MINING NEWS

Evening Post, Volume CXIX, Issue 148, 25 June 1935, Page 12

MINING NEWS

"INIQUITOUS" TAXATION

(From "The Post's" Representative.)

LONDON, June 8. Mr. A, Foster (chairman) presided at the ordinary general meeting ■on June 5 of the Consolidated Gold Fields of New Zealand Company and of the Blackwater Mines. Regarding the former undertaking, it was announced that dividends on investments amounted to £16,111, and that there was a credit balance of £20,289. The balance brought forward, £16,855, gave a total of £37,144, from which two dividends paid during 1934 of 9d per share and 6d per share respectively, both free of tax, had to be deducted, leaving £21,519 to carry forward. Out of that balance a dividend (No. 21) of 6d per share, free of tax, on account of the year ending December 31, 1935, would be paid on June 12. During the year their properties in the Progress areas received a great amount of investigation and research by members of the Geophysical Survey Department of the New Zealand Government, some of whom were camped on the ground for months. An interim report had already been received by the Department, which was hopeful of supplying something more definite when its investigations were complete. In the Karamea district they held 600 acres in likely country, the boring of which they hoped to do on contract. At Gow's Terrace they held an additional 1000 acres well spoken of but so far untried. What appeared to be of more immediate promise were 1000 acres along the Glenroy River. Cables from their mining engineers stated that two bore-holes have been completed with very promising results, and work is proceeding. At Blackwater Mines meeting Mr. Foster referred to the strike in the early part of last year when active operations were suspended for three months, the battery being run on only 206 days, as compared with 291, and the tonnage milled 31,862, against 45,366 tons the previous year. The working profit was not affected to the same extent owing to the average price realised for the gold won during the nine months' working being considerably higher than was the case for the year 1933. The yield from ore milled was 14,9660z fine gold, which realised an average of 140s 7d per ounce, as against 126s 6d in 1933, the exceptionally high average value obtained being partly due to the delayed arrival in London of their December output just when, fortunately, gold ■ was at its highest price. The total realised value of the gold won during the year was £.105,218. Unfortunately, against this revenue the taxation demands were extremely onerous. The gold export duty paid to the New Zealand Government and referred to by Mr. Spencer (managing director in New Zealand) as an "iniquitous tax," alone amounted to £8436, or the equivalent in New Zealand currency to 6s 6.08 d per ton milled. In addition to this duty, New Zealand and United Kingdom income taxes are estimated to amount to a further £12,500, making a grand total for taxation of, roughly, £21,000, or equivalent to Is 8d per share. The yield of gold per ton was 38s Hid, an increase of lljd per ton, or, inclusive of gold premium, 665, as against 58s per ton milled in 1933. The actual value of the ore mined was still maintained on a remunerative basis quite independently of any benefit derived through the increased value of gold. The average .value of the ore sent to the mill during the year was 9.93dwt per ton, from which an extraction of 94.55 per cent, was obtained, a slight improvement in each case over 1933. The tonnage milled during the first five months of the current year was 18,090 tons and the yield of gold 7796 oz of an estimated value of £55,778. Working costs were £27,086, leaving an estimated working profit for-the period of £28,692. The total development footage in the mine amounted to 2722 ft, and of the total of 2153 ft driven, risen, and sunk, 1600 ft, or nearly 75 per cent., was on reef and averaged 11.25dw.t over a width of 22.31 in. The development results were the more important as being obtained in the present lowest level of the mine and as justifying with confidence the expectation of their continuation in depth. Owing to the unexpected extension by the Greymouth Power Board of its line to within 10 miles of the Blackwater property, it had been decided to substitute electric power at the north shaft in place of the existing steam plant, and a powerful electric hoist of the latest design, capable of working to a much greater depth, has been ordered, is now on point of shipment, and is expected to result in considerable saving in the cost of hoisting. * Taking into account the labour disturbances with which the company was faced for so considerable a portion of the period the results of the operations for the past year had again been favourable; and as regarded the current year, in view of the very satisfactory results being obtained, both as shown by the monthly outputs and in developments on the No. 12, continued confidence was fully, justified and, givfen a continuance of equally satisfactory results in the new levels,'the question of increasing the crushing plant, as suggested by Mr. Spencer, would have to be considered. An understanding had been reached with the Consolidated Gold Fields of New Zealand, whereby a 50 per cent, interest in that company's prospecting operations had been offered them and accepted, provided they shared equally with them the cost of such operations. Reports and accounts of. both companies were adopted. The retiring director, Mr. A. L. Foster, was reelected. TALISMAN DUBBO. Talisman-Dubbo, Karangahake, re-ports:—-Dubbo level: The average assay value of the ore from the stopes extending from 215 ft north to 400 ft north was fair: width, 22in. The drive north was advanced 6ft, total 646 ft. The reef is 12in wide and the average value good. Talisman No. 1 level: The average value of the ore from the stopes from 420 ft' south to 500 ft south was very good; width, 30in. The stope from 230 ft south to 290 ft south produced ore of very fair value; width, 30in. Drive south: The lode from 493 ft south to 560 ft south is irregular and somewhat disturbed. There is lode formation along the drive, but the bands of quartz are not continuous. Talisman No. 2 level: The drive south advanced through country 20ft, total 187 ft, on the eastern side of the old Talisman stopes. WORKSOP EXTENDED. The following is the return of Worksop Extended Gold Dredging Co., Ltd., for the week ended June 22:—Yield, 61oz 14dwt; hours.dredged, 126; yardage dredged, 9500. The dredge is now almost clear of the gully where it has recently been dredging and is gradually opening out into the main valley, after which digging operations should proceed uninterruptedly.