IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I ISO ^ m ■- 112.2 2.0 1.8 1.25 1.4 1.6 ^ 6" — ► %• 7(;r.r. property, roughly estimates that Toxada Iron Minos coi;- tain 11,250,000 tons of iron oro. Sco llargroavon' Letter, Page 13. The ore is a black magnetic iron ore with coarse granular structure; is very ricii in metal and of far more than average (quality ; contains (j9 per contcm of metallic iron according to Professor Chapman's analysis ; and is practi- cally free from deleterious ingredients sucli as phosphorus, sulphur, and titanium. The pig metal obtained from it would bo eijual to the boftt brands of Lancashire Ilemutitoor Bessemer Pig. Seo Professor Chapman's Analysis and Letter, jiago 14 and 15; also Dr. Harrington's Analysis, page 15. No iron mines could be more favorably situated than those on Texada Island, either as regards mining, smelting or shipment. Thousands of toid of ore, loose and broken, may be taken from the surface, find the solid dcj^sit need only be quarried, — not mined. Limestone, in unlimited quantities, in some cases carrying 20 per cent, of iron, may be had at the mines. Wood, for making charcoal, abounds on Toxad^ Island, on Vancouver Island, and on the main- land of the continent. Coal might be found by boring on the property at the head of Gillies Jiay. But if found tix) dooji for profitable working at present, an abundant supjily of coal may be had at Comox, or Bayncs' Sound within 18 or 20 miles by water from the Iron Mine^^, or at Nanaimo, 40 miles distant. Comox coal is suitable for all the pro- cesses of iron-making. Anchorage is good on the shore lino of Iron Mountain. Wharves may be cheaply built; chutes for ore easily constructcil ; wheelbarrows oidy required to carry ore to the chutes. Near where the wharf should bo is a good site for a blast furnace. Unskilled labor — Indian, Chinese, European — is obtainal)leHt moderate rates: 75 cents to 81.50 per day ; skilled labor not exceeding 83 per day. (8eo Eichardson's Report on Toxada Iron, page It!, and Watsoi 8- Eeport, page 18.) ■ ' la Iron Minos coi;- ^argrouvoh' Lottor, 'ithconrso j^ranulnr of far more than m of motallic iroit^ ^'si» ; and is practi- uch as i)hoNi)horuf<, il bo equal to tho Boshomer Pig. Sec 3r, page 14 and 15; al)ly situated than Is mining, smelling , I008O and broken, I solid dcjwsit noer 1 ton Pig-iron from Texada to Comox or Baynes' Sound Freight on ditto to Port Townscnd Dut)'' on Ore for 1 ton Pig-iron at I'ort Townsend Total cost per ton. • According to Mr. F. Rumpf, (see page 31) the cost of labor with a S2 — ton furnace niakiug 30 tons )icr day would be $1.30 j)er ton, tiioij reducing above estimate $2."o per ton, and leaving tnc total cost of 1 ton Char- coal Pig at- Tezada. $0 50 .^0 25 12 80 50 4 00 $18 .1,' $15 8J ^°'°"* I Port Sound. ''"'*^- $0 50 60 35 12 80 50 4 00 1 50 20 05 17 35 50 50 25 12 80 .'.O 4 00 2 50 00 21 C5 IS 95 ^. / ■ ESTIMATRI) COST OF TON OP COAL PIO-IROW, MADE AT TEXADA, COMOX OR MAYNKrt' SOt:ND, B. 0., OR AT PORT T0WN8END, M'. J., WITH Hl.AST FtENACK MAIUNU 10 TONS, 2,240 LBS. «ACH, PKB DAX. , UOCBOII OP EXPSMHI. Mining, whocling and dinting sufficient Ore for one ton I'iK-iron Roasting, if required^ with fuel Crnshlng Fuel, Engine and Blast Stov«, if gases be insumciunt •Labor at Furnace, Engine, &c Freight of Ores for 1 toa Pig-iron from Toxada 2| tons Coal at Chute of Coal Mine, Comox or Baynes' Sound Freight 2* tons Coal from Comox or Bay nes' Sound Duty on 21 tons Coal at PortTowuaenJ. Duty on Ores for 1 ton Fig-iron at Port Townsend Comnx or liayne's Sound. Total Coat Ton Coal Pig-iron. •Taking cost of labor at Mr. R^m^l^8 estimate with 32-ton Furnaci , making 30 tons per day, vi7. .— $1.30, a ton Coal Pig-iron would cost at ( eta. 50 50 25 50 4 00 1 50 7 50 14 75 12 05 Tei.ada. t cts. 50 50 25 50 4 00 7 50 3 00 16 25 13 55 Port Townsond. $ cts. 50 50 23 60 4 00 2 50 7 50 7 50 1 87 GO 25 72 23 02 Framing Estimates. In framin<5 the above estimates, everything except coal is calculated at the ordinary rate of labour and suppliert. The price of coal is taken at the cost of mining and delivery at the chute or Hhipping point of the Coal Mines, and includes 12 per cent, per annum for wear and depreciation of plant, and 12 per cent. j)or annum interest on the caj)ital investo and after allowing 12 per cent, per annum on the capita investefJ for wear, tear, and depreciation of plant, the coal could be supplied at the chute to the Iron Works at 62.60 per ton. The balance of the annual out-put of coal, 75,000 tons, could be sold, delivered on shij>board at the chute at current rate $5.50 per ton or at $3 per ton protit. The annua! profit would therefore be as follows : $200,000 capital invested in Coal .\lino and plant ^ 12 per ct... $24,000 75,000 tons coal sold for Sau Francisco and ottier uiarkuts tS) $3 profit 225,000 Total Coal Profit $24^,000 Screw Colliers. If the carrying of the coal to market were monopolized by the owners of the Coal Mine, a very large profit could bo J-. 11 made in addition. For instance, two screw colliers, 200O tons burthen would deliver 75,000 tons coal annually in San Francisco, on which the freight would be $4 per ton. The two colliers would cost $150,000. The tc^tal receipts then on the carrying trade would be as follows : — 75,000 tons Coal /© $4 per ton delivered at San Francisco $300,000 Extra freight and passengers 50,000 S350,00O Deduct : Interest m 6 per cent, on $150,000 89.000 Expenses 2 Kcrew Colliers per month ® $2000 each, 'or 12 months 48,000 57,000 Total Annual Profit on Freight S293,000 Recapitulation — Coal Profits. Total Annual Profits on Sale of Coal §249,000 Total do do on Freighting Coal 293,000 Total coal profit S542,000 Recapitulation — Coal and Iron Profits. Total annual profit on making Iron in B. C $377,000 Do do do on Coal 542,000 Total profit $919,000 Town-site. Another source of revenue would be the sale of the town-site where the coal could be shipped and the iron works erected- The return from the sale of town lots in two or three years may safely be put down at SI 50,000, besides reserved town lots that a few years later would be very valuable. The town-site receiptsj would help materially in providing for outlay on works. There seems to be no doubt, but the Canada Pacific liail- way will pass through Comox to Bute Inlet ; and thence castwardly across the continent. |i 12 Branch Iron Works. At eome desirable spot in Washington Territory, Iron and Steel of all kinds could be manufactured profitably from Texada Iron ore and Comox coal or charcoal ; cheaply enough, in fact, to control the entire Iron and Steel trade of California, Oregon, Nevada, and contiguous Territorioa. Imports of Iron. The imports, in 1874, into San Francisco, of American and Foreign Iror. and Steel were very large ; but the quantity reported (see page 32) does not include Eastern American, as no entry is m de at the Customs of domestic iron and bteel. See page Nails, too, are imiwrtcd from the Eastern States. Not a pound is made on the Pacific Coast. See page Taking the imports into San Francisco, the supply market for the Pacific Coast — of Iron, Steel and Nails, the profits on the sameif manufacture I- 1 ;■ I l(^ EXTRArT PROM THE ReI'oRT op Mr. JaMES RicRAROSON, UATED, MONTREAI, MaY IST, 1874, PUBLISHED IN Ge )L0aiCAL SURVEV, UePORT 1873-4, PAOE 99. Iron Ore. On the south side of Toxada Island, about three miles north-westly from Gillies Bay, and about seventy paces from the shore, a small ex))osurc of magnetic iron oro was mot with, associated with a coarse-grained epidotic rock, and grey diorite. Immediately north of this oxix>sure tho ground rises steeply to about 450 feet above the soa. IIoio on the eastern and south-eastern slopes of the hill, for 15i) feet down, and extending from 200 to 250 feet in length, is an exposure of rich magnetic iron oro. On the out-crops facing to che north-west the ore-bed which dips from S. 58^ E. to E. <25° — 30° is seen to be from twenty to twenty-livo feet thick, and to rest on groy crystalline limestone, with which, for about two feet down, are interatratified bands or ore, of from half an inch to one inch in thickness. The hill siii rises to the north and north-east, but along tho flank, and ai, about the same elevation, in a north-westerly direction lor nearly a mile, the ore is occasionally seen, and in one i)hn.o there is a continuous exposure of it foi about 250 feet, the bed 17 aijout apparently varying in thicknoes from one foot to ten fe«t. In the concealed intervals its course appears to be indicated by a coarsely crystalline epidotic i-ock carrying ore in places, bnt with the grey limestones apparently overlying it to the north-east, and the grey and green dioritic rock beneath it to the southwest. Where the ore-bed is exposed in this part of the hill a similar arrangement of the bods is observeur at the north end of the iHland al.Hiut Hovon miles diHtant which would afford shelter in ail weather. The site of the ore is eighteen miles from Comox Ilarbour, twenty -«ne miles from Deep Bay, and about twonty-threo miles from Fanny Bay. Those are all good and safe harbours, and are only a short distance from the productive coal seams of the Comox area. In the event of charcoal being roijuirod for smelting the ore, abundance of wood suitable for making it can bo procured on the island. ;.,,,. t ' ■' Extract trom Mr. ♦ Watson's Report, to the proprie- tors OF the Texaka Iron Mines, Jlly 9, 1874. The out-look from that portion of the southern shore of Texada Island, whore the iron deposits arc, is first the Gulf of Georgia, there about 12 miles wide. This bounded by Lasquoti Island on the south-east, which with Texada com- pletely shelters this ])art of the Gulf from east and south- cast winds. The immense breakwater, Vancouver Island, with its snow-clad ranges, shuts out all the ocean storms from the south and south-west. Valdoz Islands protects it from the north-west. Texada on the whole is low: at the west end very low. The unbroken wall of the coast range Cascade Mountains, on the mainland of the continent which has noopening from Howe's Sound to Bute Inlet, completely protects it from the cold winds of the north. . ' Climate. Lying in the lap of the great valley of the Gulf of Georgia, Texada Island has a climate drier than Victoria, and much warmer. The Indians and whites who have been in Texada in winter say snow seldom fails and never lays. I am fam- iliar with the bay of San Francisco. This gulf is not so • Mr. Watson is not a professional mining engineer ; but has had a long experienae ai a worker in iron, and was svlect«d to locate the Texada Irou 1(1 corN arlK)ur (liNtant of tlio Fanny only a Comox elting e»n bo 19 rough as it \h. Want of wind is the trouble I havo found in every month. , Indian Labor. The Indians on the mainland from Burrard to Bute Inlet are under Catholic misHionary influence. They arc increas- ing fast. Cause : moral habits and no wars. They are anx. ious for work. When started to work young, they keep steady at it, and make first class workers, as can be seen in the saw-mills. These Indians are spirited ; more like the Irish. They will when trained make splendid makers of blooms. All operations in iron-making requires a little " vim " in a man ; and they have it. Thoy are easier to mancgo than the English or Scotch. BOUNDABIES — LiMK. About 25 chains from the sea-shore on its west end, and 80 chains on its eaet end, is the length of north and south lines from the shore. The enclosing line or back one is 1^ mi'e long, running east und west along the divide, hero from 800 to 900 feet above the sea level, and passes through pure lime»t^;ne. I havo been more than once deceived by its softness, thinking I had got gypsum. When assayed and teste Coal Miasubxs. I have found the true coal meaaure* od tho Hamo side of the luland as the iron, but three miles diHtant. They lay ulmoHt horizontal. I cAa find no np-throw anywhere. To here and uink ia tho only way to prove tliem. AcroHfl the Gulf of Georgia about 16 to 20 milea, at Cumox, Baynes' Sound, and Deep Bay, there in a fine up-tbrow of coal veins. Latitudi. The latitude of the Texada Iron Mines are about three- quarters of a degree north of the American boundary lino or 49th parallel, and 120 miles of navigation from Port Town- Hend, the port of entry for Washington Territory. Branch Works. It will be a subject to consider, whether under tho exist- ing status, the iron works should not be located, or at least brunch works, inside of the United Statea boundary. The duty saved would be immense. The ore and flux to make a ton of 2240 lbs. could be carried at the present rates for $1.50 to tho nciirest point in Wash- ington Territory, and for $2.60 to Port Townsend ; but freights will come down. The steady lumber trade from Puget Sound, W. T., affords a quick and ready chance to ship at low rates to San Francisco, and all ports on the Pacific. The water-frontago of Puget Sound is an immense site for works and easily reached. Charcoal facilities are as abundant there as in British Col- umbia. Coal may be carried at $1.50 to$1.75 from Nanaimo. Is ^ Markets. The millions of Engli i speaking people strung along from San Diego to Bchrihg's Straits, coti-juine more iron per head than the like number of p(3')ple anywhero else in tho world. Pounding and grinding quartz wears away and 22 destroys a great deal of iron every year. The wearing out of rails is also just beginning to be felt. All commercial buildings are mainly constructed with iron. The stove, agricaltural machinery, and machine business generally, languishes on this ooastfor want of a supply of cheaper iron. The San Francisco rolling mill — the only one on the coast — commenced puddling within tho last twelve months. Thoy worked with scrap bofore. Thoy have l)een on the whole an immense success; but are cramped for want of material at lower rates. The West Coast of Mexico, particularly Jalisco and Durango, consume a largo quantity of iron. British Columbia and Washington Territory are light on iron. Still they are something. Tho lumber business with Peru, Chili, Guatemala, West Coast of Mexico, Australia, New Zealand, Hong Kong, Shanghai, Sandwich Islands and Japan, affords opportunities to make shipments of iron at low freights. Ma. Wm. JEFFRAY'S ANNUAL IRON REPORT. to the iron importers and foundrvmen of .s.vn francisco: Gentlemen : I herewith submit to you an a reference, my Annual Re- view of the Pig Iron Market of San Fi'ancisco, for the year ending December 31st, 1874. The monthly quotations given bolow will show a marked fluctuation during the year. The extremely low prices in May were caused by a forced salo of GOO tons of different brands which were offered on the market for over two months, causing a decline from 845.00 to 835.00 per ton. Upon the disposition of this, tlio market rallied and gradually advanced. The consumption this year shows an excess of 5,694 tons more than 1873, caused by extensive buildings being erected here, and large quantities of mining machinery being ship- ped inland. The importations as shown below vary but lit- tle from lb73. )Ut IV6, 23 Oregon has shipped to San Francisco 1,404 tons of Soft Iron of home production. This Iron is said to be improving in quality. There have also been larg3 importations of American Soft Iron during the year, the consumption of which some of the leading Foundrymen favor very much. There has also been molted during the year about 600 tons of Shot and Shell, not enumerated in the annual consumption below of Pig Iron. Large purchases of Scotch Iron have been made " to arrive" for 1875 delivery, at from «!38.50 to 845.00 per ton for Soft, and $36.00 to $4.3^.00 for White. American Soft has been sold at $40.00 to $43.50 per ton " to arrive," already en route. The following will give the monthly quotations for the year 1874: Scotch Soit. Per ton. January $47 6) to 50 00 February 49 50 to 46 50 March 4t 00 to 42 00 April 43 00 to 40 00 May 39 00 to 35 00 June 38 00 to 42 00 July 41 00 to 42 50 Augugt 45 00 to 46 00 September 46 00 to 8tea' White " ♦ '•. In /oundrymen'* and Jobber's hands, Scotoh Soft, . ' *, • ,' • 987 tona; American Soft, 200 tons 1,187 ton«. ■ i ,' In Foundry-men's and Jobber's bands, Scotch White, 97 tons ; American White, 100 tons 197 tons. 1,384 tons Consumption of 1874— White, 2,6 the face of which a landslide had carried away all the trees and loose soil on the north side of a small stream flowing into the Puntledge Lake, ■was given in last year's Report (Report of Progress 1871-7 -, p. 77). But most parts of the cliff being out of roach, tho thickness of many of the beds could only be ascertained a}iproxi mutely, having been merely estimated by tho eyo. A more favorable condition of the weather on the prosent occasion permitted me, by the aid of a rope tied to a tree at i 25 th« top of the cliff, to descend the whole face, and obtain exact measurements. The following is a corrected section in a-jC#ndiDg order ; — Section 3. » •■ "! Ft. Ins. Brownisb-grej, or light drab sandstone, and black argillaceous shales, interstratified with one another, :iad both holding flattened stems of pla';>" f SSSFE 10 ai» Stale 2-«o 3Q. •la sa ^„ .. M -u 28 Extract from appendix to Mr. Richardson's Report, by Dr. B. J. Harrington, Chemist and Mineralogist to THE Geological Survey. The Coals of the West Coast. In the Report of Progress for 1871-72, page 99, there appeared a series of analyses of coals from Vancouver and Newcastle Islands, by Dr. Hunt. Since these analyses were made, however, Mr. Richardson, has brought other samples of the bituminous coals from Vancouver and NewcaHtle Islands, as well as of the anthracite from the Queen Char- lotte Islands ; and an examination of these has been deemed desirable, inasmuch as they are, for the most part, from ditterent seams or different localities from those oxamin : ^ast year. I have only made proximate analyses ; and as most of the sample-i were weathered, and the pyrites converted into peroxide of iron, determinations of sulphur would have been but of little value, and have, therefore, been made in a ew cases only. I shall first give the analyses of the bituminous coals, and afterwards tho.se of the Queen Charlotte anthracite. Bituminous Coals. I. Lower seam, Union Mine, Comox, On referring to Mr. Richardson's report, page 33, section 3, it will be seen that the Lower or \0 feet seam (1.) at the Union Mine consists of two and a half feet of a dull, earthy coal, and seven and a half feet of clean and bright coal. The sample examined by Dr. Hunt was from the earthy portion, and contained 21-60 per cent, of ash. That which I have examine-! was fi'om the upper and better portion of the seam. Its analysis gave : Slow Coking. Fast Coking. Water* 1.70 1.70 Volatile combugtible matter 27.17 32.30 Fixed carbon 68.27 63.os Ash 2.86 2.86 11 10.00 100.00 'Loss at 113' C in all tiie analyses. 29 Slow Cooking. Fast Cookinir. Coke 71.13 85.94 B»tioof volatile to fixed cocibusiible. 1:2.51 1:1.95 The sample was weathered, rather brittle, and stained with oxide of iron, though bright upon fresh fracturef?. The p»wder, when slowly heated in a crucible, did not agglutinate ; but, when rapidly heated, waa converted into a tolerably firm coke, Aah brick-red. II. Union Mine, Comox. Seam 1 1, section 3, p«ge 38, of Mr. Richardson's report. This sample, like the last, wa.>j a good deal stained with oxide of iron, though bright upon fresh fractures. It was, however, much firmer, and contained a little mineral char- coal. When slowly heated the pulverized coal agglutinated slightly ; but when rapidly heated gave a drm though rather dull coke. Ash pale brick-red. ; • Analyses by slow and fast coking gave : Slow Coking. Fast Coking. Water i.34 1.34 Volatile combustible matter 28.11 30.01 Fixed Carbon 67.72 65.82 Aab 2.83 2.83 100.00 100.00 Coke 70.55 68.85 Rate of Tolatile to fixed combustible 1:2.41 1:2.12 Exthacts pbom Lkttkb of Capt. W. K. Clarke,* DoMiwiotf Stbamkb Sib James Douglal, to Hon. A. DbCosmos. Victoria, V. I., 2lst July, 1874. "With reference to Union Coal Mine situated at Comox, it comprises 1,000 acres in all. No shaft would be required to be sunk, but simply the coal tunneled out. There are 31 feet of coal visible. It is 5^ miles from Port Augusta, with a good harbor. The road has been made for uearly 3^ * Capt. Clarke ia one of the shareholders. 80 miles, and up to now ovor $11,000 has been spent. The road 80 far from beach to mine can't be beat. The land has been eelected and surveyed, and the Crown grants f will be re- ceived in a few days. The Company consist of eleven mem- bers, and are incorporated as a Joint Stock Company with a limited liability of twenty-two thousand dollars. I may tell you that yeeterday a piece of property was sold at auction, 100 acres of coal land (only supposed) and bought at $250 per acre, $25,000 for the 100 acres. Now I have only io say that if the Rippon estate is worth $25,000, the Union property is simply worth ten times the amount. * * If it is worth one cent it is worth $100,000. At the beach or outlet into the harbor, there is a claim of 1<50 acres for a depot, chute, wharves, &c., and as if intended by nature that the coal should bo shipped in that way, the bank rises gently along the boach to the beginning of tho road — a distance, perhaps, of 90 yards — to a height of about 70 feet, making a splendid incline for chutes to dump the coal on the end of the wharf ready for shipment, and thus obviating the necessity for shoveling, handling, &c., screens or iron bars being placed in the bottom of the chutes. By this means the coal would also be screened. The locality around the mine also abounds with the finest white pine, cedar, and other timber. Iron is also close or mixed with the layers of soil or sandstone, that is between the seams of coal. Thus by working coal, iron could be worked at the same time. Or should Toxada Iron ever be worked, the Union Coal Mine is not more than twenty miles from it. Any company purchasing the property would have a splendid locality to work in for another reason : there are thousands of feet of lumber that will be required for the inhabitants of Comox District, — all of which could be sawn by tho company, and thus prevent any competition from elsewhere. I have gone minutely into this description for your own special behoof. I am certain it is the most desirable property t Since issued. 31 in Vancouver Iwland or British Columbia, Tho navigation CONSUMPTION OF COAL SAN FRANCISCO. ' ' The following gives the comparative importa into California for — 1873. 1874. Foreign. '' ' •' Tont. Tout. Australian 96,435 139,109 English 52,616 37,826 Vancouver 31,435 51,017 Chili 400 Japan 50 Eastern. Anthracite 18,295 14,263 Cumberland 8,857 15,475 Domestic. . . Mt. Diablo 171,741 206,255 Coos Bay 38,066 44,857 Bellingham Bay 21,211 13,685 Seattle 13,572 9,027 Kocky Mountain 1,904 433 Totals 454,582 631,947 ; Increase, 1874 77,365 Tho old " Nanaimo " mines of British Columbia have yielded liberally during tho year past, and since September last a new mine, the " Wellington," has contributed some 12,000 tons to our supply finding ready sale, all being of good quality for household purposes, price $11, ex ship. The resident agents say they hope to reeeivo a monthly sup- ply of 4,000 tons Wellington during 1875. The Ga.s Com- pany is a larg« consumer of Nanaimo, &c. — 1874, or a monthly average of 18,247 do., against a consumption of 160,000 do. in 1873, or 12,500 do. per month. From the Ibrogoing it will be seen that the consumption of nails last year was nearly 09,000 kegs over that of the preceding y