History of Dakota Territory, volume III, Part 5

Author: Kingsbury, George Washington, 1837-; Smith, George Martin, 1847-1920
Publication date: 1915
Publisher: Chicago, Ill. : S.J. Clarke Publishing Company
Number of Pages: 1146

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MOLDING GOLD BRICKS, HOMESTAKE MINE, LEAD

SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

The Golden Reward Consolidated Mining and Milling Company owned and controlled the Tornado, Sundance, Ruby, Bell, Steward and Daisy mines. Frank C. Smith was superintendent. This property was located west of Lead City about four miles, in what was commonly known as Bald Mountain. It embraced ninety-nine full claims. At this time the Tornado was the principal one being worked. The ore was treated at Deadwood in the chlorination plant of the company. The Town of Terry was built on the ground owned by the Golden Reward Company.

The Horseshoe Mining Company owned property south and west of the Tornado Mine and also the Mark Twain property at Portland. They conducted a chlorination plant at Pluma. During the summer this year they sunk a new shaft called Mogul and a large body of ore was found at a depth of 300 feet.

Rua Mine was situated at the head of Squaw Creek and was discovered in 1896. A. C. Hallam was superintendent. This mine was purchased by the Two Johns Mining Company of Chicago. Dividend Mine was situated near Portland. Its ore was sent to the Deadwood smelter for treatment. The Bonanza Mine was located near Terry and was doing well. Buxton Mine had been worked under a lease. Omega Mine was at Terraville east of Father DeSmet Mine.

The National Gold and Silver Mining Company had a shaft 260 feet deep on its property and several hundred feet of tunnels. Thus far they had encountered nothing of much promise. The Deadwood Development Company was composed of thirty-five business men of the Black Hills who spent in 1897 $2,500 in pros- pecting ; their most promising field thus far was at Two Bit Gulch, near the famous Hardin property. Bear Gulch and Nigger Hill Mining District were in the western part of Lawrence County, fifteen miles from Spearfish. Placer mining was done here in early days and more recently quartz ledges had been found. A quantity of tin ore had been discovered here recently. There were valuable properties at Garden City, Lone Camp, Carbonate Camp, Grizzly Gulch and elsewhere.

The Legislature of 1897 passed an important law concerning smelters and dry crushing plants, which regulated the operation of these properties. A com- pany called the Smelters & Dry Crushing Plants operated three of these proper- ties for the reduction of refractory ores. They were called the D. & D. Smelter, Golden Reward Chlorination and the Kildonan Chlorination. Both the Reward and Kildonan had in connection a small cyanide plant for the treatment of the dust that arose from the crusher. The men who worked the crusher wore sponges over their noses and mouths while at work.

Never had the mining interests in the Southern Hills looked brighter than in 1897. The tin excitement, which had occurred here formerly, was now. strange to say, regarded as a misfortune to that part of the country, and by many was regarded as a misfortune to the Black Hills generally. It was even said that the people of that vicinity had kept prospecting and making discoveries on the claims until they had partly succeeded in restoring confidence enough to interest capital to invest in them; and it was believed by many that if those interested could now make a success, the Southern Hills would again rank high among the mining industries of the world. It was not believed at this time that the Southern Hills had received fair play. As a rule when capital had been invested there, the company hired some one who was incompetent to take charge

SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

of the property, because he reported himself as a miner and they could hire him for small wages. This was characteristic of the attempts made there in many cases. It was realized by experienced mining people that good mine prop- erty could be easily spoiled through mismanagement. An incompetent manager at small wages was the most expensive one that could be employed. There were jealousies and rivalries, and lies were told for business advantages.

The St. Elmo Mine was about four miles south of Hills City and was located in the early days by prospectors. It had been neglected for many years. The Eldorado was doing some work near there at this time. The Grizzly Bear was in the Southern Hills and was being worked on a small scale. The Sunnyside Mine was a steady producer, three miles north of Hill City. They had a five- stamp mill. The ledge was not large, but yielded a steady profit. The shaft had reached the 260-foot level. The Holy Terror Mine was well known and was one of the best producers in the Hills; its shaft was 500 feet deep. The Bismarck and Big Hit mines were being worked on a small scale; their value was recognized. As a whole the mines of the Hills in 1897 were being worked better than usual, but not to any extent compared with the amount of ore in sight. Many of the mines known to contain large quantities of valuable ore, were shut down or held in check. A number of mines had been hushed inten- tionally for business reasons.

In 1897 a big fire in the Homestake mines, which could not be controlled for a long time, caused a loss of one-third of the year to the employes of the com- pany. It was necessary to flood the mine in order to control the fire in the end. A strike in the Bald Mountain district tied up affairs in that region about the same time. In November, 1901, a big strike of 2,800 men employed by the Homestake Company tied up operations for a long time. In 1910 several lock- outs at the Homestake Mine again shut off the supply and employes. In spite of these difficulties the gold product amounted to between seven million and eight million dollars. In 1912 the output of gold in the Black Hills was the largest in the history of the state-$8,035,596. In 1913 the output fell consider- ably short of that in 1912.

The yield of mineral wealth from the Black Hills in 1900 was one of the largest in the history of the state. The silver mined was worth $300,000, wolframite $50,000, Spodumene $25,000, copper for shipment $75,000, lead $10,000, mica $10,000, paint pigment $5,000, tin $3,000, gold $10,000,000; total, $10,478,000. The year 1900 saw vast improvements in mine development and particularly in the methods of ore treatment. During the year shafts were sunk deeper than usual with very satisfactory results. Several entirely new mining districts were opened, many shafts were sunk, and a few new and rare minerals were discovered. Remarkable advancement in the treatment of low grade ores due to the experiments that had been made with the cyanide proc- ess was made. Also new methods for the mining of placer gold were inaugu- rated, and electricity was successfully employed in the separation of gold values under the chlorination process. The outlook for the future was never better than at this time.

In the spring of 1901 the Blue Lead Copper Company commenced the work of erecting a fifty-ton smelter at Sheridan, seven miles east of Hill City. This copper company was one of the oldest in the Hills, having been in operation

THE GOLDEN REWARD MINE, DEADWOOD

SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

nearly a quarter of a century. The outcropping of the ore on the surface of the ledge was unusually abundant, and the rock carried an average of 7 per cent copper. The ledge had already been stipped, shafts had been sunk at inter- vals, and ore in paying quantities had been found at depths of from fifty to seventy-five feet. At this time a tunnel was being constructed near the water level with expectation of striking the main ledge of copper or beneath an ash- deposit.

During the winter of 1900-0I a cave was discovered west of Custer, which proved to be one of the largest in the Black Hills country. Several miles of passageways were soon explored and the chambers were rivals in many ways of some of the best in Wind Cave. A strong current of air swept out from the entrance as at Wind Cave. The character of the crystal work therein was different from that of either Wind or Crystal cave. It was a theory for a time that this cave was in some way connected with Wind Cave.

Early in 1901 the Gilman Syndicate of Denver purchased 500 acres of choice mining ground in the Ragged Top mining district adjoining the ground of the Spearfish Company of Colorado Springs. The consideration was about one hundred thousand dollars, of which 10 per cent was paid down. Large bodies of ore had been disclosed there and its treatment by the cyanide process was commenced. About this time the District Court decided for the plaintiff in the case of P. B. McCarty vs. Holy Terror Company, Judge McGee render- ing the decision for $7,000. This case was one of great value and interest, and its result was anxiously awaited by all of the miners of the Hills. Mr. McCarty demanded an accounting of the ore taken from the Holy Terror and Keystone No. 4 claims, the latter being a portion of the Holy Terror mines. The ques- tion was whether a partner could be cheated out of his interest by the other partners.

At the close of 1902, mining operations in the Black Hills were in prosperous condition. All of the principal working mines were in Lawrence, Pennington and Custer counties. New and improved precautions to prevent danger and accidents had been adopted and were in operation. Means of exit had been greatly improved and the mines were better ventilated than ever before. The companies and individuals were obedient to law, but notwithstanding all this the result was that thirteen persons had lost their lives and nine had suffered serious injury. These accidents were unfortunate, but were beyond the con- trol of the employer and were due mainly to the fact that life saving and acci- dent preventing methods had not yet been perfected. They resulted purely from circumstances beyond the control of the companies or the miners them- selves. During the year there had been no strikes nor ill feeling. In fact the mines of the Hills this year enjoyed unprecedented prosperity and activity. The older establishments had improved their facilities for increasing their ore tonnage and bullion output. Several plants for the treatment of tailings had' been or were being installed. Several new companies had been organized and a number of capitalists from Colorado, Utah, Montana and the East had come to the hills and purchased large tracts of mineral lands and were making preparations for active operations. Much money had likewise come from East- ern South Dakota, and several companies composed wholly of persons within the state had been organized. Investments during 1902 were greater than Vol. III-3

SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

during any previous year. Experiments to lessen the cost of mining and reduc- ing ores were constantly in progress and every up to date improvement was promptly secured and put in use.

· The Black Hills Mining Men's Association was organized in September, 1901, with forty members. By the close of 1902 there were 188 members, which number included representative mine owners from Lawrence, Penning- ton and Custer counties, a number from other counties and honorary members from outside states. The association had accomplished much good by uniting the men, perfecting and systematizing their work and in promoting good con- duct among their ranks. They had combined with workmen belonging to other unions for the purpose of strengthening and perfecting their system of work. They planned to protect outside investors from unfair and questionable methods in the promotion of mining companies and enterprises and to save the mining industry from dishonor. In 1902 the next session of the American Mining Congress was fixed at Deadwood and Lead. At this time the directors of the Mining Men's Association were Harris Franklin, S. W. Russell, W. S. Elder, of Deadwood; R. H. Driscoll, George Nix, of Lead; John Gray, Terraville; John Blatchford, Terry; C. H. Fulton, Rapid City ; J. E. Pilcher, Custer.

The results of mining operations in 1902 were notable and gratifying. The means of transportation and treatment were greatly improved. The old diffi- cult problem of extracting gold from refractory ores had been solved by the cyanide process which was now employed to great advantage and profit in many mines. It multiplied the number of mines and revived many old ones that were supposed to be exhausted because only a low grade ore remained. Ores of very low value could be profitably handled by the new method. Large quanti- ties of ore not previously considered as mineralized material were discovered and the fields were expanded. Already many such bodies of ore were being successfully and profitably handled under the new process. For these and other reasons the mining operations had greatly advanced in prospect and in actuality. Mining in the Hills at last was reduced to simplicity, security and practical perfection.

The mining operations of Lawrence County in 1902 were known and con- spicuous throughout the world. The Homestake Company with six stamp mills containing 900 stamps and with two cyanide plants was running on full time. During the year the Father DeSmet Stamp Mill was started after an idleness of several years. Cyanide Plant No. 2 was completed and commissioned. It received the tailings from the stamp mills by means of pipe lines. The Home- stake Company purchased the property and franchises of the Deadwood-Terra Company. The latter was crushing at the rate of 104,000 tons a month, the average gold per ton being about $3.55. The Ellison Hoist at Lead, which had been long in building, was completed this year at a cost of $250,000. It was connected with the stamp mills at Lead by a steel tramway spanning Gold Run Gulch. The Homestake Company employed about 1,700 laborers, all of whom were paid standard miner's wages.

The Golden Reward Consolidated Mining and Milling Company operated continuous this year their 400-ton smelter at Deadwood. It worked chiefly with ores from the company's mines at Bald Mountain and Ruby Basin. The smelter handled considerable ore from other mines. They completed the cyanide

SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

plant at Deadwood and there treated ores of too low a grade to justify smelting. Large quantities of ore were in sight. The cyanide plant was located where the chlorination plant was burned four years before. This company in production and number of men employed was next to the Homestake.

The Horseshoe Mining Company was organized in 1902 and within a few months became one of the largest and strongest in the state. It increased its acreage, purchased the new 300-ton smleter of the National Company at Rapid City, established a cyanide mill of 300-ton capacity at Pluma, and commenced to build a new cyanide plant at the Mogul mine in Ruby Basin. It was planned that the latter should handle 1,000 tons a day. The crushing was accomplished by two large machines and pulverized by 120 stamps. Forty-eight tanks were built. When completed the new plant was designed to treat 1,600 tons of ore. Up to this time the company had sent to outside smelters considerable of its ore. Late in the year shipments of custom ore for the smelter were received from various mines. The company had enormous ore reserves in its mines.

Spearfish Gold Mining and Reduction Company built a cyanide plant on the site of the original mill which was burned in October, 1901. Late in 1902 it was treating 300 tons per day. About the same time is declared its first dividend of $9,000. It was producing about $25,000 a month during the latter part of the year. The ore was in blanket formations near the surface and was quarried after several inches of soil had been removed. The mine and mill were connected by a steam tramway and all were electrically lighted.

Deadwood-Standard Gold Mining Company owned 500 acres of mineral land adjoining Spearfish property and operated a cyanide plant of 125 tons daily capacity. The ore was similar to that found in the Spearfish group. In addi- tion the company had considerable ore lying near the surface which could be mined at light expense.

Wasp No. 2 Mining Company made two cleanups per month at its 100-ton cyanide plant on Yellow Creek. Every fifteen days the company deposited a bar of bullion in the United States assay office. The mill was run on shale ore, potsdam, quartzite and porphyry which contained from two to five dollars in gold per ton and was well adapted for cyaniding. The ore was mined in open pits and delivered at nominal cost to the mill. It appeared in flat beds some- times more than twenty feet thick. A tramway was extended through a tunnel between the mill and the open cut from which the ore was taken.

The Dakota Mining and Milling Company was engaged in wet crushing ore at Deadwood. The ore was obtained from Gunnison, Jackpot, Lucy and Rehl groups of claims near Portland. During the year ten additional stamps were obtained, making thirty in all owned by the company. The ore was obtained at light expense from outcrops lying near the surface and was hauled eight miles by railroad. In sight was enough ore for operating the plant several years.

Imperial Gold Mining Company started a new cyanide plant at Deadwood in the spring of 1902. It was of different type from other cyanide plants in the Hills. It was built on a level instead of on the side of the hill and the ore was handled by automatic methods. The plant had three buildings, one devoted to crushing machinery, one to solution and leaching tanks, and one to the power plant. During the fall it ran about 125 tons per day. At this time they were securing a large roaster to be used on ores in which oxidation had not

1151090

SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

taken place. At this time the company obtained most of its ore from Black Tail Gulch, where the company had 300 acres patented; a shaft reached to quartzite and several strong bodies of siliceous ore were exposed. The com- pany owned mineral land near Crown Hill Station, where there was a consid- erable quantity of fair grade cyanide ore. It likewise owned a tract west of Spearfish River near Beaver Creek.

The Columbus Consolidated Gold Mining Company was organized in 1902. It owned 625 acres north of the Homestake mining properties and extended northward nearly a mile along the strike of the Homestake system of ore veins. The property included the old Colonel shaft on Saw Pit Gulch, which was 200 feet deep, with a 10-stamp mill in connection. This property was being recon- structed and already was being operated. The company bought the 20-stamp crushing cyanide mill built at Gayville many years before by the Baltimore- Deadwood company and operated by the Portland company under lease for the past two years. In 1902 the company was operating on siliceous ore from the Rossiter and Dalton groups of claims on Sheep Tail and Black Tail Gulches. On one of the claims was a series of siliceous ore chutes overlying the vertical slates and was situated so as to be mined at light cost. Underneath was a perma- nent ore supply, however. A number of strong fissure veins of free milling ore which was being developed by the Columbus shaft were here.

The Clover Leaf Gold Mining Company had an enlarged stamp mill from twenty to sixty stamps and a new hoist was commissioned; the shaft was deep- ened and two new levels were established. Thirty of the sixty stamps were in operation, and a new Prescott pump capable of lifting 1,000 gallons of water per minute was being built and installed. A machine shop, dry house and assay office were added. A hospital was furnished by the company and a resident physician was placed in charge for the benefit of the employes. This company in the fall employed forty-five men underground and about thirty on the surface.

The Black Hills and Denver Gold Mining Company was a reorganization of the Highland Chief Mining Company by local and Colorado men. The com- pany owned the Champion and adjacent mining claims and a .50-ton stamp crushing cyanide plant in Spruce Gulch near Deadwood. A number of labor- saving improvements were added during the year.

The Boston-South Dakota Mining Company operated a mill in Black Tail Gulch and placed in considerable new machinery. It had forty stamps, and late in the year its mill was leased to the Jupiter Gold Mining Company. The latter company was organized by Colorado and local men. It purchased the Gustin Resumption No. I and Resumption No. 2 claims in Black Tail Gulch: It had a 40-stamp mill on the property of the Boston-South Dakota Company. Preparations to build a cyanide plant were in operation. Visible was a large supply of cement ore having good uniform value and being amenable to cyaniding.

The Hidden Fortune Gold Mining Company owned 240 acres parallel to the Homestake property. A main working tunnel ten feet wide and seven feet high was driven 2,000 feet between parallel veins of free milling ore with cross cuts at frequent intervals. A large amount of high grade siliceous ore was being taken from the Potsdam ore overlying the vertical formation. This ore was near the surface and easily reached. Considerable of the ore assayed $500

SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

per ton and was sacked for shipment. A wet crushing cyanide plant was being built by the company on Whitewood Creek, three miles below Deadwood. There large improvements were contemplated. Preparations for cyanide processes were in operation. The mine and mill were connected by the Bur- lington and the Elkhorn railroads.

The Penobscot Gold Mining Company operated a 40-stamp wet crushing cyanide plant at Garden City near the close of the year This company was organized the early part of 1902 by Chicago and Michigan capitalists for the purchase of several hundred acres of valuable mineral land at Garden City, including the reorganization of the Penobscot mines. Over 700,000 feet of lumber and timber were used in its construction. It was designed to have a capacity of 6,000 tons of ore per month. Increased capacity was in process of completion. The main shaft was back of the mill and was equipped with modern housing apparatus. The ore was then trammed from the shaft house to the top of the mill.

The Cleopatra Mining Company was preparing for active operations. A shaft was being sunk to quartzite and the company owned a 50-ton cyanide mill which was idle a portion of the year.

The Alder Creek Mining Company had a new 60-ton cyanide plant on Yellow Creek and was running on quartzite ore from the Little Blue Panzy and asso- ciated claims which had been purchased by the company. Formerly this com- pany was in California. The company was principally composed of capitalists from Des Moines, Iowa.

Oro Hondo Mining Company was organized in 1902 and purchased about 1,000 acres adjoining the Homestake Mine on the south. A shaft was started and equipped with machinery to sink 2,000 feet to reach the Homestake series of ore veins. The ore was coarse, interstratified with schist and showing gen- erally the characteristics of Homestake ore. The shaft had air compressor and drills. The Pluma Gold Mining Company, located near Lead, had a main shaft 300 feet deep fitted with steam house and other modern conveniences. A cross cut was being built to the westward on the 300-foot level. Recently the com- pany purchased the Hawkeye land adjoining the Pluma claim, also the Hawkeye 40-stamp mill at Pluma stationed on the Burlington Railroad. The mill was connected at Pluma with Hawkeye mines by aerial tramway over 600 feet long by which the ore was carried from the mill by buckets. Large deposits of quartz conglomerate or cement, could be seen on the Pluma and Hawkeye property overlying the vertical measures.

The Globe Mining Company was doing considerable work in tunnels and drifts near where the vertical ore bodies came together. They operated west of Lead a short distance. The company had lately started a shaft near the bottom of Nevada Gulch. The Golden Cross Mining Company operated a Io-stamp mill near the head of Two Bit Gulch late in the year. The ore was treated by cyanide process. The company had reorganized and had constructed several new ore chutes. It owned about three hundred acres of mineral land and began running full time in January, 1903.

Other companies in Lawrence County were the following: Carbonate Silver Extraction Company, which worked tailings at the Iron Hill mine and mill, treating the same with cyanide; Iron Hill mine, being worked under a lease,

SOUTH DAKOTA: ITS HISTORY AND ITS PEOPLE

treating its ores with concentrated machinery; Anaconda Gold Mining Company, which owned 400 acres near Bear Butte and Elk creeks and obtained a free milling ore; Manilla Gold Mining Company was taking out good ore on Elk Creek; Clover Gold Mining Company had a shaft down 307 feet in Nevada Gulch; Black Hills Building & Developing Company was engaged in dividing the ore from the bottom of the 700-foot shaft near Kerb Station. The com- pany owned several hundred acres near Homestake property; Pierre Gold Min- ing Company was engaged in working the ore near Deadwood Gulch. It shipped its ore to the reduction works. With this ore came valuable quantities of sylvanite and white iron showing fluorine stains; the Portland Mining Com- pany operated a wet crushing cyanide plant at Gayville, treating about fifty tons a day, but in September turned its property over to the Columbus com- pany ; the Montezuma mine was situated just outside the limits of Deadwood. Within a short time this company had sent 27,600 tons of ore-carrying iron pyrites to the Golden Reward smelter at Deadwood. The ore carried about $200 in gold, per ton proper; Gladiator Consolidated Gold Mining Company owned a group near Deadwood Gulch, northwest of Lead. The company was preparing to operate extensively; Universal Gold Mining and Milling Company, which had taken a two-year lease on thirty-two acres of mineral land on Annie Creek belonging to South Dakota Mining Company. Already they were working the siliceous ores; Ak-Sar-Ben Gold Mining Company was composed of Nebraska and Illinois men who organized during the summer of 1902, and purchased thirty-two acres on Sheep Tail Gulch and sixty acres on Annie Creek.

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History of Dakota Territory, volume III, Part 5

Author: Kingsbury, George Washington, 1837-; Smith, George Martin, 1847-1920 Publication date: 1915 Publisher: Chicago, Ill. : S.J. Clarke Publishing Company Number of Pages: 1146

Author: Kingsbury, George Washington, 1837-; Smith, George Martin, 1847-1920
Publication date: 1915
Publisher: Chicago, Ill. : S.J. Clarke Publishing Company
Number of Pages: 1146