Rosario Mining Company
Encyclopedia
The New York and Honduras Rosario Mining Company (NYHRMC), known as Rosario Mining Company, was an American
-owned corporation
that owned and operated the Rosario mine, a gold
and silver
producer in central Honduras
and Nicaragua
.
, offered companies that invested in the mine in San Juancinto a 20 year exemption from all taxes. In 1880, Julius Valentine, of New York City founded the New York and Honduras Rosario Mining Company, exchanging 50% of the Company's stock for the mining rights of the El Rosario deposits at San Juancito which were owned by Soto. Washington S. Valentine, son of Julius took over his father's post and became the figurehead of the corporation. The firm would soon become the largest mining company in the country. The Valentines also secured control of the wharf and railway at Puerto Cortes on the Honduran Atlantic Coast. In 1888, Washington Valentine founded the first private bank in Honduras, Banco de Honduras, in Tegucigalpa. Valentine and the Honduras President, Luis Bogran, owned shares in the bank.
Marco Aurelio Soto, was a major shareholder in the mining company. One of his sons married a daughter of Washington Valentine.
The Rosario Mine consisted of six holdings, each of 600 yds. long by about 200' wide, somewhat less than 500 acres (2 km²), where it had all mining, timber and water rights.
On August 24, 1916 the stockholders of the New York & Honduras Rosario Mining Company voted to increase the board from nine to eleven. One of the new vacancies was filled by H. A. Guess, Managing Director of the mining department of the American Smelting & Refining Company
, owned by Daniel Guggenheim
. He has been identified with that company for fifteen years, and was also consulting engineer of the Braden Cooper and Chile Cooper Companies.
On April 30, 1917, the Company secured a controlling interest in the San Marcos mine, located at Sabana Grande, Honduras, and owned by the Sabana Grande Honduras Mining Company.
William A Prendergast was selected as president of the company in 1919. By 1920 WS Valentine was not in the Board of Directors anymore. In 1922 Prendergast becomes chairman of the Board of Directors and Lewis L. Clarke, president of the Company.
In 1954, Robert M. Reininger took over leadership of the 75-year-old New York and Honduras Rosario Mining Company, which then held only one old, depleted gold mine and a small new startup mine, El Mochito, in Honduras. From these limited resources, Reininger built Rosario into a powerful and diversified mining and oil company, with interests stretching out to North America, South America, and the North Sea.
Under Reininger’s leadership, El Mochito, with its rich ore and spectacular wire silver, soon became Central America’s largest precious and base metals producer. Out of El Mochito’s profits, Rosario made successful investments in new projects in the United States, Canada, Mexico, Peru, Nicaragua, and the Dominican Republic, as well as major Canadian gas discovery in 1969 and 1970s oil play in the British North Sea. From these projects flowed a cornucopia of gold, silver, copper, lead, zinc, mercury, granite, limestone, and petroleum. These properties, largely developed internally, multiplied the value of the company many times from 1954 through 1980, when Rosario was acquired by AMAX, Inc.
In 1969, Rosario discovered the Pueblo Viejo oxide gold deposit in the Dominican Republic, which became at startup in 1975 one of the largest gold mines in the Americas, producing more than 400,000 ounces per year. Also in 1969, Rosario discovered Alberta’s prolific Dunvegan Gas Field, up to that time the largest gas field found in Canada. In the 1960s, the company acquired an industrial minerals business, producing granite and limestone in Florida. In 1973, the company was rename Rosario Resources Corporation to reflect its greater geographic and product diversification. In 1976, Rosario’s acquisition of the Fresnillo Company in Mexico helped it become the largest silver producer in the Western Hemisphere.
In the late 1970s, the rapid rise of prices for all of Rosario’s products resulted in spectacular profits for the company, and it became a highly visible target for larger companies searching for growth. After a takeover fight, Reininger negotiated highly rewarding terms for the merger of the company into AMAX in April 1980. AMAX Inc. acquired Rosario Resources Corporation for $465 million. The Company independent life ended.
In 1993, AMAX was merged with Cyprus Minerals Company
to create Cyprus Amax Resources.
s around Tegucigalpa
were largely known to contain gold and silver deposits since Spanish settlement in the area, which led to the area being visited by fortune seekers from Central America
and the United States
, among other locations.
In 1880, after successful negotiations with the fragile Honduran government, The New York and Honduras Rosario Mining Company was established in the US. The mining firm took a well-known mine in San Juancito
, 40 km northeast of Tegucigalpa
, and in the next decade produced three million dollars in silver and gold. By the beginning of the 20th century it had more than one thousand workers.
The mineral wealth of the San Juancito mountains was first discovered by native Indians as early as the 15th century. It was later exploited by Spanish conquistadors. But it wasn't until 1880, and the arrival of the New York-based Rosario Mining Company, that the area was transformed.
Over the next few decades, the towns of El Rosario and San Juancito swelled in population from a few hundred to more than 40,000.
Trees were chopped down to provide lumber for houses and offices and to reinforce mine shafts.
The mine had the following veins: South San Miguel, North San Miguel-Concepcion, Rosario, San Joaquin, Candelaria, Guadalupe Vein, West Vein, South West Vein, Jucuara Vein, Colonia Vein, Nueva Vein Socorro Vein, San Vicente Vein, Capitana Vein, Culebra Vein, Crisanta Vein, Buena Ventura, Northwest, Catalina, North, Los Cedros.
During its 74 years of operation, the New York and Honduras Rosario Mining Company extracted $100 million (U.S.) worth of gold, silver, copper and zinc from the San Juancito mountains.
The Rosario had an enormous impact on the local landscape. Entire woods were sacrificed to satisfy the large amount of timber needed to build the underground installations, buildings and houses. Long tracks were opened to transport wagons, carriages, minerals and men.
The Rosario Mining Company was rumoured to be involved in the change of the Honduras
capital from Comayagua
to its rival city of Tegucigalpa
, which is closer to the mine. The then Honduran President, Marco Aurelio Soto
, had shares in the firm.
The company reached its peak during the 1920s when more than three thousand miners worked in the mine, and there was an American consulate at El Rosario. The American firm built housing, offices, terraces, tunnels and several routes which cross the mountain region.
Perhaps as a result of the company's involvement in Honduras, the area became the first to have a hydroelectric plant and telegraph built, as well as the first Pepsi
bottling plant in Central America. The adjacent town of San Juancito
had electrical power before the capital city
of Tegucigalpa
.
Extraction in the mine ceased in 1954, after 75 years, due to a general strike. The mining company closed and thousands of people left the area in search of work.
The intervening half-century allowed the forest to regrow, and much of the Rosario mine workings are now within La Tigra National Park
.
Associated with NYHRMC in the procurement of, and all rights under the option, were the American Smelting and Refining Company (53.9%), Premier Gold Mining Company (10%), Terra Nova Properties Limited (5%), H.A. Guess (1.1%). NYHRMC kept 30% of shares. There were also been acquired by purchase the properties of the Constancia Consolidated Incorporated, the Experiencia Mine, and an option of the Lone Star Mine. All of these properties were contiguous
On Jun 22, 1936 the NYHRMC signed a contract with the Government of Nicaragua to initiate a mining operation in the Pis Pis District of the Department of Zelaya. On September 11, 1936, the contract was transferred to Neptune Gold Mining Company. This contract included rights on an area twelve miles (19 km) long and two miles (3 km) wide.
On January 14, 1938, it was decided to exercise the options. The properties and those acquired by purchase, were transferred to a new company, the Neptune Gold Mining Company, organized under the laws of the State of Delaware, with a capital stock of 20,000 shares of no par value. Its officers were: Harry A. Guess, President; William A. Prendergast, Vice-President; Forrest G. Hamrick, Vice-President; John C. Emison, Treasurer; Edwin C. Corson, Assistant Treasurer; George A. Brockington, Secretary; Howard L. Goodenough, Assistant Secretary. Its Directors were Harry A. Guess, William A. Prendergast, Forrest G. Hamrick, Clyde M. Spargo, and Richard F. Goodwin.
On July 10, 1940, the contract with the Nicaraguan Government was extended up to July 23, 1946. On 1946 the contract was extended once more up to July 23, 1951. Mariano Argüello Vargas, acted in representation of the Neptune Gold Mining Company. The contract established an annual fee of US$0.25 per hectare to be paid by the Company to the Nicaraguan Government.
In 1909, La Luz and Los Angeles Mining Company, owned by James Gilmore Fletcher and his brothers, G. Fred & D. Watson Fletcher and Henry P. Fletcher , acquired a concession for mineral exploitation in Siuna
. This company was based in Pittsburgh. Philander Knox was its lawyer. Adolfo Díaz
, later President of Nicaragua, acted as secretary of the company form 1901 to 1910 .
In July 1936, the La Luz property was optioned by The Tonopah Mining Company of Nevada, in association with Ventures Limited. The option was exercised in July 1938 and a Canadian corporation, La Luz Mines Limited, was formed. The cost of purchase, equipment, and operation was in excess of $3,000,000; Tonopah's investment was $240,000 with 120,000 shares of stock or ten percent of the outstanding shares. Ventures Limited and its affiliate held the remainder of the stock. The chief executives of La Luz Mines Limited were also the chief executives and members of the board of directors of The Tonopah Mining Company of Nevada. Ventures Limited was a large stockholder of Tonopah; Thayer Lindsley held the position of president for both companies. At the La Luz Mines Limited property, active construction started in November 1938 on a cyanide mill, electric plant, machine and carpenter shops, limekiln and commissary, and river station. The mill began operations in August 1939, although no development work was done in the mine during the period. The mine was successful showing net profits in the mid and late 1940s. In 1952, The Tonopah Mining Company of Nevada sold 6,000 shares of La Luz Mines Limited stock reducing its amount of shares to 114,000.
La Luz Mines Ltd. operated the gold mine continuously by underground and open pit methods until 1968. Production was only halted when a hurricane permanently damaged the mine's hydroelectric plant. During this period, an estimated 17 million short tons grading 0.12 oz/ton gold was produced. Nonetheless, due to the increase in the price of copper during the Vietnam War, and the discovery of the copper mine in Rosita, this company had the greatest overall earnings in Nicaragua in 1960s. In 1973, Rosario Mining Company bought the actions for $1,468,425 (USD). In 1978, sales exceeded $61,692 (USD).
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
-owned corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
that owned and operated the Rosario mine, a gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
and silver
Silver
Silver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
producer in central Honduras
Honduras
Honduras is a republic in Central America. It was previously known as Spanish Honduras to differentiate it from British Honduras, which became the modern-day state of Belize...
and Nicaragua
Nicaragua
Nicaragua is the largest country in the Central American American isthmus, bordered by Honduras to the north and Costa Rica to the south. The country is situated between 11 and 14 degrees north of the Equator in the Northern Hemisphere, which places it entirely within the tropics. The Pacific Ocean...
.
1880
The President of Honduras, Marco Aurelio SotoMarco Aurelio Soto
Marco Aurelio Soto was President of Honduras from 27 August 1876 until 19 October 1883. he was known as a liberal. He was a reforming President and had a great impact on the Honduras of his time, including the establishment of the Biblioteca Nacional de Honduras in 1880.-Biography:Dr. Marco...
, offered companies that invested in the mine in San Juancinto a 20 year exemption from all taxes. In 1880, Julius Valentine, of New York City founded the New York and Honduras Rosario Mining Company, exchanging 50% of the Company's stock for the mining rights of the El Rosario deposits at San Juancito which were owned by Soto. Washington S. Valentine, son of Julius took over his father's post and became the figurehead of the corporation. The firm would soon become the largest mining company in the country. The Valentines also secured control of the wharf and railway at Puerto Cortes on the Honduran Atlantic Coast. In 1888, Washington Valentine founded the first private bank in Honduras, Banco de Honduras, in Tegucigalpa. Valentine and the Honduras President, Luis Bogran, owned shares in the bank.
Marco Aurelio Soto, was a major shareholder in the mining company. One of his sons married a daughter of Washington Valentine.
The Rosario Mine consisted of six holdings, each of 600 yds. long by about 200' wide, somewhat less than 500 acres (2 km²), where it had all mining, timber and water rights.
1900 - 1929
By 1904 accretions by Honduras Government grant and purchase increased the territory to over 12,000 acres (20 square miles). By purchase it had acquired the timber rights in the adjoining towns of Cantarranas and Valle de Angels. The mine had 16 levels, 100 feet (30.5 m) apart, with regular connections. The deepest level runs about 1 miles into the mountain. Ore reserves estimates in 1904 were 64,897 tons. In that year the company produced 1,172,377 oz. of silver, 5,202 oz. of gold, of a total value of $721,374.87. Expenses in Honduras were $396,842.72 and gross expenditures were $543,294.16, leaving a net profit of $217,289.78.On August 24, 1916 the stockholders of the New York & Honduras Rosario Mining Company voted to increase the board from nine to eleven. One of the new vacancies was filled by H. A. Guess, Managing Director of the mining department of the American Smelting & Refining Company
ASARCO
ASARCO LLC is a mining, smelting, and refining company based in Tucson, Arizona that mines and processes primarily copper. The company, a subsidiary of Grupo México, is currently in Chapter 11 bankruptcy...
, owned by Daniel Guggenheim
Daniel Guggenheim
Daniel Guggenheim was an American industrialist and philanthropist, and a son of Meyer Guggenheim.-Biography:...
. He has been identified with that company for fifteen years, and was also consulting engineer of the Braden Cooper and Chile Cooper Companies.
On April 30, 1917, the Company secured a controlling interest in the San Marcos mine, located at Sabana Grande, Honduras, and owned by the Sabana Grande Honduras Mining Company.
William A Prendergast was selected as president of the company in 1919. By 1920 WS Valentine was not in the Board of Directors anymore. In 1922 Prendergast becomes chairman of the Board of Directors and Lewis L. Clarke, president of the Company.
1930 - 1978
In 1930 the Board of Directors was: WM. A. Prendergast, Chairman; Sidney Abbey; W.C. Langley; Lewis L. Clarke; W.L. Saunders; H. A. Guess; M. F. Soto; Irving Heidell; Ambrose G. Todd; Dr. J. Ralph Jacoby; Dr. Julius J. Valentine; P.R. Weiler.In 1954, Robert M. Reininger took over leadership of the 75-year-old New York and Honduras Rosario Mining Company, which then held only one old, depleted gold mine and a small new startup mine, El Mochito, in Honduras. From these limited resources, Reininger built Rosario into a powerful and diversified mining and oil company, with interests stretching out to North America, South America, and the North Sea.
Under Reininger’s leadership, El Mochito, with its rich ore and spectacular wire silver, soon became Central America’s largest precious and base metals producer. Out of El Mochito’s profits, Rosario made successful investments in new projects in the United States, Canada, Mexico, Peru, Nicaragua, and the Dominican Republic, as well as major Canadian gas discovery in 1969 and 1970s oil play in the British North Sea. From these projects flowed a cornucopia of gold, silver, copper, lead, zinc, mercury, granite, limestone, and petroleum. These properties, largely developed internally, multiplied the value of the company many times from 1954 through 1980, when Rosario was acquired by AMAX, Inc.
In 1969, Rosario discovered the Pueblo Viejo oxide gold deposit in the Dominican Republic, which became at startup in 1975 one of the largest gold mines in the Americas, producing more than 400,000 ounces per year. Also in 1969, Rosario discovered Alberta’s prolific Dunvegan Gas Field, up to that time the largest gas field found in Canada. In the 1960s, the company acquired an industrial minerals business, producing granite and limestone in Florida. In 1973, the company was rename Rosario Resources Corporation to reflect its greater geographic and product diversification. In 1976, Rosario’s acquisition of the Fresnillo Company in Mexico helped it become the largest silver producer in the Western Hemisphere.
In the late 1970s, the rapid rise of prices for all of Rosario’s products resulted in spectacular profits for the company, and it became a highly visible target for larger companies searching for growth. After a takeover fight, Reininger negotiated highly rewarding terms for the merger of the company into AMAX in April 1980. AMAX Inc. acquired Rosario Resources Corporation for $465 million. The Company independent life ended.
In 1993, AMAX was merged with Cyprus Minerals Company
Cyprus Mines Corporation
The Cyprus Mines Corporation was an early twentieth century American mining company based in Cyprus. In 1914, Charles G. Gunther began prospecting in the Skouriotissa area after reading in ancient books that the island was rich in copper and noticing promising ancient Roman slag heaps in the area....
to create Cyprus Amax Resources.
Mining in Honduras
The mountainMountain
Image:Himalaya_annotated.jpg|thumb|right|The Himalayan mountain range with Mount Everestrect 58 14 160 49 Chomo Lonzorect 200 28 335 52 Makalurect 378 24 566 45 Mount Everestrect 188 581 920 656 Tibetan Plateaurect 250 406 340 427 Rong River...
s around Tegucigalpa
Tegucigalpa
Tegucigalpa , and commonly referred as Tegus , is the capital of Honduras and seat of government of the Republic, along with its twin sister Comayagüela. Founded on September 29, 1578 by the Spanish, it became the country's capital on October 30, 1880 under President Marco Aurelio Soto...
were largely known to contain gold and silver deposits since Spanish settlement in the area, which led to the area being visited by fortune seekers from Central America
Central America
Central America is the central geographic region of the Americas. It is the southernmost, isthmian portion of the North American continent, which connects with South America on the southeast. When considered part of the unified continental model, it is considered a subcontinent...
and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, among other locations.
In 1880, after successful negotiations with the fragile Honduran government, The New York and Honduras Rosario Mining Company was established in the US. The mining firm took a well-known mine in San Juancito
San Juancito, Honduras
San Juancito is a small pueblo in central Honduras, located 40 kilometers northeast of Tegucigalpa, the nation's capital. The town is in the department of Francisco Morazán. Including the dependent hamlets of Nuevo Rosario, Guacamaya, and Plan Grande, the population totals at about 1400...
, 40 km northeast of Tegucigalpa
Tegucigalpa
Tegucigalpa , and commonly referred as Tegus , is the capital of Honduras and seat of government of the Republic, along with its twin sister Comayagüela. Founded on September 29, 1578 by the Spanish, it became the country's capital on October 30, 1880 under President Marco Aurelio Soto...
, and in the next decade produced three million dollars in silver and gold. By the beginning of the 20th century it had more than one thousand workers.
The mineral wealth of the San Juancito mountains was first discovered by native Indians as early as the 15th century. It was later exploited by Spanish conquistadors. But it wasn't until 1880, and the arrival of the New York-based Rosario Mining Company, that the area was transformed.
Over the next few decades, the towns of El Rosario and San Juancito swelled in population from a few hundred to more than 40,000.
Trees were chopped down to provide lumber for houses and offices and to reinforce mine shafts.
The mine had the following veins: South San Miguel, North San Miguel-Concepcion, Rosario, San Joaquin, Candelaria, Guadalupe Vein, West Vein, South West Vein, Jucuara Vein, Colonia Vein, Nueva Vein Socorro Vein, San Vicente Vein, Capitana Vein, Culebra Vein, Crisanta Vein, Buena Ventura, Northwest, Catalina, North, Los Cedros.
During its 74 years of operation, the New York and Honduras Rosario Mining Company extracted $100 million (U.S.) worth of gold, silver, copper and zinc from the San Juancito mountains.
The Rosario had an enormous impact on the local landscape. Entire woods were sacrificed to satisfy the large amount of timber needed to build the underground installations, buildings and houses. Long tracks were opened to transport wagons, carriages, minerals and men.
The Rosario Mining Company was rumoured to be involved in the change of the Honduras
Honduras
Honduras is a republic in Central America. It was previously known as Spanish Honduras to differentiate it from British Honduras, which became the modern-day state of Belize...
capital from Comayagua
Comayagua
Comayagua is a city in Honduras, some 80 km northwest of Tegucigalpa on the highway to San Pedro Sula at an elevation of 594 meters above sea level. In 2003 the estimated population was 60,000 people. It is the capital of the Comayagua department of Honduras. The city is noted for its wealth...
to its rival city of Tegucigalpa
Tegucigalpa
Tegucigalpa , and commonly referred as Tegus , is the capital of Honduras and seat of government of the Republic, along with its twin sister Comayagüela. Founded on September 29, 1578 by the Spanish, it became the country's capital on October 30, 1880 under President Marco Aurelio Soto...
, which is closer to the mine. The then Honduran President, Marco Aurelio Soto
Marco Aurelio Soto
Marco Aurelio Soto was President of Honduras from 27 August 1876 until 19 October 1883. he was known as a liberal. He was a reforming President and had a great impact on the Honduras of his time, including the establishment of the Biblioteca Nacional de Honduras in 1880.-Biography:Dr. Marco...
, had shares in the firm.
The company reached its peak during the 1920s when more than three thousand miners worked in the mine, and there was an American consulate at El Rosario. The American firm built housing, offices, terraces, tunnels and several routes which cross the mountain region.
Perhaps as a result of the company's involvement in Honduras, the area became the first to have a hydroelectric plant and telegraph built, as well as the first Pepsi
Pepsi
Pepsi is a carbonated soft drink that is produced and manufactured by PepsiCo...
bottling plant in Central America. The adjacent town of San Juancito
San Juancito, Honduras
San Juancito is a small pueblo in central Honduras, located 40 kilometers northeast of Tegucigalpa, the nation's capital. The town is in the department of Francisco Morazán. Including the dependent hamlets of Nuevo Rosario, Guacamaya, and Plan Grande, the population totals at about 1400...
had electrical power before the capital city
Capital City
Capital City was a television show produced by Euston Films which focused on the lives of investment bankers in London living and working on the corporate trading floor for the fictional international bank Shane-Longman....
of Tegucigalpa
Tegucigalpa
Tegucigalpa , and commonly referred as Tegus , is the capital of Honduras and seat of government of the Republic, along with its twin sister Comayagüela. Founded on September 29, 1578 by the Spanish, it became the country's capital on October 30, 1880 under President Marco Aurelio Soto...
.
Extraction in the mine ceased in 1954, after 75 years, due to a general strike. The mining company closed and thousands of people left the area in search of work.
The intervening half-century allowed the forest to regrow, and much of the Rosario mine workings are now within La Tigra National Park
La Tigra National Park
La Tigra National Park was the first national park in Honduras, by decree No. 976-80 whose principal objective is "The Conservation, Ecologic Preservation and Maintenance of The Hydrologic Potential of this Reserve". It was established on 1 January 1980 and covers an area of 238.21 square kilometers...
.
Bonanza
In 1935, NYHRMC acquired an option on some gold mining properties in Nicaruagua. These properties were the Bonanza Group of Mines, and those adjoining belonging to the Eden Mining Company and Tunky Transportation and Power Company, controlled by Benj. C. Warnick & Company, Limited, of Wilmington, Delaware. The original option was obtained August 2, 1935, but was not to become operative until title to the Bonanza Group has been perfected, which was not accomplished until June 12, 1936, and the original option was then merged into one bearing date of July 15, 1936, providing for an examination period of eighteen months, subject to extension under certain conditions.Associated with NYHRMC in the procurement of, and all rights under the option, were the American Smelting and Refining Company (53.9%), Premier Gold Mining Company (10%), Terra Nova Properties Limited (5%), H.A. Guess (1.1%). NYHRMC kept 30% of shares. There were also been acquired by purchase the properties of the Constancia Consolidated Incorporated, the Experiencia Mine, and an option of the Lone Star Mine. All of these properties were contiguous
On Jun 22, 1936 the NYHRMC signed a contract with the Government of Nicaragua to initiate a mining operation in the Pis Pis District of the Department of Zelaya. On September 11, 1936, the contract was transferred to Neptune Gold Mining Company. This contract included rights on an area twelve miles (19 km) long and two miles (3 km) wide.
On January 14, 1938, it was decided to exercise the options. The properties and those acquired by purchase, were transferred to a new company, the Neptune Gold Mining Company, organized under the laws of the State of Delaware, with a capital stock of 20,000 shares of no par value. Its officers were: Harry A. Guess, President; William A. Prendergast, Vice-President; Forrest G. Hamrick, Vice-President; John C. Emison, Treasurer; Edwin C. Corson, Assistant Treasurer; George A. Brockington, Secretary; Howard L. Goodenough, Assistant Secretary. Its Directors were Harry A. Guess, William A. Prendergast, Forrest G. Hamrick, Clyde M. Spargo, and Richard F. Goodwin.
On July 10, 1940, the contract with the Nicaraguan Government was extended up to July 23, 1946. On 1946 the contract was extended once more up to July 23, 1951. Mariano Argüello Vargas, acted in representation of the Neptune Gold Mining Company. The contract established an annual fee of US$0.25 per hectare to be paid by the Company to the Nicaraguan Government.
Siuna
Gold mineralization was first discovered in the Siuna area in the late 1800's by indigenous people that reported 'favourable results' from gold panning. At the end of the 19th century, José Dámaso Valle, a prospector from León who discovered 14 gold mines and registered them in his name in the Bluefields Registry Office. The first organized, small-scale mining was carried out by the La Luz and Los Angeles Mining Company from 1908-1928, during which time an estimated 523,000 short tons grading 0.25 oz/ton gold was produced.In 1909, La Luz and Los Angeles Mining Company, owned by James Gilmore Fletcher and his brothers, G. Fred & D. Watson Fletcher and Henry P. Fletcher , acquired a concession for mineral exploitation in Siuna
Siuna
Siuna is a municipality in the Región Autónoma del Atlántico Norte department of Nicaragua.The town of Siuna was the site of several mines operated by foreign corporations in the past...
. This company was based in Pittsburgh. Philander Knox was its lawyer. Adolfo Díaz
Adolfo Díaz
Adolfo Díaz Recinos was the President of Nicaragua between 9 May 1911 and 1 January 1917 and between 14 November 1926 and 1 January 1929...
, later President of Nicaragua, acted as secretary of the company form 1901 to 1910 .
In July 1936, the La Luz property was optioned by The Tonopah Mining Company of Nevada, in association with Ventures Limited. The option was exercised in July 1938 and a Canadian corporation, La Luz Mines Limited, was formed. The cost of purchase, equipment, and operation was in excess of $3,000,000; Tonopah's investment was $240,000 with 120,000 shares of stock or ten percent of the outstanding shares. Ventures Limited and its affiliate held the remainder of the stock. The chief executives of La Luz Mines Limited were also the chief executives and members of the board of directors of The Tonopah Mining Company of Nevada. Ventures Limited was a large stockholder of Tonopah; Thayer Lindsley held the position of president for both companies. At the La Luz Mines Limited property, active construction started in November 1938 on a cyanide mill, electric plant, machine and carpenter shops, limekiln and commissary, and river station. The mill began operations in August 1939, although no development work was done in the mine during the period. The mine was successful showing net profits in the mid and late 1940s. In 1952, The Tonopah Mining Company of Nevada sold 6,000 shares of La Luz Mines Limited stock reducing its amount of shares to 114,000.
La Luz Mines Ltd. operated the gold mine continuously by underground and open pit methods until 1968. Production was only halted when a hurricane permanently damaged the mine's hydroelectric plant. During this period, an estimated 17 million short tons grading 0.12 oz/ton gold was produced. Nonetheless, due to the increase in the price of copper during the Vietnam War, and the discovery of the copper mine in Rosita, this company had the greatest overall earnings in Nicaragua in 1960s. In 1973, Rosario Mining Company bought the actions for $1,468,425 (USD). In 1978, sales exceeded $61,692 (USD).