2010-03-16_REVISION - M1981185 (29)

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Wildcat Mining Corporation Page 13 • HISTORY Spanish explorers visited the La Plata Mountains in the late 18 century and reportedly found mines already in operation. Historical mining in the La Plata district began in 1873 with the discovery of placer gold along the La Plata River. Discovery of lode silver and gold deposits followed quickly thereafter. La Plata County was organized in 1874 with Parrott City at the current site of Mayday as the county seat. Over the next 25 years, numerous gold and silver deposits were discovered, mined, and processed throughout the La Plata Mountains. None of the mines, however, ever produced as much as $100,000. The Valley View or Idaho vein was located in 1902. The May Day vein was discovered on the first of May, 1903, and put into production the same year; the Idaho did not begin to produce ore on a large scale until 1907. In 1910, a dispute over apex rights arose between the May Day and Valley View mining companies. Litigation continued until 1912, when a court order imposed heavy damages on the Valley View Gold Mining Company and transferred part of its claim to the May Day Gold Mining and Milling Company. Both mines were operated by their owners until about 1916 and later operated by various groups of lessees. In 1920, the May Day mine was leased to Cumberland Mines Company, which did some development work without financial success. Names of other lessees discussed in various reports include the Howser l- easing Company, J.W. Slick, Miller, Cason, Dyer, Gilmore, Alier, Rowe, Lamb, and Smith. Activity in the early years at the May Day mine was sufficient to warrant extension, in 1906, of a Rio Grande Southern Railroad spur from near Hesperus to the ore bin of the May Day mine. Mine and rail activity fluctuated over the next two decades until rail service was finally discontinued in 1929. Cook et al. (2000) relate the story of the transfer of a heavily - guarded rail car from the May Day mine to the smelter in Durango in 1907; the shipment is said to have been the richest car of high -grade ore ever moved in Colorado. The ore, weighing about 12 tons, was worth $160,000. Prior to 1933, there was no milling on site. All ore below shipping grade was either left underground or put over the dump. In 1933, the May Day Milling Company, financed by a group of Durango businessmen, put in a 40 -ton flotation mill, and readily accessible ore was processed. An estimated $250,000 of ore was treated by this plant. Lack of capital prevented the lessees from opening up several known orebodies in the lower mine levels or from doing any new development work, and the operation ended in 1939 (McCausland, 1941). In turn, the May Day Milling Company leased the mine to Amparo Mining, which did some diamond exploration drilling and extensive sampling, but turned the property back to the owners without production. • January 2007 May Day — Idaho Mine Colorado