C & H Mining Company: organized under the laws of Colorado

Main Office

I

Report of the Leadville Property Controlled by

The C. & H. Mining Company

The C & H Mining Company

Orgnniud Under the Laws of Colorado

Capital $1,500,000

PREFERRED STOCK

• 500,000

Shares

COMMON STOCK

1,000,000

Shares

Par Value $1.00

Full Paid and Non-Assessable

The Preferred Stock is preferred as to assets and dividends, and draws 7% interest from the date of issue before dividends are paid on the Common Stock. Twenty-five per cent of the net

earnings of the Company must be set aside for the retirement of the Pre- ferred Stock at 105% and accrued interest.

Officers

D. A. CANNON ^President

Mine Operator

A. S. HARVEY General Manager and Treasurer Mine Operator

F. O. SCOGGINS Secretary

Assistant Business Manager Rocky Mountain News

E. W.KEITH ^Director

Consulting Engineer

F. L. PERRY Director

Secretary and Treasurer Colorado Lime

Fluxing

Offices

IDEAfu liliyJ;;;-ElING,DENVER, COLORADO

ra"'T.ri~'l:lnf$t-·,,, ..

REFERENCES

Bradstreet's, Dun's or any Bank or Banker in Denver or Leadville, Colorado.

57 !J

SOME FACTS ABOUT LEADVILLE

Leadville has produced over $400,000,000; is still producing at the rate of about A MILLION A MONTH, and will undoubtedly, with the advanced price of silver, produce at a much greater rate for many years to come.

The above production lS made up as follows:

Gold - - - - - Silver - - - - Lead - -

Copper - - - - Zinc -

- - - $48,036,307.

- 183,937,977.'''' 83,517,218.

13,679,567.

79,794,527.

Total - -$408,965,596. "

*15th Biennial Report of the Bureau of Mines of the State of Colorado.

**At the present price of silver this would amount to $247,777,751.

The latest published "Mineral Resources of the United States," of the U. S. Geological Survey contains the following:

"Of the State total, Lake County (Leadville) produced 9% of the gold, 38% of the silver, about

30% of the copper, 31% of the lead, and 57% of the zinc."

The ore bearing formations underlie practically the whole of the Leadville District and average from 400 feet to 500 feet in

thickness. In places these ore bearing formations are at the surface, at other places they are covered by porphyry from a few feet up to 1,000 or more feet in thickness.

I

\

The ore bearing formations consist of limestone and quartz- ite, forming a blanket vein over 400 feet in thickness, within, which the ore occurs in large masses or channels, which accounts for Lead- ville's long life and enormous production.

Mining at Leadville has been brought down to a conservative industrial business basis. So much underground knowledge being avail- able to men familiar with the district, through the U. S. Geological Survey and maps, plats, etc., of the various mines, that it is possi- ble to operate in proven territory and the hazard of mining in new or unproven territory is practically eliminated.

Ore discoveries that would create a stampede in any other part of the world, at Leadville hardly get mention in the daily

papers. The reason for this is the fact that the public at Leadville have become accustomed to mining such large bodies of ore, producing close to half a million tons a yea~, so one large ore body more or less excites hardly more than passipg comment.

1

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A CORNER IN LEADVILLE.

CONVENIENCES AND ECONOMIES OF MINING AT LEADVILLE.

The climate at Leadville is such that mining is carried on throughout the year without difficulty.

At Leadville the ore is sold direct to the smelter, and it is not necessary for the mines to erect any mills or ore treatment plants. The largest smelter in the State of Colorado is located almost within Leadville's city limits.

Railroads run to the mines and the ore when taken from the shafts is dumped direct into railroad cars to be switched to the

smelter.

It is not necessary to build roads, tramways or any other aids to transportation.

Cheap electric power for hoisting and pumping is available from the lines of the Colorado Power Company, which cover the entire district.

Supplies are handy and plentiful, it only being necessary to use the phone to obtain delivery of supplies of all kinds.

Labor is plentiful and good. Miners own their own homes and live within walking distance of the mines.

Timber is delivered to the mines by dealers, who have constantly on hand whatever in that line is needed.

All these things are beneficial to the operator in that they

lower cost of production as well as permitting practically all the

money to go into underground development work.

Plat of C. & ^{H. Group} and surrounding claims.

throw is to north and west, which brings Main Iron Mine center of this ground.

Iron fault Shoot across

North

'.

Ke)'sf ., ..

KeysI- " ...

t1iE r. ^tt

I

I I 7

CQ )""I 4-

.( , ^{c ,}

I r ³

,.

In addition to the ground outlined in black the company holds leases on that outlined in green and blue.

ore shoot-- running This ore shoot has millions of dollars 1. Iron Silver Mine main

directly into our ground.

already produced 25 to 30 worth of Silver-Lead ore.

2. Present working shaft of the Iron Silver Mining Company, This company has been mining at Leadville over 40 years.

3. Blind Tom Mine; has a splendid record of production, and was owned by three of the big men in the Denver National Bank.

4. Star of the West claim has produced around Seven hundred and fifty thousand dollars, and only partially prospected.

5. This 1/3 of an acre sold for $50,000. and has produced around $500,000.00 up to date.

6. Western Mining 00. group; has produced around Sixty Million Dollars.

7. GreenbacK Mine; worked for thirty years in six acres, and then sold for Half a Million Dollars. Ore body here 230 feet thick.

8. Mab Mine; made fortunes for quite a num- ber of people.

9. Castle View--William Wallace and Modoc

claims have been good producers.

PROPERTY CONTROLLED BY THE C. & H. MINING COMPANY.

The ground held by this Company comprises the following patented claims: (See Map, page 3).

The Satellite, U. S. Survey No. 3168.

The Ida and Alice, U. S. Survey No. 3169.

The Nellie L., U. S. Survey No. 3111.

The Robison, U. S. Survey No. 1743.

The Experiment, U. S. Survey No. 1550.

The Great Western, U. S. Survey No. 374.

This property is held under ten year leases, with prac- tically the full term yet to run, upon royalties that are fair and reasonable, and in conformity with the customs of the district.

Probably more than two-thirds of the mining at Leadville is done under lease, even by the largest companies, such as those controlled by the Guggenheims, ex-Governor McDonald and others.

After many months of work and several years of observation by a corps of engineers comprising the most eminent authorities in

their respective lines, with S. F. Emmons in charge, the U. S.

Geological Survey published a very full and detailed report on the mines and geology of the Leadville District. This report covered 750 pages and is entitled "U. S. Geological Survey, Monograph 12."

Although made some years ago, this report and subsequent bulletins issued by the Survey describe in.great detail and accuracy the geology of the District. These reports are absolutely unbiased and for this reason, frequent reference is made to them in the present report.

u.

:t

e-Blue Lime d-Parting

Quartzite a-White Lime b-Cambrian

Quartzite a-Granite

.r-; o

[HON lilL,L

I '1.

wp

" ,

The ore body shown at the top of the blue lime, on east side of fault, in the Iron Silver Mine was worked many years after this survey was made, and extended 1500 feet eastward from the fault. And as will be seen by the following letter from E. W. Keith, Consulting Engineer, the Iron Silver Mining Company sunk the McKeon shaft on an

incline following the fault and therein demonstr~ted the continuation

of the ore body to the west of the fault, and recovered several mil-

lion dollars worth of ore from the broken ground within the fault.

E. W.

CONSULTING ENGINEER ORES AND METALS

SYMES BUILDING

The C. & H. Mining c«.,

March 31, 1919.

Denver, Colorado.

Gentlemen:

While in the employ of the Iron Silver Mining Co. during its period of active operations through their McKeon shaft I was impressed with the great possibilities of the development of.the Satellite

group and such adjoining ground, lying to the west of the Iron Fault, which covers the syncline between Iron and Carbonate Hills. The de- velopment of the so-called north and south Iron ore shoots was exten-

sive both east and west from the apex of the faulting. To the east by inclines following the porphyry lime contact on its dip eastward, from which inclines much ore was taken, and at depth drifts were run west- ward to the line of the Iron Fault which demonstrated the ore occur- rences on and in the benching of the faulting which caused the company to sink the McKeon shaft, which is an incline on the fault line bear- ing west with the dip of the fault.

From this latter development a large tonnage of high grade lead carbonate ore was recovered to the value of upwards of five millions of dollars. This operation was carried downward on the various benches of the faulting to the Iron Silver Company's west

property line, but did not reach the bottom of the displacement caused

by the fault. !I\%'''';

There is no doubt of the continuity of the ore shoots west- ward from the bottom of the fault line but because of water flow the work to demonstrate this fact was never carried to completion, altho the Satellite shaft was sunk for that purpose but never reached its objective point. The complete drainage of this area now accomplished makes the time opportune to carry this work forward.

The attached traceings and sections show the actual geology along the fault line as well as the property lines. You will note that the Satellite shaft only entered the Blue Lime but did not pene- trate it, and while some exploring was done on the upper contact and considerable ore extracted it was to the south and east only, leaving this contact unexplored to the west and north.

Below the Blue Lime; in the area covered by your leases, no

~evelopment has been done, but work done in the surrounding properties has proven the existence of large ore bodies in the lower formations which offer equal possibilities in your ground.

Will be very glad to give any further explanation required as to details governing my conclusions that this suggested develop- ment is thoroughly warranted under present conditions and as before

stated because of the drainage conditions now is the opportune time to undertake this work.

~ours very truly,

The aforementioned ore bodies of the Iron Silver Mining Company known as the "Main Iron Mine Ore Shoot" have been worked up to the west property line of the C. & H. group. These ore bodies, some of the richest ever found in Leadville, contain values up to

$2,000 per ton.

The ore bodies of Iron Hill have produced in the neighbor- hood of $100,000,000 and the ground within a .radius of one mile from the property of the C. & H. Mining Co. has undoubtedly produced half of Leadville's total production of over $400,000,000.

5

W.P.--White Porphyry. B.L.--Blue Lime. G.P.--Grey Porphyry. W.L.--White Lime.

The above cut taken from a report on the ore bodies of Iron Hill, made by Mr. A. A. Blow, and published in the Transactions of the American Institute of Mining Engineers, shows very clearly a

characteristic Iron Hill ore bOdy.

This shows a section through the "Silver Cord Shoot" and gives an idea of the immense size of these ore bodies by comparison with the Blue Lime through which it runs and which is about 200 feet

in thickness.

6

OTHER SURROUNDING ORE BODIES.

To the northeast of the property controlled by the C. & H.

Mining Company is located the Mikado Mine (Young America and Keystone Claims), which has produced many millions of dollars in high grade silver ores, also a large amount of lead and zinc ore has been ex- tracted from this property. Adjoining the Mikado is a small fraction, about one-half acre, of the Venus claim which has produced close to half a million dollars worth of ore within the last two years.

The ore bodies last worked in the Mikado ground have been followed into the Pyrenees Claim which is held under lease by the Iron Silver Mining Company and in this ore body over a million dollars net is said to be in sight.

The trend of this immense ore body will carry it into the ground of The C. & H. Mining Co.

Adjoining the Pyre~ees on the west lS the Greenback Mine which has an ore body 230 feet thick.

To the west of the Greenback is the Mahala which joins the Great Western Claim of the C. & H. Group on the north. The Mahala Claim was purchased sometime ago by the Western Mining Co. (Guggen- heim) for a large sum. The ground held by the Western Mining Co., Agassiz-Wolf tone-Monte Christo-Brooklyn-Maid of Erin, etc., in one

group of claims on Carbonate Hill and adjoining the C. & H. Group has produced in the neighborhood of $60,000,000.

On pages 8 and 9, Plate 7, and sections through ore bodies shown thereon, show the size and trend of these ore bodies. This plate and sections are from U. S. Geo. Survey, Bulletin No. 681, and show only the zinc carbonate ore bodies already developed within the

platted ground and donot take into consideration the enormous bodies of silver-lead carbonate ores in the Blue Lime and along the Blue Lime and White Porphyry contact.

The above plates show the dip of the zinc carbonate ore bodies to be toward the ground of The C. & H. Mining Company.

Relative to the above, U. S. Geo. Survey, Bulletin No. 681, says:

CARBONATE HILL ORE BODIES

"The enormous size and details of outline of the Carbonate Hill bodies can be explained to some extent, but the surrounding ground is so thoroughly altered and soft and in large parts so inac- cessible that a complete explanation of all the details is out of the question. The plan of these ore bodies is shown in Plate 7 and cross sections in Plate 8. The outlines of stopes in the plan are not

everywhere indications of the boundaries of the ore body. In several places the narrow stopes, which might be interpreted as branches of ore along fissures, merely represent beginnings of stopes or explora- tion drifts to block out ore. Other boundaries represent the limits of high grade ore without giving any idea of the large amount of adjacent low grade ore (averaging near 20% of zinc). The vertical

sections throw more light on the dimensions of the ore bodies, but it must be remembered that the outlines of these sections are for the most part approximations, as the boundaries of the ore bodies in most places either had not been reached or were no longer accessible. The

sections are somewhat generalized to include important features near but not exactly on the lines of the sections."

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U. S. GEOLOGICAL SURVEY BULLETIN G8l PLATE VIr

~

Solid /i"es, stopes and drifts above Parting '1uartzite Oashed lines, :stopes "'"d drifts be/ow ;>i'rting 9Ui'lrtzite

'00 '00 200

"

PLAN OF ZINC CAnnONATE OnE BODIES IN WORKINGS OF WESTERN MINING CO N

01'>01,0010.'-1. SURVEY U. S.

SE.CTION 8-S' SECTION A_A'

.9,700

2d ;"termedidte 1$1 ,,,te,.."Ut!f6 e 9,900 2-d le~d Wdftone

0-0' SECTION

fO.OO

SECTION

S.

f.LEVATION It'! FEET

''',000

'01,900

, WN IN PLATE VII

F-FSECTIONS THROUGH ORE RODIES SHO_

THE WOLFTONE, THE GREENBACK, AND THE MIKADO MINES.

The C. & H. Group lies between the above and the plant of the Yak Tunnel Company, shown below.

(See Map of Claims on Page 3.)

G~4..-Lq4~ .... @~~. ~'fwLJ.~ OZ,J-rb~~~

S~FACE PLANT OF THE YAK ~~~~ CO., ON G~UND ADJOINING C. & H. GROU~

ON THE SOUTH.

The Guggenheim's first mining venture was at Leadville, on Iron Hill, at the A. Y. and Minnie Mine, nearly forty years ago, and there was obtained the foundation of the great fortune of the Guggen- heim family. They are still working at Leadville, and only last year paid what is reported to have been a half million dollars for one -half

interest in the Yak Tunnel Co. The tunnel portal and plant of which

company is on ground adjoining the C. & ^{H. Group.}

SINKING OF A NEW SHAFT NOT NECESSARY: A SAVING OF MANY THOUSANDS OF DOLLARS AND MONTHS OF TIME.

Since this report was written the company has been fortunate in securing a lease on the following property: The Star of the West, Garden City, Baby, Hoop, Loop, and Cache claims, amounting to

39.9 acres adjoining the original holdings on the south.

A DEEP SHAFT is located near the west end of the Star of the West Claim. This shaft is in go cd condition and equipped with a plant of machinery.

The importance of this new ground cannot be over-estimated.

It saves the initial expense of sinking a new shaft and.the cost of a plant of machinery, as wcll as covering the line of continua- tion of the Silver Cord Ore Shoot, and permits immediate work in driving for the are bodies.

It makes it.possible to explore the zone of the rich Iron Silver Mine Ore Shoot without having to sink the shaft mentioned in the report. From the shaft a drift extends 160 feet to the

north, and 500 feet of drifting will undoubtedly reach the continua- tion of the Iron Silver Mine Shoot, and put the property into the list of big producers.

Silver are from this shoot has run as high as 25,000 ounces to the ton. Silver is now selling above $1.20 per ounce, and lead is at fancy prices, so the money making possibilities of this

property cannot be exag~erated.

Quick action can now be had and the company should be paying

dividends within a few months.

The Evening Star, just one claim removed from the ground of the C. & H. Co. paid in dividends $1,400,000 from five acres of

ground. The Forest City, a short distance to the north, produced

$6,000,000 out of six acres. These figures are obtained from U. S.

Geo. Survey, Bulletin No. 320.

High grade silver ores have been produced from the William Wallace, Modoc and other claims to the west.

The ground of the Small Hopes Consolidated Mining Co. (Robert Emmett, Result and Gonabrod Claims) after having been worked with very large production for many years was sold to the Empire Zinc Co. for a price reported to have been $600,000.

The same ore bearing formations that produced all the above described ore underlie the ground of the C. & H. Mining Co., which as yet is practically undeveloped.

In view of the conditions and the big ore shoots running into the C. & H. ground, it cannot be doubted that development only is necessary to make this one of the most pr or'Lt.ab'Le mines in the LeadvilleDistrict.

DEVELOPMENT:

The development of the C. & ^{H. Group has never been carried}

out owing to the fact that the claims comprising the group were held under many ownerships in small parcels, no one of which justified the expenditure necessary for its development. The present is the first time the group has been gotten together under one control.

In the development of the ground it will be necessar.

sink a new 3-compartment shaft, which shaft should be sunk to e White lme, 850 feet from the surface, before drifting isrted.

This will pu the shaft 200 feet into the ore bearing for tion and through the z of the Main Iron Mine Shoot.

Great The ould be located near the south

Western Claim, on the I e of continuation of the M n Iron Mine Shoot. This ore shoot sn uld be encountered at a epth of 650 feet from the surface, and it i quite probable that e mineralization will continue through the lue Lime to the to f the parting quartz- ite where very large bodies of high grade have been encountered in the adjoining properticD.

At some later time it to a depth of about 1,000 feet, open up the large sulphide zone

vided for

the shaft which will

COST:

Sinking of the 3-compartment .aft and its cost in round fi es - - - - Shaft House, Head Frame ngine House - - _ Hoist, Compressor, To , Tool Sharpener, Air

$40,000.

6,000.

etc. 20,000.

above a substantial exploration work.

Respectfully,

- - - $66,000.

ould be pro-

Denver, Colo., July 10th, 1919.