Rainy Lake Herald
February 16, 1899

$15,000 GOLD BRICK

Golden Star Sends Out $15,000 for January. Outlook in Seine River Never Brighter. 200 Stamps will be Dropping Before Fall. Railway will Tap the Heart of These Gold Fields.

The cleanup of the Golden Star mine for January in the shape of a seventy-four pound gold brick, valued at $15,000, was taken out to Duluth last week by Fred H. Merritt. This makes $49,125 in gold produced since the middle of November, which is nearly one-half of the total cost and expenditure of the mine, including property, buildings, plant and development work. This is only an illustration of what our Rainy Lake gold fields and do and should be sufficient to open the eyes of even most skeptical.
A gentlemen just retired from the Seine River and Rainy Lake gold field, to Duluth and Superior, in speaking of the mining country to the Superior Telegram, and one of the many advantages said:
"I will point to one advantage enjoyed in the gold country up north over every other field in the world that I know anything about, and I have seen a great many gold fields in my thirty seven years of mining experience. I refer to the numerous water powers in that section. I think the government of Ontario, which is liberal in a great many things, should do something to improve these water powers. When they have been improved, many of the low-grade propositions which now will not pay to operate, can then be made to pay handsome dividends. I will take the Alice A, which is one of the biggest propositions in that country, yet undeveloped, and illustrate the opportunities afforded to operate that property on a large scale with enough money to develop any one of the half dozen water powers that are within a radius of six to nine miles of the mine. At Sturgeon falls which is six miles away, there can be developed power sufficient to operate all the mines which can be opened up in that section of some time to come. To put in the necessary wiring and electric machinery to operate 100 stamps on the Alice A it is estimated would cost upwards of $65,000, so I have been told by the management. If the fuel cost to operate 100 stamps would amount to $20,000 per year, which is a small estimate, it would take three years to pay for the extra machinery out of the cost of fuel to operate the same number of stamps. This cost of $65,000 would pay also for the development of a water power, and sufficiently great to furnish power to several other mining propositions in that vicinity- The Alice A, like a great many other mining propositions, has been operated on an economical basis, and therefore could not make the outlay necessary to operate their mine with electricity. However, a large British corporation has had it's representative in that section for some time past, and it is said that he has recommended operations which will be on such a scale as to allow of the development of one of these tributary water powers and furnish power not only to the Alice A, but the several new properties which are to be opened in that section. it is also understood the Golden Star crowd will develop a water power near their mill and operate not only the Golden Star and J041, but two other properties the management of that company are interested in. A new era of mining prosperity is dawning in Western Ontario. There are at least twenty five properties near the Golden Star which will be operated the coming summer on a large scale, and I predict not less than 200 stamps dropping in the Seine district alone the coming fall. Such a showing would be phenomenal, and the output of gold would astonish the whole of Canada as well as the United States.
"Better mail facilities are needed for that section known as Lower Seine district. It is growing in importance and yet most of it's mail is brought in from the American side of the line at the expense of the large companies. The building of the Ont. & Rainy River railway through this section will, of course, be a big thing to the Lower Seine district, which at the recent time is somewhat isolated and hard to reach. Especially is this time of winter, when all of the machinery and provisions of that country must come vie the head of the lake to Tower, Minn., from where it is teamed in the gold district.
"The Golden Star, Olive and Alice A will be down within a few days with their monthly output of gold bullion.
It is understood the Olive has more than one month output on hand and will probably send down several thousand dollars' worth of bullion.
"When I left all of the stamp mills were in operation, and it was expected that within a few days the Olive would start up it's additional ten stamps."
The above is one illustration of many as to the way our mining districts attract attention from visitors, and when it is said said that not a single gold prospect has yet been developed, has proved worthless, in these gold fields, it is hard to convince why capital should seek investment in so many wildcat schemes in the Klondike with all the attendant dangers.
The O. & R. R. R'y now under construction will run right through the heart of the producing mines and east of Sturgeon Falls will open up a country, said to be, equally as rich as around Bad Vermillion. At Island Falls, a Winnipeg company will put in a two-stamp mill on the Pettigrew property, while the Hammond Reef will increase their plant to forty stamps.
In addition to the gold mines large tracts of iron will be moved up and with the completion of the P. A. D. & W. from Gunflint to Ely direct connection will be made with Tower and Duluth. With all the development of the mines and the building of the railway at the same time there will be busy times up this way and those who would get in on the ground floor should not delay their chances.

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