KAWARAU MINING COMPANY

Evening Star, Issue 19431, 14 December 1926, Page 3

KAWARAU MINING COMPANY

DIRECTORS' REPORT The following arc the principalclauscs in the report of the directors of the Kawarau Gold-mining Company to Represented at the second annual meeting of ‘ members called for next week: — Since the issue of the half-yearly report of the company on February 16 last the construction of tho clam was, 1 despite continued adverse conditions, I pushed ahead till August 30, when work i was completed to permit of a trial dosing of the gates for a period of ten days. Owing to tho lateness of tho season and the°volume of the tributary streams I being considerably swollen by the melt- ! mg snows, no conclusive results could bo expected other than to prove- the stability and effectiveness of the i Kawarau dam, and permit of the survey of tho claims being made by the claimbolders, upon whom falls the function of actual mining operations on tho river. It was not possible, owing to the I above conditions, to view the underI taking as under a normally cold winter; i consequently recent operations were ! confined to' prospecting the claims and gathering as much information as posI sible for future operations. In view ol I tho results obtained in the limited period this year, your directors feel that I next season’s operations can bo looked ; forward to with confidence. Plenty of I time should then bo available to wing- | dam and divert the river at selected spots J and thus expose the bed at these places, where the richest deposits undoubtedly lie. For the information of shareholders wo give tho following extract from Messrs Vickerman and Lancaster’s report to this company ; —Tho gates were closed with tho Queenstown _ gauge standing at 4ft 21in, and with approximately 4,400 cusecs or heads flowing.out of tho lake, the level of which had been falling slightly for several | days. The outflow thus included both tho water duo to tho inflow off the mountains and tho water derived from I the lowering of the lake. . Tho subsequent rise in tho lake was not readily perceptible, being at the rate of half an inch per day. It may therefore be fairly expected that during tho rrosty period of a bard winter the rise would be half to two-thirds of this. This result is eminently satisfactory and fully up to expectations. The drop in the river was at onco perceptible, but it took a full twenty-four hours for its complete realisation. Tho extent varied with the -physical character of the river, being greater in narrow gorges than where wide and open. The fall recorded was 6ft Gin at claim 100, tapering off to about 4ft at No. 8.6, 4ft Sin at 63, 4ft at 52. . . . The river changed from a turbulent to agentlj’-flowing stream, apparently carrying a largo volume of water, this appearance being exaggerated by shingle bars creating long, deep reaches. (It may bo noted that the minimum fall was 3ft 6iu, while the maximum fall in the gorge was about 10ft.) In order to test the correctness ! or otherwise of the rumor which, on | this account, at once became current that, although tho dam appeared satisfactory, there must be a large leakage from the lake by other channels to account for the apparently large flow of water in the Kawarau below the dam, gaugings were taken of the Shotovcr, and also of the Kawarau, at the Bannockburn bridge. Those indicated that the Shot-over was discharging approximately 800 heads, and that the Kawaran at the point mentioned, which lies below the Shotover, Arrow, Nevis, Gentle Annie, and Bearing Meg. was only carrying some 1.150 heads. These gaugings indicated conclusively that there could he no leakage from Lake Wakatipu into the Kawarau. _ Quite apart from the evidence thus given, it would, with tho small difference in water level existing between Lake Wakatipu and the Kawarau-Shotovor Junction, ho extremely improbable for any considerable leakage to occur. With tho small daily rise thus experienced in the lake and the prolonged period of closing which it indicates will bo available in the cold winter months, and with the evidence that there is no leakage from tho lake, we consider it may be held that the Kawarau dam is functioning with entire success. Owing to tho adverse conditions which prevailed during tho recent closing, the situation could not be fully gauged, and it will bo necessary to wait until the gates are again closed next winter before tho position and the full effect of the dam can bo definitely ascertained. It is, however, hoped that considerable progress will bo made in the meantime with regard to the administrative side of the undertaking. Since our last report the holders of sixty claims have amalgamated their interests under tho Consolidated Kawarau Claims, Ltd., of Wellington. _ A further movement was made during September to bring together the remaining claimbolders into a further largo amalgamation. In furtherance of this suggestion a meeting of delegates representing about fifty claims was held in Dunedin on tho 3rd, 4th, and 6th inst., when a basis of amalgamation was formed for submission to shareholders of the respective companies. _ After tho conclusion of the above meeting a deputation of six delegates waited upon your directors, and a round-table conference discussed numerous matters _ affecting the well-being of tho scheme in a most friendly and helpful manner. Such discussions are of considerable value _in assisting to bring about the co-operation between the different bodies of claimholders and this company, which is most desirable for the future of the undertaking; and provided this further amalgamation of claimholders can be brought to fruition at an early date considerable progress should be made in considering the various problems which concern the directors of the various companies interested, and settlement of which would assist greatly in a successful working of the undertaking. During tho year it was necessary, for reasons already explained, to increase the capital of the company by the issue of a further 100,000 shares of Is each at a premium of 2s, and your directors are pleased to report that tho sum of £IO,OOO deposited with the Public Trustee in compliance with the requirements of the Minister of Public Works will bear interest at the rate of 5\ per cent, per annum. Tho attention of shareholders is drawn to notice of an extraordinary general meeting called for December 21, at which shareholders will he requested to consider a special resolution to alter tho articles of association of the company, and permit three representatives of claimholders to sit on tho Board of Directors of this company. Three representatives of the claimholders have during the past year been acting in an advisory capacity on the Board of Directors, and as it is now desirable that their appointment should bo made definite your directors strongly recommend that such resolution should bo passed.