Nevada firm sees new gold profits in old mine tailings

BAKER CITY, Ore. -- A Nevada company thinks high gold prices can help it make money by working over the leavings of a Baker County mining operation from the first half of the 20th century.

Ironside Mining Inc. of Elko figures the giant Sumpter Dredge had captured only 40 percent of the gold when it shut down in 1954, the Baker City Herald reported.

Dredges were used in the Sumpter Valley in Eastern Oregon to dig rock that was processed with water to separate ore. The rock was left behind as tailings.

The county owns nearly 1,600 acres in the tailings, piles of rock and gravel interspersed with clumps of trees and ponds that are habitat for waterfowl and other species. The federal government owns 100 acres, and 450 acres are in private hands.

Ironside has asked the county for a long-term lease, which is under consideration.

Depending on the price of gold and the length of the mining season, Ironside said, the county could reap more than $1 million a year once a full-scale plant goes into operation.