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Montana-Bingham Consolidated Mining Co., 1910-1946

This page last updated on May 12, 2025.

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By T. P. Billings

(From the Don Willie collection, courtesy of Ren Willie. Shared on Facebook by Steve Richardson.)

(Transcribed from the typewritten original by Don Strack, with minor edits to correct spelling and grammar errors.)

1910-1914

The Montana-Bingham Consolidated Mining Company was organized in 1910 and acquired the property of the Bingham-Butte Consolidated Mining Company. The Bingham-Butte Consolidated Mining Company was organized in _____ [?] was successor to the Puritan Mining Company and held a lease and option on the Tiewaukee property. The property of the Puritan Mining Company comprised four lode claims an area of 50.301 acres, the Eddie group, situated on the east slope of Bingham Canyon and extending from Ely Gulch, which is just on the opposite aide of the canyon to Carr Fork, easterly to McGuire Gulch. The Tiewaukee property comprising an area of _____ [?] acres adjoins the Eddie group in McGuire Gulch and extends down the east slope of lower Bingham Canyon to the Winnamuck Gulch.

(Bingham-Butte Consolidated was formed in 1907.)

(The Tiewaukee group comprised 10 claims on 114 acres. -- Mines Handbook, 1922)

The early day developments on the Eddie group included two adits, an upper and lower with their portals high up the slope in Ely Gulch. Each of these adits crosscut quartzite and a porphyry dike that extends northerly from the Utah Copper porphyry mass. Drifting from the crosscuts was carried on along the contacts of this dike with the quartzite and disclosed small patches and small pipes of oxidized copper ore but failed to open up a sizable orebody. Also an adit was driven from McGuire Gulch at a point about 50 feet above the canyon floor in lower Bingham and was called the Hubbard Tunnel which was later changed to the Montana-Bingham Tunnel.

The Hubbard Tunnel, on a southeasterly course, crosscuts the sedimentary formation of quartette and about 400 feet from the portal cuts a narrow bedding fissure, called the Eddie Vein, which was drifted on for about 200 feet disclosing a small seam of low grade copper pyritic material. About 50 feet past the Eddie Vein a fractured zone was drifted on toward the southeast disclosing disseminations of oxidized copper minerals in a porphyry dike. The best showings are prospected but proved too irregular for profitable mining.

By 1913 the Montana-Bingham Tunnel had passed through the property of the Montana-Bingham Consolidated Company; and in 1913 agreements are made between the Montana-Bingham and the Bingham Congor and Bingham Amalgamated Companies. Properties of the latter two adjoin the Montana-Bingham on the south and east. These agreements provided for extending the Montana-Bingham Tunnel into the latter two properties by the Montana-Bingham Co. and the transportation of ores and waste with their handling at surface by the Montana-Bingham Co. at specified rates. The Montana-Bingham Co. also received about a one-sixth interest in the outstanding stock of the United Bingham Copper Mining Company, which was organized as the successor of the Bingham Amalgamated Company.

The extension of the tunnel at _____ [?] feet from its portal intersects the Copper Glance vein of the United Bingham Co.; at 2700 feet the Manafay or Hogg vein of the United Bingham Co.; at 3900 feet the Winnebago or Congor vein of the Bingham Congor Company. The Bingham Congor and United Bingham Companies, controlled by the Bothwell and McConaughy interests, carried on the development of their respective veins at and above the tunnel horizon but failed to disclose a profitable orebody.

In the meantime the promoter, W. E. Hubbard, of the Montana-Bingham Co. enterprise had obtained finances through the sale of stock and a bond issue which placed the control with Honolulu businessmen engaged in the production of sugar and pineapple. When faced with the failure of developing profitable orebodies in the company's ground or in the Bingham Congor and United Bingham properties, the Honolulu people now directing the management in an effort to retrieve their losses acquired options on the Valentine Scrip patent, located in the bottom of Bingham Canyon between McGuire Gulch, and the Fortuna group of claims situated on the east slope of the Oquirrh range, lying between the Keystone and Copper gulches and adjoining the properties of the United Bingham, Bingham Congor, Ohio Copper and Bingham Mines Companies. Also the Montana-Bingham had an option on the Tiewaukee mine.

The Tiewaukee mine adjoins the Montana-Bingham property in Bingham Canyon on the north. It comprises mining claims situated on the east slope of the canyon and at its floor extending from McGuire Gulch down canyon to the Winnamuck Gulch. These claims are among the oldest locations and patents in the district. The formation is quartzite with intercalated beds of limestone near the top of the Bingham stratigraphical column. Two separate shoots of ore, the Tiewaukee and Caledonia, outcrop on the property at places about 200 feet apart on the south side of Winnamuck Gulch and with a flat dip trend southwesterly toward the canyon floor. By a series of short tunnels these oreshoots, in very early days, are exploited from surface nearly to the canyon in the case of the Tiewaukee shoot. The formation is cut by a series of movement planes that strike northeast-southwest and dip north-westward at angles ranging from 20 degrees to 75 degrees.

The Tiewaukee oreshoot occurred as lenticular shoots on fissures, and made out as lenses into the footwall and as nearly vertical sinuous pipes into the hangingwall and is related to an arenaceous limestone. The largest stone found is where the orebody made on a flat movement plane and extends down from about the No. 3 Tunnel to a short distance below the Lower Tunnel where the ore is cut off by a strong nearly vertical northeast fault; downthrow to the north. The walls are either quartzite or black shale and in the sulphide zone just below the No. 3 Tunnel elevation the ore n places appears to have the definite fissure and is found as pipes or chimneys in the hangingwall; also vugs, pockets, and lenses in the quartzite footwall carry copper pyrites and lead-zinc sulphides frozen to the walls.

The ore is composed of galena, sphalerite, pyrite and chalcocite, with a quartz gangue. The ochery carbonate ores extend from surface croppings to a vertical depth of about 75 feet where they give way to sulphides. In the sulphide zone the ore is in bands of rich silver ore on the footwall, galena on the hangingwall with sine and copper pyrite in the center. Both native and ruby silver is found and the following production has been reported: In 1880, 360 tons assaying about 95 ounces silver, 50 per cent lead, and $12 gold; other shipments carried 60 ounces silver, 40 to 50 per cent lead; 102 ounces silver, 22 per cent lead, 12 per cent zinc; and a footwall body yielded $17 gold, 33 per cent iron. A record of the total production is not available but from the size of the stopes and known grade of ore mined during and in very early days this oreshoot has significance. Developments to date show its persistence from surface croppings to a vertical depth of about 320 feet, which with its flat dip shows a run of continuous ore about 300 feet long on its nearly westerly rake from surface to where the ore is interrupted at a steep dipping northeast-southwest fault.

The character of the ore occurrence in the Caledonia oreshoot and enclosing rock formations and vein structure is very similar to those of the Tiewaukee oreshoot. Its outcrop is about 200 feet southeast and higher up Tiewaukee Gulch from the outcrop of the Tiewaukee oreshoot. Although the transition between oxidized ores and sulphides and the fact that its occurrence is very similar to those seen in the Tiewaukee oreshoot, the silver content in the sulphide zone is not as high. The Caledonia oreshoot also shows continuity from its outcrop to the lower tunnel level a vertical depth of about 350 feet, which with its flat dip and southwesterly rake has been developed for a length of about 900 feet. Both the oreshoots on its respective dip and rake downward get deeper into the canyon wall and toward the center of the Bingham district mineralization.

The early day developments, in the eighteen seventies, comprise an incline down on the outcrop and the Caledonia Tunnel, with its portal on the southwest side of Tiewaukee Gulch and below the outcrop. The Tunnel was driven southwesterly about 500 feet and by raises therefrom developed the downward continuation of the oreshoot, all in the oxidized zone. The Montana-Bingham Company, in 1926, drove a crosscut from the Tiewaukee No. 3 Tunnel about 200 foot southeasterly toward a probable extension of the Caledonia oreshoot but was in barren ground. However, it continued the No. 3 Tunnel southwesterly and disclosed ore which appeared to be a continuation of the Caledonia oreshoot. The ore occurred as a white spongelike mass of quartz carrying lead carbonates and relative high silver content in a gray sandstone and quartzite. On account of its extreme porosity the ore per cubic foot only had about one-half the weight of the normal run of mine ore. An incline raise was then made from the southeasterly crosscut on the No. 3 Tunnel and broke into the old workings on the early day Caledonia Tunnel in the oreshoot.

In very early days the Tiewaukee lower tunnel was extended southeasterly beyond a downward projection of the Caledonia oreshoot, but the developments on the No. 3 Tunnel indicated this extension to be in the footwall. So the Montana-Bingham Co. drove a drift westerly from the extension of this lower tunnel along a likely looking bedding and disclosed low-grade copper pyrites and lead-zinc sulphides. A raise was made on the dip of the bedding disclosing the low-grade material up to a connection with the developments in the Caledonia oreshoot near the westerly end of the No. 3 Tunnel.

On and above the No. 3 Tunnel the oreshoot is very irregular, almost horizontal then extending into the walls as pockets and lenses over areas about 60 feet in diameter, then rising steeply along a northeast-southwest fracture. On and in the raise above the Tiewaukee lower tunnel the sulphide ore, from 2 to 4 feet thick appears to lie more uniformly with the bedding.

The Valentine Scrip covers the main part of the town of Bingham and extends northerly from a point in Bingham Canyon about 1000 feet south of Carr Fork, down canyon to about its confluence with Markham Gulch, comprising 40 acres, and described as the W 1/2 of E 1/2 of NW 1/4 in Section 26, Township 3S, R3W., SLM.

The country rock is a great series of quartzites and interbedded calcareous sandstones. The strike changes from a northeast-southwest direction at the mouth of Markham Gulch to a nearly east-west at the mouth of Dixon Gulch.

Near the floor on the west side of Bingham Canyon and situated about 200 feet north of Dixon Gulch, the Montana-Bingham Co. sunk a one and one-half compartment vertical shaft. At the _____ [?] level a small showing of lead-zinc sulphide was disclosed and prospected for about _____ [?] feet toward the _____ [?].

After the Civil War it appears that scrip which was negotiable and covered government ground was issued by the government to parties for some service rendered the government. And on February 9, 1876, the above described 40 acres in Bingham Canyon per Valentine scrip 1-E-No. 227 was located by David H. Bentley and a patent issued July 10, 1876. This patent excludes conflicts with the Argonaut No. 1 Placer, Lot 302, the McGuire and Co's. Placer Lot 242 and the Cleveland lode claim Lot 46.

In March 1877, Bentley deeded the property to Hattie A, Vandercook and Wm. McKay who deeded to Janas Erickson who in 1899 deeded to T. R. Jones, a prominent banker and mining man of Salt Lake City. Then in July 1900 Vandercook deeded his interest to Stephen Hays and in July 1902 T. R. Jones deeded his interest to Stephen Hays. However, prior to Stephen Hays acquisition of the Valentine Scrip patent which on account of its location covering the floor of Bingham Canyon practically in the heart of this fast growing mining camp, numerous transfers of the surface are made for residences, mills, business houses and many other uses. Mr. Hays came to Bingham in very early days and established a mercantile store on a site about at the location of the lower entrance to the vehicular tunnel. He grubstaked many early-day prospectors and also acted in a banking capacity for the miners before a regular bank was established in Bingham. He appeared to have great confidence in the future of Bingham and therefore acquired interests in mining claims and other property throughout the district.

1915

In August 1915 Mr. Hays sold a certain described area of the Valentine Scrip patent to Utah Copper Co. This area is located on the south slope of Carr Fork and used by the Utah Copper for the construction of modern brick houses for its operating officials. However, Mr. Hays reserved the rights to ores, to mine and remove ores so as not to endanger buildings. Then, in about 1918 with exceptionally high prices for copper, lessees became interested in disseminated copper minerals and in places native copper scattered throughout the fractured quartzite which is marginal to the Utah Copper porphyry on this area. The lessees began mining on the area adjacent to the Utah Copper houses right at surface with small open pits. The Utah Copper Co. immediately applied for an injunction but after a hearing the court held that Mr. Hays was within his rights as reserved based on the fact that the bulk of the production in the Bingham District was obtained by surface operations.

1916

On March 30, 1916, the Montana-Bingham Co. obtained a deed from Mr. Hays covering the conflict of the Valentine Scrip area with its Cleveland lode claim although the Valentine patent had specifically excluded the conflict and such conflict had been included in the Cleveland patent.

In the early nineteen twenties lessees of the Utah Copper Co. collected copper laden waters in Dixon Gulch and conveyed them by pipeline to their precipitating plant which was erected on the old right of way of the Copper Belt railroad on the east side of Bingham Canyon at McGuire Gulch. These waters carried from 50 to 70 pounds of copper per thousand gallons of water and are considered as exceptionally high grade. The Utah Copper Co. in its early open pit operation had disposed a large tonnage of its oxidized copper overburden in the upper stretches of this gulch upon which it had purchased certain surface rights.

Based upon the decision laid down by the Supreme Court of Utah in 1929 covering the Utah Copper rights to the waters from natural sources percolating through its dumps and the restrictions to collecting such copper laden waters emerging from the dumps, the Hays Co. instituted a suit against the Utah Copper claiming such waters and refraining it from collecting them on the Hays ground which was in the lower end of Dixon Gulch and an appreciable distance below the Utah Copper dumps of low grade oxidized copper ores. The rock formation of quartzites and interbedded calcareous sandstones which dipped westerly into the hillside underneath the dumps apparently conveyed the copper waters as they emerged from the dumps down the dip of the strata and such waters, in large part, then came to surface out of the solid bed-rock lower down the gulch on the Hays ground. The lawsuit was bitterly fought and finally settled in December 1939 by Kennecott Corp., successor to the Utah Copper, with its purchase of the Valentine Scrip patent from the Hays Company.

The Thrush lode claim comprising 6.2 acres is situated on the east slope of Bingham Canyon and its floor at the bottom of McGuire Gulch adjacent to the portal of the Montana-Bingham Tunnel. The surface was very desirable for disposal of waste and for additional facilities. At two different places on the claim small fissures carrying lead-silver carbonates are prospected and lessees obtained small production. This lode claim was purchased from the John B. Stevens' estate in 1917.

The Montana-Bingham Co. had extended the Montana-Bingham Tunnel about 4,000 feet southeasterly by 1916 and it had passed through the properties of the Montana-Bingham, Bingham Congor Copper and United Bingham Companies without disclosing a profitable orebody; and the face of the tunnel was in the down dip of the Fortuna sill of porphyry, which outcropped on the property of the Fortuna Mining Co. This property had produced a considerable tonnage of ore, principally copper from early day mining up to 1908, and production was resumed in 1916 by the Fortuna Mine and Leasing Co. headed by James E. Higgins of Butte, Montana and George Eccles of Ogden, Utah. The Fortuna Mine and Leasing Co. had acquired an option and lease on the property from the Fortuna Mining Co. in 1916 and its operation of the property was not too promising from the old upper workings which in large part had been depleted by previous operators and further work at depth offered many problems. So in large part those problems could be solved by developing the Fortuna mine through the Montana-Bingham Tunnel.

The developments on the Bingham Canyon area of the Montana-Bingham Company and those in the Montana-Bingham Tunnel beneath the Bingham Congor and United Bingham properties are disappointing and in view of the possibilities indicated in the Fortuna mine at depth which could be explored economically by an extension of the Montana-Bingham Tunnel, the Honolulu interests acquired the option on the Fortuna property from the Fortuna Mine and Leasing Company in 1917.

1917

Mr. James E. Higgins was appointed superintendent and C. G. Ballantyne president of the Montana-Bingham Company. A concentrator of about 100 tons capacity was erected in the spring of 1917 on the north slope of Keystone Gulch and about 1000 feet northeast of the portal of the Keystone Tunnel of the Fortuna Mine. The concentrator was in the nature of an experimental plant using the flotation process to treat a body of low grade disseminated copper ore in fractured quartzite in and related to the Mayflower vein system. This disseminated copper deposit had been disclosed on the Keystone Tunnel in about 1905 under the management of Mr. Rossberg of the Bamberger Exploration Company. This orebody appears to occur along the westerly edge of the Mayflower oreshoot which prior to 1905, and beginning in early nineties had been exploited from its outcrop on the north side of Copper Gulch down dip to about 150 feet below the Keystone Tunnel.

The concentrator was constructed of wood covered with corrugated iron and was equipped almost entirely of old second hand machinery except for the Wall corrugated rolls, an invention of Enos Wall of Utah Copper fame. The water for the mill was pumped from the Montana-Bingham Tunnel through a 4 inch pipe in the Congor raise which had been driven by the Bingham Congor Company to a connection with the bottom of the Connor incline that extended down from a short adit which has its portal on the north side of Keystone Gulch just above the mill.

Mr. J. Benton Leggat was appointed General Supt. and Consulting Engineer of the Montana-Bingham Company in 1918 and, according to his reports to the President, Mr. C. G. Ballantyne, was vary optimistic as to the Fortuna property becoming a profitable producer of copper on a large scale operation. Mr. Ballantyne was from Honolulu where he managed a street railway system and was entirely new to the mining business. Their hopes of success for the Montana-Bingham Co. was, therefore, centered in the development of the Fortuna property so far as the finances permitted.

Fortuna Mine

At the time of the acquisition of the Fortuna property by the Montana-Bingham Co., it comprised a group of 23 lode claims, all contiguous totaling 170.0 acres located on the Lark side of the Oquirrh Range and extending from Keystone Gulch southwesterly to the top of Copper Gulch. The claims cover the outcrops (from the lowest to the highest in the strata) of the Weasel, Mayflower, Fortune, Sierra Grande and Winnebago veins, for strike lengths of about one and one-quarter miles. They are all typical bedded veins striking northeast-southwest and dipping northwestward into the mountain at about 30 degrees, with the stratigraphical position of the Weasel vein (the lowest of the series), _____ [?] feet above the Commercial limestone.

(The Weasel vein was generally 60 to 100 feet above the Commercial limestone layer.)

The claims, constituting this group, are located in the eighties and early nineties by individual prospectors who in most cases showed a practical knowledge in laying out their respective claims to so cover an outcrop and the vein toward the exercise of extra-lateral rights to such vein on its dip. In the late nineties Elmer Hill acquired a number of the locations which in November 1896 are deeded to the Fortuna Mining and Milling Co. For many years Mr. Hill owned and operated the Elmerton Hotel situated in the town of Bingham near the mouth of Markham Gulch. It was considered Bingham's first-class hotel.

The early day prospecting at surface had indicated the Mayflower and Fortuna veins as the most promising of the series of veins. Consequently, for the development of these veins and the oreshoots which had been disclosed at and near surface, the Fortuna Mining and Milling Co. sunk the Mayflower Incline with its collar on the northwest side and near the top of Copper Gulch. Also two tunnels, an upper and lower Mayflower, with their portals on the west side of Mayflower Gulch, a north branch off Copper Gulch, are driven southwesterly about 400 and 600 feet, in most part along the vein, to connections with the Mayflower Incline which followed down the dip of the vein.

There are no records of production from the early day mining in the near surface portion of the Mayflower oreshoot available. However, in later years, at times of high metal prices, lessees operated in these old Mayflower tunnels and exploited extensions of various ore showings from the old stopes and produced in most part carbonate lead ores carrying appreciable amounts of gold and silver, and although the old stopes are mostly caved they gave evidence of a persistent oreshoot which had yielded substantial tonnages. Northeast and southwest of these workings on the Mayflower oreshoot early day prospecting of this vein was carried on by relatively short inclines which followed the vein down dip from its outcrop. However, such work apparently failed to disclose an oreshoot that gave promise of profitable production.

Further to the northeast on the south slope of Keystone Gulch an oreshoot was disclosed outcropping at surface on a vein lying about 75 feet stratigraphically above the Mayflower vein, and named the Fortune vein. Early day miners exploited this oreshoot by driving short adits with their portals on the south slope of Keystone Gulch at successive lower elevations and named the Fortune, the upper adit, the Freedom adit and the Keystone, the lower with its portal near the bottom of the gulch. Also there was driven an intermediate adit between the Fortune and Freedom. This work developed a relatively large body of carbonate lead ore. The Freedom adit was extended about 1800 feet southwesterly and disclosed two copper oreshoots.

In January 1902 Mr. Simon Bamberger acquired title to the Fortuna Mining and Milling Company property and extended the Keystone Tunnel about 2500 feet from the portal southwesterly along the Fortuna Vein and with crosscuts southeasterly in the footwall disclosed a relatively large body of copper sulphide ore on the Mayflower Vein. Developments above this tunnel level on the copper ore showed it to be the downward continuation of the Mayflower oreshoot mined in early days through the Mayflower incline and Mayflower adits located on the Copper Gulch side of the hill.

With this discovery of copper ore along with the interest generally shown at this time by mining people to the Bingham District as a potential copper producer an extensive program of development immediately followed at this property. The Bamberger Exploration Company was organized (on June 25, 1903) and in March 1904 the Fortuna property was deeded to that company by Simon Bamberger, with his son, Sidney, as general manager who was a mining engineer and took an active part in the operation. The usual surface facilities required at that time comprising mine office, shops, bunkhouse and boarding house are erected on the north side of Keystone Gulch and opposite the portal of the Keystone Tunnel. Also, ore bins are erected on the south side of Keystone Gulch and a branch line of the electric tram from the D&RG Lark branch at Lark was built up to the orebins. At Lark an orebin was erected alongside the D&RG tracks and the Fortuna ore was hauled over the electric tram of the Bingham Consolidated Co. in conjunction with its ore produced from the Dalton and Lark and Brooklyn Mines, The copper ore produced by the Fortuna Mine was smelted in the Bingham Consolidated's semi-pyritic custom smelter located at Bingham Junction.

Upon the death of Sidney Bamberger (in 1911), a Mr. Rossberg was made general manager and the exploration program underway was continued. The Keystone Tunnel was extended further to the southwest along the Mayflower Vein passing through the rich copper sulphides into a fractured zone of quartzite in which the main Mayflower bedding continued but the mineralizations consist of copper sulphide minerals disseminated throughout the siliceous gangue material. This dissemination of copper was found to extend from the main Mayflower bedding into both its hangingwall and footwall carrying appreciable amounts of copper, gold and silver and varying from 4 to 50 feet thick over a strike length of about 300 feet.

In some respects this disseminated copper deposit is similar to the Ohio Copper disseminated copper deposit in that the copper minerals are concentrated to various degrees in the Ohio Copper along the bedded veins, All's Well, Elvina and What Cheer and the wall rock between these veins is highly shattered quartzite carrying copper minerals scattered throughout in the form of specks, patches and small seams. Also it was conjectured that the system of Fortuna veins, being at about the same stratigraphical horizon in the Bingham column was a continuation northeasterly of the Ohio Copper veins. This dissemination of copper minerals is found in many places in the marginal quartzite surrounding the Utah Copper porphyry copper deposit.

For the development of the rich copper sulphide Mayflower oreshoot at depth an incline shaft was sunk on the dip of the Mayflower Vein from the Keystone Tunnel at a point about 2130 feet from its portal. The Keystone Tunnel at this point measures about 800 feet on the dip of the vein and is named the 800 level. This incline shaft was sunk about 225 feet and providing for a 25 foot sump sub-levels are driven on the 850, 925 and 1000 levels, respectively, 150 feet southwest, 100 feet southwest, and 230 feet northeast disclosing the continuation of a good grade of copper sulphides of mineable thicknesses up to 6 feet in places. Also, the Rossberg incline shaft was sunk from a point about 2900 feet from the portal of the Keystone Tunnel. This incline was started well within the footwall of the Mayflower Vein and sunk on dip of about 55 degrees so at its bottom it was necessary to crosscut northwest about 125 feet to the main bedding of the Mayflower vein at a level corresponding to the 1000 level. This Rossberg incline was planned as a permanent facility for the development and mining of the downward extension of this disseminated copper deposit. On the Keystone Tunnel nine raises, at different distances apart, are made upon the dip for the development of this disseminated ore and are numbered from one to nine over a strike length of about 800 feet. The No. 1 raise is located at the southwest edge of the rich copper sulphide Mayflower shoot and the No. 9 raise is located near the southwest edge of the disseminated copper deposit and opposite the collar of the Rossberg incline shaft. This raise was made about 200 feet on the dip in a continuation of disseminated copper ore from 4 to 6 feet thick.

Simultaneously with the developments, recited immediately above, the Contention Tunnel was driven with its portal practically at the bottom of Keystone Gulch and at an elevation only 32 feet vertically below the portal of the Keystone Tunnel. From the portal a crosscut was driven northwesterly in quartzite to the Fortune Vein and a drift extended southwesterly about 1850 feet along the strike. This drift disclosed first the downward continuation of the lead oreshoot which had been exploited in early days through the series of adits, the Fortuna, Freedom and Keystone, and also the two copper oreshoots to the southwest on the Fortuna Vein.

From the Contention Tunnel, at intervals, a series of six raises are made upon the dip of the Fortuna Vein to connections with the Keystone Tunnel. This work showed the persistence in depth of the respective oreshoots but the ore of mineable thickness was narrowed down from a strike length of 320 feet on the Keystone Tunnel to only 80 feet on the Contention Tunnel in the lead shoot and practically in the same proportion with the two copper shoots. A winze was sunk about 75 feet below the Contention Tunnel on the dip of the lead shoot which was stoped up to the tunnel level; also the 2nd oreshoot of copper ore to the southwest was stoped to about 60 feet on the dip below the tunnel. The Fortuna Vein system for about 2000 feet southwest from Keystone Gulch has an average strike of south 32 degrees west while the oreshoots disclosed have a definite south 75 degrees west trend. This trend indicates the possible influence of crossfissuring in the mineralization somewhat similar to that prevailing in the eastern part of the Lark mine which is about 1200 feet lower in the Bingham Column.

At a point on the Contention Tunnel about 500 feet southwest along the drift a crosscut was driven southwesterly through the Fortuna sill and into the quartzite hangingwall. The hangingwall contact of the Fortuna sill with quartzite is named the Sierra Grande Vein, however, it has not shown sufficient mineralization in the two crosscuts in the Fortuna Mine that cut it which would induce a miner to prospect the vein further. The other crosscut was driven from a point on the Fortuna Vein in the Keystone Tunnel about 2050 feet southwest of its portal. This crosscut was driven northwesterly about 600 feet and normal to the strike of the vein system. At about 300 feet it passed through the Fortuna Sill of porphyry, at its contact with quartzite, the Sierra Grande Vain. The remaining 500 feet is in quartzite and at the end of the crosscut a vertical raise of about 20 feet was made to an intersection with the Winnebago Vein. No mineralization of any consequence appeared at the intersection of either of these two veins in this crosscut.

At a point on the Keystone Tunnel about 2700 feet southwest from its portal, a crosscut was driven from the Mayflower Vein northwesterly about 160 feet to an intersection with the Fortuna Vein. A drift from this intersection was then driven southwesterly along the strike of the vein about 200 feet to a common boundary of the Fortuna property with the Ohio Copper property. This drift disclosed low grade copper pyritic ore about 6 feet thick for entire length.

In view of the interest developed in the disseminated copper ores in the Bingham District and especially those in the Ohio Copper property, the management of the Fortuna Mine about 1905, having disclosed this type of ore on the Keystone Tunnel related to the Mayflower system of bedding veins, bordering the Mayflower oreshoot, extended the Keystone Tunnel southwesterly to a total distance of about 4000 feet from its portal. The last 600 feet of this tunnel is beneath the surface of the Ohio Copper property. This 600 feet beneath the Ohio Copper surface, however, is within the southerly end-line projected of the Enoch lode claim of the Fortune Company. The Mayflower system of veins has its apex in the Enoch claim from its northerly end-line practically up to its southerly end-line. Therefore, the Fortune management in driving the 600 feet was probably within its extra-lateral rights.

At a point on the Keystone Tunnel about 2900 fest southwest from its portal a crosscut, normal to the strike, was driven about 450 feet southeasterly from the main Mayflower bedding in quartzite and intersected the Weasel Vein. A drift was driven from the intersection about 50 feet northeasterly along the vein and disclosed a strong bedded structure carrying low grade copper pyrites about 2 feet thick.

The Fortuna Mine discontinued operations at the end of 1907, when the Bingham Consolidated Company closed down its smelter at Midvale.

(The Bingham Consolidated company then sent its own ore to the Yampa smelter, but the other mines that used the Bingham Consolidated smelter are forced to make their own deals. The Asarco smelter at Garfield had opened in 1906, but Bamberger refused to ship any of the Fortuna ore to any smelter due to his own plans for the Fortuna to build its own smelter. These plans fell through and Bamberger began leasing all operations of the Fortuna, collecting royalties from these leasers.)

The Fortuna property remained inactive until 1916, when high copper prices prevailed due to the demand for World War I. And early in 1916 the property was leased with an option to purchase by the Fortuna Mine and Leasing Company. It has here-in-before been recited the situation the Montana-Bingham Company was in and the general conditions existing at the Fortuna property when the Montana-Bingham Company acquired the lease and option on the Fortuna property from the Fortuna Mine and Leasing Company in 1917.

A Mr. H. A. Linke succeeded Mr. Higgins as superintendent in the fall of 1917. Under their supervision the concentrator erected in the spring of 1917 was operated for several months by the Montana-Bingham Company at a loss. The equipment and general layout was very inefficient and the recoveries of the minerals very low. The disseminated copper ore fed to the mill was mined almost entirely from the stope made adjacent to No's. 8 and 9 Raises above the Keystone Tunnel. This mill ore is similar in character to that of the Utah Copper and Ohio Copper porphyry and quartzite disseminated copper ores, in that the copper minerals occur as specks, seams and small patches irregularly scattered through a highly fractured rock, however, the Utah Copper orebody especially does not have definite boundaries while this Fortuna mill ore is confined to the Mayflower Vein with definite walls. Besides the mining of mill ore both company and lease operations, on a small scale, are carried on in the old stopes above the Keystone and Freedom Tunnels. Simultaneously with the work carried on in the old Fortuna Mine, the Montana-Bingham Tunnel was extended on its general southeasterly course cutting first the Sierra Grande Vein then the Fortuna Vein, respectively, at the hangingwall and footwall contacts of the Fortuna sill of porphyry and finally the Mayflower Vein which was cut at a point about 5850 feet from the portal. At this point the Mayflower Vein is quite narrow consisting of selvage material with scant mineralization.

1918

From the point of intersection of the Mayflower Vein a drift on the tunnel level was driven about 450 feet southwesterly along this vein where it leaves the vein and extends about 1000 feet southwesterly in the barren quartzite footwall of the Mayflower vein. The mill on the Fortuna side was closed down in March 1918 and in the summer of 1918 J. Benton Leggat succeeded Mr. Linke as General Superintendent. The financial condition of the company had again become shaky and company work was discontinued in the old Fortuna Mine and centered toward the development of the downward projections of the oreshoots mined in early days on the Fortuna and Mayflower Veins. At a point in the footwall drift about 6450 feet from the portal of the Montana-Bingham Tunnel, a crosscut was driven northwesterly and intersected the Mayflower Vein at about 110 feet and the Fortuna Vein at about 400 feet from the drift.

At these points the veins showed low grade mineralization, mostly pyrite. About 70 feet of drifting northeasterly and 200 feet southwesterly was driven on the Mayflower Vein from this No. 1 crosscut. Toward the east there was no improvement in the mineralization but in the southwest drift small bunches of ore carrying copper and lead are disclosed. Also about 30 feet of a drift was driven southwest from this No. 1 crosscut, along the Fortuna Vein and disclosed only scant mineralization. At a point about 7300 feet from the portal of the Montana-Bingham Tunnel and at the end of the footwall drift, a No. 2 crosscut was driven northwesterly and cut the Mayflower and Fortuna Veins at distances of 200 and 400 feet respectively from the footwall drift. A strong vein structure is disclosed at the intersection of the Mayflower Vein but the mineralization is scattered and very low grade. A drift was then driven northeasterly about 550 feet to a connection with the southwest drift from No. 1 Crosscut on the Mayflower Vein. In most part this northeast drift is on the Mayflower Vein and discloses bunches of low-grade ore over a length of about 300 feet.

The oreshoots exploited in the Fortuna Mine from surface to various depths show quite a definite trend to the west. And based on this premise it appears that this oreshoot projected upward would be about 700 feet northeast of the main Mayflower oreshoot which was developed by predecessors of the Montana-Bingham Company from surface down about 200 feet below the Keystone Tunnel. In the area of such projection, however there was exploited in early days a copper oreshoot on the Fortuna Vein from the series of adits down a short distance below the Contention Tunnel. And in this general projected area only two crosscuts appear to have been driven from the relatively extensive drifting on the Fortuna Vein. One such crosscut was driven on the Freedom and the other on the Contention Tunnel. These crosscuts appear to be located southwest of the center line of projection and there appears to be a large area toward the northeast on the Mayflower Vein which is unexplored and has ore possibilities.

At the intersection of this No. 2 crosscut with the Fortuna Vein there is disclosed low-grade copper-iron pyrites which was drifted on to the northeast for about 100 feet. The ore is quite low grade but is from 4 to 8 feet thick.

The Mayflower drift on the Montana-Bingham Tunnel was extended further to the southwest and about 150 feet from No. 2 crosscut disclosed high-grade copper sulphides about two feet thick. At this point a No. 3 crosscut was driven to the Fortuna Vein and from the crosscut a drift was driven along this vein for about 200 feet southwesterly disclosing low grade copper-iron pyrites. From No. 3 crosscut the Mayflower Drift on the Montana-Bingham Tunnel was extended southwest and at about 200 feet disclosed a lens of high-grade copper sulphides.

The Company finances had become depleted so the management leased a block of ground on the Mayflower Vein commencing at No. 3 crosscut, and the lessees are responsible in disclosing this lens of rich copper ore. These lessees produced 267 dry tons of ore assaying .07 ounces gold, 4.55 ounces silver and 7.01 per cent copper providing $4204.34 in net smelter returns.

1919

Company operations are discontinued February 1st, 1919, and on May 26th, 1919, with the expiration of the lease stated above on the Montana-Bingham Tunnel resumed operations on its own account, as the management felt assured that the orebody disclosed by the lessees would provide for operating expenses pending the receipts from a stock assessment due July 14th, 1919. The lessees and company extended the Mayflower Drift southwesterly on the Montana-Bingham Tunnel about 300 feet from No. 3 crosscut and by raises 1 to 4 inclusive mined high-grade copper ore for about 30 feet on dip above the tunnel. The thickness of ore varied from 2 to 10 feet and grade of shipments varied from 2 to 11 per cent copper; and the faces from 6 to 10 feet thick sampled from 7 to 10 per cent copper.

This latter development toward the southwest on the Mayflower Vein on the Montana-Bingham Tunnel including Nos. 1, 2, 3 and 4 raises are beneath the Ruth lode claim of the Ohio Copper Company. However, the Montana-Bingham Company claimed such ore by virtue of its extra-lateral rights on the dip of the Mayflower Vein which had its apex in lode claims of the Fortuna group of the Montana-Bingham Co.

Although mine conditions looked more favorable than at any previous time during the control of the Montana-Bingham Co. by the Honolulu interests, the individual stock and bond holders of Honolulu, not being mining men, decided to interest a company operating in Bingham in their property and are advised by officials of the American Smelting and Refining Co. to consult with management of the Bingham Mines Co. There upon in the early fall of 1919, Imer Pett was elected director and Thomas P. Billings appointed General Superintendent of the Montana-Bingham Co.

At that time the company had quite a large indebtedness outstanding in addition to the bonds issued. A survey was made to establish the apex of the Fortuna series of veins and the position of the claim posts in order to define the extent of the Montana-Bingham Company's extra-lateral rights. Also to establish the continuity of the vein within the Mayflower oreshoot, the No. 1 Raise was planned to extend from the Montana-Bingham Tunnel on the dip of the vein to a connection with workings on this vein from the bottom of the Rossberg incline sunk from the Keystone Tunnel. This No. 1 Raise would provide for much needed ventilation in the Montana-Bingham Tunnel, also as a facility for the development of the veins between the two mentioned tunnels. Although, the Mayflower incline sunk in early days from the outcrop at surface established the continuity of the Mayflower ore-shoot down dip to the Keystone Tunnel, the No, 9 Raise about 300 feet to the southwest was extended on the dip of the Mayflower vein to its outcrop at surface in a deep gulch tributary to Copper Gulch near the top of the ridge. This No. 9 raise also defined closely the position of the apex of the Mayflower with respect to the southerly end-line of the Enoch lode claim of the Montana-Bingham Company.

The above works are proceeded with and are uninterrupted until completed. During their progress the Mayflower drift on the Montana-Bingham Tunnel was extended southwesterly along the strike of the vein for total distance of about 600 feet from No. 1 Raise and is entirely within the Mayflower oreshoot. The ore disclosed is a copper-iron sulphide that varies in thickness from a few inches to 10 feet. The vein is a strong well defined structure along a bedding which dips at this horizon north l4 degrees west at about 28 degrees. The Mayflower oreshoot, as developed from surface to the Montana-Bingham Tunnel, a length of 2000 feet has a definite and quite uniform trend of north 65 degrees west. During 1919 nine raises are made in the oreshoot from 12 to 135 respectively in length above the Montana-Bingham Tunnel and an incline winze was sunk 110 feet below the tunnel in the oreshoot. Stoping and development work in 1919 on company account yielded from the Mayflower oreshoot 3,142 dry tons of copper ore averaging 7.31 per cent copper and 266 dry tons of lead ore averaging 10 per cent lead and 1.6 per cent cooper with .11 ounces in gold and 9.27 ounces of silver.

The total income for 1919 was $74,284.12 practically all of which was ore sales and the total mine and mill expense was $58,414.43 leaving an excess of income over costs of $15,869.69. The Montana-Bingham Tunnel over a period of about ten years had been driven approximately 8250 feet and approximately 3000 feet of development work tributary thereto had been performed and 1919 operations was the first year to show a profit. This venture is one example of an early day mining promotion started by local business men in Bingham with faith in the district who first by personal contributions then the organization of a company and sale of stock headed by a promoter W. E. Hubbard of Salt Lake City. The development of the original Eddie group of four claims situated on the east slope of Bingham Canyon comprising 50.3 acres was not profitably productive of commercial ore so leases are acquired on property, the Valentine patent and Tiewaukee mine, comprising together 114 acres adjoining the original Eddie group along with a stock interest in the United Bingham property. Also agreements are made covering the extension of the Montana-Bingham Tunnel into the properties of the Bingham Congor Company and Bingham Amalgamated Copper Company, a predecessor of the United Bingham. The development of the Valentine patent and Tiewaukee mine failed to disclose profitable orebodies and the development of the properties of the Bingham Amalgamated and Bingham Congor companies also failed in finding downward extensions of their oreshoots on the Montana-Bingham Tunnel.

The will to win had not been completely destroyed by the disappointments and resulted in the option of the Fortuna group of 23 claims comprising 170.8 acres. The driving of the Montana-Bingham Tunnel in most part crosscuts the Bingham quartzite high up in the stratigraphical column and the rock quite hard required support in very few places such as in the Fortuna sill, a coarse porphyry. Between the sill and the underlying quartzite is a distinct zone of movement either as a clean slip plane or a moist, clay-like gouge and crushed quartzite. Also the last 600 feet of the tunnel along the Mayflower Vein in the Mayflower oreshoot required timber support.

The tunnel during the driving drained quite a large area and developed on an average of 200 gallons per minute. It was relatively pure water which has always been in demand in the Bingham district especially since the advent of the Utah Copper open pit project. This water was conveyed out of the tunnel in a ditch at the northeast side and collected in a concrete tank at the east side of the portal. From here the water was pumped by the Denver and Rio Grande Railroad Company, up to its tanks located at Cuprum Heights at the level of its High Line Railroad which served the Utah Copper from 1906 to about 1918. Cuprum Heights was situated opposite Carr Fork on the east side of Bingham Canyon on the Papea claim of the Montana-Bingham Co. and at an elevation of 6400 sea level datum just 367 feet vertically above the portal of the Montana-Bingham Tunnel. This steam operated railroad was built to haul Utah Copper and Boston Consolidated ores to their respective mills at Magna and Arthur, Utah. On Cuprum Heists the Railroad Co. constructed shops and turntable and such tracks necessary for making up the trains of ore. Also there was constructed just off the railroad right of way a boarding house and three residences. The Railroad Co. purchased the surface from the Montana-Bingham Co. and paid rental for the water.

About 1916 an innovation in tunnel driving was tried out in the Montana-Bingham Tunnel. The Karns drill air operated and mounted on a truck drilled a center cut hole about 10 inches in diameter about 12 feet deep. A Leyner machine mounted on the bar and arm set up at each side drilled the other holes necessary for the round. The round was then blasted and generally broke about 10 feet. However with hand mucking in those days and other factors the advance was not increased over the conventional Leyner set up and about 5 foot round on two shift cycle; also operation with the Karns machine proved more costly and after a fair trial was discontinued.

The driving of the Montana-Bingham Tunnel was interrupted a number of times due to low finances and before it was completed to its present face in 1919, there are assessments on the Company stock. There was no particular trouble encountered in driving the tunnel, however, the disposal of waste at the portal situated near the bottom of the canyon in a congested residential area of lower Bingham proved costly. The main waste dump occupies an area fronting on the main street of Bingham also covers the old Bingham Creek which conveyed all the drainage from the Bingham water shed and the sewage. This waste dump was originally confined by wooden cribbing but as it grew it became necessary for safety to reinforce such cribbing with a concrete wall about 3 feet thick and 10 feet high on main street and 65 pound steel rails at the two sides. Also a permanent channel, about 4 feet wide and 6 feet high had to be maintained under the dump as a conduit for Bingham Creek. The Bingham Creek prior to about 1933 was an open creek into which was emptied all the sewage arising in the Bingham Canyon area and finally emptying into the Jordan River. In about 1933 under the National Recovery Act a concrete closed sewer was constructed in the town of Bingham replacing the open Bingham creek down to the northern town limit.

1920

The plans for the development of the property in 1920 comprehended mainly the development of the Mayflower oreshoot and providing the necessary facilities for increasing production and reducing costs. Such facilities underground consisted of a main operating inclined raise on the vein, designated as No. 1 Raise, to extend from the Montana-Bingham Tunnel up to a connection with the bottom of the Rossberg Shaft below the Keystone Tunnel of the old Fortune Mine and the sinking of an incline shaft below the tunnel. Both such facilities are in the respective projections of the oreshoot and with levels extended therefrom at regular intervals it appeared would suffice in a full exploitation of the Mayflower deposit.

At surface an area adjoining company ground near the portal of the Montana-Bingham Tunnel was purchased for the disposal of waste. Also near the portal, a trestle approach and ore bins of 250 tons capacity are built; and a spur track was extended 325 feet from the Denver & Rio Grande Bingham branch under and beyond the bins. This replaced the old method of loading out the ore which consisted of chaining a railroad car to the old Copper Pelt track, which was on an 8 per cent grade and dumping the ore into the car through a long chute anchored to the hillside. A larger pipeline was installed in the tunnel to conduct compressed air and two water tanks are erected and connected with the Bingham town water supply. Such water supply replaced the ditch water from the tunnel which was unfit for the cooling system on the compressor and for general consumption and use.

The No. 1 Raise was extended to a point 4l2 feet, measured on the dip of the vein, above the Montana-Bingham Tunnel and the Incline shaft was sunk to a depth of 260 feet below. From the Raise a level at the 135 foot point was driven 36 feet and further level work from the raise was deferred until after the completion of the raise. For ventilation and to show the continuity of the Mayflower oreshoot every thing within good mining practice was done to expedite the advancement of No. 1 Raise.

From the incline shaft levels at depths of 50, 100, 150, 200 and 250 feet below the Montana-Bingham Tunnel are driven both easterly and westerly along the strike of the vein. In the driving of the Montana-Bingham Tunnel, over the years the ground, tributary thereto had become well drained of water and even in sinking operations water was no problem. A 10-foot sump in the bottom of the shaft collected and held the entire accumulation of water over a period of 48 hours.

During 1920, there was a total of 1718 feet of development work performed within the Mayflower oreshoot on and tributary to the Montana-Bingham Tunnel. This work disclosed a number of lenses of high grade copper ore of good mineable thicknesses and a considerable tonnage of low-grade copper pyritic ore; the profitable mining of which was controlled by such factors as metal prices, costs and smelting rates, this being a direct smelting ore carrying an excess of iron over silica and appreciable amounts of gold and silver.

It was realized by the management that in view of the indicated persistence of the oreshoot at depth its development could be more economically carried on from the Mascotte Tunnel in conjunction with the Bingham Mines Company operation of its Lark Mine. The Mascotte Tunnel is 475 feet vertically, or about 1000 feet measured on the dip of the Mayflower vein, below the Montana-Bingham Tunnel. So negotiations are commenced with the Ohio Copper Co., owner of the Mascotte Tunnel, relative to Montana-Bingham Co. driving a crosscut from the Ohio workings on the Tunnel to a projection of the Mayflower Vein and an agreement covering the haulage by the Ohio Company of Montana-Bingham ores, waste, material, men, etc.

There was produced in 1920, a total of 4393 tons of copper ore and 37 tons of lead ore providing $79,382.77 in net smelter returns from the Mayflower oreshoot.

From the Fortuna workings lessees shipped 206 wet tons of lead ore and 609 wet tons of copper pyritic ore from which the company was paid $4,826.96 in royalty. The lead ore came from the lead oreshoot on the Fortuna Vein below the Contention Tunnel at a point about 700 feet southwest of its portal. The lessee exploited this shoot down to a level about 125 feet on the dip below this tunnel and for about 125 feet along the strike. At places the ore was nearly 2 feet thick but pinched down to about 6 inches thick at the bottom of the stope which was unprofitable to him to mine. The copper ore was mined from the Fortuna Vein in the extension of the stope above the Keystone Tunnel at a point about 3000 feet southwest of its portal which lies over the Mayflower oreshoot.

1921

In 1921 general conditions with respect to the mining industry and especially copper are very unsatisfactory and the Bingham District suffered quite severely. The Utah Copper Mine was shut down in March which caused a curtailment at the Garfield Smelter, also at Tooele the International Co's Copper and lead plants are idle most of the year. Although the Garfield smelter was seriously affected it continued operations in a limited way with siliceous gold-silver ores from the Tintic District and low-grade copper-pyritic ores from Bingham. So due to the fluxing quality of its ores, Montana-Bingham Co. was able to make an arrangement with the AS&R, which enabled it to continue production throughout the year.

The mining and development operations in the Mayflower oreshoot contributed some water to the flow out of the Montana-Bingham Tunnel which so fouled it up as to make it undesirable for use to the D&RG Railroad at Cuprum Heights. Therefore, on April 1st the Railroad Co. abrogated the agreement entered into in 1916 for the use of a part of the water flowing from the tunnel.

Prior to the acquisition of the Fortuna Mine by the Montana-Bingham Consolidated, its ores are hauled through the Keystone Tunnel then to Lark, by six horse team or over the electric tramway of the Bingham Consolidated Mining and Smelting Co., where it was dumped into a bin alongside the Lark branch of the D&RG Railroad. In 1909 the electric tramway was dismantled by the Bingham Mines Co. when it transferred practically all company operation of its property down to the Mascotte Tunnel. So when operations are resumed at the Fortuna Mine in 1916 the ore was hauled overland by trucks to a ramp constructed at Midas switch on the D&RG Highline branch to the Utah Copper pit. The cost of the transportation of Fortuna Mine ores was somewhat reduced by hauling them through the Montana-Bingham Tunnel and dumping directly into bins, near the portal, constructed alongside the Bingham branch of the D&RG system. However, the average haulage through the Montana-Bingham Tunnel to the ore bins was nearly two miles and done by mules and was very unsatisfactory. But the financial condition of the company and the price of copper around 12 cents per pound would not permit for providing electric haulage.

In 1921, there was performed 2422 feet of drifts, raises and winzes at a cost of 110.23 per foot.

The most important development was the completion of No. 1 Raise from the Montana-Bingham Tunnel to a connection with workings below the Keystone Tunnel which provided a facility for the exploitation of the Fortuna Vein system above the tunnel and a much needed improvement in ventilation on and tributary to the lower tunnel workings. Also, the No. 1 Raise, made on the dip of the Mayflower Vein along with old workings on this vein to surface established the continuity of a well defined and mineralized vein to its apex in Montana-Bingham ground, which in large part confirmed this Company's claim to certain extra-lateral rights beneath the property of the Ohio Copper Company.

Near the top of No. 1 Raise it appears to pass out of the western edge of the relatively solid copper pyritic sulphides into a siliceous copper disseminated ore, which was exploited to a limited extent on and tributary to the Keystone Tunnel by predecessors of the Montana-Bingham Company. And a 60 foot extension of No. 1 Raise beyond its connection with the Rossberg incline shaft disclosed a continuation of such disseminated copper ore about 5 feet thick, averaging 1.01 per cent copper. This same pattern appears to persist to the Montana-Bingham Tunnel, because an extension of the southwest drift on this tunnel also discloses it passing out of the solid copper pyritic ore of the Mayflower shoot into low grade copper disseminated ore. However, under the agreement _____ [date?] between the Ohio Copper Co. and Montana-Bingham Co. that establishes certain extra-lateral rights of the Montana-Bingham Co. on the Fortuna system of veins beneath the Ohio Co's property, it limits the exercise of such extra-lateral rights to a thickness of _____ [?] feet on the respective veins.

It should be kept in mind that in the expansion of the Utah Copper pit on both the Ohio Copper and Montana-Bingham properties some disseminated copper ores may be disclosed which under the certain agreement dated July 26, 1948, between the Montana-Bingham Co. and Kennecott Copper Corp, the latter company is required to transport, treat and pay for.

The development work during 1921 was practically confined to the Mayflower copper pyritic oreshoot, as also was the production. The mining was carried on to points about 125 feet above and 250 feet below the Montana-Bingham Tunnel and showed that the high grade ore occurred as lenses up to 8 feet thick and on dip are to a large degree aligned in the form of high grade shoots within a low grade oreshoot some of which was commercial, over a strike length of about 700 feet.

The production during 1921, consisted of 23,079 dry tons of copper ore and 68 dry tons of lead ore.

This production was the largest ever produced in one year from the property and provided $140,188.82 in net smelter returns or $6.06 per ton with total cost of $4.24 per ton provided on operating profit of $l.82 per ton with the average price of copper at 12.61 cents per pound.

1922

In 1922 the development and mining operations are confined to the Mayflower shoot of copper pyritic ore except for the extension of No. 9 Raise upon the dip of the Mayflower vein from the top of the stope made in 1918 above the Keystone Tunnel in the mining of the disseminated copper ore for treatment in the company mill located near the portal of this tunnel.

The development of the copper pyritic ore up dip was carried on by the extension of the 1450 and 1550 levels and the driving of the 1600 and 1650 levels all from No. 1 Raise above the Montana-Bingham Tunnel. These workings in most part disclosed low grade ore. Below the tunnel the 100 level from the incline shaft was extended westerly as was the 250 level both disclosing fairly good copper ore from 4 to 8 feet thick. At a point about 330 feet southwest of the incline shaft a winze was sunk about 90 feet from the 250 level in a lens of relatively good grade of copper ore which was exploited by sub-levels from the winze at depths of 280 and 310 feet respectively on the dip below the Montana-Bingham Tunnel.

There was performed 2877 feet of drifts, raises and winzes during 1922 at a cost of $8.61 per foot.

The production in 1922 consisted of 19,455 dry tons of copper ore, 88 tons of lead ore and 101 tons of lowgrade copper pyrite.

The lead ore occurred in bunches and was sorted out from the copper ore southwest of the incline shaft. The iron ore was shipped to the Tintic Milling Co. at Silver City, Utah, for experimental purposes. There was a slight reduction in tonnage also in the grade as compared with 1921 production, however, the surplus stocks of copper in 1921 had been consumed and with a more normal copper situation the Utah Copper Co. resumed operations and by the end of the year the price of copper had risen to about 14-1/2 cents per pound. For 1922 the net smelter return totaled $105,422.76 or $5.37 per ton with a total cost of $4.20 per ton provided an operating profit of $1.17 per ton.

The lease and option that the Montana-Bingham Company had on the Tiewaukee property had been allowed to lapse on account of the company's financial condition, but on July 6, 1922, a new lease and option was acquired and the company proceeded with cleaning up the old workings and their surveying and mapping.

1923

In 1923 the development and mining operations are again confined to the Mayflower copper pyritic oreshoot except for the extension of No. 9 Raise above the Keystone Tunnel. This No. 9 Raise follows the dip of the Mayflower Vein and holes out at surface in the bottom of a small gulch that extends northwest of Copper Gulch near its top. This raise holed out at a point well within the boundaries of the Enoch lode claim of the Montana-Bingham Co. and located about 740 feet southwest of the collar of the early day Mayflower Incline shaft which follows down the dip of the Mayflower Incline from surface to the Keystone Tunnel and lies within the limits of the Mayflower oreshoot. In the general area at surface in the small gulch there is a heavy growth of oak brush and small trees which with considerable accumulation of soil does sot lend to the bold outcrops of this vein as evidenced on the nearby ridges.

From the Montana-Bingham Tunnel the 1450 level from the No. 1 Raise was extended westerly disclosing lowgrade copper pyrite. Below the tunnel and connected with the Incline Shaft, the 100, 250 and 300 levels are extended westerly, each disclosing lenses of good shipping copper ore within lowgrade copper pyritic material.

This bottom or 300 level below the Montana-Bingham Tunnel shows the Mayflower oreshoot persisting in depth without any appreciable diminution of metal contents.

There was performed 1526 fast of drifts, raises and incline shafts during 1923 at a cost of $3.24 per foot.

The production in 1923 consisted of 9318 dry tons of copper ore, 26 tons of 1ead ore and 116 tons of lowgrade copper pyrite.

The operation in 1923 was on a one shift basis instead of the two shifts in the proceeding years, due in large part to depressed market price for copper.

The above tonnage, however, provided $60,925.14 in net smelter returns or $6.44 per ton.

With the renewal of its lease and option on the Tiewaukee property and the depressed copper market and also confronted with the retirement of the outstanding bonds, of $178,600.00, on June 1, 1923, and the obtaining of additional funds to carry on development work, a new issue of $300,000.00 First Mortgage Seven per cent bond was made. A total of $177,100,00 of the old bonds are exchanged for an equivalent amount of the new issue, and an additional $20,500.00 of the new bonds are sold bringing the total outstanding bonded indebtedness of the company up to $197,600.00.

However, finding it impossible to dispose of more bonds except at a considerable discount, on October 10th an assessment No. 8, of 2 cents per share, was levied, netting $49,791.96.

Tiewaukee Mine

In 1923, after the Montana-Bingham Co. acquired a new option and lease on the Tiewaukee property, commenced development in the old mine. The Tiewaukee property comprised ten lode claims, situated on the east slope of lower Bingham Canyon and extending down to its bottom, and in large part covers the lower portions of McGuire and Tiewaukee gulches. These claims are located in very early days and designed to cover mineralized fissures which cut the strata of quartzite and intercalated limestones situated apparently high up in the Bingham column. However the stratigraphical position of the strata here in the column is a subject of further investigation and study due to a large fault which in the Lark mine is known as the North Fault. This fault appears to extend from the Lark mine area in a general northwesterly direction along the east slope of the Oquirrh range; thence down the east slope of Bingham Canyon to the confluence of McGuire Gulch with Bingham Canyon; thence across the canyon and up the northerly slope of Markham Gulch.

The Tiewaukee property contains two separate oreshoots which have their outcrops on the west slope and near the bottom of Tiewaukee Gulch. In very early days these oreshoots, the Tiewaukee and Caledonia are exploited from surface by separate owners and later consolidated. Their outcrops are only about 200 feet apart, the Tiewaukee on the Accident claim and the Caledonia on the Caledonia claim which is higher up the slope.

The Tiewaukee oreshoot appears to be related to a series of northeast-southwest lodes that dip northwest at angles ranging from 20 degrees to 70 degrees. The ore in early days was mined from lenticular shoots on the fissures, with branching lenses in the hanging and footwalls, or ascended in the hangingwall as irregular sinuous pipes.

1924

In 1924, on account of a continued depression in the copper mining industry it appeared impossible to produce the lowgrade copper ore at a profit so underground work in the Montana-Bingham Tunnel was discontinued on February 1st and has never been resumed there. In the latter part of the year, however, conditions showed improvement and for the purpose of resuming operations and payment of bond interest, assessment No. 9 of 2 cents per share, was levied October 24th, netting $50,528.24.

Considerable interest was taken toward the collection of migratory copperladen waters escaping from the dumps of overburden deposited by the Utah Copper Co. in the upper part of Tiewaukee Gulch, sometimes called Winnamuck Gulch. Predecessors of the Montana-Bingham Co. had sold to the Utah Copper Co, certain surface areas for railroads, material disposal and other rights, which in large part covered Ely, McGuire and Tiewaukee Gulches. Also the Utah Copper Co. had acquired similar surface rights on the property of the Bingham Amalgamated Co., which covers the Upper parts of these gulches. Such rights are defined in the various agreements covering the sale of the surface areas. The material deposited in those gulches which are relatively close to the Utah Copper pit are in large part the carbonate copper ores that capped the heart of the Utah Copper orebody and contained as high as 20 pounds of copper to the ton.

The Utah Copper Co., comprehending the potential value of such copper overburden, reserved the contents of the dumps with the right to remove them.

Due to limited finances and unfavorable market conditions, the operations through the Montana-Bingham Tunnel are discontinued in February 1924, and work was confined to the Tiewaukee Mine and the collection of copper laden waters percolating into the Tiewaukee workings from openings to surface in Tiewaukee Gulch.

The precipitating plant constructed in 1923 on the waste dump at the portal of the Lower or No. 2 Tiewaukee Tunnel was enlarged so as to take care of the spring run-off waters percolating through the Utah Copper dumps and flowing down the Tiewaukee Gulch. This run-off, dependent on weather conditions, started between March 24th and April 6th and to a degree was retarded by it percolating over a large surface and deep dump material before reaching the original ground surface of the Gulch. Therefore, such run-off from melting snow and spring rains first saturated the dump material, then picked up the soluble copper minerals on its paths to the original surface on the bottom of the gulch. Thus the flow of copper-laden waters reached a peak in late May and continued throughout the year, however, gradually receding up to the following spring.

In 1924, there was shipped 45,587 dry tons of copper content which provided $5,347.53 in net smelter returns; and from the old Fortuna workings a lessee shipped 127 dry tons of ore, which brought $774.91 in net smelter returns, and paid the company $127.47 in royalty.

1925

In 1925 to provide dump room for waste and facilitate development of ore-showings and structures disclosed in the old Tiewaukee and Caledonia mines, a No. 3 Tunnel, with its portal on the west side of Tiewaukee Gulch and elevation about 225 feet vertically above the Tiewaukee No. 2 or Lower tunnel, was driven southeasterly 200 feet to a connection with old Tiewaukee workings. Small showings of carbonate lead ore are prospected above this tunnel and lead to the old workings from surface in Tiewaukee Gulch.

The Utah Copper Co. had started condemnation proceedings in the District Court at Salt Lake City covering a tract of ground in Tiewaukee Gulch for the driving of a tunnel to the toe of its dumps and for the capturing of the copper-laden waters before they escaped from such dumps. After a hearing before Judge Ritchie with witnesses representing both the Montana-Bingham and Utah Copper companies the Judge decided in favor of the Utah Copper as to its ownership of the waters so far as they are included in the dumps and gave to the Utah Copper Co. immediate possession of the described tract for the purpose of driving the prescribed tunnel to the toe of its dumps and collecting the copper-laden waters.

Thereupon the Utah Copper Co. drove its tunnel with the portal on the west side of Tiewaukee Gulch at an elevation above that of the Tiewaukee No, 3 Tunnel. This Utah Copper tunnel was designed to follow a contour around the gulch and be in the soil above bedrock. However, the Montana-Bingham Co. had appealed the District Court decision to be heard before the Supreme Court of Utah, and therefore undertook to capture any waters that seeped into its workings by keeping such workings ahead or farther up the gulch than those of the Utah Copper Co. The Utah Copper Co's tunnel finally broke into Tiewaukee workings which had been extended underneath the dumps at the bottom of Tiewaukee gulch.

The Montana-Bingham Co. up to June in 1925 had net smelter returns amounting to $9,007.64 from the production of copper precipitates. And to avoid further conflict and expense in the battle for possession of these copper-laden waters, the two companies had drawn an agreement covering the collection of such waters and their treatment by the Montana-Bingham Co. The agreement stipulated that a record of expenses be kept and the receipts from subsequent production be held in suspense subject to certain litigation instituted by the Utah Copper Co. The matter was before the Supreme Court of Utah on appeal by Montana-Bingham and was to be heard during the February 1926 term.

During 1925 the Bingham Mines acquired the stock and bonds of the Montana-Bingham Co. held by the Honolulu interests, thereby obtaining the controlling interest in that company, the property of which comprised 276.6 acres in the Bingham District.

1926

In 1926 operations are confined to the Tiewaukee group, except for the completion of the No. 9 Raise on the dip of the Mayflower vein to surface, a distance of 236 feet from the top of the stope above the Keystone tunnel of the Fortuna mine. The vein was found to be well mineralized and in places showed bunches of shipping ore. The continuity of mineralization, on a well defined vein, is thus established from surface on the Enoch lode to a depth of about 2000 feet on the dip of such vein.

In the Tiewaukee Mine on the No. 3 tunnel, a drift was driven southwesterly along a strong fissure disclosing bunches of lowgrade quartz containing gold and silver and also bunches of high grade lead ore with appreciable amounts of silver and gold. However, prospecting these showings of oxidized ores failed to disclose a profitable orebody.

From the southwest drift on No. 3 tunnel level a Caledonia crosscut was started toward the southeast and the projection of the Caledonia oreshoot which outcrops at surface in Tiewaukee Gulch about 200 feet above the outcrop of the Tiewaukee oreshoot. Such outcrop and its near surface workings made in early days are covered by Utah Copper dumps.

To facilitate operations on and through the No. 3 tunnel a transfer raise of 265 feet was made from the Tiewaukee lower or No. 2 tunnel to a connection with the No. 3 tunnel.

In the early day operations the downward continuation of the Tiewaukee oreshoot was followed by underhand stoping below the Tiewaukee lower tunnel. However at about 50 feet on a dip of about 20 degrees the oreshoot is apparently cut off by a strong fault that strikes southwest-northeast and dips northwesterly at about 63 degrees. In about 1917 under the first lease and option of the Tiewaukee mine, the Montana-Bingham Co. sunk a two compartment vertical shaft from the Tiewaukee lower tunnel at a point 100 feet from its portal and about 15 feet southeast of the above fault. The shaft was bottomed at standing water level at 110 feet. At the 90 feet point a crosscut was extended southwesterly from the shaft station and intersected a flat fault at about 145 foot. From the crosscut a drift was driven southeasterly 120 foot along the fault disclosing bunches of lead-zinc sulphides. So in 1926, this drift was extended about 125 feet southeasterly and for the entire distance shows a seam of lead-silver with occasional bunches of ore in vein material. Also, from this crosscut, the fault structure was prospected toward the northwest but the advance showed it relatively weak and unmineralized.

There was a total of 3,395 feet of drifts, crosscuts, raises and winzes driven during 1926 which yielded 1,083 dry tons of ore and provided $29,274.09 in net smelter returns.

In addition the company shipped 141.696 dry tons of copper precipitates with net smelter returns of $20,502,81. An agreement, between the Montana-Bingham and Ohio Copper Companies was concluded, which establishes vertical boundary lines, and secures certain extra-lateral rights to the Fortuna series of veins beneath the surface of the Ohio Copper property.

Also, at this time an agreement was concluded between the Bingham Mines Co. and the Ohio Copper Co., which establishes vertical boundary lines common to their respective properties only, that existed in each company's divided ownership of parts of the Cunningham and Dederich's lode claims, and also the boundary between the Ohio Co's part of the Dederich's claim, and the Weasel Extension claim of the Bingham Mines Co.

This concession on the part of the Bingham Mines Co. greatly aided in removing any possibility of litigation in the future between the Montana-Bingham and Ohio Copper Companies. Therefore to avoid a question arising between the Montana-Bingham Co. and Bingham Mines Co. with respect to the latter company's extra-lateral rights on its Lark vein, an agreement was made between these two companies covering a certain described segment of the Lark vein beneath the surface of the Montana-Bingham Co.

1927

In 1927 the operations are confined to the development of the downward continuation to the Caledonia oreshoot. The No. 3 tunnel was extended southwesterly a short distance and disclosed ore which is situated in the projection of the Caledonia oreshoot and near the top of the transfer raise from the lower or No. 2 Tiewaukee Tunnel. Mining operations here disclosed a highly fractured volume of gray sandstone and quartzite about 40 x 60 feet and 50 feet vertically, which contained lead carbonates with relatively high silver content in the form of a consolidated porous sponge like material with a quartz gangue.

From the Caledonia crosscut on the No. 3 tunnel an incline raise was driven toward the northeast, and connected with early day winze workings from the old Caledonia tunnel, which was driven from Tiewaukee Gulch.

These developments along with the position of its outcrop pretty well outlined a general dip to the northwest and trend or rake to the southwest of the Caledonia oreshoot. So at a point on the Lower or No. 2 Tiewaukee tunnel and about 720 feet southeast of its portal a small structure with gouge material and specks of pyrite was driven on to the southwest. In about 40 feet of driftings it showed a strong structure dipping at about 55 degrees to the northwest carrying lowgrade lead-zinc, copper iron sulphides about three feet thick. At this point an incline raise was made on ore and a sublevel driven therefrom. Stoping above this sublevel connected with the workings in the Caledonia oreshoot made the previous year on the No. 3 tunnel level.

During 1927 there was performed 2387 feet of drifts, crosscuts and raises, costing $18,004.06 or $7.54 per foot. There was produced 1,438 dry tons of ore with net smelter returns of $11,618.64 or $8.08 per ton.

In addition, the company shipped 162.285 dry tons of copper precipitates with net smelter returns of $20,732.04.

1928

In 1928 small showings of ore are prospected from the Tiewaukee No. 3 Tunnel but they failed to open up into profitable orebodies; so in May operations here are discontinued.

The litigation respecting the ownership of the copper laden waters from natural sources which percolated through the Utah Copper dumps of overburden deposited on Montana-Bingham ground was reviewed by the Supreme Court of Utah with Judge Straup writing the opinion. This court not only confirmed the District Court decision in granting condemnation of the certain tract of land in Tiewaukee Gulch and the driving of a tunnel for the collection of such waters in the dumps; but it defined the rights of collection not to the geometrical surface underneath the dumps, as contended by the Montana-Bingham Co., but to bedrock, which in places in the gulch lies as much as 15 feet or more below the top of the soil.

The operations beneath the gulch by both the Montana-Bingham and Utah Copper companies had shown that most of the copper laden waters on reaching the surface in the bottom of the gulch, flowed as a stream on the top of the soil. A small percentage of such waters seeped to bedrock and the copper waters that migrated below bedrock are too small in amount to profitably collect and treat.

These operations under the dumps in the gulch disclosed an irregular but practically open channel in the bottom of the gulch. This situation was brought about by the large pieces of rock when dumped from the cars would roll to the bottom of the gulch and the smaller pieces would collect on top or around the large pieces developing spaces large enough for a man to crawl through.

The Montana-Bingham Co. tried to have the case reopened in the Federal Court before Judge Johnson. And after brief representations of the issues by the contending parties the Judge decided it was not within the jurisdiction of the court for a rehearing.

In the meantime the Utah Copper Co. had constructed a small temporary precipitating plant on a site rented from the International Smelting Co. situated in Bingham Canyon about 200 feet north of the D&RG depot. This site was used for the terminal station and orebins of the bucket tramway of the Highland Boy mine for a number of years prior to about 1906, then the International Smelter was constructed at Tooele, Utah, a new bucket tramway built in a direct line from this mine up the north slope of Sap Gulch to the top of the ridge thence down Pine Canyon to the Tooele Smelter.

Based upon the results of the litigation respecting these copper laden waters the Utah Copper Co, proceeded to collect such waters in Tiewaukee Gulch and conduct them to its small plant, and to construct a large permanent precipitating plant at the mouth of Bingham Canyon for the treatment of all its copper laden waters.

In 1928, the limited operations by the company in the Tiewaukee mine produced 480 dry tons of lowgrade ore with net smelter returns of $1,960.98. Also, lessees shipped 223 dry tons of ore which provided $292.00 in royalty.

1929

Assured of its ownership of copper laden waters percolating through its disposals of overburden, under its agreements with the different companies, the Utah Copper Co. negotiated an agreement covering the purchase of additional Montana-Bingham surface in and tributary to Bingham canyon and an option to purchase additional surface as their requirements developed. Such option made as of February 15, 1929, was to run for 25 years. A similar option was made as of February 19, 1929, with the Bingham Mines Co. covering a certain area on the east slope of lower Bingham Canyon. For such surface, limited to certain specified uses the Utah Copper Co. would pay at the rate of $560.00 per acre. This rate was established by arriving at an average price which the Utah Copper Co. had paid for surface rights extending down canyon from the Commercial mine to lower Bingham.

In the agreement between the Utah Copper Co. and Montana-Bingham Co. as of February 15, 1929, there is a reservation covering a described tract of ground on the Tiewaukee group which will provide for dump space and such mine facilities necessary for the development of the Tiewaukee mine at depth.

As of January 1st, 1929, the Bingham Mines Co. had acquired 77.4 per cent or 1,991,170 shares of Montana-Bingham stock and with assessments had invested $150,784.27 at a cost of $.07573 per share.

During World I the U. S. Congress enacted mine depletion legislation. Such legislating was recognized as in the national interest both for prosperity and security. The depletion allowance is not a gift to miners but plain common sense; to encourage exploration and development which are made at great costs and risk, so that the mining industry would continue to expand.

(The mine depletion allowance, a federal income tax deduction, acknowledges the reduction in value of mineral deposits as they are extracted from the earth. This deduction aims to allow mine owners or operators to recoup their capital investment in mineral resources as these resources are depleted through extraction.)

By the early part of 1922 the development of the Mayflower oreshoot indicated a profitable operation; so to take advantage of depletion allowance as a relief in Federal tax a valuation of this oreshoot was made and accepted by government authorities.

Briefly, there was estimated potential ore reserve of 327,378 tons.

With an assumed production of about 32,000 tons per year and life of 10 years, there was estimated an operating profit of $2.24 per ton, or $1.37 per ton depletion allowance.

The value of this mineral deposit was estimated at $448,779.00. This value was also supported by the fact that the Montana-Bingham Co. purchased the Fortuna property for a total consideration of $337,788.00, of which sum $24,000.00 represents the value of buildings and equipment the balance as the value of the mining property only.

This valuation report dated May 3, 1922, with accompanying maps by T. P. Billings is on file in the Salt Lake office of the United States Smelting Refining and Mining Company, as also are the agreements heretofore mentioned.

1929 to 1934

From 1929 to 1934, the low metal prices and general depression that existed practically precluded any incentive for development or production by the Montana-Bingham Company. However, in 1934 lessees contributed a small production. A lessee opened up the old Mayflower tunnels on the Fortuna group which had their portals in Mayflower Gulch and made available some of the old stopes made near surface on the Mayflower vein in early days. These old stopes are in the top portion of the main Mayflower oreshoot and yielded oxidized siliceous ores for which the Garfield Copper smelter offered a relatively low smelting rate. The principal metals in these oxidized siliceous ores are gold and silver and the price of gold had been increased from $20.00 an ounce to $35.OO an ounce which was an important inducement to lease activity.

Also in 1934 a lessee was active in the Tiewaukee mine. He produced a small tonnage of gold-silver copper sulphide ore from the Caledonia fissure and also collected some copper-laden water that was escaping the Utah Copper Co. and seeping into the Tiewaukee mine from which he obtained a small tonnage of copper precipitates.

There was no work done on Company account and the following production was by lessees:

Dry Tons to Midvale, 36.324
Dry Tons to Garfield, Gold & Silver, 1411.040
Dry Tons to Garfield, Copper Precipitates, 9.387
Total, 1456.751 dry tons

Company income from lease ore in 1934 was $1,854.24.

1935

In 1935, a lessee continued to exploit the old stopes in the oxidized zone of the Mayflower oreshoot in the Fortuna mine; and also a set of lessees exploited small showings of low-grade gold silver siliceous ore in the Caledonia oreshoot on the No. 3 tunnel level of the Tiewaukee mine. This same lessee in the Tiewaukee mine collected copper-laden water in a small precipitating plant which he erected on the No. 2 or lower tunnel. This water was escaping the facilities constructed by Utah Copper Co. in Tiewaukee gulch in accordance with the Court Decree and therefore became migratory waters which could be captured and taken by Montana-Bingham Co. when found below bedrock in its property.

There was no work done on Company account and the following production was by lessees:

Dry Tons to Midvale, none
Dry Tons to Garfield, Siliceous Gold & Silver, 314.535
Dry Tons to Garfield, Copper Precipitates, 21.583
Total, 336.118 dry tons

Company income from lease ore in 1935 was $855.35.

Intermediate Bed

The Fortuna group of claims adjoins the Lark mine of the United States Smelting Refining and Mining Co. on the northwest. And certain veins that apex in the Lark property had been and are being developed downward on their respective dips underneath the vertical boundaries of the Montana-Bingham Co's Fortuna group. However, by virtue of the apex law all ore on such veins is the property of the United States Smelting and Refining and Mining Co in the exercise of extra-lateral rights.

In the pursuit of exploring and developing such veins that apex in the Lark property on their downward dip within the Fortuna group, an agreement covering the USSR&MCo's rights had been made and described in the 1932 annual report to stockholders. During the progress of such exploration a bedded vein was disclosed in the Fortuna group which had not been exploited up dip in the Lark mine property. This bedded vein lies between the Lark and Commercial veins and conformed with them as to dip and strike so is named the Intermediate Bed. It was first disclosed in a crosscut on the 350 Level from the No. 4 Incline shaft below the Mascotte tunnel.

From October, 1935 to August, 1936 the USSR&MCo., at its expense, performed a total of 695 feet of developments in this Intermediate Bed on the 350, 550, 800 and 1000 levels respectively from the No. 4 Inclined shaft of the Lark mine. This work pretty well outlined an oreshoot and continuity of mineralization down dip from the 350 level, carrying lead-zinc, copper and pyrite.

1936

In 1936 a crosscut on the 250 level from No. 4 Inclined shaft was driven northwesterly to the Commercial vein and cut mineralization on the Intermediate Bed beneath the vertical boundaries of the USSR&MCo's Lark property. Up dip on the Mascotte tunnel and levels above to surface there are a number of crosscuts which cut the quartzite between the Lark and Commercial veins. In places these crosscuts disclosed a bedded structure of crushed and altered siliceous material whose position conformed with that of the Intermediate Bed but there was no mineralization which induced a miner to prospect for ore.

Although the top or apex of this oreshoot developed on this Intermediate Bed is beneath the property of the USSR&MCo., the evidence was not considered conclusive enough for the establishment of extra-lateral rights by the USSR&MCo. on this oreshoot beneath its subsidiary, the Montana-Bingham Co's property. Therefore, careful records of production, character and assays of the ore extracted from this oreshoot beneath the properties of the respective companies are kept and each company was credited accordingly.

In view of this new discovery the exploration at depth of the Mayflower oreshoot on the Mayflower vein was reviewed. In part this was prompted by an increase in the price of copper which indicated a net smelter return of $5.23 per ton for this copper sulphide ore. Such exploration, however, was planned by a crosscut on the Mascotte tunnel to a downward projection of the Mayflower oreshoot. Such crosscut would explore about 3000 feet in thickness of sedimentary rocks and provide about 650 feet of probable stoping ground on the dip of the Mayflower vein between the present 300 level from the winze below the Montana-Bingham Tunnel and the Mascotte tunnel. Also by gaining entrance to the Montana-Bingham tunnel through the Mascotte tunnel a future price of copper might warrant the development of a large block of ground between the Montana-Bingham tunnel and Keystone tunnel, which is adjacent to No. 1 Raise above the Montana-Bingham tunnel, in the Mayflower oreshoot.

The 1936 production is as follows:

From the Intermediate Bed Fortuna Group

Lead Ore, 2016.00 dry tons
Copper Flux, 813.12 dry tons
Total Flux, 2829.12 dry tons

No leasing was carried on in the Fortuna mine, but a set of lessees in the Tiewaukee mine produced the following:

Midvale, 44.829 dry tons
AS&R-Garfield, Crude, 20.126 dry tons
AS&R-Garfield, Precipitates, 23.552 dry tons
Total Lease, 88.507 dry tons

1937

In 1936, the USSR&MCo. practically completed the development of the orebody on the Intermediate Bed between its Lark and Commercial veins at the 350, 550, 800 and 1000 levels respectively from the No. 4 Incline Shaft below the Mascotte tunnel of the Lark Mine. It was determined that the portion of this orebody within the vertical boundaries of the Fortuna group was the property of the Montana-Bingham Consolidated Mining Company and as of February 12, 1937 an agreement was made between the Montana-Bingham Company and the USSR&MCo. which provides for the mining, sampling, purchase and accounting by the USSR&MCo. for that portion of the orebody on the Intermediate Bed determined as property of the Montana-Bingham Company.

The development work performed in 1935 and 1936 by the USSR&MCo. showed on hand January 1, 1937, 17200 tons of lead and copper ore and 47,608 tons of Pyrite flux. It did not appear necessary to perform further development work on this Intermediate Bed in 1937 and the US Company proceeded throughout 1937 to mine Montana-Bingham ore in an amount commensurate with the ore showings and other conditions attendant thereto and in accordance with the agreement of February 12, 1937.

The 1937 production is as follows:

Intermediate Bed Fortuna Group

Lead-First class, by contract, 1,466.913 dry tons
Lead-Second class, by contract, 6,856.114 dry tons
Copper, 189.481 dry tons

Under the agreement the USSR&MCo. contracted to develop, mine and deliver Montana-Bingham ores in railroad cars at Lark for $3.30 per wet ton. Thus the Montana-Bingham Co. had all the benefits of USSR&MCo's equipment, facilities and large scale operation of the Lark Mine which resulted in a net profit of $19,627.16 for the Montana-Bingham Co. and the largest profit for any year since its organization. This estimated cost of $3.50 per ton proved too low resulting in a loss of 28 cents per ton to the USSR&MCo..

The year 1937 saw a marked improvement in most metal prices over those prevailing in the years following the 1929 depression.

There was no work performed on the Fortuna series of veins in 1937 either on Company or Lease account.

A lessee continued to exploit small showings of ore in the Tiewaukee mine while collecting copper laden waters migrating from Tiewaukee gulch. Also a lessee collected the water flowing from the Montana-Bingham tunnel and precipitated the copper contained therein. The copper water collected in the Tiewaukee mine averaged about 30 pounds of copper per thousand gallons and the precipitates from it carried about 80 per cent copper, while the water flowing from the Montana-Bingham tunnel carried only about two pounds of copper per thousand gallons and the precipitates from it carried about 20 per cent copper but high in iron.

The lease production in 1937 is as follows:

Crude Ore - Tiewaukee, 17,760 dry tons
Copper Precipitates - total, 55.252 dry tons

The Montana-Bingham Co. received $810.92 as royalty from this lease ore and copper-precipitates.

Under the option dated February 19, 1929, from the Montana-Bingham Co. to the Utah Copper Co. covering a certain described area in lower Bingham, the Kennecott Corporation successor to the Utah Copper Co purchased one acre of surface from the Montana-Bingham Co. at $560 per acre.

1938

In 1938 the USSR&MCo. under the agreement with the Montana-Bingham Co, dated February 12, 1937, continued throughout the year to develop and mine the orebody on the Intermediate Bed situated beneath the Fortuna group of claims, with facilities of the Lark mine. Also, in order to facilitate further development and mining of this Montana-Bingham orebody, the USSR&MCo. on a cost plus ten per cent for supervision and handling drove the No. 5831 Drift on the 800 level and the No. 5929 Raise from the 1000 level of the Lark mine, 27 feet and 135 feet respectively.

There was developed almost an equivalent tonnage of lead ore during the year as was produced for shipment. However, the indicated reserve of lowgrade pyrite flux in this orebody was carefully sampled and found that in most part the metal contents would not provide with the going metal prices and costs for its mining profitably.

So, in most part the developed tonnage of pyrite flux was eliminated in the estimate of ore reserves.

The 1938 production is as follows:

Intermediate Bed Fortuna Group

Lead - First class, by contract, 505.514 dry tons
Lead - Second class, by contract, 7,605.487 dry tons
Copper, 488.292 dry tons
Total, 8,599.293 dry tons

Under the agreement the USSR&MCo. contracted the development and mining of this production at $3.50 per wet ton and made a profit of fifteen cents per ton for the use of its facilities and supervision.

Although the tonnage and grade of ore produced in 1938 was comparable to that of 1937, the improvement of most metal prices in 1937 over the years immediately preceding saw drastic reductions of 17-1/2 per cent in silver, 24 per cent in copper, 21 per cent in lead and 29 per cent in zinc which resulted in a gross income of about 90 per cent less than that of 1937. The total expense however in 1938 was about 90 per cent of that in 1937 and resulted in a net loss of $10,370.90. This loss, however, is due to extraordinary charges such as Depletion and Bond Interest which amounted to $22,926.44 in 1938, while the mining operation actually shows a profit of $9,712.08 or $1,124 per dry ton.

A lessee continued to prospect on the Caledonia fissure in the Tiewaukee mine and precipitate copper from tho waters collected in the Tiewaukee upper workings and flowing out of the Montana-Bingham Tunnel, he produced 30.784 dry tons of low grade ore and 9.644 dry tons of copper precipitates from which the company received $262.24 in royalty.

During the year the Kennecott Copper Corporation exercised the option of February 19, 1929 and purchased easements and rights of way on 7.961 acres in the Tiewaukee group of claims in lower Bingham Canyon; the Montana-Bingham Company receiving the stipulated price of $560.00 per acre, amounting to a total of $4,4$8.16.

There was no work done in 1938 toward the exploration of the Fortuna series of veins or the Tiewaukee mine on company account.

1939

In 1939, the USSR&MCo. in accordance with the contract of February 12, 1937 between it and the Montana-Bingham Co. continued throughout the year with a small but steady output of lead ore from the orebody on the Intermediate Bed. Mining was carried on in conjunction with the Lark mine operation so as to obtain a maximum production consistent with economical mining and compatible with existing conditions.

The development work commenced in 1938 in the 5929 Raise from the 1000 level and the 5831 Drift on the 800 level, which are tributary to the No. 4 Incline, was resumed in 1939. A total advance of 44 feet was performed on a cost plus 10 per cent basis which amounted to $19,297 per foot of raising and $20.18 per foot of drifting.

During the year the Geological Department made an examination of the Lower Bingham area of the USSR&MCo's properties and the adjoining Tiewaukee property. A general plan of exploration in this Lower Bingham area was outlined as a result of such examination and study, which indicated potentialities of ore at depth in the trend of the oreshoots which outcropped at surface and had been exploited in early day mining to depths approximating water levels in the Tiewaukee, Winnamuck, Caledonia and Dixon mines by the respective owners of the separate companies.

The Tiewaukee oreshoot had been exploited from surface to a short distance below the Lower or No. 2 Tiewaukee tunnel at an elevation about corresponding to the floor of Bingham Canyon just opposite the portal, and about 75 feet above water level in this area. And it appears that the downward continuation of this oreshoot is interrupted here by a strong fault, which displaces a downward segment of the orebody. The fault strikes northeast-southwest and dips at about 85 degrees to the northwest. The stoping in the Tiewaukee oreshoot and southeast of such fault appears to follow and be related to another strong fault structure, designated as the Flat fault fissure. This Flat structure strikes northwest-southeast and dips at about 25 degrees to the southwest. In the area of the intersection of these two fault fissures on the Lower tunnel level a drift was driven 12 feet to the southwest and appears to have passed through a flat fault fissure.

There was no additional ore developed in 1939 and the production on company account was mined entirely from the reserve on the Intermediate Bed as follows:

Lead - Second Class, by contract, 3,654.736 dry tons

Under the agreement the USSR&MCo. contracted the development and mining of this production at $3.50 per wet ton which resulted in loss of 24 cents per ton for the use of its facilities and supervision.

The production in 1939 shows a reduction of 57.5 per cent of that of 1938, however there are small increases in the prices of silver, copper, lead and zinc with gold at a fixed price of $35.00 per ounce. The expense in 1939 showed a reduction commensurate with that in production although there was some additional expenses such as Montana-Bingham Tunnel repairs geological study.

The Net Income in 1939 shows a loss of $12,169.33 slightly less than that of 1938. This loss, however, is due to extraordinary expenses such as Depletion and Bond Interest, so before such two items the mining operation actually shows a small profit of $3,486.67 or $0.953 per dry ton.

A lessee continued to collect the copper laden waters escaping the Kennecott Corp. and seeping into the Tiewaukee mine workings and those flowing out the Montana-Bingham tunnel, and produced 3.360 dry tons of copper precipitates from which the company received $72.39 in royalty.

There was no work done in 1939 toward the exploration of the Fortuna series of veins.

1940

In 1940, the USSR&MCo. in accordance with the contract of February 12, 1937 between it and the Montana-Bingham Co. continued throughout the year in conjunction with its Lark Mine operation to produce a small tonnage of lead ore from extensions of the orebody formerly disclosed on the Intermediate Bed beneath the Fortuna group.

In the early part of the year certain work toward further development of the oreshoot on the Intermediate Bed was approved by the Montana-Bingham Co. Such developments are performed by the USSR&MCo. through its Lark mine facilities on a cost plus ten per cent basis and include the following:

The 5929 Drift on the 1000 level from No. 4 Incline was extended 18 feet southwesterly along the Intermediate Bed and disclosed lead ore mixed with copper pyrites. From this extension the 5929 No. 2 Raise was driven on the dip of the bedding about 180 feet to a connection with a sub-level 30 feet below the 800 level. This raise for its entire length is in a low grade copper pyritic ore averaging 6 feet thick and its cost was included in the cost of $3.50 per wet ton, as per agreement of February 12, 1937 between the two companies.

The 5831 Drift on the 800 level from No. 4 Incline was extended northeasterly 38 feet into the footwall quartzite of the Intermediate Bed.

In the Tiewaukee mine, in lower Bingham canyon, a winze station and compressor room was excavated on the lower Tiewaukee Tunnel at about 60 feet from its portal. From this station, the No. 10625 winze was sunk about 80 feet, S 35 degrees W., following down on the dip of a flat fault fissure and encountered a bedded fault fissure which faults the flat fault fissure. The flat fault fissure dips at 30 degrees to the southwest while the bedded fissure dips at 60 degrees to the northwest. At about this 80 foot point, the course of sinking the winze was changed to the dip of the bedded fissure, westerly about 90 feet to standing water level about 90 feet vertically below the lower tunnel. From a point in the flat winze almost 85 feet vertically below the lower tunnel the No. 10526 drift was driven on an average N 55 degrees W course 43 feet along a flat fault to the Remnant Placer claim of the USSR&MCo. From here the drift was extended an additional 95 feet on a N 45 degrees W course along the flat fault and encountered an ancient channel of Bingham Canyon filled with alluvial deposit of sand, clay and boulders, and was discontinued.

The winze development discloses small showings of lead-zinc carrying some gold and silver which in places attain a thickness of eighteen inches mixed with clayey gouge material. The drift shows scant mineralization in a narrow clay fault gouge.

The developments performed in the Tiewaukee mine are on a straight cost basis to the Montana-Bingham Co. and that portion of the 10526 Drift in the Remnant Placer claim of the USSR&MCo; of course, was at the expanse of the latter company.

During the year 1940 a total of 384 feet of development work was performed by the company of which 86 feet was in the Intermediate Bed of the Fortuna group and 298 feet in the Tiewaukee mine.

The above developments along with mining and developments on the Intermediate Bed by the USSR&MCo., in accordance with the agreement of February 12, 1937, disclosed 8678 tons of additional ore; while the above developments in the Tiewaukee mine failed to disclose ore of such extent and size that could be profitably mined.

The production, entirely from the Intermediate Bed was as follows:

Lead - 2nd Class, by contract, 7,585.963 dry tons
Lead - 1st Class, by contract, 300.914 dry tons

Under the agreement of February 12, 1937 the USSR&MCo. contracted the development and mining of this production at $3.50 per wet ton which resulted in a loss of 27 cents per ton for the use of its facilities and supervision.

The production in 1940 shows an increase of 116 per cent over that of 1939, which with small increases in the prices paid for silver, copper, lead and zinc provided an operating profit of $25,452.47 or $3.227 per dry ton, before extraordinary expenses such as Depletion and Bond Interest, and a net profit of $4,279.00.

A lessee continued to collect the copper laden waters escaping the Kennecott Corp, and seeping into the Tiewaukee mine workings and produced 8.227 dry tons of copper precipitates from which the company received $198.11 in royalty. This lessee discontinued the precipitation of copper from the Montana-Bingham tunnel waters which had become too low in copper content.

There was no work done in 1940 toward the exploration of the Fortuna series of veins.

During the year 1940 the Kennecott Copper Corporation exercised, in part, its option of February 10, 1929, and purchased easements and rights-of-way over 1.091 acres of surface of the Montana-Bingham Company's property in lower Bingham Canyon. The option provides for payment at the rate of $560.00 per acre, which totaled $610.96 received.

1941

In 194l, the USSR&MCo. in accordance with the contract of February 12, 1937 between it and the Montana-Bingham Co. continued throughout the year in conjunction with its Lark Mine operation to produce steadily a small tonnage of lead ore from extensions of the orebody formerly disclosed on the Intermediate Bed beneath the Fortuna group.

There was no development work performed during the year toward proving extensions of this orebody, however stoping operations disclosed enlargements of ore which had not been included in the estimated reserve as of January 1, 1941.

In the Tiewaukee mine a total of 885 feet of development work was done in 1941. The USSR&MCo. provided the equipment on a monthly rental basis and the work was performed under a Montana-Bingham Co. operation. Such developments had two objectives: the downward continuation of the Tiewaukee oreshoot; and of the Caledonia oreshoot.

For the development of the Caledonia oreshoot the work was done on and above the Tiewaukee lower tunnel as follows: The 10021 Drift was extended about south 60 degrees west 266 feet, of which the first 60 feet disclosed a pyritic lead ore averaging three feet thick making on a bedded fissure, however this lead ore gave way to vein material about 3 feet thick and slightly mineralized which was followed 208 feet further along strong bedded structures. Raising from the 10021 Drift and sublevels therefrom in the pyritic lead ore connected with workings in the Caledonia oreshoot formerly done on the Tiewaukee upper No. 3 tunnel.

Exploration work for the downward extension of the Tiewaukee oreshoot and for a probable faulted segment of it was carried on in the 10527 drift from 10625 winze 85 feet vertically below the Tiewaukee Lower tunnel totaling 465 feet of drifting and 24 feet of crosscutting. Of this footage 140 feet was extended southeasterly along the strike of a flat fault fissure dipping southwest, which on the Tiewaukee lower tunnel appears to be related to stoping formerly done in the downward continuation of the Tiewaukee oreshoot. This extension disclosed a continuation of a rather strong structure with scattered lead mineralization over a thickness of 2 feet. Also on this 85 foot level about 300 feet of work was done toward the west and beneath the Thrush lode claim in in effort to locate a provable extension of the Tiewaukee oreshoot beyond the nearly vertical fault that strikes northeasterly-southwesterly and located about 90 feet in from the portal of the Lower Tiewaukee tunnel. This work, however, failed to accomplish the objective.

The 1941 production was as follows:

Fortuna Group - Intermediate Bed, Smelting - Contract, 2,164.948 dry tons
Fortuna Group - Intermediate Bed, Milling - Contract, 4,096.932 dry tons
Fortuna Group - Intermediate Bed, Copper - Contract, (0)
Total, 6,261.880 dry tons

Tiewaukee - Caledonia Oreshoot, Smelting, 42,469 dry tons
Tiewaukee - Caledonia Oreshoot, Milling, 429.712 dry tons
Tiewaukee - Caledonia Oreshoot, Copper, 446.898 dry tons
Total, 919.079 dry tons

Intermediate Bed and Tiewaukee, Smelting, 2,207.417 dry tons
Intermediate Bed and Tiewaukee, Milling, 4,526.644 dry tons
Intermediate Bed and Tiewaukee, Copper, 446.898 dry tons
Total, 7,180.959 dry tons

Under the agreement of February 12, 1937, the USSR&MCo. contracted the development and mining of the production from the Intermediate Bed at $3.50 per wet ton which resulted in a loss of 50.7 cents per ton for the use of its facilities and supervision. This loss applies only to the 6359 wet tons produced from the Intermediate Bed.

By December 1, 1940, the United States Smelting Refining and Mining Company had become the holder of all the First Mortgage 7 per cent Bond outstanding against the Montana-Bingham Co. and as of that date agreed to accept 3-1/2 per cent per annum. This resulted in a savings to the Montana-Bingham Co. of $5,421.50 for 1941, which is reflected in the profit for 1941. Profits from the Intermediate Bed had made possible the retirement of Bonds so as of December 31, 1941 there was outstanding $134,900, a reduction of $62,700.

For 1941, the prices of gold and silver are the same as those of 1940, but the average prices for copper, lead and zinc show increases, while the grade of the ore produced in 194l averaged slightly lower than that of 1940.

The gross income from ores and precipitates in 1941 was $63,293.85 compared to $63,438.01 in 1940; and the operating profits are $22,521.57 in 1941 compared to $25,452.47 in 1940. The increase in total mine expense in 1941 over that of 1940 was due in large part to the increase in the exploration of the Tiewaukee mine and to increases in its labor and supply costs. However, after extraordinary expenses such as Federal income tax, Depletion and Bond Interest the net profit was $13,725.30 in 1941 compared to $4,279.09 in 1940.

A lessee continued to collect the copper laden waters escaping the Kennecott Corp, and seeping into the Tiewaukee mine workings and produced 7,259 dry tons of copper precipitates from which the company received $232.68 in royalty.

The Kennecott Corporation did not exercise its option of February 19, 1929, on any ground in lower Bingham. However in 1941, the Kennecott Corp, purchased surface and slope rights on three separate tracts on the Enoch, Winnebago and Abe Lincoln claims of the Montana-Bingham Co. located on the ridge west of the top of Copper Gulch. This area does not come under the February 19, 1929 option and the rights conveyed to Kennecott with certain reservations are specifically stated in an agreement dated _____ [?] 1941. The area purchased comprised _____ [?] acres for which the company received $5,679.00.

The United Bingham Company paid the Montana-Bingham Co. $2130.00 as its share of interest received on Geyser Marion Debentures held by the United Bingham Co. and of which the Montana-Bingham Co. holds substantial stock. The Geyser Marion Co. carried in a gold mining development in the Mercur district and was controlled by the Glen Bothwell estate who also controlled the United Bingham Co.

Prior to 1941, the procedure in the production of Montana-Bingham ore from the Intermediate Bed was in accordance with letter agreement between USSR&MCo. and Montana-Bingham dated February 12, 1937. As of July 31, 1941, the method of handling such ore was modified by letter dated July 12, 1941, which in substance provided that such Montana-Bingham ore be kept separate from USSR&MCo's Lark mine ore and be shipped and settled in Montana-Bingham Co's name.

This arrangement had been made practicable by the addition of certain underground facilities tributary to the Intermediate Bed operation and all other terms and conditions of the 1937 agreement was to continue in effect.

1942

In 1942, the USSR&MCo., in accordance with the agreement of February 12, 1937 as modified between it and the Montana-Bingham Co, continued throughout the year, in conjunction with the Lark Mine operation, to produce steadily a small tonnage of lead ore from extensions of the orebody disclosed on the Intermediate Bed beneath the Fortuna group.

The downward extension of the Intermediate Bed was developed on the 800 level of the Lark shaft which corresponds to the 1200 level measured on the dip of the Bed below the Mascotte tunnel level. Such development consisted of 379 feet of crosscut, and drift and disclosed 65 feet strike length of ore averaging 6 feet thick.

In the Tiewaukee mine a total of 362 feet of development work was performed as follows: In the Tiewaukee No. 2 or Lower tunnel the No. 10021 drift southwesterly along the Caledonia bedded fissure was extended 123 feet disclosing lowgrade pyritic lead-zinc mineralization about three feet thick. From this extension a raise on the dip of the fissure 23 feet long disclosed the lowgrade mineralization gradually narrow down from about three feet thick to a mere seam. Also directly beneath this raise a winze was sunk 63 feet on the dip of the fissure and showed the mineralization at the bottom narrowed down to about six inches thick.

Development for the faulted segment of the Tiewaukee oreshoot below the Tiewaukee No. 2 or Lower tunnel was carried on at the 85 foot level of the No. 10625 winze, as follows: A flat, southerly dipping fissure with quartzite walls was drifted on for 93 feet northwesterly in No. 10223 drift and 40 feet southeasterly in the No. 10227 drift disclosing lead-zinc mineralization more or less scattered over a thickness of about 2 feet. Although this work failed to yield commercial ore it discloses in mineralization especially at intersections of bedding fissures with relatively flat fault fissures dipping toward the south while the bedding fissures dip northwesterly.

The 1942 production was as follows:

Intermediate Bed-Fortuna Group, 8,160.800 wet tons
Caledonia Fissure-Tiewaukee, 680.050 wet tons
Total, 8,840.850 wet tons

Intermediate Bed and Caledonia, Smelting, 4,539.080 dry tons
Intermediate Bed and Caledonia, Milling, 3,643.805 dry tons
Intermediate Bed and Caledonia, Copper, 500.766 dry tons

For 1942, the prices of gold and silver are the same as those of 1941, but the average price of copper was slightly increased and those of lead and zinc appreciably increased.

The gross income from ores (before credit for over-production quota) in 1942 was $78,939.93, compared to $63,293.85 in 1941, and the operating profit (including premiums) was $49.680.04 in 1942 compared to $22,521.57 in 1941. The increase in total mine expense in 1942 over that of 1941 was in most part due to wage increases with the resultant increases in the rate of $3.50 per ton of ore produced by the USSR&MCo. from the Intermediate Bed to $4.10 per ton until November 1, 1942 and $4.60 per ton for the remaining two months, which for the year averaged $4.254 per net ton.

Effective February 1, 1942 the Metals Reserve Company inaugurated a plan which was extended to all mining companies whereby if a mining company produced copper, lead or zinc, in excess of quotas established by the Quota Committee of the War Labor Board, the production in excess of such quote would be eligible for premiums of 5 cents per pound for copper, 2.75 cents per pound for lead and 2.75 cents per pound for zinc. Excess over-quota production under this plan resulted in Montana-Bingham Co. receiving $22.430.87.

(The Metals Reserve Company was a wartime US government agency during World War II that procured, stockpiled and disposed of strategic and critical metals and minerals and paid subsidies to their producers. It was organized on June 28, 1940 as part of the Reconstruction Finance Corporation Act, and was a subsidiary of the Reconstruction Finance Corporation. The Metals Reserve Company was dissolved and merged with the RFC on July 1, 1945. - Wikipedia)

The net profit including premiums, after extraordinary expenses such as Federal Income Tax, Depletion and Bond Interest was $23,288.62 in 1942 compared to $15,725.30 in 194l.

The ore reserves confined to the Intermediate Bed are estimated as being 8,771 tons as of January 1, 1943 as compared to 7,962 tons on January 1, 1942.

The Kennecott Copper Corp, exercised in part its option of February 19, 1929 and purchased surface rights on 6.012 acres of ground in lower Bingham Canyon on and contiguous to the Tiewaukee group, for which the Montana-Bingham received $3,366.72.

1943

In 1943, the USSR&MCo., in accordance with the agreement of February 12, 1937 as modified between it and the Montana-Bingham Co, continued throughout the year, in conjunction with its Lark mine operation, to develop and produce a small tonnage of lead ore from extensions of the orebody disclosed on the Intermediate Bed beneath the Fortuna group.

Further development of this orebody was carried on from the Lark shaft 500 level, or 1200 level as measured on the dip of the Bed below the Mascotte tunnel. Such development consisted of extending the drift easterly 122 feet along the Bed which disclosed lead-zinc ore for a strike length of 40 feet averaging 3 feet thick. This ore was raised on for 179 feet and although lower in the average grade for this orebody it was about 8 feet thick.

Farther west from this Intermediate Bed oreshoot in the Lark mine just east of the Sampson Incline, at about the elevation of the 500 level, and connected with it, a raise was driven to crosscut the quartzite between the Lark vein and Commercial limestone and disclosed narrow mineralization at about the stratigraphical position of the Intermediate Bed. This mineral showing was explored along strike for 26 feet but failed to open up or indicate a promising prospect.

A shortage of manpower developed in the summer of 1942 so operations at the Tiewaukee mine are discontinued in August of that year and had not bean resumed in 1943.

The 1943 production was as follows:

Fortuna Group - Intermediate Bed, Smelting, Contract 910.563 dry tons
Fortuna Group - Intermediate Bed, Milling, 7,390.883 dry tons
Fortuna Group - Intermediate Bed, Copper, 208.331 dry tons
Total, 8,509.777 dry tons

For 1943, the prices of gold, silver, copper, lead and zinc are the same as those of 1942, established as ceiling prices by the United States government for the respective metals as the country was involved in World War II. However under the over-quota production plan of the Metals Reserve Co., which was made effective February 1, 1942 and continued to function throughout 1943, the Montana-Bingham received in 1943, $32,958.59 for its excess over quota production of lead-zinc and copper, as compared to $22,430.87 in 1942.

The gross income from ores (before credit for overproduction quota) in 1943 was $84,171.43 as compared to $78,939.93 in 1942, and the operating profit (including premiums) was $61,301.52 in 1943 compared to $49,680.04 in 1942. The increase in mine expense was due to the rate of $4.60 per wet ton charged the Montana-Bingham Co. by the USSR&MCo. for the development and mining of the Intermediate Bed orebody in 1943; while in 1942 this charge averaged $4.254 per ton.

The net profit, including premiums, after extraordinary expenses such as Federal Income tax, Depletion and Bond Interest was $31,135.18 in 1943 compared to $23,288.62 in 1942.

The ore reserves confined to the Intermediate Bed are estimated as being 5,970 tons as of January 1, 1944 as compared to 8771 tons on January 1, 1943. This decrease is due to the fact that the developments at depth in 1943 on the 500 level of Lark No. 1 Shaft show a considerable increase in low grade pyritic material also a shortening in strike length of this orebody.

The Kennecott Copper Corp. as part of its option of February 19, 1929 purchased surface rights on 2.449 acres; also tunnel rights of 0.967 acres in lower Bingham Canyon on and contiguous to the Tiewaukee group, for which the Montana-Bingham Co. received $2012.96.

The principal face value of the First Mortgage 7 percent Bonds was reduced by $34,900.00 on June 1, 1943.

1944

In 1944, the USSR&MCo. in accordance with the agreement of February 12, 1937 as modified between it and the Montana-Bingham Co., continued throughout the year in conjunction with its Lark mine operations to develop and produce a small tonnage of ore from extensions of the orebody disclosed on the Intermediate Bed beneath the Fortuna group.

There was an acute labor shortage during the year due to World War II and no development work was performed except for 14 feet of raising as a facility for stoping operations above the Lark shaft 500 level in the Fortuna group. This work was also done by the USSR&MCo. under contract at cost plus 10 percent for supervision, use of equipment, etc. No work was done during the year in the Tiewaukee group.

The 1944 production ran as follows:

Fortuna Group - Intermediate Bed, Smelting, Contract (0) dry tons
Fortuna Group - Intermediate Bed, Milling, 11,720.731 dry tons
Fortuna Group - Intermediate Bed, Copper, (0) dry tons
Total, 11,720.73 dry tons

There was no production from the Tiewaukee mine or by Lessees.

For 1944 the prices of gold, silver, copper and sine are the same as those of 1943, that is the established ceiling prices.

However, under the over-quota production plan of the Metals Reserve Co., which became effective February 1, 1942, continued to function throughout l944 and the Montana-Bingham Co. received in 1944, $65,202.01 for its excess over-quota production of lead-zinc and copper, compared to $32,958.59 in 1943.

The gross income from ores (before credit for over production quota) in 1944 was $116,283.42 as compared to $84,171.43 in 1943, and the operating profit (including premiums) was $116,853.63 in 1944 compared to $61,301.52 in 1943. The cost of development and production was at the rate of $4.60 per wet ton throughout the year.

The net profit or profit after extraordinary expenses such as Depletion, Bond Interest and provision for federal income taxes was $66,151.09 in 1944 as compared to $31,135.18 in 1943.

There was a substantial increase in production in 1944 over that of 1943, but the ore reserves estimated as of December 31, 1944 was only slightly less than that of December 31, 1943 although there was no development work done later or in depth. The year's production was obtained almost entirely from directly above the 1000 and 1200 levels on the dip below the Mascotte tunnel and the stoping showed considerable greater thickness of ore than had been allowed in the December 31, 1943 estimate of ore reserves.

The Kennecott Copper Corp, drove its 6040 railroad tunnel through the Montana-Bingham Co's property during the year in accordance with agreement as of February 19, 1929. The portal is situated on the Thrush claim on the east slope of Bingham Canyon at a point about 310 feet southerly from the portal of the Tiewaukee No. 2 or Lower Tunnel. The railroad tunnel from its portal was driven southwesterly in Montana-Bingham ground 2293 feet where it crossed the southerly side line of the Papea claim into Kennecott ground. In the Montana-Bingham property the tunnel cut normal Bingham quartzite with thin intercalate limestone beds, and the only mineral disclosed was a mineralized zone, about 30 feet thick carrying small scattered showings of pyrite with some lead-zinc, striking northwesterly and dipping southwesterly.

The first mortgage bonds became due June 1, 1933, but are being held by the United States Smelting Refining and Mining Co. as overdue obligations awaiting developments. Since December 1, 1940 the holder of the bonds has accepted interest at the rate of 3 1/4 percent per annum, reserving the right, however, to resume interest at the 7 percent rate specified in the bonds. And as of December 31, 1944, the principal face value of the bonds outstanding was $100,000.00.

1945

In 1945, the USSR&MCo., in accordance with the Agreement of February 12, 1937, as modified between it and the Montana-Bingham Co, continued throughout the year in conjunction with its Lark mine operation to develop and produce a small tonnage of ore from extensions of the orebody disclosed on the Intermediate Bed beneath the Fortuna group.

On the 1400 level of the Lark mine as measured on the dip below the Mascotte tunnel a crosscut was driven northwesterly from the Lark vein 188 feet and intersected the downward continuation of the Intermediate Bed orebody beneath the Fortuna group. From this crosscut a drift was driven northeasterly 143 feet along the Intermediate Bed and disclosed considerable lowgrade copper pyritic material enclosing a small lens of commercial lead-zinc. This Intermediate Bed oreshoot from the 300 level to the 1200 level off the Lark 5728 Winze, a dip length of 900 feet, yielded lead-zinc along with copper ore in commercial quantities. However the showings at depth on the 1400 level are disappointing in that iron pyrites had in most part replaced the lead-zinc ore. Nevertheless, it is quite probable that at a lower horizon lead-zinc will again be found in the downward projection of this oreshoot because on the 1400 level there is a strong structure although the mineralization low grade. Such occurrences in the downward continuation of various oreshoots is not uncommon in the Bingham district.

No work was done during the year in the Tiewaukee group.

The 1945 production was as follows:

Fortuna Group - Intermediate Bed, Smelting, Contract (0) dry tons
Fortuna Group - Intermediate Bed, Milling, 8,374.452 dry tons
Fortuna Group - Intermediate Bed, Copper, (0) dry tons
Total, 8,374.452 dry tons

There was no production from the Tiewaukee mine or by Lessees.

For 1945 the prices of gold, silver, copper, lead and zinc are the ceiling prices established for the previous two years.

However, under the over-quota production plan of the Metals Reserve Co. the Montana-Bingham Co. received in 1945, $30,242.75 for its excess over quota production of lead, zinc and copper as compared to $65,202.01 in 1945.

The gross income from ores (before credit for over production quota) in 1945 was $75,706.20 as compared to $116,283.42 in 1944 and the operating profit, (including premiums) was $40,573.18 as compared to $116,853.63 in 1944. The cost of development and production was at the rate of $6.00 per wet ton throughout the year. In 1944, the USSR&MCo. notified the Montana-Bingham Co. that its costs for this work are considerably in excess of the $4.60 rate, which went into effect on November 1, 1942, and rate of $6.00 per wet ton would apply beginning January 1, 1945.

The net profit after extraordinary expenses such as Depletion, Bond Interest was $22,216.50 in 1945 as compared to $66,151.00 in 1944.

There was a decrease of nearly 29 per cent in production during 1945 over that of 1944, however, due to the development in 1945 on the 1400 level which practically failed to disclose additional ore reserves, we find as of December 31, 1945, that the ore reserves are estimated as 2,232 tons a decrease of about 58 per cent of that as of December 31, 1944.

The funded debt of First Mortgage 7 percent bonds was retired during the year.

1946

In 1946, the USSR&MCo., in accordance with the agreement of February 12, 1937 as modified between it and the Montana-Bingham Co. continued in conjunction with its Lark mine operation to develop and produce a small tonnage of ore from the orebody disclosed on the Intermediate Bed beneath the Fortuna group. However, due to a prolonged strike which started at end of night shift January 19th and ended on June 24th, the Lark mine was operated only 159 days in 1946.

The development work consisted of drifting 120 feet along the Intermediate Bed on the 1400 Level off the 5728 winze. This work disclosed a strong structure in the downward projection of the oreshoot but the mineralization had given way to lowgrade pyritic material and vary little lead-zinc was disclosed.

No work was done during the year in the Tiewaukee group.

The production was as follows:

Fortuna Group - Intermediate Bed, Smelting, Contract (0) dry tons
Fortuna Group - Intermediate Bed, Milling, 478.303 dry tons
Fortuna Group - Intermediate Bed, Copper, (0) dry tons
Total, 478.303 dry tons

There was no production from the Tiewaukee Mine of by Lessees.

For 1946, the price of gold continued fixed at $35.00 per ounce, but with the termination of World War, the calling prices for silver, copper, lead and zinc are removed and there resulted appreciable increases in the prices for each of these metals.

The gross income from ores in 1946 was $3,571.51 before credit for over-production quota as compared to $75,706.20 in 1945 and the company received an additional $1,104.06 for over-quota production of lead, zinc and copper as compared to $30,242.75 received in 1945 under the Metals Reserve Company plan. The cost of development and production was at the rate of $6.00 per wet ton throughout the year. There was an operating deficit (including premiums) in 1946 of $1,851.47 as compared to an operating profit of $40,573.24 in 1945. There was a net loss of $595.45 in 1946 after all credits and extraordinary expenses.

The production in 1946 was only about 5 percent of that of 1945 which with the fact that the development on the 1400 level failed to add ore reserves in the downward continuation of the Intermediate Bed orebody resulted in very little change in the estimated ore reserves as of December 31, 1945 and that of December 31, 1946. Thus the ore reserves as of December 31, 1946 as related to this Intermediate Bed orebody beneath the Fortuna group is estimated at 2,415 tons and consists mainly of pillars remaining above the 1400 Level of 5728 Incline of the Lark Mine.

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