Victor Gold Mining Co.
4524. (Providence, R. I.) Will you kindly inform me regarding the prospects of the Victor Gold Mining Co.? What is the prospect in regard to a resumption of dividends?

Ans.: This property was a great ore producer down to the eighth level, having paid $1,155,000 in dividends. On the ninth level the vein was encountered, but proved destitute of values, constituting a barren zone, as has been found in other Cripple Creek properties.
The shaft was then sunk to a depth of 1,030 feet, and a cross-cut of about 100 feet long driven from the shaft at 1,000 feet deep, which cross-cut disclosed the vein, again carrying gold, ranging in value from $40 to over $300 per ton.
Work is now being prosecuted to ascertain the continuity and extent of this ore body, on the result of which depends the resumption of dividends.

Victor Gold Mine.
3925. (Springfield, Mass.) What is your opinion of the merits of the Victor gold mine, of Cripple Creek?

Ans.: As the merits of a gold mine depend on the extent and character of the ore disclosed (or otherwise) in workings hundreds of feet below the ground and not open to the general public, it is self-evident that, short of an independent examination by an expert, the shareholders and general public are limited for their information to the statements of the persons in charge of the property.

This company, capitalized with 200,000 shares, of the par value of $5 each, owns the Victor, Victor 2 and 3, and Panther claims on Bull Hill, representing about 30 acres, ten acres of which are patented and the balance in process of patenting.
The main vein on the Victor has been one of the most wonderful producers of Cripple Creek. Two true fissure veins are being exploited, and were encountered at a very shallow depth. During the past six years, covering the period since its organization, the company has paid a total of $1,155,000 in dividends, being $155,000 in excess of the amount of its capital stock.
Such dividends were derived from sales of 12,242 tons of smelting and 82,249 tons of milling ore, from which the net returns were $2,161,186.

The shares of the company are not dealt in to any appreciable extent on the Denver and Colorado Springs exchanges, as, outside the comparatively large holdings of a few Colorado men, the shares are held in the eastern states and Europe and quoted on the Boston and Paris exchanges.

In June last, Mr. Eben Smith, vice-president and general manager in the semi-annual statement of the company, said: "No stoping has been done below No. 9 (500 feet). With the veins proven at No. 10 (600 feet), and within 60 days Nos. 11 and 12 to be opened (800 feet), these reserves, together with the reserves above No. 8, should return more money than the mine has thus far produced."

Until late in 1898 operations on the property were highly successful, and the future was bright. The quarterly dividend distribution of $50,000, with which the year began, had been subsequently doubled, and a total of $350,000 had been paid.
But developments in the tenth, eleventh and twelfth levels proved disappointing; where the several drifts from the main shaft cut the vein, the ground was found impoverished, and the ore of too low a grade to pay. Since the floor of the ninth level had been in good ore, this was wholly unexpected.
"It is the opinion of the management," says General Manager Eben Smith, in his annual report for the year 1898, dated the 30th ult.," that this unexpected dilemma is but temporary and that driving and cross-cutting will lead into ore again."
Continuing, he said: "The unfortunate feature of the situation is that we are, and have been for six months, hampered for power to operate the number of drills the mine requires. The central power station has promised electricity and air by August 1st, upon which we have been depending, since which time delay after delay has occurred, and from present indications we cannot feel assured of it for several months to come.
In the meantime, we are using the most of our limited drill capacity in endeavoring to prove up the ore in the deep levels at the sacrifice of ore extraction.

"While the present situation is disappointing, it is not to us discouraging, as neighboring properties have reached much greater depth; in fact, the richest veins of the district have been opened in the deepest workings.

"In the past the Victor has more than fulfilled every hope expressed for the mine. In 1897 dividends were suspended by the problem of ore treatment arising unexpectedly (the ore becoming sulphide), at which time the belief was expressed that the earnings would be temporarily hindered, and the predictions expressed that when the roasters were installed in the mill the earnings would be increased.
This has been realized, and in 1898 dividends of 35 per cent were divided, and since 1893 an amount more than the entire capital stock has been disbursed in dividends. The present situation could not be foreseen until after the December 1 dividend of $100,000 had been tacitly promised, which, in the light of present conditions, should have been reduced.

"While the immediate future is not bright, it is the belief that the shareholders will not be obliged to forego dividends on their investment for any considerable time. The development will be pushed with all speed and economy possible, with the hope and expectation that dividends will be forthcoming within the year.
Certainly no cause exists for a sacrifice of stock, at such prices as some holders previously saw fit to accept."

Beyond these official statements, outsiders can only conjecture; such conjectures are at variance and inconsistent, and conjecture is an unstable foundation on which to base the buying or selling of mining stock. We are however, told by a presumably well informed and reliable person that the mine has already in sight large bodies of low grade ore; may at any time strike new bodies of rich ore; and it is even intimated that such rich ore will probably be struck when the management is ready to do so.

If eastern shareholders desire to do so, it is a simple matter to raise the necessary amount among themselves for the employment of an expert to examine the mine for their satisfaction.

Principal Producing Cripple Creek Mines - 1898:

Name:
Owner: Victor Gold Mining Co.
Capital: $1,000,000
President: W. H. Breevort
Vice-President:
Secretary: R. H. Reid
Treasurer:
Superintendent: N. H. Cone, Victor
Manager: Eben Smith
Lessees:
Description: shafts 325 feet and 500 feet; two 60-horse power and 80-horse power Fairbanks, Morse & Co. horizontal tubular boilers; 10-horse power stationary engine; 80-horse power Fairbanks, Morse & Co. friction hoist; Gates & Blake ore crushers; Cameron pumps.
Employes: eighty-five employes
Contact:
Notes:

Victor Gold Mining Company.—Wm. Trevorrow, superintendent of this gold mine, writes under date of July 13th, as follows:
We have run the third level east about 40 ft. since last I wrote; we have a good quality of ore here, and I think improving No. 3 west is doing well; we are in here about 200 ft. from the shaft, and the rich ore holds its own. The raise from this drift is up about 40 ft. in a good body of ore all the way. No doubt it will continue through to the second level, as that level had rich ore the full length.
Drifts Nos. 4 east and west are being pushed ahead as fast as possible, both in rich ore. Drifts Nos. 1 and 2 are both in good ore, and are now in something over 350 ft. from the shaft.
Stopes in all parts of the mine are doing nicely; we are shipping our usual amount of ore and it will run fully as well as last month, which was a little over $300 per ton in gold.

Victor Gold Mining Company.—Mr. W. H. Cone, a well known mining man of Colorado, writes as follows concerning this company's property:
There is a good, strong vein in the bottom of the shaft 3 ft. wide which runs about 20 oz. per ton in. gold (or $400). and there is no question when you drift on that ground you will have as good ore as above, and more, of it.
I think the vein in lower levels is straightening up very much. Things around the mine are in good shape, and the ore is carefully taken down.

Mr. William Trovorrow, superintendent of the mine, writes June 11th, as follows: We have our new hoisting works up; got it to work Friday. We have connected levels Nos. 1 and 2 west by an upraise which gives us good
ventilation in that part of the mine. On No. 3 west we supply air until upraise is through from No. 3 to 2.
The shaft is now down 90 ft. below third level and will be down 100 ft. by the last of the week. The vein in the bottom of the shaft is looking well. The East drift is also looking first rate.
The last 42 car loads shipped to the smelter averaged $196.11 per ton, the last two car loads run $205.86 per ton in gold. This is over and above freight and smelter charges, the net amount that the smelter pays for the ore.

NEW YORK, Friday Evening, June 23.—A letter from the Victor Gold Mining Company, of Cripple Creek, Colo., dated June 19th, says:
The last car of ore settled for by the Omaha & Grant smelter netted over $3,500, or about $400 per ton. The mine is in good shape.

Victor Gold Mining Company.—The agent of this company, writing from Barry, under date of May 26th. says:
The shaft has gone down about 10 ft., but has now been stopped for a time, to drive another level 60 ft. below the third or bottom level. The vein in the bottom is as good as ever.
The upraise has been started from the third level west to connect with the one above it at a point 90 ft. from the shaft. We had some very high grade ore here.
Stoping has been commenced between the second and third levels east, and a quantity of good ore is being extracted. The second level to the east is showing up splendidly, there being about 2 ft. of shipping ore now in the breast of the drift.
There is nothing new in the first and second levels; ore is being taken out us usual. The new plant of machinery has not been started yet, but it is all in place, and will soon be at work.
A telegram dated May 30th says: The net receipts for May are $20,700. We have shipped about the same quantity of ore for May, of about the same valuation.

Victor Gold Mining Company.—The superintendent of this company writes us as follows from Cripple Creek, under date of May 12th:
The main shaft is now down 72 ft. below the third level, or about 240 ft. deep. The ore in the shaft has been increasing for the last 20 ft. until now it is fully 3 ft. wide and about the same ore as encountered through the mine.
The high grade or shipping ore is running from $150 to $250 a ton. The balance, or milling ore, runs about $30@$50 per ton. The raise from the east drift, third level, will be up in another week.
This will open another piece of ground 60 ft high by 90 ft. long; we have 2 ft. of ore in the raise that will run from $50 to $100 a ton, besides a higher grade of shipping ore.
I am taking out as little milling ore as possible, leaving that grade of quartz in the mine until we get milling facilities in the camp to treat it. We have quite an amount of ore in the second and third levels west, that will net between $200 and $300 per ton and some that will go even higher.
The third or lower level west is improving. The shoot of ore on this level is continuous, and nearly 600 ft. long. We shipped about six tons more ore in April than in March, and a higher grade; the last carload reported went over $3,500.
Later advices from the secretary of the company report that the following returns from the smelters have been received: Our car went 14.39 oz. gold and $6 silver, or $293.80 per ton; this makes $2,423.23 for the car.
Another car shows 16.72 oz. gold and $5.15 silver; this makes $314.80 per ton, or $2,687.15 for the car. Another sample assays 39.50 oz. gold and $5.14 silver, or about $800 per ton.

Engineering and Mining Journal Report—The Victor on Bull Hill is looking well and is being actively worked. The mine recently shipped a carload of ore running 39 oz. gold and 6 oz. silver per ton.

Cripple Creek District.—The Victor mine has about 600 ft. of drifts on the vein, and has produced $80,000 in the development work. A well-defined vein from 2 to 6 ft. has been traced, with pay streak from 3 to 24 in. Its deepest shaft is 200 ft, opening on a 2-ft vein.
The company has paid a dividend while developing the property.