RANDSBURG SILVER MINING COMPANY ( COYOTE )

Survey number:      Owner:      Date of discovery:

SUMMARY:

The "Coyote" Mine, Otherwise Known As The Randsburg Silver Mining Company. Southern Sierra Power Co. Survey Collection of Betty Hadley Family

The Randsburg Silver Mining Company, Inc. holds 16 claims or fractions located to the southeast, northeast , and northwest of the California Rand Silver property.  The chief workings of the company are in the Coyote Mine.  The Coyote shaft, 1. ½ compartment, vertical and 730 feet deep is located 500 feet southeast of the California Rand No. 2 shaft.  Ther are over 6000 feet of workings in the Coyote Mine, distributed through five levels.  The principal workings are on the 5th level.

Probably the best ore is found on the 5th level where a crosscut and drift to the southwest of the shaft have exposed the southern continuation of the Harrell Vein.  The drift follows the veinfor over 300 feet, the vein probably averaging 3 feet in thickness.  What appears to be the same vein in part is also shown in a drift southeast from the shaft on the 6th level.

A second vein was encountered close to the shaft on the 5th level, the vein striking N. 12 degrees E., and averaging about 2 feet in thickness.  The continuation of the vein on the 6th level was not positively identified.

The third vein exposed on the 5th level is Coyote East Vein, striking N. 20 degrees E. , and passing about 200 feet east from the shaft.  The crosscut went 200 feet further east and then over 500 feet southeast without intersecting any other veins.  It probably cuts through the flat fault which would account of the dearth of veins, further east, no veins being known to occur in the hanging wall of the flat fault.  The flat fault is said to cross the shaft between the 3rd land 4th levels.

From the point of intersection of the east crosscut on the 5th level with the Coyote East Vein, drifts were run nearly 500 feet to the south along the vein.  About 200 feet to the south, the silver minerals which further north are easily visable, gradually disappear.

The Coyote No. 2, Kelly No. 1, of Foster Shaft, as it is variously known, was sunk 875 feet north by east from the California Rand No. 2 shaft.  The shaft is 1 ½ compartment, vertical and 450 feet deep.  750 feet of drifting was done on the 350 foot level parallel to the California Rand side line.  No veins were encountered.  The drift is all in schist except the notheast enc which is asid to have entered the quartz monzonite.

Seven hundred feet to the northeast is the Elder-Gustave Lease Shaft.  1 ½ compartment, vertical, and 230 feet in depth. The lower part of the shaft is in quarta nonzonite.  No drifting was done.

Seven hundred  feet farther northeast is the so called Thirteen Lease Shaft, and 400 feet still farther is the Silver Horde Lease Shaft.  The latter is vertical, 1 ½ compartment, and 340 feet in depth.  A 110 foot drift extends from the bottom of the shaft northward.  It is not known whether these workings are in silicified Rosamond sandstone, rhyolite or quartz monzonite.  The only material observed on the cump sonsisted of silicified Rosamond sandstone.

The Fox No. 2 Shaft is 400 feet north of the California Rand No. 6 shaft.  It was sunk on company account, being a 2-compartment vertical shaft.  It reached a depth of 260 feet but did now pass through the Rosamond formation.

The Santa Fe Shaft lies 400 feet farther ease in the midst of Inn City.  It also was sunk by the Randsburg Silver Mining Company, being a 1 ½ compartment, vertical shat, and 410 feet in depth.  It also is enteirely in the Rosamond formation.

No work has been done recently on any of the holdings of the Randsburg Silver Mining Company, with the exception of the Santa Fe shaft.”– Hulin

CHRONOLOGY

January 21, 1921: “NEWSPAPER MAN STRIKES BIG RICHES—John C. Wray, one time newspaper man of Ventura, and once the editor of the Free Press there, has been visiting his old time friend, C. B. Elwell in this city.  Wray yesterday refused an offer of $125,000 for his interest in the Kelly mine at Randsburg on the division line between Kern and San Bernardino counties, form which he has an income of something lie $750 a month.

This change of fortune came to him only recently, as only a short time ago what he now draws a month would have looked like a fortune to him.  He is holding his interest for $300,000 and may get it at that.

Wray gave Harry Chandler, editor of the Los Angeles Times, his first job as carrier boy, and hence may be said to have given him his start  in life.

After leaving Ventura and going to other fields, Wray located in San Pedro, where he took hold of the Daily News.  This he sold out in 1915 on account of his health, and went to Inyo County to recuperate.  There he remained 14  months  and during that time spent his time roaming  around the country, with the result that he located several mining claims, sold later to D. Bisbee.

In 1917 Wray wandered into Randsburg.  In October, 1918, he met John W. Kelly, formerly sheriff of Kern County, W. Hampton Williams a prospector, and Capt. Jack Nosser, an old time miner.  In December 1918, Williams discovered a small silver ledge on the Atolia road, two miles northeast of Randsburg, and worked it long enough to determine the fact that a silver mine of  value was buried somewhere in the vicinity of the cropping first discovered.

Intensive prospecting resulted in uncovering and developing of the now  famous Kelly mine on the division line of Kern and San Bernardino Counties.  The Kelly  mine ground consisting of three full 20-acre claims, was  located and  recorded on March 4, 1919.

When the Kelly mine was located Wray located the Coyote claim of 20 acres, which adjoins the Kelly mine ground or claim from which the big money has been taken during the past 16 months and has leased it on a fifty-fifty basis to John W. Kelly and E. L. Blanck a ———oil producer of Bakersfield, asking a substantial cash bonus when the papers were signed. ” – Oxnard Daily Courier

May 4, 1921: “CONCRETE FOUNDATIONS for the Coyote’s hoist and compressor are being laid.” –Bakersfield Californian

May 18, 1921: “RANDSBURG SILVER ORE MAY CAUSE 5 YEAR LITIGATION TO FIX RIGHTS—Possible Development Is Likely to Result in Testing Apex Law –Litigation

in which the “Apex Law” may be an important factor, and involving the ownership of silver ore deposits at Randsburg, is likely to arise between a newly-organized mining concern known as the Randsburg Silver Mining Company Incorporated, and the California Rand Silver Incorporated, if the former company, on an adjoining claim, known as the Coyote claim, discovers an ore body beneath a certain “mud” wall which the California Rand Silver holds to be the hanging wall in its mine, or if such possible ore body can be connected up with the ledges being mined by the latter corporation. Anticipating such litigation, the California Rand Silver has already addressed a letter to the new company suggesting than any ore that will be in dispute, or any money arising from its sale be impounded by agreement pending a decision, it is thought, can be had, under favorable circumstances, within a period of five years.

Randsburg Silver Mining Company Stock Certificate. Collection of the Rand Desert Museum

The new corporation, styled the Randsburg Silver Mining Company, was promoted by former Sheriff J. W. Kelly and E. L. Blanck. Mr. Kelly was one of the original stockholders in the California Rand Silver Mine, discovered by J. J. Nosser and Hamp Williams, but he has sold more than half of his stock, and the other half is under option to Mr. Blanck at a dollar a share. The latter has lately been selling the Kelly stock very rapidly, 40,000 shares having been transferred within a few weeks.

Development on the Coyote claim, the property of the new Kelly Company has been begun, it being the purpose to finance the work by selling stock to the public at 20 cents a share. The letter addressed to the new company by the California Rand Silver, in view of the long litigation which may arise, is as follows;

“As you have heretofore been advised by the directors of the California Rand Silver Incorporated, the directors of said company will, in its behalf and for its benefit, claim ownership to any ore that you may discover beneath that certain so-called mud wall, which we claim to be our hanging wall. As you hold a contrary opinion as to the law and your rights thereunder, we beg to submit to you this proposition for your consideration.

“That your interests and the California Rand Silver Incorporated enter into agreement that all moneys resulting from the sale of ore that may be taken by you from said Coyote claim, beneath said wall, be impounded pending litigation that will determine their ownership.

“Such course will result in a more speedy determination of the issues involved, rendering it probable that a decision by the United States Supreme Court may be reached within three, and certainly not more than five years.

“Should this proposal meet with your approval, our respective attorneys could prepare a form of agreement that without doubt would be mutually satisfactory.

By this agreement it would be unnecessary to waste valuable time on proceedings that, at best, would be preliminary and whereby the litigation might be extended for an indefinite period.” – Bakersfield Californian

October 3, 1921:  “For the Coyote claim of the Randsburg Silver Mining Company, Superintendent Parker reports that development is progressing on the 500-foot (fifth) level.  There are two shifts and three working faces.  Along the ore-bearing vein encountered 200 feet east from the shaft, drifting north and south, the vein has been exposed for more than 250 feet.  The material broken shows a fair grade of milling ore up to 500 ounces of silver per ton.  All the ore carries some gold, and the management is well pleased with the results and values uncovered by this development.  The installation of a second compressor is contemplated which means an increase in the working force, deeper sinking of the shaft and more extensive development.  A cage has been ordered which, when installed, will facilitate present drifting and permit more rapid progress in the working faces.

GOOD PROGRESS MADE – The record of work done on this property is worthy of note.  With the present equipment consisting of a 50 horse-power hoist and 300 cubic foot compressor, sinking was started on June 11 from a depth of 110 feet.  Stations were cut at each 100 feet and on August 10, just 60 days from the start, the 500 foot station was started.  Approximately 1000 feet of drifting has since been done on this level.” – Bakersfield Californian

October 8, 1921:  “Randsburg Silver Company’s Coyote claim, Superintendent M. R. Parker reports:  The exploration and development work of the Coyote claim is advancing rapidly and showing excellent results.  One hundred and ninety-four feet is the record for 25 days’ drifting in one face working two shifts?  Development along the vein 2100 feet east of the shaft is advancing to both the north and south, showing a strong, well defined vein of commercial grade shipping and milling ore.  The work at present is confined to the 500-foot level.

The southwest crosscut has today encountered a vein which is believed to be the same as that on which the ninth level of the California Silver Rand is drifting.  The showing is excellent and promises immense values for the future of this property.  The work of this property has done a great deal to prove the general geological features of the entire district and it will without question result in handsome profits to the fortunate shareholders.  No attempt has as yet been made to ship any of the ores, but a good sized dump evidences the material coming from the veins, now three in number, which have been discovered to date.  It is the intention of the company to sin the shaft another hundred feet during the present month.”  — Bakersfield Californian

August 5, 1921:  “SILVER FOUND IN NEW RANDSBURG MINE—Silver ore of shipping value, but of unknown quantity has been uncovered in the shaft of the Coyote claim, adjoining the holdings of the California Rand Silver Mining Company on the east, according to authentic reports received here today from Randsburg.  The specimens of ore extracted were taken from the 470 foot level, it was stated.

Development work on the claim has been under way for the past five months.  The claim is owned and operated by the Randsburg Mining Company, of which John J. Kelly, E. L. Blanck of Fellows and associates own the controlling interest.” – Bakersfield Californian

August 5, 1922: “THE RANDSBURG SILVER MINING CO. which purchased a group of claims to the northwest of the reef on the projection of the north-south veins in the California Rand Silver mine, is crosscutting from a 450-ft.shaft to see if these continue through the reef.  The same company also has a group of claims northeast of the California Rand, on which a number of lessees are working, two of whom have shafts down over 300 ft.  If profitable ore is found in the new ground the discovery will assure to the California Rand company large ore reserves on the extension of its veins to ground still unprospected.  Half a dozen companies are sinking shafts to the northwest of the reef, one of whom, the Montana-Mizpah, went through 400 ft. of granite, before entering the schist ; they have cut, in the shaft, both in the granite and schist, north-south veins carrying small amounts of gold and silver.”—Engineering and Mining Journal-Press

September 9, 1922: :THE FOSTER GROUP OF CLAIMS is being developed by the Randsburg Silver Co.’s.  Foster or No. 2 shaft, which is down to 450 ft., and diamond drilling is in progress.”– Engineering and Mining Journal-Press

October 11, 1922: “COYOTE RUBY SILVER STRIKE THRILLS CAMP—Kelley And Blanck Announce Rich Vein At 700 Foot Level.  Ruby Silver ore which, it is estimated by experts, will run 1200 ounces, in such volume that those inclined to be conservative  would not hazard a guess as toits quantity, was discovered in the Coyote mine here Friday, according to an announcement by President and General Manager, John Kelly and Vice-President E. L. Blanck, of the Randsburg Silver Mining Company, the owning corporation.

The new vein was encountered at the 700 foot level and Superintendent Jay Carpenter is authority for the statement that it is believed that there is an immensely valuable deposit, although the workmen have just struck the vein and its extent has not yet been determined.  The ore is of the same grade that was found at the 600 foot level and if it should prove to continue through the mine would make any mine in the camp look to its laurels.

Kelly and Blanck remained in Randsburg several days longer than they originally intended to stay on account of the discovery, and while both of them were unwilling to make extravagant statements it is known that they expressed unusually optimistic hopes for the future of the property.  The Coyote claim was located by John C. Wray, a veteran newspaperman, who is now secretary of the company.  Before he recorded his location notice he took in Harry Alderson as a partner, by his own statement, because Alderson is a practical mining man.  These owners bonded and leased their claim for $50,000 to John Kelly and E. L. Blanck,  It has been said to the credit of Blanck, who directed the financing of the original corporation, that every share of stock was sold for its full par value of twenty cents with no commission or brokerage deuducted. The company has since transferred to Arizona and is one of the best financed companies in the district.  It carries a large reserve fund for development work.

After the formation of the company $18,000 worth of the most modern equipment was installed and this plant has run continuously without accident for about eighteen months.  The workmen came on top of the first ore at the 470 foot level and there is said to be about $3,000, 000 worth of milling and shipping ore on the dump and blocked out.”—The Rand Miner

October 28, 1922: “ADJOINING THE CALIFORNIA RAND property on the east is the Coyote claim of the Randsburg Silver Mining Co., which has sunk a shaft of 700 ft.,  and opened up and drifted on the same vein as the California Rand mine, blocking out ore to an estimated reserve of $1,000,000.  No ore has been shipped from this property, on account of threatened apex litigation with the California Rand Silver Co.”– Engineering and Mining Journal-Press

December 16, 1922: “THE RANDSBURG SILVER MINING CO., owning claims north of the (California Rand) new discovery has started two new shafts.  The Randsburg Silver Mining Co. started ore shipments on Nov. 1.  After sic cars had been shipped, the California Rand, Inc., asked the federal courts for an injuction.  The first hearing will be held in December.  This promises to be and interesting apex suit; the “experts” have been at work for a long time.”– Engineering and Mining Journal-Press

January 24, 1923:  “BEN SILL SUES FOR BIG DAMAGES—J. W. Kelly, E. L. Blanck, Coyote Co. Defendants in Action Filed –Alleging that John W. Kelly and E. L. Blanck entered into a conspiracy  against him in a mining deal after he had paid Kelly $50,000 for a seven-sixty-fourth interest in the California Rand Silver property at Randsburg in 1919, Ben H. Sill, today, through his attorney, Fred E. Borton, filed suit against Kelly and the Randsburg Silver Mining Company of Arizona, commonly known as the “The Coyote Company,” in which he prays for judgment against the defendants for a seven sixty-fourth share in the interest of Kelly and Blanck in the so called Coyote property and for recovery of $30,000, representing seven-sixty fourths of the damages alleged to have been sustained by the California Rand Silver Incorporated by reason of the alleged conspiracy.

It is set forth in the complaint that J. J. Nosser and W. H. Williams made discovery of certain valuable silver deposits near Randsburg in 1919 and associated Kelly and Miss Coons with them in a mining adventure.  That later the locators of the mining claims places their respective share(s) in trust with the Security Trust company for the purpose of enabling them to sell part of their interest to raise money to develop the property.  And that there-upon Sill purchased from Kelly seven-sixty-fourths of the entire interest paying him the sum $50,000 therefor.

The complaint recites that thereupon Sill became a partner of Kelly in a mining adventure, receiving from him a trust certificate for seven-sixty-fourths of certain mining claims that included the Uranium group numbered from one to ten.  Subsequently, it is alleged, Kelly, who was president of the California Rand Silver when it was incorporated as the successor of the existing mining partnership, resigned from the board of directors, and had his agent, E. L. Blanck elected on such board to represent his interests.  The complaint avers that about December 1920, Kelly and Blanck secured control of an adjoining claim, the Coyote, and alleged that certain valuable ore bodies of the California Rand Silver would apex within Coyote ground and would therefore belong to the defendants, and that therefore the Coyote corporation, the successor of the Kelly and Blanck partnership, relocated Uranium No. 10 that Kelly is alleged to have already sold to Sill, claiming that the California Rand Silver had no right or title to the ground..  It is averred that Blanck representing Kelly’s interests on the board of directors, resigned from said board immediately prior to the Coyote’s relocation of the ground that it is averred was a part of the interest sold to Sill and that all such activities were for the purpose of gaining for themselves, and then by the original partnership, and then by the corporation, the California Rand Silver.  And it is further set forth that the defendants have begun suit in the federal court for possession and ownership of part of the ground for which the complainant, Sill, paid $50,000, and which it is stated in the complaint is now worth in excess of $1,000,000.

As a further cause of complaint, it is averred that by reason of the alleged conspiracy, the California Rand Silver has been compelled to expend or must expend in protection of its interests $250,000.  That $25,000 has been expended for water that would not have been expended except for the alleged conspiracy, and it  is set forth that otherwise these sums so expended would have been distributed to the stockholders, and that the complainant would have received the sum of $30,000 of such amounts.

Judgment is asked for against the defendants, (1) for seven-sixty-fourths of proportionate interest of Kelly and Blanck in the Coyote property and (2) for $30,000 for Sill’s proportion of litigation expenditures by the California Rand Silver Incorporated.” –Bakersfield Californian

February 16, 1923: “ CHARLES F. JOHNSON AND WM. CLEARY have decided to cease further sinking on the No. Eighteen lease of the Foster No. 2.  They have left for Los Angeles to take up a proposition that they have made to the Randsburg Silver Mining Company, owners of the  Coyote claim and the Foster group, as to their cutting in as co-partners in the Coyote No. 2 shaft, situated some 600 feet for the No. 6 shaft of the California Rand Silver.”—Bakersfield Californian

February 27, 1923: “AT 350 FEET FROM THE 775 STATION on the Fox lease, on the Foster No. 1 claim, the face shows a decided change, so strong that there is no granite or granite streaks running through it, all of which is most encouraging to the Randsburg Silver Mining Company Officials.  On their Coyote No. 2 shaft they are now down 230 feet, and the Santa Fe shaft is touching the hundred.” Bakersfield Californian

March 24, 1923: “FIND SILVER ON DUMP—As there will be no delay or stoppage in the advancement of the cross cut now being made in 775 level of the Fox lease, on the Randsburg Silver’s Foster group adjoining the California Rand’s lines, the week end visitors can find excitement and enjoyment in finding rich samples of ruby silver ore now being sent up in the waste, all of which is thrown over the dump.  An examination of the new silver strike at 520 feet from the shaft on the above level shows a foot vein of good milling ore well sprinkled with ruby.  Engineer Jay Carpenter, n charge of the Randsburg Silver’s interests, ventures to state that ore will make $20.  As they started to go after a larger vein or body of ore with exceedingly higher values any prospecting in drifting or breaking into the splendid white quartz showing with this find will have to linger.” – Bakersfield Californian

April 17, 1923:  “SATURDAYS SHOWINGS ON THE FOX LEASE are better; the stringers of black quartz with the rich ruby silver are more pronounced and give hope of soon making ore.”—Bakersfield Californian

January 9, 1925: “COYOTE MINE AND FOX LEASE ARE COMMENCING ACTIVE OPERATIONS—Never in the history of the Rand mining district have the future prospects for great activity, permanency and the acquisition of wealth and the successful financial development been more promising than right now, at the beginning of the new year of 1925.

Matters in the development of property lines have been steadily improving during the past summer and the probable sale of the Californian Rand Silver to New York Capitalists gave the district the last quick kick over the hill toward a real boom.

Another boost impulse now felt in the resumption of work on the quite famous Coyote, adjoining the California Rand, and the Fox lease, which is also on Coyote property.

Monday Morning Harry Alderson superintendent and one of the owners, put 14 men to work preparing the Coyote for rapid advancement work on that property.  They are at present working two shifts and fast placing the mine in shape for active work in uncovering additional ore for mining and milling.

On the Fox lease the same work is being done by a force of 11 workmen under the same superintendence and the same efficiency in preparing for the mining and milling of commercial ore is being made.

To show the interest being shown by Eastern capitalists in the mines of this district it is only necessary to note the fact that the geologists and examiners of the company now closing the California Rand Silver deal have already been down in the Coyote and Fox lease examining the work that has been done and the real approximate values to be found there, to report to their employers in New York.

The Coyote is working on the 700-foot level where it has uncovered its ledge for many feet and this ledge is averaging 18 feet in width and shows valuations from $12 to $1400 per ton in silver and $27 in gold.

The work on the Fox lease is being done on the 800-foot level.

The Coyote is owned by the Randsburg Silver Mining Company and its officers are J. W. Kelly, president; John C. Wray, secretary, and Harry Alderson, superintendent and manager.

The Randsburg Silver Mining Company owns land joining the California Rand Silver on three sides.  The work of opening up the Coyote was commenced between four and five years ago by Messrs. E. L. Blanck and Harry Alderson and a little later J. W. Kelly, and promised to be as valuable as that famous producer, which for the past four years has been the largest producer of silver in the United States, according to government reports.

Other legal troubles between the Coyote and California Rand Silver came before the courts in the form of suits and injunctions and the Coyote has not been able to realize its dreams of wealth until now, when the sale of the California Rand is expected to put an end to that delaying litigation, and permit the Coyote to soon become a producer equal to its famous sister, the California Rand Silver, Inc.

Those who hold Coyote stock are to be congratulated on their having held their holdings through the times of litigation and discouragement of the past few years, for not they will doubtless realize nicely on their investment.

There are thousands of tons of good grade commercial ore on the Coyote dump which will be milled as soon as milling is made possible in the way of milling facilities.  This fact is as it is because of injunctions placed by the California Rand prevented the Coyote company from shipping the ore away for reduction, but did not prevent the Coyote from mining the ore and dumping it on its own property.  Hence the company for months kept on mining the ore and bringing it to the surface and storing it, as it were for future use, and it is now there awaiting the work of the mills to turn it into silver worth so much per.

In the meantime, the Flat Tire, Silver Queen, Santa Fe, Silver Glance and others are down from 500 to 800 and 900 feet and rushing development to uncover other ledges and veins which will make the Rand mining district permanent and active and immensely wealthy.  There is not shadow of doubt but that before many days, weeks, or months, some two or three and probably more of these mines will strike their goal and become real producers.

To add to the silver promise will come the gold production.  The Yellow Aster, the Capitola, the Sunshine, the Rand Hawk, and other gold producers are just on the eve of the greatest activities in their histories and nearly all these gold producers are of the kind that have in the past produced anywhere for $100,000 to several million from their shafts and tunnels.

We are on the very brink of a mining boom which will place this district in the front ranks of mining districts of the whole world.  This is the time to acquire and develop—the success will surely follow.” – Randsburg Times


A Notice of Wages To Be Paid By Randsburg Silver Mining Company.  From Sometime in the 1920's.  Collection of the Rand Desert Museum1925: “The Fox Lease Shaft was sunk on ground held by the Randsburg Silver Mining Company.  The shaft is vertical, 1 ½  compartments 775 feet deep,and is 900 feet northwest of the California Rand No. 6 Shaft.  This shaft passed through about 400 feet of Rosamond strata, below which it is in quartz monzonite.  A crosscut of 1150 feet in length was driven southeast from the bottom of the shaft.

Three veinlets carrying silver were intersected at distances of 107, 250, and 265 feet from the bottom of the shaft.  All had strikes of approximately north dipping at moderately steep angles to the east.  At a distance of 250 to 300 feet from the shaft the crosscut entered the schist.  At 560 feet a large bracciated vein 11 feet thick was cut which assayed 5 oz of silver per ton.  An oderless and colorless gas which extinguishes  a flame, apparently carbon dioxide, as issuing from this vein.  This vein is quite likely the Antimonye vein with which it apparently lines up.  A diabase dike, 2 to 3 feet thick was cut at 742 feet.  It gave assys of 0.8 oz of silver per ton.  At 850 feet the crosscut passed through the flat fault; and at 1100 feet entered the Roasmond fromation.  The face of the short drift which extends north from the crosscut is also said to have entered the zone of the flat fault.  No work has been done in the Fox crosscut since the fall of 1923.”–Hulin

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