3}, the oxide of wolfram (tungsten). The schedule of +prices announced in April, 1912, for Boulder County ores and +concentrates provides as follows, a unit being understood to mean 1 per +cent or 20 pounds per ton: For material assaying 10 per cent WO_{3}, +$3.50 per unit; for 20 per cent WO_{3}, $4.40 per unit; for 40 per cent +and more, $4.90 per unit. Ore containing, say, 50 per cent of the +tungsten radical is thus salable at $245 per ton, the mineral itself +thus bringing a price of 24-1/2 cents per pound. + +Although copper is used and sold in very large lots commercially, it +continues to be quoted upon the pound basis. The United States produces +about 60 per cent of the whole amount mined in the world and the prices +are made in New York daily. The amount of copper mined in this country +in 1911 was 1,431,938,338 pounds and the price varied between 11.989 +cents and 13.768 cents. There are always at least two quotations every +day on copper, one being on "lake" and another on "electrolytic". By +these terms are meant, respectively, copper produced in the Lake +Superior region and the copper from other mines. The Lake Superior +copper is the purest in the world and it always sells for a fraction of +a cent per pound more than the other coppers which are refined by +electrolysis. + +Metallic iron is reduced from a number of different ores, but by far the +bulk of pig-iron is made from the oxides and carbonates of iron. Such +ores, in the United States, are obtained principally in Minnesota, +Michigan, Wisconsin, and Alabama. As already stated, the quotations on +iron are based upon the ores rather than the pig-iron, and there are two +types of such ore recognized. If the ore is suitable for the making of +Bessemer steel, it is given a certain quotation per ton, while if it +cannot be used for such a purpose, it is given a non-Bessemer rating and +is used for casting. The greatest iron-mining region in the world is in +the Lake Superior country. Here are a number of districts that are known +as "ranges." In some of these ranges mining is by underground methods, +while in others the excavation is entirely in the open by the use of +great steam shovels. The outputs of these ranges go by rail and water to +the great smelting points along the Great Lakes and at Pittsburg. + +The metallic zinc on the market is known as spelter. All quotations on +this metal are given in two systems, the "pounds Sterling per long ton" +and the "cents per pound." The average prices during 1911 were +respectively, L25.281 and 5.758 c. The American quotations are +frequently given in the unit of dollars per hundredweight. This offers +no confusion, whatever, for under this nomenclature, the average price +for 1911 would be stated as $5.758. In the zinc-mining regions of the +Mississippi Valley, the producers of ore have a practice of putting the +mines' products through their own mills at the mines and making +concentrates of the zinc mineral, which is usually blende or "jack," and +this concentrated stuff is then sold to smelting companies at the daily +quotations per ton of 60 per cent ore. During 1911 the average price +paid in the Joplin District was $41.45. Since this amount bought 1,200 +pounds of metallic zinc, it is evident that the miner received only +about 3.45 cents per pound for his metal, the discrepancy between this +sum and the New York quotation being consumed in costs of smelting and +shipment and in profits to the middlemen. + +Lead is sold upon a plan exactly similar to zinc. It has the same +various quotations. For example, the 1911 prices in London, New York, +and Joplin averaged, respectively, L13.970, 4.420c., and $56.76. + +Quicksilver is sold by the "flask" of 75 pounds. The price ranges in the +neighborhood of $43 to $45. + +There are numerous other metals, but the more common ones are given +above. Below is given a graphical exhibit of the course of the prices of +lead, spelter, standard (electrolytic) and lake copper, pig-iron, and +tin for a number of years. A study of this chart is interesting in +noting the waves or fluctuations that have covered periods of years. +This chart is reproduced from _The Engineering and Mining Journal_. + +[Illustration: DIAGRAM OF METAL MARKET FOR ONE-THIRD OF A CENTURY] + + + + +XX + +MINE ACCOUNTING. + + +While there has been a great deal of attention given to the matter of +keeping systematic mine accounts, both in the main offices and those at +the works, there still is a lack of uniformity in practice. In the +bookkeeping of manufacturing and mercantile institutions, uniform +practices or systems have become a feature. But there have been good +reasons for the absence of similar methods in mine offices. + +There will be found to exist some uniformity in the accounting as +practised by the mines of a particular district which are operating +under similar conditions; but when one considers that the mines of +various districts have quite dissimilar conditions throughout almost +every phase of the business, it is not surprising that different methods +must be employed in the keeping of their accounts. It is unavoidable. +Mines extracting different metals or different kinds of coal will find +it necessary to keep quite unlike records. Mines with their own mills +will likewise require a different system of accounting from those that +ship their products to custom works. Open and underground mines will +need quite different styles of accounts. + +So, it is not possible to recommend any one method of mine accounting. +The best way to become posted upon this subject is to investigate the +schemes, the blank forms and the books of some of the established, +successful companies here and there about the world. In this way, ideas +will be collected, and it will be possible for the investigator to +evolve his own schemes for recording the accounts of his company. + +It has come to be recognized as contributing to economy to maintain +systems of accounts that will enter into minutiae concerning every branch +of the business. Just how far this can be carried without creating +office expenses that will exceed the benefits to be derived from the +detailed information remains a question to be decided by each manager. +There are companies with accounts so perfected that it is possible to +quickly ascertain, to a fraction of a cent, what the expenditures of any +day have been for any particular part of the operations, as for +instance, the haulage per ton underground, or the fuse employed in the +blasting of a particular stope. Such details are highly useful since +they prevent leaks in the costs; but it is a problem to decide to what +extent it is economy to carry them. These data also furnish the +superintendent information concerning the efficiency of his many +laborers and the machinery. Labor-saving inventions, such as the printed +blank form, and the loose leaf, are put to excellent use in mining +offices. + +There are strong companies operating great mining plants whose records +are open to the perusal of any individual, be he stockholder or not. In +the office of such a company, a person may turn to the accounts and see +for himself how much it costs to maintain each and all of the operations +and he can learn the size and the value of all shipments of products of +any sort--ore, concentrates, coal, matte, or bullion. Again, there are +those companies that are so secretive about everything connected with +their work that even the Government is unable to learn any particulars, +except at very great trouble. + +The Portland Gold Mining Company, operating a great property at Victor, +in the Cripple Creek District, is an instance of the first sort, while +the United Verde mine, at Jerome, Arizona, may be taken to represent the +second sort. Both of these mines have made splendid records. It cannot +be seen wherein the second mine is required to maintain secrecy, for +there is no danger of litigation from neighboring property holders, the +one company controlling, practically, the mining in its neighborhood. +The presumption is that the owners hold their business to be nobody's +else and they have a right to keep their affairs secret if they desire. +On the other hand, the Portland is surrounded by good mines which profit +by knowing the details of operating costs and incomes of their +neighbor; but it is found to cost no more to be open and above board +than to keep things under guard. The Colorado Fuel and Iron Company will +not divulge any particulars concerning its mining movements; but there +are other just as great mining companies that will explain every detail. + +The Clark copper companies, of Butte, Montana, did not permit much +information to escape their offices, while the neighboring Amalgamated +companies gave particulars freely. + +The question of secrecy should be considered, and if there is no very +good excuse for maintaining a privacy it should not be instituted. The +trend of all modern thought is along the line of publicity in all our +dealings. The only persons who have a reasonable right to be secretive +are those who have something they do not care to share or divulge to +their fellow-men. Law breakers, tax dodgers, and trespassers, could be +put into one class; persons doing research work which it is premature to +publish are a more respectable class; manufacturers with strong +competition in the sales markets are in a measure excusable; even a mine +which is producing some material in the sale of which it attempts to +maintain a monopoly might be excusable. But it is hard to see what +excuse or benefit there is for a coal or a copper mining company to +prevent a knowledge of its affairs, if the business is being conducted +along strictly legitimate lines. + + + + +XXI + +INVESTMENT IN MINING STOCKS. + + +As a feature of investment in mining stocks, there has always been a +more or less open lure. Generally much larger returns are promised or +are expected than in other kinds of investments. There may be absolutely +no intention on the part of the seller to create this impression; but +there does, somehow, exist in the memories of people accounts of +wonderful fortunes that have been made in mining. + +There is an amount of uncertainty about any mine or prospect that +appeals to the speculative proclivities in humans and it is hard for +most persons to resist the notion that greater or richer bodies of ore +may, at any time, be discovered in their particular mining properties. +Concerning the average stock purchaser, then, we may conclude that it is +speculation rather than true investment that he is seeking. + +The writer hopes that, even in the short preceding discussions, the +reader will have come to agree with him and to understand that safe +investments are as possible in mining as in any other business. It would +be a great benefit to this great industry of mining were the public +taught to take interests--that is, financial interests--in mining +concerns with the same precautions and with the same sound business +sense that accompany the purchases of interests in other enterprises. +Writing along this line of thought, Mr. P. A. Leonard has this to say in +_The Mining World_: "One very general difficulty seems to be that the +man unacquainted with mines who is asked to invest either expects an +unreasonable return for his money, or he blindly closes his eyes and +takes what he calls a 'flyer,' expecting little more from it than he +would if he bought margins on 'change or bet on a horse race." + +About the first thing that the promoters of a new mining company do is +to issue a neat, attractive prospectus. It is a bait, no matter how +reliable these men may be nor how worthy the property they desire to +work. Many of these documents are written in absolutely good faith and +every representation is intended to be accurate. There are occasionally +offered for sale stocks in mining properties that warrant the fullest +confidence of the promoters and the investors. However, careful perusal +of a great many of these pamphlets has led the writer to the conclusion +that at least 75 per cent. of them are unreliable from the fact that +they either wilfully misrepresent or because they grossly exaggerate the +probabilities of success beyond all reason. Exaggeration is a habit with +some people and it is used many times with no real criminal intent or +even consciousness upon the part of the offender. But its effect is just +as baneful when innocently inflicted as when it is used in a +premeditated manner. + +Good, worthy mining property does not need to be hawked, usually. There +have been periods of financial unrest when it has seemed quite +impossible for honest men to dispose of interests in what were +unquestionably reliable mining enterprises. At such times, there has +been nothing to gain by any amount of teasing the public, and any +attempts at forceful disposal of interests in the concerns have but +served to kill any small remnants of confidence that the public may have +possessed. + +Prospectuses are usually prepared for the reading of small investors who +may feel inclined to risk a few dollars or, in other words, to speculate +upon the representations contained in the seductive pamphlets. There are +a few "Don'ts" which it would be well for any person inclined to invest +in mining stocks to read, consider, and follow. For instance, never +invest in any new stock whose company _guarantees_ specific dividends. +Profits in mining, except in rare cases, cannot be so accurately +foretold as to warrant such a guarantee. We should remember that the +success of any mine depends upon many, very many, contingencies and that +some of them are invisible and are among Nature's secrets. Again, avoid +placing any confidence in those companies that are simultaneously +selling treasury stock and declaring dividends. This is a very common +practice of the numerous "get-rich-quick" concerns which Uncle Sam has +been routing the past few years. Such crooked practice is difficult to +eradicate, although severe penalties are awarded the transgressors. + +The success which has been met in the operation of the _great_ mining +companies of the world can, in the majority of cases, be traced to the +common sense which was exercised in the business management. The +_business of mining is legitimate_. If mining is one of the basic +industries of the world, how could the operation of a real mine be +anything but a legitimate business? The mere fact that there have been +neat opportunities for, and the practice of, fraud in the growth of this +tremendous industry does not by any means, argue that the whole thing is +founded upon unstable premises. + +What is needed is a presentation of the industry in its legitimate +aspect before all kinds of investors and this can be done properly and +effectively only by the rank and file of men interested in mining. These +men should place themselves boldly on record as combating all sorts of +deals that smack of fraud, and they should do their utmost to discourage +all delusions that may exist in the mind of the public with reference to +the supposed lure offered by mining. + +There have been too many causes of failure in mining for even a partial +enumeration of them. There have been many errors in getting started, +both on the part of the organizers and the investors. There have been +many mistakes in management. Many blunders have been evidenced in the +operation of mines which made very good starts. All of these failures +are attributable to something outside of the mine's intrinsic worth; +they are mistakes due to inexperience or misconception. Such +shortcomings should not be tolerated in the make-up of a mine's +managerial staff. + +Perhaps one of the most common mistakes of mine managers is to submit to +a condition of nepotism that is often furthered by directors or +stockholders. No responsible position around a mine should be filled by +a novice. Just because a director has two or three sons needing +situations does not make it incumbent upon a superintendent or a manager +to jeopardize his reputation by employing these young men. Percy +Williams, a veteran mining man, advised "Don't take your son or nephew +or your clerk out of your store or business house and send him to +Arizona or Colorado to run things for you at the mine. Sell out first. +If you are a director in a mining company, do not force the manager or +superintendent to find a job for all your unsuccessful friends and +relatives. Let him hire his own men. Don't convert your mine into an +asylum for ne'er-do-wells." + +As already stated, there is protection obtainable by every investor in +mining. One may always secure, at reasonable cost, the services of +competent engineers whose business consists in sizing up the worth of +mining property. If the services of these men were more generally +appreciated and secured, there would be a great diminution in the +number of disappointments following investments in mining. An eastern +man of means complained to the writer about the way in which he had been +"stung" in various mining investments. A little catechizing brought +forth the facts that he knew absolutely nothing about mining in general +and that, worse still, he had never investigated--that is, in a +business-like manner--any of the propositions which had absorbed his +ready money. Receiving no sympathy during the recital of his troubles +but, instead, the assurance that he "got what was coming to him," he was +prepared to sit up, take notice, and listen to a severe roasting which +opened his eyes about mining matters. Now, this man has proved +successful in other lines of business. He is a prominent lawyer and +banker in his own city and has numerous, scattered, money-making +interests. But he was content to go into mining without the +investigation which it is certain he would have given to any other sort +of an investment. + +The time should come when there would not be such a prevalent +"slaughter of the innocents" in mining investments. People must learn to +curb their gullibility in such affairs. But this has proved almost +impossible. Just as it is in the nature of some persons to gamble, and +it takes something more than misfortune at gaming to wean them from the +vice, so it is with a certain class of men who can not overcome the +temptations of dabbling in mining. Such men will not desist even when +they have suffered several delusions, and will continue to "send their +good money after their bad," absolutely defiant of the well-meant advice +of friends who are often in position to judge of the merits of any +contemplated investment. Probably every mining engineer of any extended +experience can tell of instances in which he has endeavored to +discourage clients from investment in unworthy mining enterprises but in +which the gambling instinct of the clients has overridden the sound +advice. + +During the early days of the wonderful Cripple Creek District, all sorts +of wildcat tricks were successfully practiced upon the "tenderfeet" and +the "down-east suckers." In one case, stock was readily unloaded upon +the representation that a person could stand in the door of the cabin on +the property and "look right into the shaft-house of the Independence +mine." This statement was not untrue, although grossly misleading; for +while it was actually quite possible by the use of a telescope to span +the intervening three or four miles, visually, the prospect lacked the +propinquity to the famous mine that was the bait implied by the +statement in the prospectus. This is but one of many ingenious tricks +that were played. Did the outcome of this one fraud cure the victims of +irrational mining investment? + +Railroads, too, have, in the past, added their troubles to the mining +men. Recent laws have, however, to a great extent, mitigated the +annoyances and unjust practices that the common carrying companies have +been in the habit of committing. It is now obligatory upon a railroad +company to treat all shippers without favor or discrimination, so that +the difficulties formerly experienced by one mining company in getting +enough ore cars to transport its shipments while its rival company could +have cars in abundance, is now almost a thing of the past. It takes time +to right all wrongs of this sort. It is a slow matter to get laws +framed, passed through the necessary legislation, and made effective. +But the outlook is favorable, along this line. + +The leasing system has exercised an influence upon the mining activity +of many districts. By this system is meant the custom of renting or +letting the whole, or fractional parts, of a mining property to miners +who enter upon and work the premises, extract the ores, and pay to the +owners a specified percentage of the receipts from the marketing of the +ore. This practice has frequently been the only successful way of +operating some mines. It has, at times, been the manner of operating +practically every mine in certain districts. + +In districts carrying pockets of very rich ore, "high grading" has been +discouraged in this way, for the "leasers" (incorrect, though common, +word for lessees) do their own mining and there is much less object in +stealing. + +In other instances of mines which have been operated by the owning +companies until they were past a profitable stage, it has been proved +possible to prolong the life of operations very materially by leasing +the property to miners, who always work with more diligence and economy +for themselves than they ever do when working under "day's pay." This +feature of leasing has been quite a factor in the lives of some of the +mines of the Cripple Creek District. Until the recent drainage of the +district through the Roosevelt Tunnel, there were numerous small--and +even some large--properties that had worked all the ore bodies +previously known to exist above the water level of the district, and had +been obliged to shut down because of the heavy pumping expenses. Company +operation did not longer pay. But the plain "leaser" and his partner +could go into such old workings and they could prospect and find ore +bodies that had escaped the observation of the superintendents. The +expenses incurred in leasing are low. It is true that lessees will not +probably take as good care of mine workings and equipment as will +"company men," and often a property may be seriously crippled through +the lack of sufficient timbering after having been in the hands of a set +of lessees for some time. But, on the whole, there has probably been +more benefit than loss through the letting of leases. + +When, a few years ago, the plans of the National Forestry Service were +put into effect, there was great complaint recorded concerning the +rulings that were made against various miners. Some very well +authenticated cases of wrongs were cited. However, it is now believed by +all fair-minded men that there has been no intention, on the part of the +officials of the Forest Service, to interfere with any legitimate mining +enterprise. There was a well-founded object, viz., to put a stop to +dishonest practices in obtaining title to timber lands by the +misrepresentation of mineral finds. + +The General Land Office passed a rule authorizing Foresters and +Assistant Foresters to make inspections of all mining claims within +their reserves and to report to the Secretary of the Interior. The idea +embodied in this rule was that these men, being agents of the Government +and upon the ground, are able to investigate the facts concerning every +mining claim and its claimant and so to run across any evidences of +fraud that might be attempted in the securing of title. Trouble +immediately arose because the Foresters were not all experienced miners +and prospectors and so were not thoroughly qualified to pass judgment +upon the merits of mineral lands. This weakness has been admitted by the +officers of the Service but the excuse has been offered that there was +an immediate need for a great many Foresters and it was not possible to +secure men trained in both forestry and mining at such short notice. +"Just as soon as conditions became better understood, and money was +available to allow the Service to hire men whose judgment in mining +matters could not be gainsaid, such men were employed," says Paul G. +Reddington, recently Forester for the Rocky Mountain Regions. It is +true that much fraud has been prevented in the practice of taking up +Government lands and it is also quite true that the Forest Service is +endeavoring to uplift the mining industry in the western portions of the +United States. + +Mining is bound to become a still stronger factor in civilization as +metallurgical processes multiply and there are discovered means of more +economically extracting the valuable contents of ores. Minerals which +are not now ores--according to the accepted, scientific definition, +because the values cannot be recovered at a profit--will, at some future +period, become ores. It is not safe to make any close predictions along +this line, for such marked reductions in treatment costs have been going +on during the last few years that mining men are entertaining great +expectations. Inventions for improvement in metallurgical lines are +being placed upon the market so frequently that it is difficult for even +the professional metallurgist to keep posted. This being true, it is +clear that the layman cannot expect to keep abreast of the +metallurgical advance. At the same time, it is well for everybody to be +slightly conversant with the wonderful advances being made in the +reduction and dressing of ores. Conspicuous in this field are the +improvements that have been effected in cyanidation, electrolytic +amalgamation and extraction, and flotation. These processes are +applicable to the lower grades of ore. Among the very recent successes +in the treatment of very low-grade gold ores are the operations +conducted in the new mills of the Portland Gold Mining Company, +Stratton's Independence, and the Ajax Gold Mining Company, all in the +Cripple Creek District. All of these mills are now treating old mine +dumps, the contents of which were considered as absolutely waste matter +at the time it was excavated. This stuff is now ore and its treatment is +making fine profits. There is still a demand for cheaper methods of +reducing ores of zinc. There are vast quantities of stuff that contains +very good percentages of zinc, but the material cannot be mined and +treated at a profit under existing conditions. With the invention of +something radically new in the metallurgy of this metal, there will be +opened an entirely different aspect in the zinc-mining regions. The +Leadville District possesses great reserves of this material that is +being held until it may become "ore." + +[Illustration: FLORENCE MINE AND MILL, GOLDFIELD, NEVADA.] + + + + +XXII + +THE MEN OF THE FUTURE IN MINING. + + +The mining of the future will probably be largely in the hands of young +men. To arrive at any conclusions concerning the probabilities of +success, therefore, we are obliged to recognize the dual conditions. In +other words, there is to be an interdependence between men and mining. +Up to this point in our discussion, we have dwelt upon the probabilities +as viewed from the standpoints of natural resources and of human +capability. In a certain degree, we have already covered the ground of +this present chapter; and yet there are some points that must be given +special consideration. + +What is the true status of metal mining? Alarmists would have us believe +that civilization is rapidly exhausting the world's reserves of +available metals. Conservative investigation, however, repudiates such +notions. The best that can be claimed for the reliability of such +disconcerting statements is that they may apply in _some_ districts, to +_some_ grades of _some_ kinds of desirable mineral matter. + +It may be true that the early miners have removed the "cream" from +Nature's deposits in some districts, in the sense that they have skimmed +off, as it were, the rich surface portions. But this does not signify +the exhaustion of deeper ore bodies, nor does it mean that the pioneers +were the only capable prospectors. + +Why should we have any reason to deny the ability of present or future +generations to find just as good mineral deposits as did our +predecessors? Persons in some of the older of the western mining +states--as for instance, Colorado or California--are apt to carry a +misconception along this line. They can see a number of idle "camps" +that are mere relics of former thriving mining communities and they are +liable to jump to the conclusion that the day of mining at such places +is past, forever. However, as we look at the subject in a more rational +light, we shall see that there is no more authority for such an +assumption than there is for one to the effect that a farm in the +wintertime is a worthless proposition simply because, temporarily, it is +not producing its customary summer yield. Just as Nature brings about +changing conditions for the farmer, so will economic forces establish +varying degrees of attractiveness to the miner. + +It is unfair to judge one of the pioneer mining districts by its +activity at the present time, if the productiveness happens to be small. +Let us look for the reasons of the apparent decline. The chances are +that the inactivity will be shown to be due, not to an exhaustion of ore +bodies, but to some needed changes in mining or metallurgical methods. +Very likely, under a readjustment of our notions about that particular +district there will appear to be as great latent possibilities as ever +cheered the earlier operators. The prospects may appear to be even +better than this, and the future may appear to extend greater +opportunities than were ever manifested in the past. Investigation may +disclose great bodies of ore that could not be seriously considered in +the earlier working of the region. In fact, speaking technically, the +stuff in question was not ore at the time of previous operations, for it +could not then be made to yield a profit. And yet, by introducing some +changes in equipment or methods of working or treatment, there may be +possibilities of making a great deal of money from an abandoned +property; and the chances are good that this same profit may be won at a +much more rapid rate than was ever before possible and that therefore +the economic conditions are enhanced. For we must not lose sight of the +fact that the greatest profits in mining usually accrue from the most +rapid exhaustion of the ore bodies. + +A mine, or even a whole district, may have been deserted because of +failure on the part of original miners to recognize the value of certain +minerals. The recent revival of activity that has been noted in +Leadville mining circles is but an instance in point. In this district, +miners have given a delayed recognition to some important minerals of +zinc, and the indications are that Leadville has entered upon another +of its eras of mining activity. + +But, it is not necessary to restrict our thoughts to the old mining +regions, for if we can observe how easy it has been to overlook valuable +deposits in a country that has been subjected to severe mining work, for +years and years, what must we conclude concerning the possibilities of +the many and vast undeveloped areas in remote portions of the globe? It +would seem that there is indeed very small cause for alarm about the +exhaustion of the earth's metals. + +No, it can be shown that mining, which is one of the very fundamental +industries of the world and the one upon which every other form of +commercialism rests, will be carried on with a continual increase in +magnitude just as long as man exists. As the richer and more easily +mined ore reserves of Nature are exhausted, improved and cheaper methods +of mining, transportation, and treatment will be introduced and at a +pace that will equalize this exhaustion. We, of the present generation, +see the eminently successful handling of copper ores of grades so low +that they were not given passing consideration ten years ago. The +outlook would appear to be that the improvements in methods and costs +will not only keep abreast of needs in such matters, but the +probabilities are that they will take a very marked lead, with the +result of a continually increasing scope to the mining industry. Let us +then entertain optimistic views about the _future of mining_. + +Now, as to the future of the young man who engages in mining there is +just as much to be said as there is concerning the career of a young man +in any other line of business. This word "business" is used advisedly, +for the day is past when any person has a right to say that mining is +anything but strictly legitimate business. + +We look to the young men of the present and future to correct all of the +shortcomings that have hindered the establishment of mining upon its +deserved plane of stability in the minds of the general public. Young +blood will take a lead in the dissemination of the correct thoughts +about mining. + +The successful man in mining will be, as heretofore, the one with the +right qualifications in his make-up. Is a college education an essential +prerequisite to success in mining? No, the writer is not one to declare +that young men cannot succeed in the business without college training. +However, there can be no avoidance of the proposition that the chances +of the college-trained man are better than are those of the man who has +not had the benefits of such a career. + +A man may be said to engage in mining in three different ways. Thus, he +may operate mining property; or he may perform any of the manifold lines +of mining engineering; or he may be an investor in mining property or +mining stocks. + +To prove a success when enrolled in either of the first two classes, +there is no denying the advantages of technical, mining education. The +successful investor likewise will do well to make a consistent study of +mining economics, and the more attention he gives to the many phases of +approved modern mining, the greater will be his ultimate achievement, +financially. Just as education along usual school branches is of +immeasurable benefit to any man of business, so is it to the mining man. +And in just as great ratio is the possession of innate business ability. + +Education and natural ability are the two elements that will count in +the future of any young man in mining. + +Space might be devoted to the discussion of the possibilities of young +men in the field of research work along scientific lines that would add +materially to the economy and scope of mining. Such a career offers +inducements looking to the achievement of honor as well as fortune. The +field for such service is ready. + + + + +XXIII + +MISCELLANEOUS CONSIDERATIONS. + + +There are regions producing ores that are too refractory for the simple +treatments that might be given by company plants located at the mines. +There are districts that have many small gold and silver mines with ores +that do not yield to simple milling processes and which must therefore +be shipped to custom smelteries. Even were the ores amenable to milling +of some sort, it is often the case that the mines are not of sufficient +magnitude to warrant the maintenance of their own treatment plants. + +Under proper trade and commercial conditions, there is no impropriety in +shipping ore to a custom plant or in selling it outright to a company +owning such a plant. But, contemporaneously with much of the mining in +the West, there has been such a monopoly on ore treatment that great +injustice has been wrought to the shippers of small lots of ore. Not +only has this accusation been true of smelting concerns but also of +milling companies. Once in a while representatives of such corporations +will arise and attempt to refute these statements, but the evidence is +overwhelmingly against them, and their arguments of being benefactors of +the miner fall flat. + +By consolidation of companies and the elimination of competition, +arrogant methods and unreasonable charges have been put into force; and +the managers of mines have been obliged to accept whatever rates the +monopolists saw fit to charge for treatment and whatever arbitrary +prices they cared to pay for the metallic contents of the shipped ores. +Very gross extortion has been practised and even yet there are many +mining camps which are so absolutely under the control of these concerns +that properties which should pay well, under just and favorable +conditions, are forced to remain idle. These conditions could not be +expected to prevail forever, and the time is now at hand when the +extortionate smelting and milling trusts are meeting with pronounced +opposition and a greatly diminished business. The state of Utah has +demonstrated the ability of ore producers to bring the oppressors to +time and the mine owners of that state are in a much more favored +position right now than are the miners of Colorado, for instance, who +really have been the greater sufferers. The Utah mining men have +benefited by the sad experiences of the miners of the sister state. In +Colorado, the American Smelting and Refining Co. has been a domineering +factor in the mining industry for years, and the decrease of mining in +Colorado has been contemporaneous with the oppression of this great +corporation. The real cheating that has been practised by the ore-buying +and ore-treating companies is well understood by all mining men who have +been within their clutches. + +It seems to be a fact that every tyrant eventually proves his own +undoing. In the case of the oppressive smelter trust, the greed resulted +in an immense income for the time being; but as mines were obliged to +close down because of the unjust charges imposed for handling the ores, +the quantities of ore handled continued to diminish. During the past few +years when mining has been so unusually dull in many of the western +mining camps, it has been very difficult for the smelting company to +secure enough ore to keep running, and the present outlook is not +encouraging. Statistics will show that the production of the metals is +not really so low as the decrease in tonnages would seem to indicate, +and the discrepancy is accounted for in the fact that very many mining +companies have installed their own plants for either actually recovering +their metals or for reducing their bulk of ores by concentration before +shipping to the custom treatment plants. Thus the smelting company may +still be turning out a large amount of metallic lead, for example, but +it is smelted from concentrates instead of from crude ore and the +tonnage, the principal basis for estimating smelting charges, is very +much less than was formerly handled in obtaining the same amount of the +same sort of product. The investigations started by the oppressed ones +in their efforts to evade the oppressor have led to wonderful results, +and it is no longer necessary for the miner to depend upon the smelter. + +Some similar sharp practice against the mining fraternity was attempted +and for a short time successfully carried on by what was termed, in +Colorado, the milling trust. This concern handled the ores from Cripple +Creek, principally. The larger mining companies soon began the erection +of their individual plants and the practice has been extending until it +is now common for Cripple Creek mines to own and operate their own +reduction works, much on the order of the practice in the Transvaal +country. + +As a final word in this discussion, the author wishes to reiterate his +belief in the legitimacy of investment in mines and mining stocks. When +mining is placed upon sound business principles and every detail of the +work is carried on with strict attention to sound economy, there can be +few failures. This means that business judgment and expert advice must +be used from the very start--in other words, that no false starts must +be permitted. Then, after getting under way in a worthy enterprise, the +successful mine operator will exercise just as close scrutiny of every +operation, method, and employee as do the men who conduct other +successful lines of business. + +This little work has been prepared primarily for the perusal of men and +women who are not personally acquainted with details of mining, but who +entertain notions of becoming financially interested. It is hoped that +the simple descriptions of some of the elementary details will prove of +use to a great many persons. + + + + + CAPITALIZATION AND DIVIDENDS OF NORTH AMERICAN METAL MINES. + + +=============================================================================== + Company | State or | Metals | Capitali- | Par/ |Dividends to + | Country | Produced | zation |Share|Jan. 1, 1912 +-----------------------+----------+------------+-----------+------+------------ +Alaska-Mexican |Alaska |gold | $1,000,000| $5 | $2,634,381 +Alaska-Treadwell |Alaska |gold | 5,000,000| 25 | 11,385,000 +Amalgamated |Montana |copper |155,000,000|100 | 63,579,315 +Anaconda |Montana |copper | 30,000,000| 25 | 47,700,000 +Arizona |Arizona |copper | 3,669,300| 1.20| 14,373,550 +Baltic |Michigan |copper | 2,500,000| 25 | 6,050,000 +Boston & Montana Cons. |Montana |copper | 3,750,000| 25 | 62,425,000 +Bullion-Beck & Champion|Utah |silver, gold| 1,000,000| 10 | 2,738,400 +Bunker Hill & Sullivan |Idaho |silver, lead| 3,000,000| 10 | 12,211,350 +Butte Coalition |Montana |copper | 15,000,000| 15 | 2,450,000 +Calumet & Arizona |Arizona |copper | 2,500,000| 10 | 11,500,000 +Calumet & Hecla |Michigan |copper | 2,500,000| 25 |112,750,000 +Camp Bird |Colorado |gold | 5,387,000| 5 | 6,541,960 +Centennial-Eureka |Utah |gold, silver| 5,000,000| 25 | 2,700,000 +Champion |Michigan |copper | 2,500,000| 25 | 5,700,000 +Colorado |Utah |silver, lead| 200,000| 0.20| 2,270,000 +Copper Range Con. |Michigan |copper | 40,000,000|100 | 10,751,180 +Crown Reserve |Ontario |silver | 2,000,000| 1 | 2,387,898 +Daly |Utah |gold, lead, | 3,000,000| 20 | 2,925,000 + | | silver | | | +Daly-West |Utah |gold, lead, | 3,600,000| 20 | 6,201,000 + | | silver | | | +DeLamar |Idaho |gold, silver| 400,000| 5 | 2,737,520 +Doe Run |Missouri |lead | 10,000,000|100 | 2,448,478 +Elkton Con. |Colorado |gold | 3,000,000| 1 | 2,666,959 +El Oro |Mexico |gold, silver| 5,750,000| 5 | 12,426,590 +Esperanza |Mexico |silver, gold| 2,250,000| 5 | 10,752,750 +Federal |Idaho |silver, lead| 30,000,000|100 | 8,300,000 +Gemini-Keystone |Utah |gold, silver| 500,000|100 | 2,000,000 +Goldfield Con. |Nevada |gold, silver| 50,000,000| 10 | 11,027,812 +Granby Con. |B. C. |copper,gold,| 15,000,000|100 | 3,778,630 + | | silver | | | +Greene Con. |Mexico |copper | 10,000,000| 10 | 6,137,800 +Guggenheim Exploration |Mexico |all metals | 22,000,000|100 | 10,151,995 +Hecla |Idaho |silver, lead| 250,000| 0.25| 2,090,000 +Hercules |Idaho |silver, lead| 1,000,000| 1 | 3,132,000 +Homestake |S. Dakota |gold | 21,840,000|100 | 19,955,550 +Hond. Rosario |C. A. |gold | 1,500,000| 10 | 2,955,000 +Horn Silver |Utah |silver | 10,000,000| 25 | 5,642,000 +Iron Silver |Colorado |all metals | 10,000,000| 20 | 4,250,000 +Kerr Lake |Ontario |silver | 3,000,000| 5 | 2,430,000 +La Rose Con |Ontario |silver | 7,500,000| $5 | 2,890,912 +Mammoth |Utah |gold,silver,| 10,000,000| 25 | 2,220,000 + | | copper | | | +Mohawk |Michigan |copper | 2,500,000| 25 | 2,150,000 +Mountain |California|copper | 6,250,000| 25 | 4,216,250 +Naica |Mexico |silver, lead| 30,000|300 | 3,190,000 +Nevada Con |Nevada |copper | 10,000,000| 5 | 2,400,000 +Nipissing |Ontario |silver | 6,000,000| 5 | 5,490,000 +North Butte |Montana |copper,gold,| 9,000,000| 15 | 9,040,000 + | | silver | | | +North Star |California|gold | 2,500,000| 10 | 2,786,988 +Ontario |Utah |silver, lead| 5,000,000|100 | 14,962,500 +Osceola |Michigan |copper | 2,500,000| 25 | 8,958,650 +Panuco |Mexico |gold, silver| 2,000,000| | 7,465,000 +Parrot |Montana |copper | 2,300,000| 10 | 6,991,138 +Penoles |Mexico |silver, gold| 2,000,000| 50 | 4,741,687 +Phelps, Dodge & Co |U. S. |copper | 50,000,000|100 | 8,766,747 +Plumas, Eureka |California|gold | 1,406,250| 10 | 2,831,294 +Portland |Colorado |gold | 3,000,000| 1 | 8,677,080 +La Rose Con |Ontario |silver | $7,500,000| $5 | $2,890,912 +Mammoth |Utah |gold,silver,| 10,000,000| 25 | 2,220,000 + | | copper | | | +Mohawk |Michigan |copper | 2,500,000| 25 | 2,150,000 +Mountain |California|copper | 6,250,000| 25 | 4,216,250 +Naica |Mexico |silver, lead| 30,000|300 | 3,190,000 +Nevada Con |Nevada |copper | 10,000,000| 5 | 2,400,000 +Nipissing |Ontario |silver | 6,000,000| 5 | 5,490,000 +North Butte |Montana |copper,gold,| 9,000,000| 15 | 9,040,000 + | | silver | | | +North Star |California|gold | 2,500,000| 10 | 2,786,988 +Ontario |Utah |silver, lead| 5,000,000|100 | 14,962,500 +Osceola |Michigan |copper | 2,500,000| 25 | 8,958,650 +Panuco |Mexico |gold, silver| 2,000,000| | 7,465,000 +Parrot |Montana |copper | 2,300,000| 10 | 6,991,138 +Penoles |Mexico |silver, gold| 2,000,000| 50 | 4,741,687 +Phelps, Dodge & Co |U. S. |copper | 50,000,000|100 | 8,766,747 +Plumas, Eureka |California|gold | 1,406,250| 10 | 2,831,294 +Portland |Colorado |gold | 3,000,000| 1 | 8,677,080 +Quincy |Michigan |copper | 3,750,000| 25 | 19,330,000 +Richmond |Nevada |gold, silver| 1,350,000| 1 | 4,453,797 + | | lead | | | +San Rafael |Mexico |gold, silver| 60,000| 25 | 3,218,338 +Sta. Gertrudis |Mexico |gold, silver| 3,000,000| | 3,960,000 +Sta. Maria del Paz |Mexico |gold, silver| 120,000| 12.50| 5,568,000 +St. Joseph |Missouri |lead | 20,000,000| 10 | 7,208,357 +Silver King Coalition |Utah |silver | 6,250,000| 5 | 12,522,385 +Smuggler |Colorado |silver,lead,| 1,000,000| 1 | 2,235,000 + | | zinc | | | +Standard Con |California|gold, silver| 2,000,000| 1 | 5,194,130 +Stratton's Ind |Colorado |gold | 5,500,000| 5 | 5,028,568 +Strong |Colorado |gold | 1,000,000| 1 | 2,275,000 +Tamarack |Michigan |copper | 1,500,000| 25 | 9,420,000 +Tennessee |Tennessee |copper | 5,000,000| 25 | 2,056,250 +Tomboy |Colorado |gold, silver| 1,500,000| 5 | 2,561,000 +Tonopah |Nevada |gold, silver| 1,000,000| 1 | 6,450,000 +United |Montana |copper | 50,000,000|100 | 7,625,000 +United Verde |Arizona |copper | 3,000,000| 10 | 26,722,000 +Utah Copper |Utah |copper | 15,268,000| 10 | 5,629,785 +Utah Con |Utah |copper | 1,500,000| 5 | 6,900,000 +Vindicator Con |Colorado |gold | 1,500,000| 1 | 2,227,500 +Wolverine |Michigan |copper | 1,500,000| 25 | 6,300,000 +-----------------------+----------+------------+-----------+------+------------ + + + + +INDEX + + + Accidents, 104 + + Adit, advantages of, 97, 100, 101, 104 + + Adit, defined, 95 + + Ajax mine, 200 + + Alaska, 8, 44, 67, 123 + + Amortization, 151 + + Anaconda mine, 44, 119 + + Arizona, 77 + + Australia, 26, 125 + + + Bancroft, Geo., 160 + + Bankets, 116 + + Bassick mine, 112 + + Batea, 64 + + Bingham Canyon Dist., 73 + + Black Hills, 33, 74 + + Blanket vein, 111 + + Brazil placers, 8, 67 + + Buried placers, 61 + + Butte District, 44, 183 + + + Cages, 102 + + California mining, 26, 31, 42, 61, 67 + + Camp Bird mine, 33, 121 + + Canadian mining claims, 54, 55 + + Capitalization, 140, 216 + + Charleton, A. G., 16 + + Chimneys, 112 + + Churn drilling, 65 + + Climatic influences, 83 + + Coal mining, 20, 23 + + Coal washing, 17 + + Colorado Fuel & Iron Co., 183 + + Colorado lode claims, 52 + + Comstock lode, 43, 91, 99 + + Concentration, 13, 156 + + Consulting engineer, 165 + + Copper mining, 24, 43, 73 + + Copper, price of, 175 + + Cornwall, 25, 122 + + Cost of patenting claims, 58 + + Cradle, 64 + + Cripple Creek District, 91, 109, 112, 125, 193, 196, 200, 214 + + Crosscuts, 96 + + Custom treatment, 210 + + + Dead work, 79 + + Dikes, 108 + + Directors' functions, 163 + + Dividends of N. Amer. mines, 216 + + Dry placers, 71 + + + Egypt, 22 + + Ely District, 74 + + Esperanza mine, 125 + + Examination of mines, 130, 191 + + Exploitation, 79, 166 + + Extralateral rights, 53 + + + Failures in mining, 190 + + + Gash veins, 111 + + Gangue, 118 + + Giants, 68 + + Gold, price of, 170 + + Gold production, 30 to 38 + + Golden Fleece, explained, 24 + + Grab samples, 167 + + Greece, mining in, 25, 122 + + + High-grading, 126, 195 + + Homestake mine, 33, 123 + + Hoover, H. C., 162 + + Hydraulicking, 68, 70 + + + Inclines, 95, 100 + + Incorporation, 140 + + Iron ore prices, 176 + + + Joplin District, 13, 91 + + + Kansas coal mining, 5 + + Kemp, Jas. F., 18 + + Kentucky lead mining, 8, 85 + + Keweenaw Peninsula, 116 + + Kimberly diamond mines, 43, 112, 127 + + + Labor considerations, 84, 85 + + Lead, prices of, 178 + + Leadville, 44, 114, 150, 201, 205 + + Leasing, 195 + + Leonard, P. A., 186 + + Life of a mine, 92, 150 + + Lode defined, 51, 109, 110 + + Long tom, 65 + + Low-grade mining, 122, 200 + + + Machinery, 89, 154 + + Management, 162 + + Mass, defined, 113 + + Metallurgy, 14 + + Mexico, 34, 43, 125 + + Mexican mining claims, 55 + + Milling, 14 + + Mine accounts, 179 + + Mine, definition of, 4, 8, 20 + + Mine promotion, 134, 139, 146, 186 + + Mine reports, 168 + + Miner's licenses and certificates, 55 + + Miner's pan, 64 + + Mine sampling, 130, 167 + + Mine timbers, 88 + + Mining, defined, 20, 80 + + Mining engineer's functions, 164, 191 + + Mining plants, 105, 154, 155, 157, 160 + + Minnesota iron ranges, 6, 42, 72, 127 + + Monitors, 68 + + Mount Morgan mine, 6, 73 + + + Nevada Cons. Copper Co., 6, 74 + + New Zealand, 61 + + Nickel mining, 34, 43 + + Nickel, price of, 174 + + + Ore defined, 18, 19 + + Ore deposition, 117 + + Ore dressing, 14, 16 + + Ore in sight, 131 + + Ore reserves, 131 + + Oroya-Brownhill mine, 125 + + Open pit mining, 72 + + Ophir, location, 24 + + + _Pertinencia_, 56 + + Placer dredging, 66, 153 + + Placer defined, 60 + + Placering, 14 + + Platinum mining, 33 + + Platinum, price of, 172 + + Political considerations, 87 + + Porphyry mines, 76 + + Portland mine, 182, 200 + + Prospecting, 39 + + Prospects, 148 + + Prospect drilling, 65 + + Prospectuses, 186, 188 + + + Quicksilver mining, 43 + + Quicksilver, price of, 178 + + + Reddington mine, 43 + + Reddington, P. G., 198 + + Reefs, 116 + + Richard, R. H., 15 + + Rickard, T. A., 127 + + Riffles, 68 + + Robinson mine, 128 + + Rocker, 64 + + Roosevelt tunnel, 196 + + + San Juan Region, 33, 99, 153 + + Secondary enrichment, 119 + + Secrecy in operations, 183 + + Shafts, 94, 98, 100 + + Silver, price of, 172 + + Silver production, 36 + + Skips, 102 + + Slope, defined, 95 + + Sluices, 68, 69 + + Sorting, 14 + + South Africa, 24, 33, 35, 128, 149 + + Spain, 122 + + Spurr, J. E., 120 + + Steam shovelling, 7, 72 + + Stock, defined, 112 + + Stratton's Independence mine, 194, 200 + + Stripping, 75 + + Sudbury district, 43 + + Supplies, mine, 87, 88 + + Surveyor-General offices, 58 + + Sutro tunnel, 99 + + + Tin, price of, 173 + + Title to property, 81 + + Tonopah district, 13, 150 + + Topographical considerations, 82, 99 + + Transportation considerations, 82, 194 + + Transvaal, 13, 91 + + Treadwell mine, 44, 123 + + Treasury stock, 144 + + Treatment monopolies, 210, 214 + + Tungsten, price of, 174 + + Tunnel, defined, 94 + + + Unionism, 85 + + United Verde mine, 182 + + U. S. Bureau of Mines, 28 + + U. S. coal claims, 47, 48 + + U. S. Forestry service, 197 + + U. S. lode claims, 46, 51 + + U. S. mineral output, 32 to 37 + + U. S. mineral surveyors, 56, 58 + + U. S. placer claims, 49 + + U. S. Postal Dept., 138, 189 + + Utah Copper Co., 6, 73 + + + Van Hise, C. R., 115 + + Vein, defined, 107 + + + Wallace, J. P., 150 + + Wallaroo mine, 43 + + Wasp No. 2 mine, 74 + + Wildcatting, 137, 193 + + Williams, Percy, 191 + + + Zinc, price of, 177 + + + + + + +End of Project Gutenberg's The Business of Mining, by Arthur J. 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