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BC Historical Books

BC Historical Books

Mining and engineering record. [1920] 1920

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Array     MINING AND ENGINEERING RECORD
STONE
FOR
BUILDING
And LIME
CEMENT & MARBLE
METAL & MINERAL
PROPERTIES
CONSULT
A.   A.   CROWSTON
NOTARY PUBLIC
VANCOUVER, CANADA
DIAMOND DRILL
CONTRACTING   COMPANY
SPOKANE, WASH.
Contractor's   for  all   kinds  of Diamond   Drill
work.    We have  complete -outfits  in  British!
Columbia, Alberta and Saskatchewan.
Write for Prices
ROSSLAND,
B.C.
30tc
J. R. WILLIAMS
PROVINCIAL ASSAYER AND CHEMIST
540 Thurlow St. Vancouver, B. C.
Phone Sey. 7105
My Prices are Moderate and Accuracy is
Guaranteed
Price List Mailed on Request
Taylor Engineering Co,
Limited
CONSULTING AND CONSTRUCTION
ENGINEERS
850 Hastings Street West
Vancouver, B. C.
PLAN YOUR MINE
with
Sullivan
Diamond
Drills
Sullivan   "S"   Diamond   Drill   at   work   underground in  a  Cobalt,  Ontario Silver Mine
AFTER Sullivan Core Drills have found the ore, the intelligent manager depends on them constantly for advance knowledge in planning his mine.
The location of shafts or tunnels, the extent of faults, the
amount of development required, may all be exactly determined before beginning work by consistent use of Sullivan
Diamond Drills.
Why not use a Sullivan Diamond Drill to convert "Estimated
Reserves" into "Ore in Sight" on your next report?
Ask for Bulletin 069
SULLIVAN MACHINERY COMPANY.
HUTTON BUILDING, SPOKANE
Vancouver Agents: RITCHIE CONTRACTING & SUPPLY CO., Limited, Granville St. Bridge MINING & ENGINEERING RECORD
BRITISH   COLUMBIA
TO END OF DECEMBER, 1918
The Mineral Province of Western Canada
Has produced Minerals valued as follows: Placer Gold, $75,436,103; Lode
Gold, $97,121,786; Silver, $46,839,631; Lead, $42,294,251; Copper, $145,741,069;
Zinc $13,278,058; Coal and Coke, $187,147,652; Building Stone, Brick, Cement,
etc., $28,843,277; Miscellaneous Minerals, $651,759; making its Mineral Production to the end of 1918 show an
Aggregate Value of $637,353,581
The substantial progress of the Mining Industry of this Province is
-trikingly exhibited in the following figures, which show the value of production for successive.five-year periods: For all years to 1895 inclusive,
$94,547,241; for live years, 1896-1900, $57,607,967; for five years, 1901-1905,
$96,507,968; for five years 1906-1910, $125,534,474; for five years, 1911-1915,
$142,072,603; for the year 1916, $42,290,462; for the year 1917, $37,010,392; for
the year 1918, $41,782,474.
Production for 10 years ending December, 1918
$313,976,022 |
Lode-mining has only been in progress for about twenty years, and not
20 per cent, of the Province has been even prospected; 300,000 square miles
of unexplored mineral bearing land are open for prospecting.
The Mining Laws of this Province are more liberal and the fees lower
than those of any other Province in the Dominion, or any Colony in the British
Empire.
Mineral locations are granted to discoverers for nominal fees.
Absolute Titles are obtained by developing sueh properties, the security
of which is guaranteed by Crown Grants.
Pull information, together with mining Reports and Maps, may be obtained gratis by addressing—
THE HON. THE MINISTER OF MINES
VICTORIA, British Columbia Established 1895 E. A. HAGGEN, Editor
Published Semi-Monthly by TECHNICAL PRESS, LTD
The Mines Building, 426, Homer St., Vancouver, B. C.  '
Telephone Seymour 3825
Cable Address: " Kanagan." Vancouver, B. C
The Mines  Building
Home of the  ' 'Mining   and Engineering Record
Subscriptions payable in advance: $2.00 per
annum, including postage in Canada, and to Great
Britain. To United States and other countries,
$3.50 per annum, including postage.
Subscribers requiring change of address must
notify the office of the publishers in writing.
Advertising Rate Cards supplied on application
to publishers.
Volume XXV No   I & 2
VANCOUVER, B.C., JANUARY 30, 1920
Single copies, 25c
CONTENTS.
EDITORIAL
THE GOLD PROBLEM  	
The Editor reviews the monetary situation
and considers the outlook for the recovery
of gold to its former economic position as
. most hopeful.
MINERAL OCCURRENCES IN THE STEWART DISTRICT $g|
By E. E. Campbell, Superintendent Hidden
Creek  Mine.    Mr.   Campbell  examined the
NOTES          1 Salmon River section and notes his impres- .
  sions thereon.    His views of the future of
the camp are decidly optimistic, and are entitled to much weigbt,. for Mr. Campbell has
proved himself to be one of our best posted
and successful mining engineers. An interesting discussion ensued on the reading of the
paper at the meeting of the Canadian Mining Institute, and this discussion is fully reported.    Its bearing on the question of sec-
THE MINING BOOM AND ITS DOOM ...:      2 ondary enrichment is particularly valuable.
The  recent  attempt  at  creating a mining .	
boom is discussed and incidents given of wildcat   flotatioris  which  have been unusually THE DOLLY VARDEN MINE     12
prevalent. By Major Angus W. Davis, former Superin-
- tendent of the mine.    Major Davis describes
the nature of the ore occurrences, describ-
AMERICAN CHEMICAL SOCIETY'S MEET- ing the difficulties of -mining, and notes the
ING  5           production for last year. .
POTASH IN THE UNITED STATES  5    RAILWAY ELECTRIFICATION        14
  The plans for providing hydro-electric power
BRITISH CANADIAN SILVER CORPORA- for electrification of portion of the mountain
TTOTsT    T TMTTFD 6 section of the C. P. R. are stated, this being  .
„   „   ' ' TT r-j-1 '' .<\V- "•'"    "" WM   "■'' one of the most important electrical engineer-
Bv E. A. Hag-gen, Editor   Mining and Engin- • ui„       j^.i       • 1       %      a
y.     „      5f „ '   . .   .              &            &                       ing problems undertaken in western Canada,
eenng Record.      I his is a new company organized  in  London  by interests  connected 	
with the Selukwe Gold Mining Company to „ '
take up and develop properties in British Col- „    „..      ''" *". " " * ':' * * & * * *'     * *"": *.' * * *
. ■       A        .•   'tf   t.     . i „ .„_, By Oliver Bowles ,of U. S. Bureau of Mines,
umbia.    An option has been taken on snares mr   i_- t\   r-     -mt    r>     * i
,   ., ,     h,     £,    ,       .       k    -■    ..     c , Washington, D. C.    Mr. Bowles refers to a
held by the Bush interests in the Salmon u   ^     a- ■    a ■ a a-
r>.        ■*   ..       r n    ..1    j /~      i      a a     i n*2w asbestos discovery m Arizona, and dis-
River section of Portland Canel, and develop- .,       ,       .      J.   ~,. ',    0    ,,,
,. j     it. cusses   the   deposits   of   China  and   South
ment is now proceeding under, the super- Ar-        , j     i . ■   j.u r
. „     ^ %r „       ,v      L. j   • Ainca, also a new development m the use of
vision of E. G. Banks, M.E., who reported ^w„^'   •    t*. i       t,       •*. • r a *  \.u
, .     .    ,3       t.       r i   r asbestos in Italy, where it is applied to the    r
on the properties in November of last year. fg      f    ,    P   (■ ,      ,, .-,
„     .    f   ^ . §&s£ *. *■    .- manufacture of pipe and wall tile.
Particulars are given of  the capitalization
and operations of the Selukwe Gold Mining !	
Company, Ltd., whose field of activities has CATTDTC   mur izr
hitherto been mainly in South Africa. BRIQUETTING SOURIS  COAL     16
The utilization as fuel of lignite deposits is
an important problem, and the plans for con-
7 verting Souris lignite into a high grade an
thracite are stated. The market price for
this prepared product is quoted at $7.50 per
ton, and if this result can be achieved the
. miners of bituminous coal will have to prepare to meet this price.
ALGUNICAN DEVELOPMENT COMPANY
This company has taken up properties in the
' Portland Canal Mining Division, and is actively developing them. Particulars are given
of the George property, a promising copper
prospect at the head of Bear River. MINING & ENGINEERING RECORD
NUGGET GOLD MINES, Ltd.
Developing the well known Sheep Creek properties of Nugget, Motherlode,
and Searchlight groups from which over $1,000,000 in bullion has been
taken. .
|  ENCOURAGING PROSPECTS |j
Latest reports from Mr. R. H. Stewart, engineer in charge of development
work at the properties, are very satisfactory. Work in connection with the
tunnel designed to connect the Nugget property with the aerial tramway and
mill of the Motherlode group, is going satisfactorily, being in about 870 feet.
A five foot vein of ore was penetrated at 830 feet, which showed good values.
The five Nugget veins are expected to be encountered by the tunnelers very
soon. . We will be glad to furnish all information in our power to stockholders who care to enquire. ''WM I
BURDICK   BROS.§&   BRETT,   Ltd.
Sey. 7483—7484
HOTEL VANCOUVER BUILDING
VANOOUVER, B. C.
Which?
491bs.   or   1121bs.
OF EXPLOSIVE
THESE figures represent the comparative quantities of SABULITE and 40% dynamite used in
actual tests to bring down 125 tons of rock.
Thus illustrating what war time necessity and improved
efficiency has done for mining and engineering.
SABULITE, instantaneous explosion, non-freezing
even at "40 below," is also the safest explosive made.
Can be burnt, shot into, etc. Write our engineer for
any  further  information  you  require.
SABULITE
"The Modern" T. N. T. Explosive
Head Office: 470 Granville, St., Vancouver
Works: Port Ooquitlam, B. C.
Vancouver Engineering
|P| Works, Ltd.
VANOOUVER, B. C.
ENGINEERS, BOILERMAKERS,
STEEL, IRON & BRASS FOUNDERS,
BOLT & RIVET MANUFACTURERS
Buy your Bolts and Rivets from us and Keep
Your Money in B. C.
Boilers, Tanks, Ore Cars, Mine Cars,
Mining Machinery
USE "V.E.W." STEEL CASTINGS
and avoid costly breakdowns
We carry the largest individual stock of Iron
and Steel of all kinds in B. C, and having the
largest equipment can give exceptional service.
Office and Works:
519 to 659—6th AVENUE WEST
near Cambie Street south
Phone Fairmont 240 Private Exchange Mining and Engineering Record
Vol XXV., Nos. 1  & 2
Vancouver, B.C., January 30, 1920
Single Copies,  25c.
EDITORIAL
.P. A. O'Farrell does not appear to have improved
his sense of journalistic responsibility since the days
when he was August F. Heinze's publicity apologist.
In a recent contribution to the press he says:—"The
inefficiency of coal miners is so great on Vancouver
Island that coal costs $6.00 a ton at the pit mouth.
Hence arrangements are being made to bring coal by
rail from Alberta to Vancouver." Mr. O'Farrell overlooks the fact that the mining of coal on Vancouver
Island has always cost much more than on the mainland owing to the irregularity of the deposits, the unfavorable natural conditions for using labor-saving
machinery, the divergence between the winter and
summer markets, and other causes. The price of coal
on Vancouver Island is admittedly too high, but the
same may be said of the coal supply in all parts ot
the world, due to monetary inflation, and its accompaniment, the high cost of living. There are just as
good coal miners on Vancouver island' ao in any part
of the world, and when the difference in the heat
value of the respective coals is taken into consideration, Vancouver Island has nothing to fear from
Alberta competition. Wfy
A writer in the daily press truly remarks: '' Something has gone wrong with the machinery of American finance when money in America costs double
what it does in Great Britain." American finance is-
i a victim of the inflation bug. According to F. A.
Vanderlip, a leading American banker, the Federal
Reserve Board has authority to issue paper currency
to 30 times the amount of the gold reserve, and it has
already inflated the basic money of the United States
2500%, with the disastrous effects we see in loss of
trade, shipping lying idle in American ports, other nations calling on the United States to, export its gold
reserve in settlement of trade balances. American national finance is not in a sound condition, and the
world is beginning to find it out. The sooner the Federal Reserve Board depends more on its gold and
silver money and less on its inflated paper currency,
the better will it be for the nation.
*    *    *
Wildcat promoters of Seattle and Vancouver have
now added to their visions a fleet of hydroplanes car-
- rying everything from mail to ore, between the mines
of Portland Canal'and Stewart.    Perhaps when they
learn that the average grade of ore in the camp will
not stand a transportation charge of more than about
$10 a ton, they may begin to take a mundane view of
things.
*    *    *
One of the greatest drawbacks in the establishment
of a complete iron and steel industry is the cost of
rolling mills, and the fact that they must run from
January 1st to December 31st, to make them profitable. It has hitherto been impossible for all but the
great iron and steel plants to meet these conditions,
but it looks as if a change is coming over the scene.
Great Britain, which formerly not only supplied her
own requirements in ship plates, but carried on a
large export trade in this branch of the business, is
now compelled to import a large part of her requirements./ . The Armstrong-Whitworth firm requires
20,000 tons of ship plates from the rolling mills of
eastern Canada, and this feature of British iron and
steel requirements is likely to develop further. If it
does it will solve the question of market, and justify
large iron and steel works and rolling mills on the
Pacific as well as on the Atlantic coast of Canada.
*    *    *
The United States Postal Department and the Attorney-General's Department have rendered magnificent national service by the manner in which they
have exposed and prosecuted fake mining promoters.
The silver situation has created in the cities of the
eastern States on a large scale what we in British Columbia see on a small scale—a wildcat boom in silver
stocks. The United States Attorney-General is doing what our own Attorney-General"- should be doing,
prosecuting the wildcat promoters. Thomas W. Law-
son, the promoter of Yukon Gold, is one of the brokers
placed under arrest in connection with the bulling and
bearing of certain silver stocks from a few cents to
$8 or $9 a share, and his booming silver ao "the great-
est gamble of the age."
The Consolidated Mining and Smelting Company is
to be congratulated on following the pace set by the
Granby Company in improving the conditions of its
employes with a view to creating a healthy, prosperous and satisfied condition among them. A housing
scheme has been devised by which the company will
loan its employes up to $2,000 to purchase a lot and MINING & ENGINEERING RECORD
build a house wherever it is desired to maintain a
home, the loans to be repaid over four to eight years.
Building materials will be supplied where required
at cost and the loan secured by mortgage. A housing
committee has been appointed from the employes to
give effect to the scheme. A plan for the insurance
of employes is also being worked out.
*   *   *
THE GOLD PROBLEM. •
The attention devoted throughout the civilized
world to the economic problems of the day is of great
importance to the gold miner in that it premises to
solve his difficulties and result in the restoration of
gold to its- former place in relation to the price of
commodities. The address at Seattle by Mr. Vanderlip showed that American bankers realize the unsoundness of the federal reserve bank system which
authorises the issue of paper currency to 30 times the
gold reserve. Great Britain has had more financial
experience than any other nation, and in pre-war
times it was considered unsafe banking to allow the
gold reserve to fall below a third of the paper liabilities. Hence the practice of the Bank of England,
when the gold reserve threatened to go below that
margin of safety, in raising the bank rate to again
attract gold to the bank.
Now, according to Mr. Vanderlip, the United States
Federal Reserve Board has only one twenty-fifth of
its paper currency protected by gold. In other words
the United States Federal Reserve Board has grossly inflated the currency, and this inflation is the main
factor in the increased prices of commodities and the
development of an unsound financial condition which
may, as Mr. Vanderlip admits, end in a financial
panic.
Tfiat Great' Britain thoroughly understands this
problem is evident from the fact that the Government has adopted a policy of remitting gold to the
United States to liquidate the international liabilities; to undertake the payment of war obligations
in the United States before maturity; to liquidate
the Anglo-French war loan within the year, and to
pay off the entire war debt in IS years. These are
heroic measures, but they are the only measures consistent with financial * stability and sound finance.
They will call for every ounce of gold the British
Empire can produce, and they will at the same time
result in squeezing the inflation out of the currency,
restoring gold to its value in relation to commodities, and placing Great Britain again on a sound
financial basis, in which the pound sterling will command the first place in the world's money markets,
and may even place a discount on the American
dollar.
Australia is one of the most radical units of the
British Empire. But Australians study economics,
and have come to the conclusion that the only remedy for the present inflation of prices and financial
stability is the return to a metallic basis of money.
Consequently Australia has discontinued the further
issue of paper money, and has adopted a policy of
returning to a gold basis.
Canada is likewise arranging to reduce the currency on one hand and increase the gold reserve on
the other. The outlook for gold is therefore most
hopeful. It will, of course, take some time to work
out these problems, but every day brings us nearer
the goal of a restoration to sound money, and the
demand for gold in its pre-war relation to commodities.
*   *   *
THE MINING BOOM AND ITS DOOM.
While the mining industry is as a whole quiet, an
attempt is being made to launch British Columbia'
again in the throes of an old-time mining boom in
the north. The mining industry is quiet, because
under existing economic conditions gold mining does
not pay, and is neglected. The copper market has
not yet taken on activity owing to the disorganized
condition of European industries, and the fact that
war stocks of the metal have not been quite cleared
out of the way. Coal is in good demand. The
price of silver has slumped and the lead and zinc
markets are indifferent.
This is the truth, and it is rather inconsistent that,
under such conditions, the Province should experience a^mining boom. This boom will, like aM
previous ones,, end disastrously to many victims,
while the mineral industry will again suffer as the
result. There is nothing to justify a boom. The
existing movement is largely wild-cat. It is based
"on th? strike of some high grade ore in the Premier
Mine on Salmon River in 1918, and the production
of some native silver at the Dolly Varden Mine at
Alice Arm. These strikes in the north are no better
than have been made in the past in Rossland and
Slocan. The amount of high grade ore is very limited. With a quarter of a century of mining experience the average values of characteristic British
Columbia mineral deposits are pretty well established.
Gold ores average around half an oz. gold per ton;
silver ores carry average values of $17 per ton; copper ores range around 2%. These values mean that
mining is very much like any other industry—there
is little room in it for gambling. It requires the best
of business management to obtain successful results
and earn a dividend. This is shown by the fact that
the dividends of the mines have not averaged more
than 5%; and that with over 150 mines on the producing list of the Province, only nine are on the list of MINING & ENGINEERING RECORD
dividend payers.      Where is the justification for a
boom under these  conditions?
The worst disaster that Canada experienced was
the real estate b0|0m which spread over the country
between 1909 and 1912, in which scores of thousands
of well-todo people were ruined, and it took the
country eight years to recover from the mischievous
effects. That boom was organized by a host of real
estate sharks and parasites, attracted by the boom
from all parts of the world. It did untold harm,
just as every boom, of whatever kind, has left behind it the dregs of ruin and disaster to many thousands of victims, while those responsible for it have
betaken themselves and their gains to other fields.
British Columbia is today experiencing an organized attempt to make the mineral industry the subject of a repetition of the real estate boom of ten
years ago; and it is being prosecuted in a manner
just as unscrupulous. Portland Canal and Alice
Arm are the magic wands used to part the victims
of the boom from their savings, in most cases hardly
earned. Everything is of course located either next
to, or near, or on the same veins as, or on extensions
of, the Premier and Dolly Varden mines. A century's experience has taught us that where rich ore
shoots occur, their extensions are ge