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Silver and gold were discovered here in 1906.  . A townsite was platted and by 1907 Tenabo had a population of 1,000. The residents supported a wide range of businesses including restaurants, hotels, assay office, grocery store, lumberyard, a school, and many saloons. A mill was built in nearby Mill Gulch. By 1909, most of the mines were controlled by the Tenabo Mining and Smelting Company. However, by 1911 the cost of producing the ore became higher than the value of the ore. The post office closed in 1912 and Tenabo quickly declined. The Tenabo mining and Smelting Company sold all of its holdings in 1920 after producing 12 million ounces of silver and 25,000 ounces of gold.

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