MINING NEWS.

Auckland Star, Volume LXV, Issue 138, 13 June 1934, Page 15

MINING NEWS.

NOKOMAI GRANTS OPTION. NEGOTIATIONS WITH LONDON. (By Telegraph.—Own Correspondent.) DUNEDIN, Tuesday. The directors of the Nokomal Gold Mining Company, Limited, In submitting to shareholders the second annual report and balance-sheet of the company, advise that the excavuting machine installed on the company's property is unsatisfactory and unsuitable. Owing to these circumstances the directors decided to cease digging and work with excavator terminated on April 12. To clean up the partially excavated paddock the directors have installed hydraulic elevators. During the past two weeks the board has been in negotiation with the representative of a London mining syndicate, and at his request granted an option to purchase the company's property, plant nnd claims, the terms of the option being £30,000 cash in New Zealand currency and £20,000 in fully-paid up shares of the value of 2/ each in a new company. The granting of such option was made conditional on the shareholders approving It. At the annual meeting the shareholders will be asked to confirm the action of the directors in submitting this option on their behalf. The company, which operates .in Central Otago, has a paid capital of £60,000 In shares of 5/ each. YIELDS OF COMPANIES. Mataki.—3Boz for 132 hours. GOLDEN CROWN MINE. Mr. Albert A. Adams, Assoc. Inst. M.M., managing director of the Golden Crown mine, Komata, who visited the property at the end of last week, reports as follows:— "Last December a start was made to prospect the No. 2 reef, north from the old Kctnata Reef Company's workings. At the north end of the old stopes the reef was split into a number of small leaders, but the ore from the hangingwall leader showed 'crustiflcation.' and acting on this 'criteria* I decided to drive on this leader. After driving 66ft, a fault was cut bearing 75 degrees north magnetic, and dipping lln 4 to the south. This fault cut off the leader we were driving on, bo It was decided to cut through the fault and look for the reef to the west. The reef was picked up north of the fault, and, after driving some 23ft it is now wider than the drive. Some rich ore was won from this drive, and the stone broken from the floor of the drive showed gold freely. The face of the drive. Is now in the hangingwall portion of the reef, which is 4ft wide, and the average assay value for the full width is £5 0/ per ton. There is a heavy flow of water coming from the reef. This Is important, as it Indloates that, this reef has not been cut north of the fault at the lower levels of the mine." MINE MANAGERS' REPORTS. Dawn of Hope (Thames). —We have extended the level hillward a further 4 feet on the hangingwall dropper of the Golden Age reef. The dropper shows a width of 12 Inches and is now more compact than when last reporting, and in a breaking down we had during the week showed good values.