ton. It also states that (after transportation and milling costs, 'yield under the stamps') the result would be around $17.00 to the ton coming back to the mine. Milling rates were about $7/ton. Based on an average of $27/ton of low grade ore, that left a freight cost of $3/ton. That one ton of ore could pay the wages for 3 experienced underground miners and a carpenter for a day, so the mines could cover their costs selling the low-grade ore to pay expenses, and reap the profits from the high grade. With the coming of the railroad, a reduction in freight rates for lumber by almost half occurred, and the railroad could haul more material by the trainload, so mining activity increased, creating more business for the railroad. Sharon's idea of low cost transportation paid off. The railroad cost $1,750,000 to build, not including the cost of rolling stock or buildings. The V&T ran 30 - 45 trains per day at the height of the Big Bonanza from Carson to Virginia City and Gold Hill. Still primarily a freight railroad, there were 22 locomotives and 361 freight cars in use at the peak of the Virginia and Truckee operations (1876 & 1877), which carried over 400,000 tons of freight per month. This was in contrast to a mere 10 passenger cars. Expansion and prosperity In late 1871, a line extension to Reno was begun, to connect the V&T line with the Central Pacific Railroad. This would allow through train service between Virginia City and San Francisco. Construction began with track being installed starting at the Reno end of the line. The first train to run end-to-end from Virginia City to Reno took place on August 24, 1872, pulled appropriately by the road's newest locomotive at the time, No. 11, the Reno. This milestone marked the completion of the Virginia and Truckee Railroad. In 1875, the railroad was earning a profit of over $100,000 per month and started paying annual dividends of $360,000 (or $30,000/month) to investors. In 1880, the V&T built a three-foot narrow gauge railroad called the Carson & Colorado. The railroad ran from Mound House, just east of Carson City, to the southern part of California, and supposedly to the Colorado River where new mining claims were being struck. This never did pan out, and by 1891 those claim sites were all but forgotten. A liability to