NO MOKE CREEK MINING

Press, Volume CIX, Issue 31982, 8 May 1969, Page 18

NO MOKE CREEK MINING

No copper was mined in the Moke Creek area last year, and New Zealand Mineral Developments, Ltd, has run out of capital, but the directors have recommended that the licence should be maintained.

The company will sell all realisable plant to .gain funds to keep the company operative, maintain the mining licence, and gain experienced technical advice.

la a report, to shareholders, the chairman (Mr R. H. John- . stone) said that the directors did not recommend embarking on further capital expenI ditore until proven technii cal advice was available from ■ within any new capital strucI hire which might be estabi Used. I The company’s prospectus assessed that there was a I minimum of 50,000 tons of l good quality copper in the Moke Creek area, but empba-

sised that the venture was speculative, Mr Johnstone said. NO DRILLING The diamond drilling programme agreed On at the last annual meeting had been started, but the driller had found the conditions too dangerous and his contract was terminated. Extraordinary earthquake structuring and lack of capital had prevented the company getting on to the workable main lode, but the work that had been done tended to confirm that there was 50,000 tons of good ore in the mine. SPECULATION What amount of capital would be needed to break into payable lode areas was now a matter of speculation. An Independent geophysical survey had been commissioned, and the results would be available for the annual meet, ing on May 23, the directors hoped. They would ask shareholders to confirm their general policy, and they recommended strongly that any future capital structure should be New Zealandcontrolled.

The company’s financial statement for the 1968 year shows a loss of $37 after expenses amounting to $1731. Income included a $l2OO Mines Department subsidy, which is repayable at the rate of 10 per cent of future net profit, and proceeds of the sale Of ore of $4BO. Total income was $1693, but the final amount due on ore sold has yet to be ascertained.

No depreciation was provided for on fixed assets. The balance sheet shows shareholders funds at $70,689, including paid up capital of $111,600 in 50c shares.