76 REPORT OF THE MINISTER OF MINES, 1929.

commodities from Prince Rupert, Vancouver, and Victoria to Atlin vary from $51 to $66 a ton
for car-load lots. For machinery the rates to Atlin are $51 a ton for car-load lots and $56 a ton
for less than car-load lots. Generally, for less than car-load lots the rate varies from $74 to
$103 a ton. For ore in sacks, not exceeding a value of $100 a ton, the rates from Atlin are $8.25
a ton for car-load lots and $9.25 a ton for less than car-load lots.

With the prospects of the Pacific-Yukon highway in the offing, and the possible developments
in the Taku River region necessitating am improved transportation system for that area, the
possibility for a future direct transportation line from Atlin down the Taku River valley to
seaboard is not entirely remote. There is no doubt that the most direct and logical outlet from
Atlin to seaboard is down the Taku River valley, a distance of 143 miles. Of this, 16 miles lies
on the Alaskan side and 127 miles on the Canadian side of the boundary. Of this, 30 miles of
road has already been constructed from Atlin to the O’Donnel river. From a point of view of
construction the route is reported to offer no difficulty whatever. If future developments should
warrant the construction of this Taku River—Atlin transportation line, the greatest hindrance
to the rapid development of the interior of the Atlin Division will have been removed.

Taku River SEcTIoN.

A special bulletin descriptive of this section has been issued by the Department of Mines.
For the convenience of those who may not have seen this bulletin it is reprinted at the end of
this report (see page 124).

Since the bulletin on the Taku River area was written, the Alaska Juneau Gold Mining
Company has increased its holdings by acquiring options on the Walker and Moose groups of
claims, adjoining the Manville on the north-west, and also on the Big Bull Extension, adjoining
the Manville on the south. This company now controls fifty-four claims, amounting to 2,200
acres, in the area.

Up to December 31st the Alaska Juneau Company had completed 3,500 feet of diamond-
drilling in holes Nos. 1, 2, 3, 4, 5, and 6 (uncompleted). Although the ore-zone has been cut in
all the completed holes at depth, showing extensive widths, the ore occurrence, as was to be
expected, is indicated as having a lenticular development of ore-shoots. Whereas some holes
show only mineralized ore-zone, others show good widths of commercial ore.

Wight hundred feet of underground work was also completed up to the end of the year.
In this work good widths and lengths of commercial ore have been indicated, but the extensive
surface croppings are being indicated as having a lenticular development in depth. An interest-
ing feature in connection with the mineralization being met with in the underground work is
the appearance of finely divided pyrrhotite in places. Development on the Manville has been
very energetically and continuously pushed by the Alaska Juneau Company with a large crew.
The progress made is exceptionally creditable and the results have been quite encouraging.
During the winter months dog-team transportation has been operating on the river-ice from
Taku point to the Manville camp.

The developments to the end of the operating season on the Tulsequah Chief group by the
United Eastern Mining Company are included in the special report. Of subsequent interest is
the incorporation of the Taku Mines Company, Limited, on December 30th for the purpose of
developing the Tulsequah Chief. This company, with registered office in the Royal Trust
Building, 626 Pender Street West, Vancouver, is constructed - of an authorized capital of
$5,000,000, divided into 5,000,000 shares. It is understood that the United Bastern Mining
Company, in return for money advanced for development as needed, will eventually acquire
a 60-per-cent. interest in the company, the remaining 40-per-cent. interest going to the original
bonders and owners of the property. The stock of the company acquired by the United Eastern
Mining Company will go into its treasury. About 90 per cent. of the stock of the latter company
is in the hands of the United Eastern Mines Corporation. The money required for develop-
ment by the United Eastern Mining Company is supplied to it by the United Eastern Mines
Corporation.

The United Eastern Mining Company management has intimated that, should the satis-
factory development of the Tulsequah Chief continue through the summer and winter of 1930,
the operating schedule allows for a probable mill-construction and power-plant installation
starting in the spring of 1931. It must be distinctly understood, however, that this programme
is entirely dependent upon the continuance of a satisfactory showing in the development-work.