a number of ledges, which, however, have not yet been developed sufficiently to furnish an absolute test of their value.

A consolidation has been formed between the Social or Gilligan company and the Steptoe, which will probably result in mutual benefits. The Steptoe company have capital, and have already made provision for the erection of a large mill; the Social company have a developed ledge already tested, and unquestionably productive.

This consolidation owns, in addition, some fine copper mines on the line of the proposed trans-continental railway. No work of any importance has yet been. done upon them.

Egan cañon is situated one hundred and sixty miles from Salt Lake City, and already forms the nucleus of quite a thriving little mining town. The overland stage and telegraph lines pass through this cañon on the route to Salt Lake. Preparations are being made for the vigorous working of all the valua ble mines in this district, and it is believed they will yield profitable results during the coming summer.

Montana. The productive mines in this Territory have thus far mostly consisted of placer diggings, the principal of which, being situated east of the summit of the Rocky mountains, are without the province of these reports. The amount of gold dust taken out the present year has been large, but in the absence of any authentic data no accurate computation can be made thereof. According to the public press of that region it will reach the sum of $15,000,000, though this is probably a rather high estimate. During the past summer a large number of quartz lodes have been taken up and opened, some ten or fifteen mills, varying in capacity from five to twenty stamps, having meantime been brought in and some of them gotten in operation. The quartz is easily worked, and yields largely, the product being chiefly gold. All the goods and machinery destined for the eastern part of Montana are freighted up the Missouri or across the plains. Most of the gold dust and bullion produced in this Territory is sent east, very little of it reaching California. Those best acquainted with the country have a high opinion of its mineral resources, and believe it will in a few years rival Idaho and Nevada, if it do not surpass them, in its product of the precious metals.

Idaho. The product of the placer mines in this Territory has been gradually diminishing for the past two years, though this falling off, if it have not already been, will soon be more than made up by the yield of the quartz mines, which are beginning to be worked quite extensively. The product from both sources. the present year will probably not fall short of $10,000,000, some estimating it much higher. It should be observed that there are no means of arriving at accurate estimates of the precious metals taken out in this Territory, many of the millmen not caring to make known the results of their operations, and large quantities of dust being brought out of the country in private hands. Of the total sum produced, from one-fourth to one-fifth is taken from the placers, of which some virgin diggings of considerable extent and value have been found the past summer; and as ditches have been constructed for bringing water into the mines on quite an extensive scale, and hydraulic washing is being introduced wherever practicable, the probability is that the present quota from this source will be kept up for some time to come. There are now twenty-four quartz mills completed and running in this Territory, with eight others in course of erection. They carry a total of nearly four hundred stamps, cost in the aggregate $1,000,000, and have a united capacity equal to five hundred horses. Besides these mills, about one-fourth of which are driven by water, there are a large number of arrastras running in the Territory, the most of which are also propelled by water. Of the quartz mills eight are supplied with one hundred and thirty-four stamps, are situate in Atturas county, ten in the Owyhee district, and the balance in the counties adjacent; the whole being in the southern

section of the Territory. The Poorman ledge, so-called, situate in the Owyhee district, is, perhaps, for its size, the richest deposit of silver ores ever discovered, immense masses of pure sulphurets, and even pieces of virgin silver weighing many pounds, having been extracted from it. Unfortunately, it is now closed up by litigation, and has not for several months produced any bullion. There are also several other rich silver-bearing claims in this vicinity, though the mines of Idaho consist mainly of auriferous quartz, of which there are great quantities that will yield by the most cheap and expeditious modes of working from $20 to $30 to the ton. Considering the abundance of these ores, the facility with which they can be treated, and the ample supplies of wood and water in the vicinity of the principal mines, it may fairly be concluded that the bullion product of Idaho will in a few years be more than doubled, and that the yield of her mines will hereafter be steady and rapid.

REPORT OF DR. A. BLATCHLY, MINING ENGINEER, TO J. ROSS BROWNE, SPECIAL COMMISSIONER FOR THE COLLECTION OF MINING STATISTICS.

SOUTHEASTERN NEVADA.

This portion of the State of Nevada, owing to the hostility of the Indians, was almost totally unexplored until last spring. About that time, observing that the Indians in the vicinity of the mining towns were able to feed and clothe themselves much better than those who lived out in the mountains, they changed their tactics, and instead of opposing exploration, offered every facility in their power to promote it, and nearly all of the mineral discoveries in this region have been made by means of their assistance.

The volcanic rocks which so greatly predominate in the northern and western portions of the State are not found to any considerable extent in the southeastern. Hence, there is a much larger amount of metalliferous country accessible in the same compass than in other portions of the State.

These volcanic rocks are the despair of the experienced prospector, for he knows full well that they enclose neither metal nor mineral of any value in this country, and where they abound water is generally wanting. Their geological age is comparatively recent, and undoubtedly more than one-half of the metalliferous veins in the State of Nevada are covered by rocks of volcanic origin. In this part of the State limestone predominates, but granite, slate, and sandstone occur at intervals. All of these rocks enclose valuable metalliferous veins in equal abundance.

This limestone affords better exemplifications of the geology of the sedimentary rocks than any other sections west of the Rocky mountains yet discovered. With the slight and hasty examinations already made, the silurian, triassic, and jurassic have been positively determined, and considerable evidence has been found of the existence of the Devonian and carboniferous epochs. In the territory of the United States no finer field exists for the researches of a geologist. Trap dykes of porphyry and green-stone are abundant, and enormous veins of quartzite of three or four hundred feet in thickness can be traced for forty or fifty miles.

Compared with the veins found in California, Oregon, Idaho, and the other portions of Nevada, the metalliferous veins in this portion of the State are large, and usually can be traced on the surface for a long distance.

As this country has been but recently explored, all of the ores so far obtained have been taken from near the surface; consequently, only surface ores have been obtained. These consist of chloride and carbonate of silver, associated with small amounts of native silver, and nearly all contain gold. Besides the precious metals, ores of copper, lead, iron, antimony, and arsenic are abundant, and when railroads traverse the country, will be of great value.

So far as observed all of the geological formations contain valuable metalliferous veins, from the azoic up to the triassic.

As this portion of the State is about two hundred miles east and west by three hundred north and south, and contains a great number of districts, each of which has a very considerable extent, and contains a great number of metalliferous veins, it will be impossible in a brief space to do more than briefly notice some of the most important districts.

Silver bend, or Philadelphia.-This district, which was discovered by an Indian, is about seventy-five miles southeast from Austin. It was one of the first discoveries in this part of the State, and its mines have been more developed than those in the other districts.

One of the principal veins is the High Bridge, which crops to the surface for the distance of about a mile, and has been opened at a number of different points, and at one to the depth of about fifty feet. It appears to be composed of a number of different strata, all of which contain rich ore; their aggregate thickness varies from five to twenty feet.

The country rock is slate, and it has every indication of being a true fissure vein, and consequently will be found deep and permanent. It contains a large amount of good milling ore at the surface.

A small ten-stamp mill has been erected for reducing the ore, and the average yield is about one hundred dollars per ton, the mill saving about sixty per cent. of the silver contained in the ore. Its daily production is a trifle over one thousand dollars, provided it were fully opened; with suitable mills for the reduction of its ores the production of bullion could be increased tenfold.

The Silver Champion has produced richer ore than any other vein in the district. It is smaller than the High Bridge, and has not been opened but to a small extent. Besides this, there are a number of other veins in this district of great promise, as the Green and Oder, Silver Top, Minerva, and many others. The metalliferous veins are found in slate and limestone, the greater number being in the slate, while the veins in the granite, so far as they have been examined, are entirely barren.

Northumberland district.-This district is about twenty miles north from Silver Bend, and on the same slope of the same range of mountains. Here the metalliferous veins are found in slate and granite.

Rich ores are found near the surface, and, when opened, there is no doubt that it will prove to be a valuable district.

Wood and water are moderately abundant, sufficient for the wants of the district for years to come.

It is singular that the granite at Silver Bend should enclose only barren veins, and at this district, which is only twenty miles distant, and in the same range of mountains, with granite apparently of the same lithological character, should contain some of the richest veins in this district. This shows the fallacy of the notion that some particular rock is, in all cases, more favorable for enclosing metalliferous veins than another of azoic or sedimentary rocks-experience showing that, in Nevada, all of the rocks, except the volcanic, contain valuable mines.

Hot creek-This district was named from a group of hot springs, the waters of which uniting form a creek of some magnitude, retaining its heat for a long distance below. This furnishes an abundant supply of water for the use of the district. Along the banks of the stream the warmth of the water induces a growth of vegetation of tropical luxuriance, and many plants grow here that are not found in other parts of the State.

The country rock is chiefly limestone, with small amounts of slate and granite traversed by numerous trap dykes.

The metalliferous veins are large, rich, and numerous, and many of them show large amounts of valuable ore at the surface.

As this is one of the most recent discoveries, but little work has been done in developing and proving the mines. But the results of the workings of a number of tons of ore from different mines have been very satisfactory.

A small mill is nearly completed and will soon be in running order, and from the richness and abundance of the ores, and the experience of the managers, there is do doubt that the enterprise will be successful.

Wood is very abundant near the mines, being mostly nut pine, which is excellent for fuel, but very indifferent for lumber.

Reveille district. This district is about forty miles southeast from Hot creek, and about the same distance northwest from Pahranagat. This is a more recent discovery than Hot creek, which it greatly resembles, having the same country rock, with veins of equal or larger size, containing the same ores, and the district is probably of equal value.

Pahranagat district. This is the only mining district in the State that was discovered by Mormons or people from Salt Lake. It was found about a year before any other district in this part of the State. It is situated in the southeast corner of the State, about two hundred miles from the head of navigation on the Colorado river, according to what is believed to be the best authorities, although many others make the distance much less.

The mineral belt is long and narrow, and contains a great number of veins in a small compass. They are usually of fair size and well impregnated with ore, and when developed will no doubt prove valuable.

The country rock is the same as in Hot creek and Reveille, and the general characteristics are the same. The laws of this district are very liberal to the original discoverers, but almost entirely exclude later prospectors. They require no work on the mine except to pile a heap of stones, and that holds the nines perpetually. Hence no work has been done, and none probably ever will be done, by a majority of the present holders. A New York company have recently commenced operations, and no doubt will thoroughly prove their mine.

Silver Peak. This district is about one hundred and twenty miles south from the city of Austin. The country rock consists of granite, slate, and limestone, the greater number of veins being in the slate. They are usually large, and contain both gold and silver, besides copper and lead.

A mill has been erected and run for a considerable time, but the workings were not very satisfactory, owing to the large amount that was lost in the tailings. The Vanderbilt and Pocatilla are the two most noted veins in this district. They are of large size, and with a mill capable of saving the gold and silver would yield a fair profit.

A large number of other districts have been formed in this part of the State, as the Danville, Palmetto, Red Mountain, Pawdit, Columbus, and Volcano. From all of these specimens of rich ore have been obtained, but their true value can be determined only after they have been fully developed.

In Columbus district a few of the veins have been partially opened, and ore worked from them with most satisfactory results. In another year a mill will probably be erected, and with proper management ought to be successful.

Volcano district has veins which contain gold and silver, but is remarkable for croppings of larger copper veins than any others yet found in California or Nevada. These veins have not been opened, but the outcrop is of enormous magnitude, and the ore, besides copper, contains a small amount of silver. When this country has proper railroad facilities this copper ore will be of great value. Although this mining region has been too recently discovered to admit of definitely proving its value by working on a large scale, still sufficient has been learned to prove that it contains vast deposits of ore rich in gold and silver.

Salt is found abundantly in nearly all of the valleys, in marshes or as an incrustation on the soil at the bottom of the basins. From these sources is derived all the salt that is used in the reduction of the silver ore throughout the State, the

annual consumption for this purpose in the State being very great. But at Pahranagat salt is found in a mine in vast quantities. It is in large transparent crystals, and also beautifully colored, green, blue, &c., as in the Cordana mine in Spain. This variety is much purer and stronger than that found in the valleys. This latter variety was deposited by evaporation, and contains much soda and other impurities.

Coal has been found at Volcano and Pahranagat and near Salt Lake, and from the geological structure of this part of the State it is highly probable that, when full explorations have been made, coal will be found in abundance, and of good quality. That found near Salt Lake has been worked to a considerable extent, and has been pronounced to be of excellent quality. At Pahranagat and Volcano no work has been done to prove the quality or extent, except what has been done by nature. This is a very fine field for exploration in a country like this, where, in the course of a few years, fuel will be a very important consideration.

As this region has been until recently infested by bands of hostile Indians, rendering it dangerous for small parties of prospectors to remain long in the country, considerable irregularities have been observed in the formation of new districts and in the framing of laws.

At Silver Bend a district was formed, and called the Philadelphia district, with laws and regulations as is usual in such cases. From a variety of causes the founders of the district were obliged to leave, when another set of prospectors came in, formed another district, and claimed the mines by virtue of their laws. The result has been vexatious and expensive litigation.

At Pahranagat the laws exclude new comers, and do not require the owners to do any work on the mines.

A general law by Congress regulating the formation of new districts, and making them a matter of record, so that after a district is once organized its existence can be easily proved, would prevent troubles of this nature from arising in the future; also a clause setting forth precisely the conditions under which a claim becomes forfeited. In many of the mining districts if no work is done on a claim for the space of one year the claim is considered to be abandoned. This clause in mining laws is pretty general, but in many courts it has been decided that miners by their laws have a right to prescribe the mode of possession, but not the mode of dispossession. As the mines in each district differ, and in one it is advisable to claim ground on each side of the vein, and in others it is not, these points can be better regulated by the miners themselves than by any general law, but in the formation of districts, and provisions for the forfeiture of a claim, some general law is requisite.

AUSTIN, NEVADA, November 26, 1866.

A. BLATCHLY,

Mining Engineer.

[From Governor McCormick's message, October 8, 1866.]

ARIZONA.

Finances.-The total territorial indebtedness, as audited to this time, amounts to twenty-one thousand and fifty-one dollars aud forty-one cents, and there is a balance of two hundred and forty-nine dollars and fifty cents in the treasury to the credit of the general fund. Of this indebtedness, fifteeen thousand five hundred and ninety dollars are payable in gold, being the amount of bonds (and interest on the same to January 4, 1867) issued under the act of the first assembly, approved November 9, 1864, and entitled "An act to provide for the contingent expenses of the territorial government." In view of the fact that until the present year but two of the counties were fully organized, and that