FUTURE POLICY.

Evening Post, Volume LXXXI, Issue 23, 28 January 1911, Page 11

FUTURE POLICY.

THE WAIHI MINE. 'AN IMPORTANT CIRCULAR. fin TELEGRAPH— PBESS ASSOCIATION.] AUCKLAND, 27th January. Mr. Charles Rhodes, local director of the Waihi Gold Mining Company, Ltd., has prepared the following important circular for the information of shareholdors :: — • "The London directors of the company are issuing on 28th January a circular to shareholders, and have authorised the local directors to make a statement on the same lines as to the future policy of the company. In view of the numerous enquiries by shareholders, they have also had prepared a special report as to the position and possible future of the mine. This report by the mining engineer of the company goes beyond ordinary official statements, and expresees beliefs and possibilities as to fcho noar future of the mine. It is believed that shareholders will at this juncture be glad" to have such an expression of the opinion of the New Zealand executive, and the directors have therefore authorised the publication in full detail of the said report, which will be found hereunder. At the same time, the full text of a cablegram just received from London regarding reports, dividends, etc., is given, which fully explains itself. TRANSLATION OF CABLEGRAM. "The following ie the translation of the cablegram :— 'The directors authorise you to publish the whole of Mr. Williama's report. They think its straightforward character will certainly inspire confidence. It has been decided, after consulting the local directors and superintendent, and m view of the continued weakness of No. 9 level, that reduction of the tonage to be treated shall be immediately commenced, so that gradually by the end of next June the amount crushed shall be down to 1000 tons per day. This means that an average of about 1250 tons per day will be treated until 30th June. Thereafter, for a period of two years at least, the estimated fourweekly returns will be about £46,000, equalling a total of, say, £600,000 per annum. During the period of time mentioned we shall be able to sco whether the ore developed equals the ore extracted. 'The expected monthly returns meantime will not be, sufficient to warrant more than 2s quarterly dividend after June, possibly with a small annual bonus, the first of which is not likely to be before June, 1912, but in view of the balance of revenue to be carried forward from 31st December last, and the higher return than £46,000 per month, which, to the end of next June, the board of directore have declared a dividend of 4s per share, payable on first March next, and expect to pay a dividend of 3s per share on Ist June next. It is intended to carry out a specially vigorous development polioy, and endeavour to reach No. 12 level at a depth of 1450 ft, hoping by that time we snail have passed through the poor zones of country ; also to push forward the south-east crosscut at 1000 ft level (known as Reptile crosscut). 'It is also announced in the London circular that the Horahora hydo-elec-tric scheme is proceeding satisfactorily, and that the board considers it promises a cheap and convenient power which will greatly benefit the company. This work will be pushed on as fast as possible.' "• THE REPORT. "The following is the report referred to: — 'At, the request of Messrs Barry and Rhodes, I shall endeavour to place before you my views regarding the present and future outlook of the mine, which I have been closely connected with for the past eight years. During that time all the development from No. 6 level downward has been directly- under my supervision, so that I can speak with confidence In almost every mine of this magnitude a separate staff of samplers is employed to determine the value of the ore bodies, and on such a staff a good deaJ of the responsibility rests ; but in this mine the management themselves have sampled every drive along the course of the several lodes, also the crosscuts. For this reason alone we cannot blame anyone for misleading results, and I am confident no misleading statements have ever been made or sent to the directors that could not be borne out by actual results. Thia work will stand investigation by any competent person. lam trying to place myself in the same position as if I were instructed by you ta visit any mine and give my bedrock opinion, with the additional benefit of thorough sampling and knowledge of the mine and general conditions. This mine during the last eight months has been under a cloud, and the management have been blamed for not giving all the information. In my experience no manager is thanked /to prophesy as to the future, but must give as his duty a true statement oi facts as they occur in the course of developments, avoiding comments open to criticism. This has been done, and the value of each foot of ground penetrated lias been reported to and published by the directors, so that the public have had placed before them the actual results of all developmental work even more fully than I have known of in any other mine. "SERIOUS SET-BACK." 'The serious set-back in the history of this mine occurred on No. 9 level during the progress of the crosscut from four shaft to No. 6 shaft. After passing through the Martha, lode a soft decomposed country rock was met, similar to that found near the surface, which undoubtedly is a very bad indication the world over. I ( have noticed in tne several mining fields that I have been connected with that where a good class of country rock is replaced by a soft, decomposed rock, it is an unfavourable sign, and it is my honest opinion that this development will not prove an exception to the rule, although we are hoping that the new level will get through this barren country. We have evidence that a long stretch of poor country exists along the north side of the Martha. This, I think, has additional proof in the crosscut between north-west from the Royal lode on No. 6 level, which is known as the Scorpion crosscut, the country rock in which if? very similar, and the views of quartz intersected are very low in values. The Martha lode having been tne chief bullion producer, almost half of the tonnage for the mills being won from this great lode, it must be apparent to you that the mine has received a serious setback. In place of getting stoping blocks of ore up to 80in. in width, we have only lin and 20in. along the south section, with no available ore yet known along the north section. REDUCTION OF TONNAGE. ' In view of the small development of ore at No. 9 level it is quite evident to me that in the near future the daily tonnage to the mills must be very considerably reduced. I shall endeavour to place before you several reasons for this. In the upper levels of the Martha, in places we have tafeen the lode out in three sections, filling each stope with mullock from tho surface, leaving arches to eupport the levels, and in No. 1 shaft we are now takijtyi_/som§

of the arches away, and in consequence* a slow settlement is taking place. Therefore the ore cannot be produced as quickly, and the Tfcopes eastward frora No. 1 abaft cannot be relied ou to supply the stipulated daily tonnage. Th« system of working is quite safe from a mining point of view. A level may collapse in places, which would shut off at stope for the time being, but the or« could then be won by driving levels mi the footwall country and short crosscuts run outward.- from the lode. I claim that no huge collapse can take place, such as has occurred in some mines. The precaution of absolutely filling the mine prevents this. In producing a lax^o daily tonnage it is necessary to have a> number of working faces available, so that the breaking of or© can be continuous, whilst the other places are being filled. It will be eeen that it is quits impossible to work at the same rate of progress on arches or pillars. AMOUNT OF ORE AVAILABLE. 'At present there are fully 1,063,000 tone in sight, in addition to, say, 600,C00 tons in the arches. 1 am quit* confident this amount of ore is available. Every block has been caref ullyj ' computed. I know it will seem unrea-i ' sonable to a large number of people to make a statement such as mine that.*" the tonnage must be reduced with such a laxge reserve. I think it is a mistake for any mine to attempt to keep up the tonnage beyond what ib can safely do. It ie quite possible that 'some essential point may be neglected which might cause serious trouble to the safe and economical working of the mine. Th« eafety of working this mine is to a certain extent accounted for through the great number of lodes which existed, so that the management could work the men to advantage on these various lodes without unduly crowding the men in close proximity to each other, thus giving ample time to fill the depleted slopes. Unfortunately several of the small lodes became poor in depth co that to-day bhe mine is dependent on* four lodes, i.e. , the Martha, Edward, Empire, and Royal. Therefore a great tonnage from each is required. I know that everyone connected with this property is anxious to keep the mills going at their full capacity. They fully recognise that ora locked up in any mine does not produce dividends. Taking all these things into consideration, however, ib i» my definite opinion the mine tonnage will have to be reduced to 1000 tons per daj bj; December next. PRESENT PROSPECTS. 'In making this statement I am staking my judgment that developmemte oo the next level will not be any better than, the present No. 9 level. lam simply giving my views on the present prospect of the mine. Coatiraiing our usual high pressure work I think we might reasonably expect to keep up the present tonnage and quality of ore during 1911, though in my opinion it would now be wiser to gradually ease off the tonnage stoped to be more nearly in lima with the present true capacity of tha mine. I have every confidence that good! 'makes' of ore will be found in this mine, but I believe the ore will be found more <and more in lenses or bunches. I ami doubtful if such long and continuous shoots of ore will be found in the lower levels as existed above »he 1000 ft level. It has been, stated that more calcite ie in evidence along the 1000 ft level than in the levels above. Taking the amount of dwelopmenb into consideration there is far less. It must be clearly undeiretood that in the event of good ore developments taking place during 1911 there would be no need for a reduction! in tonnage, and I should then gladly admit that my expectations were wrong. In this Teport I have tried to place before you the condition of the mine as it appeai-s to me at the present moment. Yours faithfully, '(Sgd.) R. G. WILLIAMS.' H ADD FUTURE POLICY— ?—^~ GRAND JUNCTIOiS 313311 [BST TELEGRAPH — SPECIAL TO THE POST.) WAIHI, This Day. The now reef intersected in the crosscut east from the Martha reef at No. 5 level in the Grand Junction mine has been penebrated for 12ft, with quartz still showing in the face and no indication of the footwall. The first Bft sampled gives the satisfactory value of £2 7s per ton.