Section 38
SEC. 38. Mining claims of the first, second, fourth, and fifth groups may be located either as lode or as placer claims, depending upon whether the mineral deposits therein are found in lode or in placer form: Provided, however, That if a parcel of land, by reason of the nature of the mineral deposits found therein, is subject to either lode or placer location, the prior location of either class, validly made, shall prevail: Provided, further, That in case a placer location is made first, the locator thereof must thereafter make a lode location in order to secure the mining rights to lode deposits found within the boundaries to all minerals of the group for which the mining location of the placer claim: Provided, further, That in case a placer location is made first, the locator, thereof must thereafter make a lode location in order to secure the mining rights to lode deposits found within the boundaries of the placer claim: Provided, further, That in such cases the locator, or his successors in interest, shall be entitled to all minerals of the group for which the mining location or locations have been made or the lease granted, which may lie within his claims, but he shall not be entitled to mine outside the boundary lines of his claim continued vertically downward: And provided, finally, That the holder or lessee shall have preferential right to locate and lease any mineral deposits of any other group found therein.