Swindle at the Gold Bar Mine, Nevada

NEVADA LEGENDS

Swindle at the Gold Bar Mine

<< Previous 1 2 3 Next >>

The strikes at Tonopah and Goldfield attracted miners from all parts of the nation, among them were two miners from Cripple Creek, Colorado, named Ben Hazeltine and N. P. Reinhart. Although they arrived in Goldfield too late to capitalize upon that rush, they soon found jobs in local mines. By the time the news of Shorty Harris' and Ed Cross' strike hit Goldfield, Reinhart and Hazeltine were ready for another rush, and they joined the great migration to the new Bullfrog District. Finding that all the close-in ground was already staked out, the two men drifted farther afield, prospecting in the upper Bullfrog Hills. On October 10, 1904, their persistence paid off, for they found and located the Hazeltine claims, approximately four miles northwest of Rhyolite, and two miles north of the Original Bullfrog.

The Gold Bar-Homestake Mining Camp in 1905, courtesy Nevada

Historical Society.

The two men worked the mine by themselves for a short while, and regularly brought in ore samples to be assayed at Rhyolite. The rich results of the assay tests did not go unnoticed, and early in 1905 Reinhart and Hazeltine sold their mine for $117,000 to Goldfield promoters, headed by J.P. Loftus and James R. Davis. The new company was soon organized as the Bullfrog Gold Bar Mining Company.

By the end of May, 1905, after only six weeks of exploratory work, the mine had run into ore ledges averaging $15 per ton, and had uncovered small rich pockets, one of which assayed at $1,458 a ton. ordering more equipment and hiring more men, the 14 miners continued to uncover evidence of paying ore. Towards the end of the summer, with the mine well into its development phase, a new boarding house had been completed for the convenience of the miners, and the Rhyolite Herald characterized the Gold Bar as "one of the surest and most dependable properties in the district."

Good news continued through 1906 and by March three shifts of miners were working and the mine owners were contemplating building a mill. In April, the fortunes of the mine reached a turning point, as the Gold Bar Company gave Charles M. Schwab, the famous steel millionaire and mining promoter, an option to purchase the property. Descriptions of the deal varied, but Schwab apparently had an option to purchase the mine for $1,000,000 by May 1st. Schwab sent his engineers out to examine the mine, prior to exercising his option, and the Bullfrog District waited in anticipation. The control of a mine by a man with the assets of Schwab could only mean good things for the entire district.

While Schwab pondered the deal, the Gold Bar continued to report discoveries of valuable ore, and the month of April saw so much promising development take place that the owners of the mine privately expressed the hope that Schwab would let his option expire without buying the mine. The Rhyolite Herald after digesting the latest company reports, called the Gold Bar "one of the biggest things in the far famed State of Nevada."

But the San Francisco fire and earthquake dampened the mood of unbounded optimism. Schwab requested an extension several extensions of his option and eventual the deal fell through. The owners put on a good face, declaring that they were glad that Schwab had not bought. Developments at the mine continued despite the effects of the San Francisco disaster upon financial circles.

The Gold Bar Company continued operations through the intense heat of the summer. The mine now employed twenty-five men, and its main shaft reached a depth of 330 feet by the end of July. However, it was becoming apparent that the Gold Bar was a low-grade mine, which would have to operate its own mill in order to make a profit. Development continued and by the end of 1906, The Gold Bar property included a hoisting plant and gallows frame, a small engine house, a blacksmith shop, a boarding house, an office building, and miscellaneous equipment.

In early January, 1907, the Gold Bar announced that it would definitely build a mill on its property, but no further details were released. In order to help finance the construction, the mine began to ship ore to the newly completed Las Vegas & Tonopah Railroad terminus at Rhyolite.

Main shaft of the Gold Bar Mine, 1905, courtesy

Nevada Historical Society.

In June, the company announced it had a contract for the construction of a 10-stamp mill. Work soon began for the mill foundations, and the company started laying a pipe line from its spring to the mill site.

Work on the mill slowly progressed during the last months of 1907, but despite the evidence that the Gold Bar was evolving from a developing to a producing mine, stock prices were falling. The mill building was completed in December, 1907, but delays began to plague the company -- in obtaining electrical power and equipment. However, the delays were overcome and the Gold Bar Mill began operations on January 11, 1908. Unfortunately, the mill had problems with leaking pipelines, but production continued until April, as rumors circulated that the mine would be forced to replace the entire pipe line in order to solve the water problem. On April 25th, the mine and mill were closed and the in order to refurbish the mine and pipe line. The company soon announced plans to replace the entire pipe line and install expensive cyanide treatment machinery. Ominously, the company did not announce a definite date for the beginning of the improvement work and its stock declined rapidly.

With the benefit of hindsight, it suddenly became apparent that something was definitely wrong with the Bullfrog Gold Bar Mining Company, and had been wrong for some time. Its superintendent, L.E. Bedford, had quietly resigned on March 21st, which looked strange at a time when the Gold Bar was finally beginning to produce.

Continued Next Page

<< Previous 1 2 3 Next >>

From the Rocky Mountain General Store

Vintage Photographs of the Old West - From our personal Photo Print Shop, you can now order prints that provide dramatic glimpses into the rich heritage of the American West. From notorious outlaws, to Indian Chiefs, buffalo roaming the range, and pioneers on the trail, this varied collection grows daily.