THE MAGINNIS MINE

The Maginnis was located in 1880 on outcrop that assayed over 38 ounces of gold per ton. In 1881 the Maginnis Mining Company was formed and a mill built. The mine operated until 1925 under several owners and lessees.

In 1980, a sampling program was conducted on the historic dumps and tailings followed by a cyanide heap leach test on 300 tons of the material. Approximately twenty ounces of gold and an equal amount of silver were recovered from the test. By 1991, a 1,400 long decline had been driven from the New Works of the Maginnis Mine and terminated under the main Maginnis workings. Over 500 feet of other workings were developed off the decline. A small underground shop/office was excavated and equipped, and a truck load-out was constructed on the surface. A 100-foot adit was also driven near the Maginnis/Spotted Horse property line.

From 1992 to date, Mr. Hanley has secured, maintained, and continued prospecting the mine. He currently holds a Small Miners Exclusion Statement, an Exploration License and bond with the State of Montana and a federal MSHA Identification Number. Hanley's operations are centered out of a shop at the old mill site.
The historic Maginnis Mine workings included approximately 1 ½ miles of drifts and crosscuts, a main winze 225 feet deep, and thousands of feet of raises, winzes and stopes. The Montana Workings, located south of the main workings, are connected by a drift and two shafts that developed a body of lower grade gold and higher-grade silver ore. In 1920,

a new ore shoot was discovered about midway between the main Maginnis workings and the Spotted Horse. This became known as the “New Works” of the Maginnis and had several adits and associated workings. About two-thirds of the old workings are accessible.
THE SPOTTED HORSE AND KENTUCKY FAVORITE MINES

The Spotted Horse was discovered in 1881 and worked by various operators until the late 1930's. Reopening efforts started in 1968 and sporadically continued until 1983 when sustained operations began, Chelsea Resources Ltd., being the most notable ( Chelsea also leased the Maginnis and Cumberland at this time). Considerable improvements were made to the mine and surface facilities. Prior to developing reserves, Chelsea built a modern 50 ton per day cyanide plant, tailings impoundment and numerous other surface facilities. The mine was deepened and old as well as new ore shoots were mined. Chelsea failed to provide funding to effectively operate the mines and all exploration and development work was stopped as all efforts shifted to strictly mining ore. Chelsea eventually failed. Blue Range Mining Company acquired the property and leased it to a group who performed exploratory drilling on the Kentucky Favorite with favorable results. This group could not fund the project and relinquished it. Mr. Henry and Mr. Bauer of Texas eventually purchased the property. Mr. Henry resides at the mine and secures and maintains the property.

The Kentucky Favorite Mine is actually an extension of the Spotted Horse and its history is integral with the Spotted Horse. A 1984 drilling program on the Kentucky Favorite provided the information that later led Chelsea to drive the Kentucky Favorite decline and mine high-grade ore from several veins. Another later drilling program encountered ore grade intercepts to a depth of 416 feet.

The Spotted Horse early workings consisted of about 2 ½ miles of drifts and crosscuts, a 450- foot vertical shaft, an 85-foot winze, and thousands of feet of raises and stopes. The Discovery shoot was stoped continuously from the surface to the lowest level, over 600 feet. Several adits explored and mined the discovery outcrop ridge. The Kentucky Favorite was developed from a few adits and shafts. In the early 1900s, a drift was driven from the Spotted Horse to the Kentucky and a winze was sunk on ore.

Recent development included deepening the main shaft to Level 8 (550 feet deep), extending the Level 8 winze to 120 feet below the level, collaring levels off it and installing a muck load-out facility at the Level 8 shaft pocket. A modern refuge chamber was constructed and a secondary escape built. In addition to developing new workings, numerous workings were also developed on many of the old levels throughout the mine. An underground shop was excavated between the Level 1 adit and the shaft. Ore was stoped from all six of the historic shoots and new shoots opened up. The Kentucky Favorite decline was driven and connected with the old Spotted Horse Level 2 drift and stopes. New stopes were developed off the decline. Chelsea also started drifting towards the downward projections of the Kentucky Favorite veins from Level 8 of the Spotted Horse and was only 350 feet short of the target when they closed.

THE CUMBERLAND MINE

The Cumberland Mine was a later discovery than the other mines and developed near the turn of the century. Around 1910, a large cave in hindered the operation. It was last worked in 1918 and all access to the underground working has since caved.

The property was acquired by a local family and was idle until Chelsea leased the property

in 1987. Chelsea constructed a haul road and tailings impoundment on the property but with no access to the underground workings, and, their hands already full with the Spotted Horse and Maginnis, did no other work. When Chelsea closed their operations the tailings impoundment was reclaimed. There are no workings accessible other than the large surface glory hole left from the early day cave in. Few maps or records have been located.
MINING AND MILLING

Historic mining methods were similar in the mines. For the most part the ground stands very well and requires little support. Open stoping using stulls and an occasional pillar for ground support was the predominate mining method. Stope width varied from approximately two feet to 50 feet. Modern day operations utilized both rail and rubber tired equipment. Most ground was “open stoped” using pillars and stulls for support and lagged for work staging. A modified shrink stope was tried but soon emptied when the mill needed feed. Slushers were used extensively for driving production drifts and removing ore from the stope floors. Development headings were supported with timber or rock bolts. All drilling was with jacklegs, stopers, and sinking hammers. Natural ventilation provided good airflows in many of the workings and fans were used as needed. Fresh air could always be found where new workings intersected old workings. Enough water was encountered in the workings to provide mine service water, yet not so much as to cause excessive dewatering.

Historic milling methods were similar at the Maginnis and Spotted Horse. Initially the ores were treated by gravity and amalgamation with generally poor recovery (less than 60%). By the early 1900s, the cyanide process had been added to the mills and recoveries of greater than 90% were achieved. After the advent of cyanide extraction, the lower grades of ore could successfully be mined and treated. The Cumberland , developed later than the other mines, used cyanide from the start. Water for milling operations was obtained from the mine workings and piped in from streams and springs. The 1980 heap leach test on the Maginnis dumps demonstrated the ore cyanided very well but required agglomeration for optimum recovery. The mill Chelsea constructed in 1987 was modern in all regards and had a recovery rate of about 90%. Dore bullion bars were poured on site. Montana law passed in 1998 bans the use of cyanide to treat ore from surface mines (open-pit). It does not ban the use of cyanide to treat ore mined from underground.