Mining—Ancient workings—Precious metals found—Copper deposits—Iron ores—Treatment of ores in England—Difficulties of transport—Some deceased authorities—Mines in operation—Butters' Salvador mines—History of undertaking—Large profits earned—Directorial policy—Machinery and equipment—Butters' Divisadero Mines—Butters' cyaniding plant.

Tradition points to the fact that the whole of the Central American States were more or less mineralized, while some of them, such as Honduras and Salvador, have long been known to contain great mineral wealth. The geological conditions of Salvador, as may be inferred from the physical facts which have already been set forth in these pages, show that precious metals have been found in some of the Departments. There are on record considerable operations in connection with the different Salvador mines of Tabanco, Sociedad, and others in their immediate vicinity and lying in the north-eastern part of the Department of San Miguel, on the confines of Honduras.

These mines have been extensively worked, and have in their time yielded very profitable results. About six miles distant from Tabanco are the goldmines of Capitalis, once believed to be of great richness, and the group of silver-mines known under the name of Minas de Tabanco, and where is found silver in common with galena and sulphurate of zinc. In times past these mines have been worked with very little difficulty, and they have yielded from as little as 47 to as much as 2,537 ounces to the ton. The most famous producer among these was the Santa RosalÍa, and a great part of these ores were formerly shipped direct to England. Old archives of this concern show that in the year 1830 an attempt was made to work the mines on a large scale by an English company, which sent out a whole corps of Cornish miners for the purpose. The machinery which was despatched at the same time was so heavy, however, that it was found impossible to transport it from the coast, which difficulty, combined with others, entirely broke up the enterprise. Had the organizers of the company, as a preliminary, constructed a good cart-road, which was quite possible, and had then sent out the machinery in parts, which could have been packed separately on mule-back, as is done in Colombia and other mountainous countries, the undertaking might never have been a failure.

That mining paid, and paid well, in Salvador in olden days is proved by the record which has been left by Mr. R. C. Dunlop, in his "Travels in Central America." This writer tells us that "five leagues north of San Miguel are a number of mines of silver; among them is one called La Carolina, which was worked by a Spanish empresario about thirty years ago [Dunlop's book was published in 1847]. He invested his own property, borrowed $100,000 and, after getting his mine into order in less than six months, was able to pay his obligations; and although he died before the end of the year, he left $70,000 in gold and silver, the produce of the mine. After his death the ownership was disputed, the works fell into ruins, and the mine became filled with water. The mines of Tabanco yield more silver than those in its vicinity, and when worked yielded upwards of $1,000,000 annually, although operated in a rude manner without machinery. The principal one yielded $200,000 annually to the proprietors."

I fear that the late Mr. Dunlop somewhat exaggerated the value of these mines; for while I was in the country, and in the particular district referred to by the author, no one seemed to have any recollection of any such values having ever been obtained.

The same doubtful authority is responsible for the statement that "nine leagues from Santa Ana are some rich mines of iron which produce a purer and more malleable metal than any imported from Europe. The ore is found near the surface, and is very abundant, while there are extensive forests in the immediate vicinity which serve for making charcoal." Another authority on Salvador, long since gathered to his fathers—viz., John Baily, R.M.—who published a book upon Central America in 1850, assures us that some of this iron which was sent to England for the purpose of examination proved to be "a very valuable variety suitable for the manufacture of fine steel, approaching very nearly in this respect to the celebrated Wootz of India."

The mineral veins of Salvador present themselves principally in the rocks of the mountain chain, or Cordillera, which extends into Honduras and Nicaragua, and forms the richest mining districts of those countries. Generally speaking, the veins run parallel with the direction of the ranges—that is, from east to west—but they are often found to be very much broken and interrupted by the action of upheaval. In the eastern parts of the Republic, deposits of gold, silver, copper, and lead are found, while in the western are the rich iron-ore deposits. Coal is found in the valley of the River Lempa. Although it is rather difficult to obtain full and accurate returns of all the mines in operation in Salvador to-day, roughly speaking they may be put at between 180 and 200. The table on p. 185, which has been compiled by the head of the Salvadorean Bureau of Statistics, and which shows the number of mines of each Department and the minerals which they possess, will be of some interest.

The labour question is, however, one which must be carefully gone into; but here again the local (State) Government could, and no doubt would, help the enterprise considerably, for so closely are the authorities in touch with the people that they can at most times influence a good and continuous flow of peon labour when their assistance is invoked. General shortage of labour has been responsible for a great number of the mining returns not being satisfactory of late, especially in connection with the Butters' Salvador Mines, of which fuller details are given.

TABLE COMPILED BY SEÑOR DON RAFAEL REYES, CHIEF OF THE SALVADOREAN BUREAU OF STATISTICS, SHOWING NUMBER OF MINES IN EACH DEPARTMENT, AND THE MINERALS THEY PRODUCE.

A Building Stone.
B Gypsum.
C Silver and Lead.
D Tin and Lead.
E Rock Crystal.
F Marble.
G Tin.
H Lead.
I Iron.
J Limestone.
K Quicksilver and Antimony.
L Gold.
M Silver.
N Silver and Gold.
O Copper.
P Coal.
Q Silver and Copper.
R Total.

The Salvadorean peon, like his Peruvian brother, is a very tractable kind of labourer, and can be successfully handled by kind treatment. He is, moreover, naturally free from that taint of dishonesty which so strongly distinguishes the Mexican and the Colombian peon, and which renders it impossible to leave anything of a portable nature in their way. The native labourer of Salvador is usually able to earn an easy livelihood by means of husbandry, and he takes to mining from choice rather than from necessity. This fact renders it all the more important that fair treatment should be extended to him, and upon most of the foreign-owned mines this is certainly the case. The late[185]
[186] manager of the Butters' Salvador Mines, Mr. Garthwaite, whose death occurred last year, was entirely sympatico to the men employed upon the mines, and his kindness to them and to their families was generally acknowledged and deeply appreciated.

That the industry of mining has considerably improved in Salvador during the past decade is sufficiently evidenced by the subjoined figures, which trace the industry in its progress from January, 1901, to the first half of the year 1910:

These figures refer to all the auriferous silver, copper ore, gold bars, gold and silver ore, lead ore, gold slimes, gold and copper slimes, gold and silver slimes, and lead, which had been mined in the country during the period mentioned.

I should say that modest fortunes await the enterprising capitalist—foreign for choice, since as a rule he is less easily discouraged by a run of temporary ill-luck—who exploits some of the antiguas—i.e., the ancient copper workings of the Salvadoreans which have been abandoned owing to lack of capital or labour. I know of many such opportunities which exist in the Department of MorazÁn, where already a considerable group of foreign companies and private individuals are working with occasionally remarkable success. With the modern machinery and reduction plant now available, certainly the greater part of these ancient workings might be made to pay something as a return upon the amount of capital expended upon them. To-day, also, there exists a first-class cart-road leading from these mines to the principal town, and thus transportation, which was formerly both costly and difficult, is now a matter of comparative facility.

In some of the iron ore mines one can find the old and wasteful Catalan system of reduction still in use, and yet with proper treatment, as was sufficiently proved when a trial shipment of ores was sent to England some years ago, as much as 87 per cent. of magnetic iron can be obtained from these ores. And the quantity of ore which they contain is apparently inexhaustible. I know of but two or three small smelters at present existing in Salvador, and, naturally, the industry of copper-smelting carried on in this primitive and limited manner proves anything but profitable. I am of opinion that the Government would encourage any serious attempt upon the part of foreign capitalists to exploit the unquestionably rich copper deposits of the Departments of Chalatenango and CabaÑas, and such an enterprise might well be worth the attention of some British or United States mining capitalists. The latter are usually the more enterprising and plucky.

About twelve years ago there was registered in London a mining property covering 546 acres in Salvador, comprising a number of gold-bearing properties, with the title of Butters' Salvador Mines, Ltd., the principal owner being Mr. Charles Butters, a well-known American engineer, and who is the chairman of the company. From the very commencement of its operations, the company seems to have been eminently successful, and was able to distribute its first dividend in 1903, when 5 per cent, was paid. Since that date the dividends have varied from 40 to 80 per cent., that for 1910 being at the rate of 45 per cent., which compared with a similar rate for the previous year, but with an additional bonus of 23³/₄ per cent. On account of the present year, 15 per cent. has already been paid as an interim dividend, and, according to the recently-issued report, the ore reserves are now estimated to amount to 108,000 tons, and to carry a profit value of £400,000, or more than twice the value of the entire share capital.

At the end of last May, dividend "No. 87" of 3³/₄ per cent. (= 9d. per share) was declared by the Board of Directors, who at the same time informed the shareholders that dividends will in the future be distributed quarterly instead of monthly, as has been customary in the past.

The inherent wealth of these mines is clearly demonstrated when one recollects that, in spite of the able and experienced management that has been the rule, many difficulties have had to be encountered and overcome, not the least of which has been the lack of labour, and, during the early part of last year, some serious trouble with the boilers at the mines. The consistently cautious policy which the directorate have adopted, notwithstanding the large dividends which they have been able to recommend, has resulted in their establishing the mines upon a thoroughly solid and business-like basis. It is worth remarking here that the whole of the existing plant and equipment, which are as complete and efficient as any to be found upon the American Continent, have been paid for out of revenue, and they stand in the books of the company at the present time at the ridiculously low price of £2,000.

The principal work which the management has in hand at the present time is cross-cutting the formation, with the object of finding split or parallel veins, and the discovery of such split veins has naturally much improved the position of the company. The whole policy of the management will now be devoted, for some years to come, to proving the mines in depth, and such, indeed, would have been undertaken before now but for the troubles to which I have above referred in regard to labour. The ore indications, which have so far been met with, are of a distinctly favourable nature, the most encouraging, perhaps, being the cutting of the famous Miguel ore-shoot at the 700 feet level. The width of this vein exceeds 3 feet, and it assays over 6 ounces. The Miguel shaft is now down nearly 800 feet, but the deepest working from which the ore has been stoped is the 600 feet level; the shaft will therefore give 200 feet of backs below the present workings.

At present between 25,000 and 30,000 tons of ore are being crushed annually, which yield on the average a value of 1 ounce 7 pennyweights. The working expenses have never been particularly high, owing greatly to the excellence of management and the economy of the reduction plant, which bears the name of the chairman of the company—viz., the Butters' Cyanide Process—but there are nevertheless hopes that these costs will be still further reduced in the near future. There is no question that the Butters' Salvador Mines rank among the most valuable ore deposits to be found in Central America, and it is no less sure that they are being managed in the most expert and most economical manner.

As to the financial situation of the company, the balance-sheet proves that the cash in hand on June 30, 1910, in Salvador, London, and San Francisco, amounted to £5,001, and that on the same date the stores in hand and in transit were valued at £32,228; sundry debtors in Salvador and London amounted to £812, and per contra the amount owing to sundry creditors was £3,642. The profit and loss account showed a net profit for the period of £62,645; while the amount brought forward from the previous account, and which amounted to £19,042, being added to the net profit, showed a total available distributable balance of £81,677. The dividends which have been paid for the twelve months aggregated, as already mentioned, 45 per cent. upon the capital of the company, and which absorbed £67,500, thus leaving a carry-forward of £14,177.

It is worthy of mention that in the directors' report for the period ending June 30, 1910, a graceful tribute is paid to "the continued consideration which the Government of Salvador has extended to the company," and which testimony goes to prove what I have already indicated—viz., that the Government is anxious and willing to encourage in every legitimate manner sound foreign enterprise; but I go further, and say that I know of no other Latin-American Republic which has shown greater good-will to all foreign enterprise in all its phases than that of Salvador.

It is over seven years since the Butters' filter was introduced in connection with mining, and the process may now be met with in all parts of the world, and especially in Mexico, where I have seen it working with excellent advantage upon the famous Dos Estrellas gold-mine at El Oro, as well as in Brazil and in other South American countries.

The need of a filter of some sort was first forcibly presented to the mind of Mr. Charles Butters and his associates at their works in Virginia City, Nevada, U.S.A. The tailing being cyanided there was originally derived from the Comstock Mills, but it had been treated and retreated several times by the Pan-Amalgamation process; as it stands to-day in the dams, it contains about 75 per cent. of material that is leachable, and which may be designated as "slime." The slime is of an exceptional character. In addition to the difficulties connected with the solution of gold and silver contents, the mechanical condition was such that it gave trouble in settlement for decantation. The clarification produced by a coagulant such as lime was perfect, but the subsidence was so slow that the amount of solution recoverable in this way was not sufficient to make the decantation process a practical success. It was proved, in fact, that coagulation was not necessarily accompanied by good settlement.

After experimenting with several forms of vacuum filter units, both cylindrical and rectangular, there was evolved a form of filter which is the recognized present standard, and the preliminary plant of 336 leaves, which was erected at Goldfield seven years ago, is still in full operation to-day. As the filtration process is found working at the Salvador mines and in other parts of the world, the filter-leaf is made on a frame, the upper side of which is formed on wood, and acts as a suspending bar when the leaf is in position in the filter-box. The remaining three sides are made of ¹/₂-inch pipe, perforated with holes and connecting to the vacuum pump. The filtering medium consists firstly of a porous mat of such size as to exactly fill the space formed by the pipe frame, and upon either side of this is placed a sheet of canvas, large enough to overlap the frame, around which it is securely sewn. The first containing-box which was used at Virginia City was an electrolytic precipitation-box, which was not needed for its special purpose, and was adopted for the use of the new filter. An air-compressor was converted into a vacuum pump, and with this equipment the vacuum filter of to-day came into existence.

From the beginning it proved a marked success, and the next step in its perfection was the designing of the large Goldfield plant to handle 800 tons of dry slime per diem. When designing the containing-box for the special purpose of the filter, the lines of the original box were slightly departed from as regards the shape of the hoppers, these being given sixty sides to facilitate the better discharge of the cake, and a quick opening valve of large area was placed at the apex of each hopper. Instead of a dry vacuum pump and gravity drainage, a wet vacuum pump was used, permitting the solution pump to be placed above the filter.

The cycle of operation is as follows: (1) Filling the box with pulp; (2) the formation of a cake on each side of the vacuum leaves by suction; (3) emptying the box of pulp and filling with weak solution; (4) drawing through the cake sufficient solution to displace all soluble values; (5) emptying the box of solution and filling with water; (6) drawing through the cake a small quantity of clean water to displace any solution held in the cake; (7) shutting off the vacuum and admitting water through the leaf connection, thereby throwing off the cake, which falls to the bottom of the box, and cleansing the canvas in preparation for the next charge; (8) opening the valve in hopper bottom of box, and allowing the residues to escape to the waste dam; (9) closing the valve, thus rendering the filter ready for the next charge of pulp.

It is a very unusual thing to find in the newer mining companies of Central America such up-to-date machinery and mining processes as are in use in the Republic of Salvador at the Butters' Salvador and the Divisadero Mines. The Government of Salvador has to be congratulated upon the wisdom it has shown in extending consideration to companies engaged in the development of its mines, and to practical men of the type of Mr. Charles Butters and his associates, to induce them to devote their money and their brains to the development of Salvador. The most modern processes and the most up-to-date machinery can be here found at work, and the Government is permitted, by the terms of the franchise which they have granted to the companies, to send Government students to attend at these works to complete their studies in mining and metallurgy. Among the processes at Butters' Salvador Mines are dry-crushing and roasting, electrolytic precipitation as well as electrolytic refining. The cyanide process with the Butters' Patent Vacuum Filter is found here treating gold ore without amalgamation, and making extraction of from 95 to 96 per cent. The mining at this property has been by adits principally. Electrical winding plants and electrical pumping plants are now installed at this property. Both at the mine and at the mill a high efficiency of working has been attained for many years.

At the Butters' Divisadero Mines, located twelve miles distant from the Butters' Salvador Mines, a much larger quantity of ore, but of a lower grade than at the Salvador Mine, is treated, about 10,000 tons a month being handled on this property. The Government student has here the privilege of seeing ore, of about $5 a ton, mined and milled. A large electric plant is established, by means of which all the hoisting and pumping are carried on. A large quantity of water is encountered at this mine, and where formerly it was found impossible to handle the water by the use of Cornish pumps, it is now kept under control by means of the Sulzer electrically-driven centrifugal pump. Two sinking pumps, of a capacity of 600 gallons per minute each, have been installed, which are suspended from the surface, and are calculated to operate down to 600 feet in depth. These pumps lift 300 feet to the 300 feet level, and deliver to horizontal station-pumps erected at this level. The most modern electric-generating plant, hoisting, pumping, and ore-compressing plants, are at work upon this property. The mill is of the best-class construction, with a capacity of crushing between 8 and 9 tons per stamp, with tube-mills, Butters' Patent Vacuum Filter, and special methods of precipitation.

At both of these mines complete shops are established, including iron-foundry and wood-working machinery. The shops are competent to deal with the heaviest repair jobs on the machinery in use, and as many spares as are found economical to manufacture, so that a large staff of mechanics are kept busy in the shops.

In a new country like Salvador, it is absolutely essential, for the establishing of the mining industry upon a firm footing, that a large force of natives should be educated in the repair and manufacture of the machinery and extra parts in use at the mines. There are native Salvadoreans who have been educated in these shops, and they have become highly competent mechanics, able to cope with almost any difficulty occurring at the mines. The result of this education will be that less and less foreign help will be required to carry on the business in Salvador.

Anyone living in Salvador who desires to know of the "latest thing" in mining and metallurgy is permitted, through the arrangements which the Salvadorean Government has made with Mr. Charles Butters, to take up any course of study he may desire.