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Start Placer Mmmg Operations at Milnet, Near Sudhurv, Capreol, July 26â€"The ghost town of Milnet on the CN.R. mainline, 34 miles north of Sudbury and 12 miles from Capreol, that once echoed to the logging industry, may become Ontario‘s only major placer mining centre, Rich Samples The main street, between the empty weatherbeaten shacks which make the town of today, is being patched with sand and gravel from test pits sunk along the banks of the Vermilion River, from which samples have been taken assaying from 45 cents to $2 per cubic yard in gold. Costs in the operation are expected to be no histher than 15 cents per cublc yard. THURESDAY, JULY 27TH, 1939 The writer was met at an empty shack which is the present headquartâ€" ers, by A. Maclean MofTat, a tall sunâ€" tanned middleâ€"aged man in a white sun hat and breeches. He showed his guests around the preliminary work, of which he is in â€"charge, but until such times as more work is done he would make no prediction on the scope of the operations, However, within a few weeks, it was Jlearned, the campany hopes to be proâ€" ducing with an excavator capable of 1,0060 cubic yards per day. Even prelimâ€" inary operations have given employâ€" ment to about 40 men and brought hopes of eventual prosperity to the district. In addition to the Milnet operâ€" ations, exploration and sampling is goâ€" ing on opposite Milnet, on the other side of the river, while further work is being done at Meteor Lake, 20 miles north of Capreol. Working with Mr. Moffat, is Mayor Coyne and W. Read, of Capreol, and O. M. Trano, a director of Onwatin Placer Minimx Syndic¢ate, incorporated under Part No. 1 of the Ontario Companies‘ Act with a capital of $35,000. oo nele e i l l d d l ie it is e e ie e on ie in Sn Sn S Sn it Pn ie ie ie e e ote 3e ie B B n B ,â€" OLD 'VIRGINE hR Delicious and oo l /| STATION CKGB 7.15 p.m. Every MONDAY FRIDAY IT BELONGS IN Yo@ enjoy iceâ€"cold every place else; why not at home, too. The whole YÂ¥ OU R 1C EB OX family will welcome its pure refreshment. AT HOME TIMMINS BOTTLING WORKS CHâ€"165â€"8 THOUGHTFUL CARE A galaxy of radio stars In an entertaining program of music, song and story. icious and sfreshing mX 8 d in nb in i Ned : ie ateateate«tes OPEN DAY AND NIGHT T I M M IN 8 Funeral Oirector 1 AND DIGNITY CHARACTERIZE OUER HERVICE 64 Birch Street North Timmins Phone ' ‘This company has several claims in ‘the Meteorâ€"Onwatin area and for sevâ€" eral months has been putting down test shafts such as Mr. Moflat has been ‘doing at Milnet. A" Maclean Moffat, who visited the district three years ago, and whe is in charge of the work at Milnet and also at Norman Beach, north of Capreâ€" ol, pointed down the river and stated that he has leased the property for three and a half miles down the bank of the river, and that shafts had been sunk at intervals and samples taken with excellent results. "The Meteor Lake Mining Syndicate is also working at Norman Beach, just out of Capreol, where several years ago operators spent some $35,000 in developâ€" ment work," he added. "This is all sand and gravel deposit and we think, bears commercial gold. We have 2,700 acres staked and 36 square miles leased," he explained. Mr. Moffat indicated a clearing in the brush across the lake where stood a tont. "We have cleared a path 50 feet wide back into the bush for several hundred yards and have sunk our 12â€" foot shafts at intervals of 100 feet and samples are as c0oo0d as on this side of the river," he said. "We sank a total of 30 shafts and are taking between 50â€" and 60 _ samples daily," Moffat stated. ‘"‘We‘ve been working at the Milnet properties here for about two.weeks. while at the Norâ€" man Lake property we‘ve been working everyday since February 20." Mr. Moffat said that soon he hopes to have two power boats on the river to ferry men and ore across the river from the clearing to a dock now being repaired at the foot of stairs down the steep bank. } A gasoline shovel that will be capable of lifting 1,000 yards per day is exâ€" pected soon. This will be set up on the Milnet side of the river within 100 yards of the railway station. Sand and gravel will be transported avross the river to this spot by boat. This excavator is expected to feed a Fahrenwald Flotation Machine, deâ€" vised for the recovery of fine placer gold, by Dr. Fahrenwald, formerly chief of the mines department at Washingâ€" ton State College, Pullman, Washingâ€" ton. It includes a system of trommels and screens for scrubbing, washing and screening down to 60â€"mesh, and the residue is then passed through pizs and a patent impact amalgamator.. Conâ€" centrates will be sent away. "Recovery will depend on what shows on mill tests," said Mr. Moffat as he led the reporter to a test pit and lifted a handful of fine sand, which came away loosely packed. It was estimated that the costs of taking ti.~ sand and gravel and treating it would run about 15 cents per yard although extensive operations costs as low as 6 cents per yard have been reached. Young Davidson Mines, Matacheâ€" wan district, being operated _ under the direction of Hollinger Consoliâ€" dated Gold Mines, reported production of $682.851 in the six months ended June 30. compared with $596,759 in the same period of 1938, an increase of $86,082. In the period 187,199 tons of ore were milled, a daily average of 959 tons, or a total increase of 13,540 tons over the comparable period of last year. The average recovery was $3.65 per ton against $3.42. Preduction of $682,851 in Six Months at Davidson Because of the extensive underâ€" ground development program, cost of which is being charged to current expenses for the period were a little higher at $474,812, or $253 a ton, a~ gainst 417,848, or 240 a ton. Howâ€" ever, increased production was more than able ta take care of the $56,964 rise in costs, so that operating profit at $208.040 was $29,128 greater than the $178.912 reported for the first six months of 1938. Try The Advance Want Advertisements ate ate aBe ate Bs aZe ce ate 420420070030 07008 Moose River Gypsum Co., to Start Work Mect Competition Since gypsum is a lowâ€"priced product, the Northern Ontario: deposits would have to meet the competition of the Caledonia ficld in Haldimand county of Southern Ontario. Figiiring production costs and freight rates, the Ontario Department of Mines as long azo as 1929 established that "if and when the T. N. O. Railway were extended into the MooseRiver basin, Northern Ontario gypsum could underâ€" sell the Ca‘rdonia product in all T. N. O. line towns, North Bay, Sudbury, Sault Ste. Marie, Port Arthur and Fort William and in the Northwestern Queâ€" bec mining field. Gypsum can be shoveled out of the Northern Ontario field, while underâ€" ground mining is necessary at Caleâ€" donia. New uses for gypsum are continually being found in the building and conâ€" struction industry, while in its crude form, the mineral can be used as aA fertilizer a retarder for concrete and as a fux with certain nickel ores, First survey of Northern Ontario‘s gypsum resources was made as early as 1875 by Robert Bell, a geological exâ€" pert in the employ of the Dominion movernment. He prepared extensive reports on gypsum deposits along the banks of the Moose River, the Cheepash River, the Gypsum Mountain midway between the French and Abitibi Rivers and on the French River itself. f Three Exposures The deposits along the Moose form three series of exposures, one of them two and a half miles in length, and can be followed almost continuously along the Cheepash River, 15 miles north of the occurrence on the Moose. Additional deposits are found along the Harricanaw River near the Quebec boundary. Part of the Moose River deposit was staked in 1911 by W. Tees Curran and a party of . engineers while en route from Montreal to carry out assessment work on the islands of Hudson Bay for the Ungava Miners and Traders Limâ€" ited, a company holding large interests in the Far North. Claims were allowed to lapse, and a second attempt to hold the ground also failed. But in 1923, according to a report of the Ontario Department of Mines, Curâ€" ran and a Mr. R; M. P. Hamilton, of Montreal, catried out all assessment work on new claims staked and "were then awaiting only the arrival of the operations." At that time the T. N. O. railhead was at Island Falls, 40 miles south of of the gypsum deposits, and the steel wasn‘t to be pushed through to Moosâ€" onee until 1931 and ‘32. The first outcropping of gypsum apâ€" pears 11 miles below Portage Island, and can be followed aown the Moose River for two and a half solid miles. On the southern side of the river, the sypsum is found in two series of exâ€" posures. J. M. Bell, a geologist of the Ontario Bureau of Min*s, surveyed the field in 1904 and of the Moose River deposits reported: "The cliffs of gypsum on the river banks are often bizarre and groâ€" tesque, sometimes appearing as a series of snowâ€"white columns divided by deep caves and caverns. Creologist Bell found the average thickness of the gypsum bed above water to be 15 feet, but as the deposits extended down below the water line, he was unable to determine their true thickness without drilling. It was in 1928 that J. Lanning, a geologist of the Canadian Mining Journal, reported that four drill holes had been sunk in the gypsum beds to depths of from 25 to 47 feet without reaching the boattom of the deposit. The gypsurm has been found to be usually granular and finely crystalline and snowâ€"white in colour; but pink, green and brown gypsum is not uncommon. On th> Cheepash River, a small stream which flows eastward into the Moose River near the mouth of the Abitibi River, an even better series of gypsum exposures occur. The first is found on the south bank, 16 miles up stream. and runs unbrokenly for more than six miles. The thickness of the beds as seen above the water line is greater than on the Moose River. the depth running THE PORCUPINE ADVANCE, TIMMINS3, ONTARIO around 20 feet of sheer gypsum cliffs. The Gypsum Mountain, midâ€"way between the Abitibi and French Rivers, was surveyed in 1904 by Beli, the Onâ€" tario Bureau of Mines geologist, who 'reported on the Moose River deposits. l The mountain, rising 415 feet above the jlevel of the surroundingâ€"counitry, is more than two miles long and about a mile and a half wide, although its 'cnct« measurements have not been deâ€" | termined. CGeologist Bell reported that the surâ€" face of the mountain is rowh and unâ€" even,. and contained many deep holes, filled with water, caverns and natural bridges. The gypsum runs deep, judging by the holes seen by Bell, and sheer cliffs 20 feet high rear their snowâ€"white faces up from the muskeg country which surrounds the mountain. Other deposits occur along the bank of the French and Harrcanaw River: the beds above water running to | thickness of 10 to 12 feet. Editor A volte face has been taken by Charles Clark, editor of the High River (Alberta) Times. So impressed was he by seeing Their Majesties that he set in verse his new opinion. I used to think I‘d hate to be His Majesty the King And have‘ to go upon parade, while people shout and sing; To have to change my umfox m a dozen times a day And take a scheduled part in ceremonâ€" ial display. To have to live in that fierce lizht that beats upon a throne Hold nothing glamorous for meâ€"I‘d rather live my own. That‘s how I felt about the King; ‘twas natural, I ween, But I confess I changed my mind the day I saw the Queen. Powers of Bank of Canada to Create Cash and Credit Responsible Management Bank of Canada, Ess tial. (By Wellington Jeffers in Gloks) Supposing all Canadian depositors in Canadian chartered banks called for their money at once, would the banks be able to mest the call? This quesâ€" tion, so often asked and answered by the asker in the negative, was answered in the affirmative by Graham Ford Towers, Governor of the Bank of Canâ€" ada, when it was put to him in the Banking and Commerce Committee of the House of Commons at Ottawa. It is a hithly hypothetical question because, as Governor Towers says, such a situation could only arise if all the people of Canada got into an active funk with regard to their aeposits and also if they would lose all confidence in the securities of their Governments. It was true that at the end of May, 1939, the Canadian «deposits of the banks reached $2,567 millions while the cash of the chartered banks stood at $260 millions in accordance with the practiâ€" cal banking maxim that a 10 per cent cash reserve is sufficient to meet all foreseeable stresses at present, but the chartered banks held $1,504 millions in Dominion, Provintial and other securiâ€" ties as well and have lent $1,019 milâ€" lions to Canadians and Canadian comâ€" panies and instituitons. That is why Canadians would have to lose conâ€" fidence in all these assets before a nationâ€"wide run could develop. Cashâ€"Creating Power Is Tremendous But if one grants the untenable hyâ€" pothesis that Canadians might lose confidence in all of these bonds and loans, could the chartered banks get cash to meet all calls? They could. The (Bank of Canada has $205.7 milâ€" lions in gold in its reserve and â€" can legally issue notes to four times that amount. or $882.8 millions. Deducting $415.8 millions for total deposit and note liabilities, it is plain, therefore, that more than $400 millions additional legal tender could be issued to the banks. K that huge cash increase were not enough to meet such a run, the Government could either buy more gold or suspend the iminimum reserve conâ€" dition and permit the issue dollar for dollar of legal tender until deposits were paid off. After a year that power would require the authority of Parliaâ€" ment. The point is, if one carries the hypothesis to its lozical but insane conclusion of everybody wanting cash for his deposits, it would require now the issue of $2,567 millions of Bank of Canada notes, Every one would be legally paid, but how good would be the money? ‘Canadian banks can meet or of the High River Times Changes Opinion any run in cash, therefore, no matter how large the run may be, unless a forâ€" eign fce takes possession of the country and impounds the gold and other assets of the banking system. Can Have Money to Burn But All Paper How far can the Central Bank by monetary policy and management hyâ€" pothetically increase the deposits in Canadian banks? Starting with the fact that the banks have with the Bank of Canada and in their tills a 10 per cent cash reserve behind their deposits, can the Bank cf Canada, by increasing within its powers those cash reserves, cause the deposits to go up to tan times as much? By.dlaw a 5 per cont reserve is enough, but the present policy neverâ€" theless is to require 10 per cent, and that is banking policy everywhere. The percentaze is not accidental. It is Bank of Canada policy, and the Governor stated that if the banks tried to operate under a smaller percentage, the Bank of Canada would use its power to restoreé the cash reserves percentage by selling Government securities or gold or forâ€" eign exchange or any other assets or all of these for cash. Of course, $2,500 million mean the sus gold reserve. Bank of Cana cash reserve t straight issuc As th the limi powers millions "with iParli means to su money, why Government ments, are â€" Rress burds ey as wealth far as I knc paper money has neve some al liament why 1 why 5 at pres Is Moneyv €e, to get the noteâ€"issue to ions, as indicated, would suspension of the minimum e. Independent of gold, the amnada is also able to put the undabdic 10 11 inadga witho and confisci nt," replied said that it « rovernor The dep iny fizu it y figure desired by a paper. r put it, the sky is posits under possible brought from $2,500 sent, to $13.2 billions. y Wealth? s Jerry McGeer, M.P. creating all that uch an abundance of t that cur National Provincilal CGovernâ€" to finance the proâ€" without resorting to District Officesâ€"Bank I~ reserves, ton times nt reserve icy neverâ€" cent, and 7 @l omlL nt, and re. The is Bank Insurance Company Afead Office â€"London, Canad a country would be served." In Central Bank policy, the great esâ€" sential is management. If Parliament or the Government does not like the policies of those in charge, they can change the management. My Associates Another Record ORING SOUTH? at the White Top Cabins Row Boats Canoes S wimming Conveniences "Last month we assisted 3,482 Canadians to provide financial security for themselves and their dependents to an amount of $6,778,000 (exclusive of Industrial and Group Insurance). "We experience a real thrill in helping people fulfill this basic human desire for financial security. Our clients are always grateful for help in solving in advance grateful for help in solving in advance the financial problems caused by death, disability or old age. "No wonder we like selling life insurance. "May we serve you? and I have made of Commerce Buildings, Timmins, Ont. Stop for Dinner or Overnight LOG CABINS DINNERS Well Furnished CGood Meals 50¢ Comfortable beds Turkey Dinners on $1, per person SHundays A GLORIOUS sSPOT FOR ‘A WEEK END h TEMAGAMI, ONT. GEO. HUTCHINGS, Temagami, Ont it will be the Highlight of your trip 2993 On â€" the Highway atâ€" Beautiful the liberty which has been increasingly associated with our "enterprise econâ€" amy" would also give place to regulaâ€" tion of prices, wages, all our goings and [ comings, what we eat and wear and perhaps what we breathe. Dictore Poreupine to Arrange Drilling Plan Toronto, July 26â€"â€"On the advice of M. P. McDonald, mining engineer, direcâ€" tors of Dictore Porcupine Gold Mines are arranging for an immediate diaâ€" mondâ€"drilling program on company‘s Porcupin» property to explore the eight known quartz veins at depth and check results of surface exploration. It is also planned ‘to drill a wide sulphide shearâ€" intr which traverses the property and which has been indicated for length of 3.300 Crew has been employed for the past three weeks erecting camp buildings and preparing the numerous test pits for an intensive program. Reâ€" cent strength in the shares is attributed to a substantial interest having been acquired in compidny‘s financing arâ€" ranzements by New York group.