Eureka, Colorado and the Sunnyside Mine – Legends of America
Nestled in the rugged San Juan County of Colorado, between the historic towns of Silverton and Animas Forks, lies the hauntingly beautiful ghost town of Eureka. Its story is deeply intertwined with the rise and fall of the Sunnyside Mine, a once-thriving operation that shaped the town’s destiny. This is a tale of boom and bust, of fortunes made and lost, and of the enduring spirit of the American West.
The Allure of the San Juan Mountains
The quest for riches in the San Juan Mountains began in 1860 when Captain Charles Baker led a group of intrepid miners into the region. They established their camp in Baker’s Park, the very location where Silverton now stands. These early prospectors explored the surrounding terrain, discovering placer gold deposits along the Animas River. However, their presence was met with resistance from the Ute Indian Tribe, who rightfully claimed this land as their own. Forced to retreat, the miners left, but the dream of striking it rich in the San Juans lingered.
The landscape of this area is characterized by towering peaks, deep valleys, and the rushing waters of the Animas River. The air is thin and crisp, carrying the scent of pine and the echoes of a wild, untamed wilderness.
A Treaty and a Rush
The fate of the San Juan Mountains changed in 1873 with the signing of the Brunot Treaty. The Ute Tribe ceded their lands to the U.S. Government, opening the floodgates for prospectors eager to claim their share of the region’s mineral wealth. Among those who returned were veterans of the original Baker party, their memories of gold rekindled.
These men ventured into the hills surrounding Eureka Gulch, staking claims and establishing what would become the backbone of the area’s economy. The most significant of these claims was the Sunnyside Mine, situated near the picturesque shores of Lake Emma. Reuben J. McNutt and George Howard, the pioneers behind the Sunnyside claim, also played a crucial role in organizing the Eureka Mining District, ensuring the official recognition of their hard-earned claims.
Eureka Takes Root
Reuben McNutt’s construction of the first log cabin marked the humble beginnings of Eureka. News of potential riches spread quickly, attracting more prospectors and transforming the site into a bustling mining camp. The name "Eureka," derived from the Greek exclamation "I have found it!", reflected the optimism and excitement that permeated the air.
The camp’s strategic location fueled speculation that it would evolve into a formal settlement. The Eureka Townsite Company was formed, and a townsite was meticulously platted. To mitigate the ever-present threat of avalanches, the town was strategically nestled between two mountainsides. However, the founders, like the rest of the camp’s residents, were primarily focused on prospecting, and initially, little effort was made to promote the town or attract businesses.
The Sunnyside Mine: From Humble Beginnings to a Growing Operation
Reuben McNutt soon bought out George Howard’s share of the Sunnyside property, and in 1874, he embarked on developing the mine. Meanwhile, on the other side of Hanson Peak, other prospectors staked additional vein segments, including the Sunnyside Extension.
Eureka’s growth was further solidified with the establishment of a post office in 1875. The following year, Milton and Emma Thompson Engleman arrived from Canon City and opened a mercantile store, injecting commerce into the burgeoning community. Milton acquired a half interest in the Sunnyside Mine from Ruben McNutt, while Emma invested in the nearby George Washington and Poughkeepsie No.2 Mines. In a gesture of recognition, the lake near the Sunnyside Mine was named after Emma Engleman. Eureka stood out as one of the few towns in this high-altitude region that remained open throughout the harsh winter months, a testament to its resilience and importance.
Family Disputes and Fortunes
Despite their ambition, the Miltons initially lacked the capital to fully develop their claims. They hired miners who extracted ore from shallow workings. In the late 1870s, Milton sought financial support from his in-laws, Frank and Louis Thompson of Canon City, offering them interests in the property. However, this decision proved to be a double-edged sword, as disagreements over profits, control, and ownership soured relations between Milton, Emma, and the Thompson family. When news arrived that miners had struck a rich gold ore vein in the Sunnyside Mine, Milton, driven by these disputes, chose to stockpile the precious metal rather than sell it.
Terry Takes the Helm
In 1883, a pivotal figure entered the scene: John H. Terry. Recruited from the mines and mills of Gilpin County, Terry was hired by Engleman to manage his mining operations and construct a mill at the Sunnyside Mine. After the completion of the ten-stamp mill at Lake Emma, the Engleman’s primarily used their profits to fund their legal battles.
Dissatisfied with the limited capacity, inefficiency, and remote location of the Lake Emma stamp mill, Terry advocated for a new, more modern facility. Construction began on a new mill in 1889, situated approximately one mile west of Eureka. A small hydropower plant was installed to provide electricity. The Midway Mill, completed in 1890, significantly boosted production. During this decade, numerous tunnels were driven into the mountainside to access the valuable ore deposits.
Terry also recognized the need for a tramway but waited until sufficient capital was available. In the meantime, pack animals transported the ore from the mine down to the mill. Following Milton Engleman’s death a year later, the family decided to sell the property. Terry seized the opportunity, acquiring the mine and mill and immediately implementing improvements. However, the silver crash of 1893 temporarily hindered his progress.
Triumph and Setbacks
In 1895, Terry’s fortunes took a turn for the better when he discovered a rich vein. He promptly paid off his debts and began buying out other investors, gaining sole ownership of the Sunnyside Mine. By 1896, Terry felt financially secure enough to construct a tramway, replacing the costly mule trains that hauled ore to the Midway Mill.
Around the same time, a group of New York investors expressed interest in the Sunnyside, offering Terry $450,000 for the mine, with payments made over time and a substantial $100,000 advance. Terry accepted the offer, and the investors immediately embarked on building a new mill at Eureka, overhauling the Midway Mill, and making other improvements. However, their optimism was short-lived. The miners lost the vein, and fearing further losses, the investors allowed the property to revert to Terry.
The Railroad Arrives
Meanwhile, Otto Mears and other Colorado capitalists established the Silverton Northern Railroad, constructing a line from Silverton north along the Animas River. In the fall of 1895, the company utilized Otto Mears’ Animas Forks Toll Road as the rail bed, commencing construction. Despite the challenges of winter snowstorms, workers completed the line to Eureka in June 1896. The railroad connected to the Denver & Rio Grande Railroad at Silverton, dramatically reducing transportation costs. Passenger service was also offered, enabling miners and mill workers to reside in Silverton.
The Terry Era
Between 1896 and 1897, Terry’s miners struck the rich vein once again, yielding such a large quantity of ore that Terry had to operate both the Midway Mill and the old facility on Lake Emma. Using the $100,000 advance from the New York investors, he resumed construction on what became known as the Eureka or Terry Mill, along with its tramway and a power plant. Infrastructure, including boarding houses, shops, and mine buildings, was also built on the shores of Lake Emma.
The new Eureka Mill commenced operations in 1899. In 1904, the Silverton Northern Railroad extended its line to Animas Forks. By this time, John Terry had groomed his two sons, Joseph and William, to take over the mining operations. Joseph focused on managing the mine, while William oversaw the mills. Following John Terry’s death in 1910, his sons continued his legacy.
In 1911, William Terry expanded and refitted the Eureka Mill with a zinc ore separator, boosting its efficiency. Joseph managed a workforce of 90 employees, achieving an impressive output of 180 tons of ore per day, double the usual average per worker.
The U.S. Smelting, Mining, and Refining Company Era
In 1917, the U.S. Smelting, Mining, and Refining Company (USSRMC) presented the Terrys with a generous offer for the Sunnyside Mine. Forming the Sunnyside Mining & Milling Company, the Sunnyside, Washington, and Gold Prince groups were consolidated. Plans were made for yet another mill at Eureka, capable of processing 500 tons per day, and for completing the Terry Tunnel, which would connect the mill site to the vein system at great depth.
However, the company’s acquisition was soon followed by a series of setbacks, including the burning down of the Sunnyside surface plant, which temporarily closed the mine, the influenza epidemic of 1918, avalanches, and power outages. Despite these challenges, the Sunnyside Mill was completed at Eureka, the surface plant was rebuilt, and the mine complex housed 220 workers.
Eureka’s Heyday
During these busy construction days, Eureka thrived as workers filled the available housing and supported local businesses. With the completion of the Sunnyside Mill in 1918, the town’s permanent population grew to approximately 250 people. Eureka boasted several boarding houses, a barbershop, J.F. Warnock’s Mercantile, McJunkin Station selling feed and fuel, the Eureka Hotel and restaurant, A.L. Lashbaugh Livery, a doctor named William Carter, C.F. Worden’s billiard hall, as well as numerous mining companies and assayers.
Decline and Closure
In 1920, a national recession struck, causing industrial metals’ prices to plummet, and operations at the Sunnyside Mine were once again suspended. In 1922, the mine reopened, employing 216 men and processing 500 tons of ore per day. The company then shifted its focus to developing its adjoining claims, and by the following year, its workforce reached 360 men.
The Great Depression forced the Sunnyside to suspend work in 1930, and it remained closed until 1937. That year, the Sunnyside Mining & Milling Company was Colorado’s largest gold producer. However, the accessible ore reserves were dwindling, and in 1939, the company laid off its workforce and closed the mine.
The town of Eureka suffered dramatically. It had never grown very large during its many years of existence and was comprised mostly of miners working at the Sunnyside Mill. At one point, it was described as having "the finest saloons anywhere" on its main street.
The Silverton-Eureka segment of the Silverton Northern Railroad also ceased operations in 1939. In its final years, the railroad operated a unique railcar, a favorite among the miners. The little railbus "The Casey Jones" was built in the shops at the Sunnyside Mill. It can be seen today at the San Juan Historical Society’s museum in Silverton.
The Sunnyside Mill continued to operate until 1941. The railroad removed its tracks in 1942, and the post office closed the same year. The mill facilities were sold for scrap in 1948. By this time, the town was abandoned and comprised of empty buildings.
Renewed Hope and a Catastrophic Event
In 1959, Marcy-Shenandoah Company leased the Sunnyside from USSRMC and began to drive the American Tunnel from the Gold King Tunnel at Gladstone on Bonita Peak’s other side the Sunnyside and Washington veins under Lake Emma. However, before they made much progress, Marcy-Shenandoah sold to the Standard Metals Company. The new company continued with the plan. The ore was removed from the tunnel in Gladstone and transported by truck down to Silverton.
In 1970, the Standard Metals Company went bankrupt and ceased work at the American Tunnel, but the Washington Mining Company continued. At this time, some of the most valuable workings were located below Lake Emma. Eventually, only 90 feet separated the lake and the underground tunnels.
During the winter of 1977-78, a fault appeared in the mine shafts under the lake and began to leak, but experts felt that the distance between the lake and mine was safe. They were wrong.
On Sunday, June 4, 1978, at approximately 6:50 p.m., disaster struck. The lake breached into the mine, releasing an estimated 500 million gallons of mud and water. The violent rush of water surged out of the two-mile-long American and one-mile-long Terry Tunnels. At the American Tunnel portal at Gladstone, water flowed from the mine in 8-10 foot waves, filled with mine timbers, equipment, and debris. A 20-ton Plymouth Locomotive parked below the main ore pass was completely flattened. Fortunately, because this accident occurred on a Sunday, the mine was closed, and no one was inside working. Had it happened on any other day, as many as 125 men would have perished in the violent inrush of mud and water.
The Aftermath
Afterward, the tunnels were filled to the top with mud, and the mine was closed for two years to repair the damage. Although the mine was insured for $900 million, the insurance company initially refused to pay any damages. However, after an expensive court battle, the insurance company was ordered to pay $5,500,000. But, for the Sunnyside, it would never again regain its profitable status. The mine was closed in January 1985.
Alta Bay Mines, in a joint venture with Echo Bay Mines, Ltd., leased the mine and put it back into production. Later, the mine was sold to the Sunnyside Gold Corp., a subsidiary of the Canadian mining giant Kinross Gold. The company was unsuccessful in making the mine profitable, and the mine closed for the last time in July 1991.
Legacy
The Sunnyside Mine, over its 118-year lifespan, became Colorado’s largest operating gold mine and produced silver, lead, copper, and zinc. Over its lifespan, it is credited with producing more than 7 million short tons of ore. The entire mining area has been reclaimed by plugging the many miles of tunnels and other means in the years following the mine’s final closure. The cost of reclamation exceeds all of the profits the mine made in its nearly 118 years of operation. Today, the overall Superfund cleanup above remains in the study stages.
Eureka Today
Though the town of Eureka once had a number of buildings, many were taken down by the elements of nature, and others were purposely torn down to avoid taxes. Today, the old townsite is marked only by its gravel roads, one small rebuilt building, and the old Sunnyside Mill’s foundation on the hillside. It is now home to the Eureka Campground.
The Sunnyside Mine site can be reached by traveling about 1/2 mile north on Co Rd 2 and taking a sharp left on Co Rd 25 for 3.5 miles. Only old mine foundations exist today, and there is an empty "bowl" where Lake Emma once stood.
Eureka is located about 7.5 miles northeast of Silverton on County Road 2. The road can be traveled by any vehicle in good weather. Beyond Eureka, it is just 4.2 miles to Animas Forks, which is the access to the Alpine Loop Backcountry Byway. The byway, which requires a 4-wheel drive high-clearance vehicle, offers stunning views, numerous mining remains, and several ghost towns along the 65-mile loop.
Just about a half-mile north of Eureka is a side road that veers to the right to the Eureka Lodge. This 1929 boardinghouse was once part of the Martin Mining Complex and is now listed on the National Register of Historic Places. It now serves as a lodging facility for groups, weddings, family reunions, and retreats.
Eureka and the Sunnyside Mine stand as enduring symbols of the American West. While the town may be a ghost of its former self, the stories of its people, its triumphs, and its tragedies continue to echo through the San Juan Mountains, reminding us of the allure of riches, the resilience of the human spirit, and the boom-and-bust cycle that shaped the region’s history.