The Black Hills Placer Mining Co., Dakota ..

Black Hills Placer Mining Company, New York · 1879 · Historical

Placer or surface mining, has advantages over quartz or rock mining, which every practical person will appre ciate.

This 1879 document, The Black Hills Placer Mining Co., Dakota .., is preserved in the Mountain Man Mining Library for research and reference. Original source: archive.org.

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Genl. Alexander Sealer.

Marcus Walker.

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GENL. ALEXANDER SHALER, JOHN McGinnis, jr.,

Wm. H. Male,

Phillip Tillinghast,

Chas. H. Ammidown,

Sherburne B. Eaton, Marcus Walker, Genl. Jos. S. Smith,

Bangor, Me. COL. JOS. SELDEN,

Norwich, Ct.

Compana's Cownsil.

Chamberlain, Carter & Eaton,

34G Broadway.

Mining Superintendent . I. M. WEST.

Engineer, . M. WILLSIE.

Consulting Engineer,

Palmer Smith.

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The trustees of The Black Hills Placer Mining Com pany submit their project to capitalists and others who desire to take an interest in an exceptionally safe mining operation, confident that it will be recognized at once, by those well informed, as the best that has ever been pre sented to the public.

Placer or surface mining, has advantages over quartz or rock mining, which every practical person will appre ciate. In the first place, the extensive workings by tun nels, deep shafts and levels, and the great outlay for timbering in the construction of underground mines, together with the costly machinery for crushing and milling quartz ores, are not required in placer mining. A good solid stream of water, judiciously applied to a bank of earth, conveying it into inexpensive sluices, does most of the work in placer mining. In the* next place, while the results of quartz mining are necessarily prob lematical, owing to an inability to learn with any cer tainty to what extent the ore deposits exist in the rock, until expensive shafting and tunneling has been made, no difficulty whatever is found in determining the actual extent of the deposits in earth, for these lie upon the surface, and may be tested in an hour with the use of a spade and a little water.

The property owned by this company is located in the comparatively new region of the famous Black Hills, Dakota Territory, lying in the vicinity of Spring Creek,

a tributary of tlie Cheyenne River, in Pennington County. The several tracts of placer lands already deeded to this company, in all about 600 acres, were located by experienced California miners ; and many of them have been worked with great profit by the rude means of hand-washing. They have been carefully ex amined and tested by experts and others, and their immense value thoroughly established. The only means of securing and bringing into use the vast treasures in these claims is by utilizing the waters of Spring Creek, and two of its tributaries, and that is what this company proposes to do. The company has secured the absolute and exclusive control of these waters, and will at once commence the construction of a flume for conveying them from the sources of the creek, above the hamlet of Sheridan, to the rich placer grounds about Rockerville, a distance of about eight miles, at which point the whole Red Earth district, covering an area of about 300 square miles, rich with the precious metal, and almost entirely unoccupied and unclaimed, is, through possession of the water supply, practically at this company's disposition.

It is estimated that the claims already deeded to this company, and the great area controlled by the company, by the waters of Spring Creek and its tributaries (these waters, it should be stated, are all that can pos sibly be made available in this section of the Black Hills), contain thonands of millions of cubic yards of auriferous gravel that will be worked by this company and its suc cessors for over a hundred years at great profit. The enor mous value of these placers may be estimated by the actual yield of the claims adjoining, and in the immedi ate vicinity, which are now being worked by miners, by the primitive and simple means before referred to. These miners realize from two to five dollars, sometimes running as high as twelve to fifteen dollars from each cubic yard. The gold is found pretty evenly distributed through all the earth above the underlying rock (called hed Tock\ averaging fifteen feet in depth.

By examining the locations of onr claims, as laid down on the company' s map, it wdll appear that the deposits of gold ore are not confined to a particular section of this district, but that all the plateaus (technically called along the whole line of the creek, and extending beyond into the Red Earth Country, are equally favored.

The construction of a dam and a single half mile of the flume will enable the company to commence mining operations ; as the flume shall be completed from point to point, the water may be utilized, gnd when it has reached Rockerville, a head of two hundred and fifty feet will have been obtained, and the full capacity of the water supply be made available for operating on the large deposits in that vicinity.

The amount of money required to develop this enter prise is very inconsiderable compared with its magnitude. For this purpose it is proposed to offer for sale one quarter only, of the full paid stock of the company, at ten per cent, of its par value. A large portion of this has already been taken, at that rate, by the original pro moters and trustees.

Attention is called to the report herewith of Marcus Walker, Esq., who recently made an examination of the property in the interests of New York parties, and to the estimate for cost of works contained in the letter of M. Willsie, M. E., addressed to Mr. Walker.

Also to the letters following that report, written before Mr. Walker's visit to the property, by Mr. F. A. Babcock, manager of the Sir Rhoderick Dhu Mines at Central City, D. T., and by Mr. John Rigby and Mr. Wm. H. Hen dickson, mining engineers.

Maps, drawings, &c., of the Black Hills country and of the company' s property, with full details, will be furnished upon application to the company's offices. Nos. 37 and 39 Wall St., Queen Building, room 13, where the sub scription book is now open.

The Black Hills Placee Mining Co.,

organized under tlie laws of the State of New York, and in compliance with the laws of Dakota.

Capital . $10,000,000.

Divided into 200,000 shares of $50 each.

Subscriptions limited to 50,000 shares.

These shares to issue full paid and nnassessable, are now offered at $5 per share, ' or at 10 per cent, of par value — the entire proceeds to be paid into the company's treasury.

Five per cent, required on the day of subscription.

20 per cent, on the 2d of January next.

25 per cent, on the 2d of February.

25 per cent, on the 2d of March, and

25 per cent, on the 2d of April.

All the proceeds to be used in developing the enter prise, under the personal supervision of the officers of the company and experienced mining engineers.

No bonuses paid to original owners, or to any persons whomsoever.

ALEXANDER SHALER, President.

New Yoek, Nov. 29th, 1879. To Maj. Genl. Alexandee Shalee,

President of the Black Hills Placer Mining Company New York.

Bear Sir. — On October 16th, last, on the request of friends in New York, I left this city to examine the property of the Black Hills Placer Mining Company, situated in Pennington County, Territory of Dakota, and now, on their advice, present for your consideration the following

Report. .

I arrived at Deadwood, the principal city of the mining region in the Black Hills of Dakota, on the morning of the 23rd of October. The following day, accompanied by Capt. I. M. W est, one of the owners of the mentioned property, Mr. F. A. Babcock, Manager of the Sir Bhoderick Dhu Mining Company, and Mr. M. Willsie, a Civil and Mining Engineer, drove to Sheridan, about 50 miles south from Deadwood.

The next five days were, spent in making careful in vestigation at Sheridan, and at the Bockerville Mining District below Sheridan, of the locations made by the said company, examining the water supply and the prac ticability of appropriating and applying, this supply for hydraulic mining, testing the value of the placer deposits and noting the general formation of that section of country controlled by this company's water-supply.

The waters of Spring Creek flow from a water-shed 30 miles long by 30 miles wide, westerly, and enter the Jenney Mining District about miles above the town of

Slieridan, througli a "draw" about 300 feet wide. Three Gulches — Ruby Gulch inclining from the south-west, Palmer Gulch from the west, and Keokuk Gulch from the north-west — form a junction at this "draw while, below. Spring Creek Gulch opens out in the valley. At this point the company has acquired the right to the waters of the creek for the purpose of mining, milling and other uses, and here they have erected a temporary surface-dam. From this position the company has had the line of its proposed ditch and flumes surveyed, staked and mapped to the head of Rockerville Bar. A ditch of about half a mile in length from the present dam, on the said surveyed line, has been built, into which the surface water of Spring Creek is turned and appropriated.

Measurement was made on the first day of my visit, of the water running in the ditch just below the dam, and it was found to be 964 miner' s inches in volume. This was the surface water from the creek. By observation here and at places both above and below on the creek, where bed rock drifting had been attempted, and from the statements made to me by miners living in that vicinity, I am con vinced that there was as much more water running below surface above bed-rock, the distance from surface to bed-rock being about 20 feet of a gravel deposit. I con sider it therefore safe to estimate the volume, when a permanent bed-rock dam shall be put iu, at 1500 miner's inches. There had been a very dry season previous to my visit ; no rain had fallen in that locality for over three months. That estimate on the water, it will be noticed, is made at its low stage, but it should be stated that I was assured by miners and others who had lived in that section for three years past, that during more than six months in the year, or from March to September, there will be twice that volume of water in the creek at this place, or say 3000 miner' s inches.

In addition to the above, and below that location, the company possesses two other water-rights in a position toserve as feeders, if needed, to the proposed ditch and

flumes. Each of these additional water-rights is for 300 miner's inches in quantity, one located on Mallory Gfulch and one on Baker's Park Gulch.

At and about Sheridan, in the Jenney Mining District, the company owns the following mining ground, viz :

Opposite Iowa Bar, a hill claim of 20 acres, one-half mile from the dam or point of commencement of flume.

On Sheridan Bar, 60 acres, two and one-quarter miles from the dam.

On Half Moon Bar, 60 acres, six and one-half miles from dam.

In Sheridan Gulch, lying between Sheridan Bar and Mallory Gulch, 9 claims, each 300 feet in length by width of gulch, average width 700 feet.

In Buckeye Gulch, at the lower end of Sheridan Bar, 3 claims of 300 feet in length each, by width of gulch.

In Democrat Gulch, one and one-half miles from the above, 2 claims of 300 feet each in length, by width of gulch ; and

In Spring Creek Gulch, 16 claims of 300 feet each, averaging about 900 feet in width. At different loca tions, two of the claims at the site of the dam, the others between the claims at the dam and the town of Sheridan.

Over an area 6 or 7 miles in length down the Spring Creek Valley, within the Jenney Mining District, are many bars and short gulches covered with auriferous gravel.

Along the Spring Creek Valley, on the southerly side, runs the line of the company's proposed ditch and flumes, diverging in and out around the hills, a distance of 17f miles to a point over Bockerville Bar, in the Rockerville Placer Mining District.

The Rockerville Placer Mining District is distant but about eleven miles in a direct line from the company' s dam. In that district the company owns the followingmining grounds, viz :

On the upper end of Rockerville Bar, 18 claims of 300 feet square, known as the Black Hawk location.

On Pheasant Gulch, 26 claims of 300 feet square each, adjoining the above Black Hawk location.

On Ohio Gulch, 8 claims, 300 feet square each.

On Keelor Gulch, 10 '' 300

The Hale location, 6 300 "

The Sample location. 8 ' ' 300 " ''

The He Witt location, 6 '' 300 '' ''

On Henderson Gulch, 4 300

Red Earth location, 15 300

After passing Rockerville Gulch, the area of placer ground below and within the Rockerville Mining Dis trict, completely controlled by the company through its water rights, is about 12 miles wide by 25 miles long ; all one immense gold-bearing drift from 12 to 20 feet deep. Most of this ground lies very advantageously for hydraulic washing.

Situated in this tract is Mammoth Bar, of about 5,000 acres, and Red Earth Bar, 12 miles long by one-half mile wide, both bars seamed with numerous ravines where good dumps" can be had, these ravines never being over 500 feet apart.

This strip of country plainly shows that the alluvia came from an ancient wash. The hills all show the action of the waters ; the gulches and bars are covered with a detritus of a reddish hue, composed of quartz, iron, slate, sandstone, &c. A black sand, composed main ly of magnetic iron, accompanies the gold.

I had very many ''pannings" made of the earth taken at dilferent locations at Sheridan, and in the gulches and liills about ' Rockerville and the Red Earth country. Every panning showed gold from IJc. to 5c. to the pan. As 140 miner' s pans of earth are calculated for a cubic yard, those results showed a value of $2.10 to $7 per cubic yard of earth.

The "color" of these pannings I have kept, with memoranda of places where each was made.

I had several wagon-loads of earth dug from different holes in the hills about Rockerville, had these carried to water in the gulch, and there the earth was washed for me. Two of these wagon-loads of dirt were taken from a hole on the company's ground, at the Black Hawk location, each load containing one cubic yard of earth ; a miner, named John Jewett, washed both loads of earth through a rude appliance. He shoveled the dirt into a puddling box, 3 feet by 6 feet, gradually allowing -it to wash out through a sluice-box 10 feet long ; he cleaned up in the riffles $1.65 in gold from both wagon-loads. I was convinced that he had lost in the tailings as much as one-half of the gold in* the dirt ; we panned some of the tailings and found ''color." The next morning washed two bushels of those tailings, and got about 30 cents in gold.

Another wagon-load, or 1 cubic yard of dirt, was taken from a claim on Henderson Gulch, and washed for me by a miner named Jones ; the result was 2 dwts. and 7 grs. in gold, value $2.06.

I had the same miner wash another wagon -load (one cubic yard) of dirt that I caused to be dug from Keelor Gulch ; out of this we got a clean-up of $3.37 in gold.

In the Red Earth belt below the town of Rockerville, took from each of two openings, where the company has claims, about half a bushel of gravel. From three dif ferent openings on the Mammoth Bar, took some of the gravel, about a bushel from each opening. These samples were put in sacks and carried to Rockerville Gulch ; there I had the contents mixed, and made three separate pannings of the earth, and got 5 cents in gold from the three pans, or If cents to the pan, equal to $2.33 per cubic yard.

The only mode of working small claims by the miners at Rockerville and at Sheridan has been to dig the earth, cart it to the gulch stream, and there wash it. These miners say that it costs $1 per load or cubic yard to dig it, $1 to haul it, and $1 to wash the dirt. They say they

must find diggings to pay over $3 per wagon-load, that they only look for the richest paying streaks, and if the dirt does not pay $5 or over per cubic yard, they seek other diggings.

Many diggings of but few feet square surface were

shown to me on the hills where miners had taken out

different amounts, from $500 up to $3,000.

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I saw the miners at work as I have described ; I talked with many of them. The statements they made were interesting, and remarkably in accord, and were as fol lows :

At Sheridan, about 600 feet above the dam location on Palmer Gulch, a claim was being worked by a miner named Williams. He told me that he and a partner had worked on that claim since last May, and had realized $1,500 in gold, mostly in coarse nuggets. The space worked out in his claim was only 50 feet by 20 feet, and about 12 feet deep.

Below the dam location in Spring Creek Gulch, a miner named 'E. Barthold, showed me where he had' been at work and had been forced to leave the location, as he could not drain the bed-rock water. He said that he had seen 65 dwts. in gold taken from two wagon-loads of gravel dug from a claim below his. There will be places in the gulch, he said, where the coarse gold will accumu late and pay very rich, and the whole of Spring Creek bottom through Sheridan will, after a bed-rock dam turils the water, be worked very profitably.

Barthold had been and was then working a hill claim by the side of Sheridan Bar. He got from $1 to $5 per wagon-load from that claim; he had obtained $25 from one wagon-load. He said he had prospected all the hills and bars about Sheridan and Spring Creek Gulch, and found no place where the dirt, even at surface, would not pay $1' per cubic yard. He thought the ground would aver age in value $3 per cubic yard.

At Rockerville, my interviews were with the following miners :

H. M. Halloway has a claim on the hill by side of Rockerville Gnlcli ; he had sunk a hole 18 feet deep from which he had taken out 20 wagon-loads of dirt that yielded him $45. He was 6 to 8 feet above bed-rock from the bottom of that hole.

He also has a claim in the gulch where he has two men at work, and although he can only get a little water in the gulch for about 5 hours per day, he has taken out an average of $30 per day from that claim.

Mr. Beadle, an-experienced miner, has a claim in Rockerville Gulch on which he has put a steam pump to raise bed-rock water. He has three men at work on his claim ; he told me that his "clean-up" for the past two days was 3 ozs. 3 dwts. and 17 grs. in gold, equal to $58.95. He said he had taken out over $50 per day, with two men, from his claim. The volume of water that he raises with his pump is about 10 miner' s inches. After using this water he passes it to miners on claims below him, who pay him $45 per week for the supply.

Mr. Beadle said that the dirt which the miners about Rockerville would cart to water, paid on an average $5 per wagon-load.

Ryerson and a partner, two miners, were washing in the gulch three cart-loads of gravel from a rich streak on Mineral Hill, of Rockerville. Saw them clean up from this $35 in gold.

Han'l Sibley, a miner, was washing one-half a wagonload of tailings, from which he cleaned up 2 dwts. in gold — value $1.85.

Pat Dillon, a miner in the gulch, said he had been working his claim the past Summer with seven men, and although he had very little water at his claim, and was frequently delayed for want of water, his daily product would average over $50. Dillon has a claim on the hill opposite his gulch claim, out of which he had taken dirt that paid from $8 to $10 per cubic yard.

D. D. Sweet, a miner on Rocky Gulch, said he had just washed three wagon-loads of dirt from his claim that yielded 18 dwts. and 5 grs. in gold — equal to $5.60 per cubic yard. He had with him the gold that he had taken from ten other wagon-loads — it was weighed and found to be 2 oz. 2 dwts. and 21 grs., worth $39.63, show ing a yield of about $4 per cubic yard of dirt,

Francis, a miner at the head of Henderson Gulch, said he took out from $4 to $5 from each wagon load of his gravel.

Richard E. Erb, a very intelligent miner, was washing in the gulch two wagon loads of picked gravel, quite rich, from his claim on Colson Gulch. I waited for the clean-up and bought it of Erb. It was 38 dwts., worth $35.61.

Erb said he had prospected over the Red Earth ground and on Mammoth Bar, below Rockerville, that he had always got from Ic. to 5c. per pan from the dirt. He could not locate there, he said, for want of water.

Mr. Sands, a miner at Rockerville, told me that he had prospected over Mammoth Bar, and had got from a ''color" up to 25c. per pan. Said that he had packed bags of the dirt from Mammoth Bar, on his back, two miles to water, and made " grub."

Mr. Jones, a miner on Henderson Gulch, told me that he got about $5 to the wagon load from his claim. That with two men he had taken out about $2,000 the past Summer.

I talked with other miners, who made corroborative statements of the yield of the diggings at Rockerville, and of the prospects in the section below the town of Rockerville.

The source of the company' s supply of water has been found to, be of sufficient elevation to cover the extent of mining ground before mentioned. I refer to the reports herewith of the engineers on the construction of the flume, and to the estimates for cost of the work made by the engineers and by Capt. West.

The flume will be carried to a on the ridge at the head of Rockerville District, where there is a fall of 250 feet to the placer grounds below. This flume will carry a volume of 1500 miner' s inches at all times.

Each inch of water under 250 feet head, will move 4 cubic yards of gravel, such as is deposited at Rockerville District, every 10 hours — or 9yV yards every 24 hours. One in. hydraulic nozzle, under 250 feet head, requires 194 inches of water. Allow that 1500 inches of water supplies but six in. nozzles, or 250 feet water to each nozzle.

Each nozzle will move 2400 yards of earth every 24 hours.

Six nozzles will move 14,400 cubic yards in 24 hours.

From all the evidences it may be claimed that these entire placer grounds described will yield on an average $1 per cubic yard. It has been shown that much of it pays from $2 to $5, and over, to the cubic yard.

Estimate the yield at but 25c. per cubic yard, and the result of washing 14,400 cubic yards of the ground

will be . $3,600 . 00

The daily expenses attending this work, for all items, cannot be stated over $200, including salaries of superintendent and engineer (see items of this expense in the report of Mr. Willsie herewith).

but to cover all contingencies — say, per day . 250.00

Net result each day . $3,350!00

Or $100,000 net result per month.

In the immediate vicinity of the town of Rockerville locations are made on the gulches by miners. In Colson Gulch there are about 30 different claims taken. On Henderson Gulch about 40 claims are located ; on Wy man Gulch as many ; on Capt. Jack Gulch 20 locations ; on Jack Ass Gulch 20 more. I am prepared to show that the company can derive quite as handsome a revenue if some portion of its water shall be sold to the miners who have locations on those gulches

From the company's discharge, a 'sluice-head," or 50 inches of water, can be carried in a small Hume — a Hume that may be moved from place to place — to the head of any of these gulches. In other mining districts the price paid for water for sluicing purposes (50 inches in volume is the required amount) is not less than 50 cents per inch per day by each user. As high as $1 per inch per day is paid.

If this company will conclude to sell any of its water, it can fix a price that will be comparatively very cheap, and will be most readily paid by the miners at 25c. per inch per day to the first users, grading the price down to 15c. per inch to the last users, an average of 20c. per inch per day to each user. One sluice-head of water thus sold on one of those gulches, where there are 25 locations, will realize $250 per day to the company. The company may, or may not, after it shall be in operation, sell any of its water, but it can furnish and sell 250 inches, sufficient for 5 sluice-heads, by taking ofi the supply to one hydraulic nozzle, and for the period re quired work 5 nozzles in place of 6 on its placer ground. Five sluice-heads, of 250 inches of water in all, divided to 5 different gulches, will yield $1,250 per day to the company.

Before the water can be brought to Rockerville opera tions can commence at and about Sheridan. Here the clms of the company must be worked by "groundsluicing." The volume of water that the flume carries will ground-sluice 1,500 cubic yards of earth per day.

After the flume is built to Rockerville 1,500 inches of water should constantly be carried to that point for effective work under heavy pressure through hydraulic appliances. Whenever, particularly in the spring and summer months, there will be more than 1,500 inches at the dam, the extra amount will be used to groundsluice the bars about Sheridan.

Another source of profit will come from Spring Creek, below the point where the company will turn the water.

Here, in the bottom of the creek, will be deposits that will pay well in coarse gold and nnggets. This part of the ground must be worked by bed-rock drifting as soon as the company has erected its bed-rock dam.

When the company shall have its llnme constructed, the water brought to the bulkhead or pressure-box, then to the feed-pipes, and thence to the discharge-pipes or hydraulic nozzles, it has before it an operation of magni tude and financial importance.

The gold will be obtained by simple washing, with the aid of well-known appliances, readily and abundantly, without the necessity of mining for it in the solid rock. Large, continuous, and profitable results will come at a trivial cost.

The Black Hills Placer Mining Company owns the right for all the water available for the described miningground. Other water from remote streams cannot be brought to this section, owing to the physical formation of the country.

The company controls a gold-bearing area that may be worked continuously for over a hundred years to come, at a profit that may reasonably be expected of at least a million dollars per year.

The titles to the property of the company were care fully examined by B. G. Caulfield, Esq., of Deadwood, a lawyer of experience and high character, and thoroughly reliable. His written opinion is made, in which he states, in conclusion, that the titles are now good in the parties who hold for the company.

At a meeting of those -who shall be interested in this company I shall be prepared to state more particularly certain views about the management of the property.

It is especially requisite to be expeditious in this en terprise now, that the company may be ready to turn the water to effective work by next May.

Respectfully, &c.,

Marcus Walker.

Me. Marcus Walker,

Dear Sir. — In compliance witli your request, I hand yon a detailed statement of the cost of constructing a flnme from a certain point on Spring Creek, below the month of Palmer Gulch, to Pockerville, a distance of eighteen miles, capable of carrying 2000 inches of water.

Size. — Size of flume, 42 X 48 inches, constructed of in. plank, tied together with timbers every 4 feet, placed on cords of siwed timber 6x6.

in. plank for 1 mile flume, 12 inches in width, amounts

to —

Plank. — 3,360 pieces 16 ft. in length, each contain

ing 32 ft. of lumber. . . . . 116,160 ft.

Bottom Ties. — Bottom Ties 3x6 in., 7 ft long, 1,320

pcs., each lOJ ft. of lumber . 13,860 "

Side Braces. — Side Braces 2x4 in., 4 ft. long, 2,640

pcs., each containing ft. of lumber . 7,040 "

Caps. — Cap 2x6 in., 6 ft long, 1320 pcs., each con taining 6 ft. of lumber . 7,920 "

Sills. — Sills or lower cord, 6x6 in., 16 ft. long, 660

pcs., each containing 48 ft. of lumber . 31,680 "

Foot Plank. — Foot Plank 2x12 in., 16 ft. long,

330 pcs., each containing 32 ft. of lumber . 10,560 "

Batting. — Battings by 3 in., 16 ft. long, 2,970 pcs.,

each containing 4 ft. of lumber . 11,880 "

Lumber. — Add for waste and breakage . 900 "

Per Mile. — Total per mile of flume . 200,000 ft.

Total for Flume. — Total 18 miles . 3,600,000 ft.

Feet of Trestle. — There appears from the profile to be 8,105 ft. of trestle work, averaging 10 ft. in height. This calls for the following amount of lumber, estimating the trestles to be placed 16 ft. apart :

Sills. — Sills or Posts, 8x8 in., 12 ft. long, 1,521

pcs., each containing 64 feet of lumber . 07,344 ft.

Caps. — Caps 8x8 in., 6 ft. long, 507 pcs., each

containing 32 ft. of lumber . 11,224

Braces. — Short Braces 4x6 in., 6 ft. long, 2,028

pcs., each containing 12 ft. of lumber . 24,336 "

Braces. — Long Braces 2 X 10 in., 16 ft. long, 1,014

pcs., each containing 27 feet of lumber . 27,378 "

Total Trestle. — Total lumber for Trestle Work. . . 160,282 ft.

Tunnel and Kock. — I also find there will be 930 lineal feet of tunnel and rock work, the cost of

which will be about $15 per lineal foot . $13,950.00

Earth-work. — There will also be 640 lineal feet of

earth-work, which will cost $5 per lineal foot. . 8,200.00

Grading. — The Grading for entire length of flume —

18 miles, less trestle-work, tunnels, rock, earth work, &c., above mentioned — say 16 miles, will cost about $5 per lineal rod, or $1,600 per mile.

Dam. — To construct the dam will not cost less than $20,000. This will be 300 ft. in length.

Depth of Gravel. — While the bed rock has not been reached at this particular point, I am quite safe in estimating the de23th at 25 ft. from what is known of the depth of the wash at other joints above and below the point where your dam will be located.

It is absolutely necessary to start this dam from bed rock with water lime. From what is known at 23oints where bed rock has been reached, there is not less than 1,000 inches of w'ater below the surface to contend with, while the excavation is being made. It may also be necessary to sink coffers, to guard against the water — hence my estimated cost of $20,000, without entering into a detailed statement.

Bulk Head. — I also estimate the cost (without detail) of con structing the bulk-head at the mouth of the flume, $2,000.

Recapitulation.

Lumber to construct flume . 3,600,000 ft.

" " " trestle . 160,282 "

Add to cover all contingencies . 239,718 "

Total . '. 4,000,000 ft.

" " labor to construct ($11 per M.) . 44,000.00

Total cost of lumber in flume, &c . $104,000 . 00

Cost of tunnels and rock work . 13,950 . 00

" " earth excavations . 3,200.00

" " grading . 25,600.00

" " dam . 20,000.00

" " bulkhead . 2,000.00

1,500 lbs. nails per mile, at 10c. — 18 miles . 2,700.00

Iron Pipe. — 100 ft. of No. 12 iron pipe, 60 inches in diameter, reduced to 45 inches — 9,064 lbs., at a

cost of 15c. per lb . 1,359 . 60

Cost of 1,500 ft. No. 10 iron pipe, 45 inches re duced to 30 inches — 6,048 lbs. at 15c. per lb . . 13,608 . 00

2,000 ft. 8-in. flexible hose, six 3J-in. nozzles — the cost of which is to be added — say $300 for each

nozzle and $6,000 for hose . 7,800 . 00

Sluice boxes . 1,000 . 00

Cutting timber along line . 2,500 . 00

Total Cost . $197,717.60

The estimate for lumber to construct the flume is correct, while, of course, the estimate to construct the trestle work is approxi mated, but will fall below rather than above.

The tunneling and rock work, while the profile shows 930 ft., which I estimate at costing $15 per foot, is in the main correct, as well as the cost for 640 feet of earth-work, while the estimate for grading is entirely approximate, and, without a doubt, is largely in excess of what the work will cost, as much of the dis tance is a light loam or gravelly soil.

In fact, in my entire estimate, I have aimed to give you figures which will prove to be above rather than below the actual cost of construction. A minute and absolute estimate cannot be made, until a survey is made with that view directly. The profile and notes handed me by Mr. Hendrickson, showing the level line only, proves that the water can be taken from Spring Creek to Rockerville, and from which an approximate cost only can be made for construction of the fiume.

After the flume is constructed there will be 1,500 inches of water at all seasons of the year for use; and from the first of April until the first of August more than the flume will carry.

Miners' Estimate of Water. — Laborers in placer mines of Cali fornia estimate the value of 250 inches of water in placer mining, to be worth 200 men shoveling. For instance, if one man can shovel ten yards of gravel in one day of 10 hours, the same man can, with the aid of 250 inches of water running over an embank ment, dig out ten times as much gravel or dirt.

The same amount of water under 250 ft. pressure, will do the work of ten men ground sluicing or will move 2,000 yards of dirt every 24 hours.

Calculation of the Value of Water. — By scientific calcula tion we find that 250 inches of water under 250 ft. pressure, used to its utmost capacity, will move 7.7 yards of heavy wash gravel to each miner's inch of water every 24 hours, or 9.6 yards of earth and light gravel — the latter predominating at Bockerville, the for mer on Sheridan Bar and along Spring Creek.

Result. — This result moves 2,400 yards of dirt every twentyfour hours; the work of each nozzle, allowing 6 nozzles for 1,500 inches of water, gives a capacity for moving 14,400 yards of earth every 24 hours.

Very truly yours,

M. WiLLSIE,

Engineer.

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Marcus Walker, Esq.,

Dear Sir: — Below I hand you statement or estimated cost of the running expenses, after the construction of the proposed flume.

Starting with 6 nozzles or streams of water, kept con stantly at work.

Allowing eight hours to be a day's work for each laborer.

3 Men for each nozzle, 8 hours each — 18 men at $3 per

day . . . $54 , 00

5 Men in pit and sluices, $3 per day . 15.00

5 Watchmen on flume, $3 per day . 15.00

1 Foreman of work . 5.00

Superintendent . 12.50

Engineer . 6.66

Bookkeeper . 5.00

2 Horses, expense of . 2.50

Repairs, say . 10.00

Mill for lumber, block, riffles, &c . 25.00

Add to cover all contingencies . 99.34

Total . . $250.00

I cannot find items to cover the $250.00, and have added to make the amount, admitting that to be the cost for each 24 hours.

These works, when completed, have a capacity for moving 14,400 yards of earth in 24 hours time.

Allowing the earth to be worth but 25c. per cubic yard, will yield, daily, $3,600, or $108,000 per month — at an expense of $7,500.

With an area of 240 square miles, (12x20 miles which is known to exist) with an average depth of 12 feet, gives

you 2,973,696,000 cubic yards, to say nothing of Spring Creek Gulch, Sheridan Gulcfi and Bar, and much other ground along the line of the flume.

Very truly yours,

M. Willsie,

Engineer.

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Central City, D. T.,

July 1st, 1879.

Jno. McGinnis, Jr., Esq.,

This will probably be the most extraordinary letter that you have ever read on the subject of gold.

I went with Capt. West to Spring Valley, 45 miles from here, to a place called Sheridan, just above which he intends to put in a bed-rock dam from 15 to 20 feet high. The stream running through this valley he owns. As r saw it, I estimated it to carry 2,880 inches of water. It of course varies in volume, but I am informed that it never runs less than 1,200. This volume will be increased one-third by taking up the water on the bed-rock. For seven miles below the dam there are bars varying in size from 1,500 feet wide, and from one-eighth to one mile in extent. From this valley there are many side gulches. Passing over the divide we fell into Rockerville Valley. Here the bars are from one mile in extent to fifteen miles. Passing over these hills we fell into Battle Creek Valley.

These gulches, bars and valleys are all rich in gold-bear ing gravels, but are comparatively unworked, as the only water available is that which flows in the small streams in the bottom of the gulches. The only mode employed is to cart the dirt from i mile to miles, and then sluice it. If the dirt falls below $4 per cart load, or one cubic yard, the whole is abandoned, and richer diggings sought. Many have yielded as high as $50. Now, when I tell you that there are miles of this gravel, more than could be washed out in a hundred years, with a steady flow of 3,000 inches of water, it certainly goes ahead of any of the great placers either in California, Central or

South America. The like in extent or richness has never been discovered.

We made many pannings, and, with only two excep tions, always obtained gold, and never less than two cents to the pan of dirt, and from this to II. I saw eight team loads washed, the product was $40. Another man came into the bank and obtained for his gold $106. He stated it was from nine loads. I saw 2i pounds of gold — a clean-up of days, from a hydraulic nozzle on Battle Creek, and this was from dirt that had been pre viously worked. The gold is very fine grade, bringing $19.40 in New York against about $18 for Dead wood.

As I have stated, Capt. West owns Spring Valley water. It can be carried over any of the Hockerville bars, and is the only water that can be carried into the district. His preliminary surveys are now being made, and the estimate is $3,500 per mile, or for 20 miles $70,000. Add to this the sluices and hydraulic nozzles, 6 of them, $2,000 each, makes $82,000. As soon as the first half mile is built a large income begins at once.

I estimate that with six hydraulics at work, an income of $3,000 a day will inure, and this is below, not above. In California, it is estimated that gravel that will pay 6 cents per cubic yard is rich ; here at the lowest pannings of 2 cents, 140 pans to the yard, you have $2.80 cents to the yard. I have seen holes out of which from $2,000 to $6,000 have been taken.

The subject is as inexhaustible as the gold and the extent of the country.

Here, then, I place in your hands the largest mining project that has ever been laid before New York, and out of which you can gather an immense fortune. It is of more intrinsic value than many quartz mining properties. It eats no wood ; it takes no costly mill.

Personal inspection alone can bring to the mind even an approximate idea of this gold mine. It will easily bear a capital of $10,000,000.

In Capt. AVest you have a man experienced in the

California. Colorado and Australian gold fields. He lias been here three years, searching these hills. This is the first and only mine that he deemed worth embarking in. He has built nearly all the gold mills in this district, and bears universally the character of a conscientiously honest man, a thorough engineer and mechanic.

I have induced him to go to New York and put the property in your hands, and I trust you will not let this opportunity pass of making a large, a very large fortune. It is a daily income, and one that will last your life time, and for two or three generations to come. If you take it up I hope you will remember me in it.

Truly yours,

F. A. Babcock,

Manager of the Sir Rhoderick Dim Mines.

F. A. Babcock, Esq.,

Dear Sir : — Below you will find some facts and figures concerning the enterprise laid before yon by Capt. I. M. AYest and others, including the cost of the flume from the dam to its termination at Bockerville, a distance of seventeen miles. The estimate is made for one mile of flume. It is advisable to make a large allowance in the working capital for contingencies, which may arise in any well-conducted business.

The size of the proposed flume, and the size upon which the estimate is made, is three and one-half feet in height by four feet in breadth, capable of carrying at least two thousand inches of water, which will be all the water the company could spare to send to Bockerville, until the Sheridan ground would be washed out, which you can determine to be at a very distant day.

The planks forming the sides and bottom of the flume will be one and one-half inches in thickness. The seams will be battened with one-half by three battens. The flume will ,set on sills of three by six ; the box will be enclosed in brackets or straps of two by four, with the toj) cross piece of two by six. The sills will rest on stringers of four by six, except upon the trestles, which will be of six by six. All short trestles will be con structed of sawed, six by six. Large trestles will be constructed of hewed timber. The survey riot being flnished on close detail, the trestle timber is merely a rough estimate, but not in my opinion any too large.

Plank used in one mile of box, in. in thickness, of such width as may be obtained, not less than 12

in. wide, amounts to . 59,400 ft,

3x6 sills, six feet long, placed every four feet . 11,880 "

2x6 cross pieces, on top of flume, 6 feet long . 7,920 ft.

2x4 side brackets, 4 feet long, and mortised into sills

and top pieces . 7,040

4x6 stringers . 10,560

6x6 " 15,840 "

Battens to cover seams . 3,960 "

Trestles of sawed timber . 43,400

Total sawed timber . 160,000 ft.

Amt. hewed timber . 45,000 "

Total timber used . 205,000-ft.

By calculation we find that there will be fifteen kegs of nails used in the construction of one mile. Labor of putting the flume in place, etc., amounting to two thousand five hundred dollars per mile. There will be two tunnels to run, aggregating three hun dred feet. From above I form the following estimate:

160,000 feet sawed timber @ $15 . $2,400.00

45,000 " hewed " " 8 . 360.00

15 kegs nails " 8 . 120 . 00

320 rods grading " 2 . 640 . 00

Labor of construction, etc . 2,500 . 00

Cost for one mile . $6,020 . 00

" " seventeen miles . 102,340.00

Construction of dam . 10,000.00

One-half mile of pipe, with distributors and neces sary connections . 25,000 . 000

It is said by some that it always pays to ditch when possible ; but when water is the object, as in the present instance, it will not prove the cheapest. The loss by seepage would amount to at least fifty inches. This loss will more than compensate for the extra expense in one year, when saved by fluming. In a table compiled by myself, you will find the estimated power of the water under different heads, also showing the gross returns obtainable, which table is substantiated by experience in California.

I will now close by showing yon a few figures regard ing the amount of gravel in the country which this fiume will cover, as approximately estimated by myself, subject to your approval. ,

The area of this Placer country may be safely set down as 12x25 miles, or 300 square miles, all of which is goldbearing gravel, as has been determined by actual pros pecting. Let us suppose that only half, or one hundred and fifty square miles, is available to our fiume, we have then, by supposing the gravel to be only fifteen feet in depth, two billion, three hundred and twentythree million, two hundred thousand cubic yards. Re garding its richness, it is an exceedingly low estimate to put it at one dollar per cubic yard. 'Now the best results obtainable, with 300 feet pressure and one thousand inches of water, would be seven, thousand yards per day after the fiume is put in operation. Two hun dred and fifty dollars a day is a large estimate for running expenses.

In a year' s time this property may be made to pay a monthly dividend on one hundred thousand shares of one dollar per share. And this may be kept up for the next one hundred years without abatement. Let those who doubt come and see.

Y ours truly,

July 6tli, 1879.

Mr. F. a. Babcock,

Central City.

Dear Sir: — Yours of tlie 1st inst. duly received and contents noted. In reply I would say that, instead of giving you the opinion you ask for, I will give you some of the facts that hav come under my own observa tion during my stay in this section of the country.

In the building of this flume, the first bar of placer ground that we cross that can be made of any practical value is the Sheridan Bar, being mile in extent, with an average depth of gravel of about 15 feet. Of this ground, I can only say that I have seen at least 50 pan prospects with a yield per pan of 25 cents. Allowing 140 pans per yard, and with the above data the value of this bar can be easily calculated by yourself. Next comes the gulch of the same name, the dirt from which has paid on an average of $30 per load or yard. You may ask why is not this ground worked ? The reason is that all the dirt must be hauled to water, and be washed, and the natural obstacle to a roadway are such, that it is impossible to haul it with profit, dr the owners must build a flume of several miles in length, and no one of them is able to do this individually, nor are they able to do it collectively. What I have said of this much of the country I can say for the next four miles, after which I am not prepared to say anything until we reach our present end of the flume, which point we reach at such an elevation as will enable it to wash a section of the country at least 20x12 miles, the whole area of which has by actual prospects been demonstrated to be good

paying ground ; ground tliat will not yield 50 cents per yard being tlie very rare exception, and not tlie rule. Take such ground as Captain Jack, Jack Ass, Conlson, Wyman, Henderson, Headman and Red Earth Gulches and that adjoining, and it will be hard to find ground that will not yield at least $2.50 to $3 per yard. But this ground as it lies to-day, without wetter is absolutely worthless, and to such ground as I have described, there really seems to be no limit.

As to the probable cost of building this Hume, I am not yet in position to make a detailed estimate, but I feel, an an engineer, perfectly safe in saying that I do not think that it will exceed $6,000 per mile, as there are positively no engineering difficulties in the way.

So great is my faith in this enterprise that I shall, for the first time in over 16 years' practical experience in my business, offer to take pay for my own work in locating this fiume, in the company's stock at its market value.

And now for the only opinion I have to offer in the matter. That I thoroughly believe that with manage ment of anything like doing business on business prin ciples, the stock of the company can, in two years or less, be brought to represent its face value.

Very respectfully,

Oiml and Mining Engineer,

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To Maj. Genl. Alexandee Shalee,

'New York.

Dear Sir : — About the 25th of last June, in company with Capt. I. M. West, Mr. F. A. Babcock, and several other gentlemen, I visited the district generally known as the Spring Creek and Bockerville Country,'' in the Black Hills of Dakota.

We were engaged about one week in our investigation of this district. We worked early and late, and made many careful tests at each point visited.

I have read Mr. Babcock's report of the above investi gation, made to Jno. McGinnis, Jr., Esq., 30 Broad Street, New York, and dated July 1st, 1879 ; also the report of Marcus Walker, Esq., upon the property of che "Black Hills Placer Mining Conipany," dated Not. 29th, 1879. I can fully corroborate the statements made in each of the above-named reports. In truth, the extent and richness of the gold placer bars of the country referred to are understated by both Mr. Babcock and Mr. W alker. ,

The richness of the placer bars, the abundant facilities for dumpage, and the never-failing supply of water, afforded by Spring Creek, available for hydraulic mining, with the proper application of a moderate capital, will make this the greatest gold-producing placer district of the world.

Respectfully yours,

E. E. Cunningham,

Ex- Surrey or -General of Nehraslm.

New Yoek City, Dec. 6th, 1879.

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