30 Years Ago – March 4, 1983
Arvey Drown, who this week is on trial for fraud charges in U.S. District Court in Denver, showed up at the Gilpin County Courthouse last Friday for a court date with Harold Caldwell. Caldwell, trustee for the Chain O’Mines which owns the National Mine southwest of Central City, brought a civil suit against Drown and Central Gold Corp, seeking to bar Central Gold from the National. Drown did not enter the courtroom. His attorney said he could not testify for fear the statements might be used against him in his federal trial. Attorneys for both parties agreed to postpone the court date until after the federal trial is completed.
At the federal trial of Arvey Drown, FBI agent Don McPherson testified that on August 31, 1981, he toured the Glory Hole Mill and National Mine areas posing as an investor. He was told that per ton of ore being mined at that time, Central Gold was recovering two ounces of gold, 14 ounces of silver and 14 pounds of copper. Speaking of the mining and milling equipment he saw that day, McPherson said, “I would describe it as a bunch of junk.”
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