The Rise and Fall of Cerro Gordo, California
Nestled on the western slope of the Inyo Mountains in California, lies a place steeped in history, a testament to the boom-and-bust cycles that characterized the American West. This is Cerro Gordo, a former silver mining town located approximately seven miles east of Keeler and thirty miles south of Independence. Its story is one of rapid ascent fueled by a silver bonanza, followed by a gradual decline as resources dwindled and economic tides shifted.
The name Cerro Gordo, meaning "Fat Hill" in Spanish, hints at the riches that lay within its slopes. Long before the arrival of American settlers, Mexican prospectors had ventured into these mountains, drawn by rumors of silver. However, early expeditions faced perilous conditions, including attacks by Native Americans. One such encounter resulted in the deaths of three out of five prospectors, with the survivors held captive and forced to swear never to return.
The establishment of Fort Independence marked a turning point. With increased security and a reduction in Native American hostilities, Mexican miners cautiously returned to the area around 1862. It was Pablo Flores who made the pivotal discovery in 1865, unearthing rich veins of silver near the summit of Buena Vista Peak. Flores initiated mining and smelting operations, laying the foundation for what would become a thriving, albeit short-lived, silver boom.
In April 1866, the area was formally organized as the Lone Pine Mining District. News of the silver strike at Cerro Gordo spread rapidly, attracting a wave of prospectors eager to strike it rich. The influx of people and capital transformed the remote mountainside into a bustling mining camp.
Victor Beaudry, a businessman from nearby Independence, recognized the immense potential of Cerro Gordo. Impressed by the quality of the silver being extracted, he established a store to cater to the miners’ needs. Beaudry’s entrepreneurial spirit didn’t stop there. He strategically acquired mining claims, often in exchange for settling unpaid debts. He invested in two modern smelters, further solidifying his control over the burgeoning industry. Through a combination of shrewd business acumen and strategic acquisitions, Beaudry became the dominant figure in Cerro Gordo, owning a majority stake in the richest and most productive mines, including a partial interest in the Union Mine.
Another key figure in the development of Cerro Gordo was Mortimer Belshaw, who arrived in 1868. Recognizing the need for efficient transportation, Belshaw partnered with a Union Mine stakeholder and organized the first wagon load of silver from Cerro Gordo to Los Angeles. He later constructed a superior smelter and, crucially, the first wagon road up the mountain. This road, known as the Yellow Road, allowed Belshaw to control the flow of silver shipments by levying tolls, further enhancing his influence in the region.
By 1869, American entrepreneurs had taken over the property and transformed it into the largest producer of silver and lead in California. The ores extracted from the mines yielded exceptionally high assays, sometimes reaching as high as $300 per ton. To process the ore, two smelters were built in Cerro Gordo itself, with a third constructed on the shores of Owens Lake near the rival town of Swansea.
The logistical challenges of operating in such a remote location were considerable. As Roger Vargo of Explore Historic California notes, "There are no natural water sources in or close to Cerro Gordo. A water company was established to tap and pipe water from springs about six miles away, but these springs were quickly depleted. All the water had to be hauled in on the backs of mules."
Similarly, the scarcity of wood posed another significant hurdle. Wood for construction had to be transported from the forests of the Sierra Nevada. While pinyon pines grew east of the townsite, they were primarily used for charcoal production, a more efficient fuel source for the furnaces. This deforestation, however, came at the expense of the local Native American communities. Mule teams played a vital role in transporting both firewood and charcoal from the Sierras, highlighting the reliance on animal power in the mining operations.
The most productive mines in the area included the historic Union Mine, as well as the later Cerro Gordo, Cerro Gordo Extension, Estelle, Silver Reef, and Santa Rosa mines. These mines extracted vast quantities of silver and lead ore, contributing significantly to the town’s prosperity.
The ore was transported to Los Angeles, a distance of 275 miles, by mule teams. This long and arduous journey necessitated the extraction of high-grade ore and bullion to ensure profitability. For several years, the constant flow of silver bullion from Cerro Gordo had a profound impact on the city of Los Angeles. As the Los Angeles News declared in February 1872, "To this city, Cerro Gordo trade is invaluable. What Los Angeles is now is mainly due to it. It is the silver cord that binds our present existence. Should it be unfortunately severed, we would inevitably collapse."
However, the fortunes of Cerro Gordo began to decline in 1875, marked by a series of setbacks that ultimately led to the shutdown of its furnaces. The primary cause was a depletion of ore in the mines, a problem that had persisted for several months. Compounding the issue was a temporary drying up of the town’s water supply. Furthermore, a legal dispute over the ownership of the Union lode, initiated in 1870, added to the uncertainty and hindered production.
Although the ownership dispute was resolved in January 1876 with the creation of the Union Consolidated Mining Company of Cerro Gordo, the revival proved short-lived. By late 1876 and early 1877, the Union Mine appeared to be exhausted. A fire ravaged some of the mine buildings, and the collapse of the Union shaft dealt a final blow. The furnaces were closed the following February. A sharp decline in lead and silver prices further exacerbated the situation, effectively bringing an end to this first era of intense mining activity at Cerro Gordo.
The story of Cerro Gordo did not end there, however. In 1905, mining activity was revived in the Panamint region, sparking renewed hope for the old productive mines. Cerro Gordo was acquired by the Great Western Ore Purchasing and Reduction Company, which envisioned building a 100-ton smelter to process ore from the old dumps, which had previously been considered too low-grade for existing technologies. Advances in mining methods made it economically viable to extract remaining resources. By 1907, high-grade zinc had been discovered in the old Cerro Gordo stopes, and ore shipments resumed.
In 1912, mining men from Utah acquired the Cerro Gordo group, which by then included a network of tunnels, shafts, and an aerial tramway connecting the mine with the narrow-gauge Southern Pacific Railroad at Keeler. Shipping 1,000 tons of ore daily, Cerro Gordo became the largest producer of zinc carbonates in the United States.
By 1920, the Cerro Gordo mines company still employed a small crew of around ten men, and silver-lead ore continued to be shipped. A few years later, in 1924, the silver-lead ore in the old dumps was reprocessed using concentration and flotation methods after five concentrators were installed in the Keeler mill. The total gross production of the Cerro Gordo camp from its early years of prosperity until 1938 was estimated to be around $17 million.
Today, Cerro Gordo stands as a privately owned ghost town, a preserved reminder of California’s mining history. The site features several buildings, the remains of the Union Mine, various pieces of equipment, and old kilns. Some of the buildings, such as the Belshaw House, originally built in the 1870s, and the Bunkhouse, built in 1904, are available for overnight rentals. Sadly, the American Hotel, built in 1871, and several other buildings were destroyed by a fire in June 2020. The rest of the town, however, was spared from the flames.
Access to the site, located at an elevation of 8,300 feet, is via three roads, some of which are not suitable for vehicles with low ground clearance.