GOLD MINING

Grey River Argus, 11 February 1938, Page 2

GOLD MINING

WHITE’S ELECTRIC. The Chairman’s report, to be presented at the annual meeting of White’s Electric Gold Dredging Co. (Barrytown), Ltd., on February 25, is as follows: I beg to report on the affairs of the Company as from the commencement of operations in September, 1936. The Company has encountered very many difficulties which were not at first anticipated, but I am pleased to state that most of these difficulties have been overcome. and the dredge is now operating satisfactorily. In the first place, due to the fact that the capital of the Company was not fully subscribed, there were financial difficulties to be’ faced, and arrangements were made to borrow monies by way of debenture to complete the payments on the dredge and properties. After some difficulty this accommodation was arranged, which enabled the dredge to be completed and put into production. The dredge had worked an area of approximately two acres on the Company’s own claims when an area of some thirty-four acres was offered to them on a royalty basis by' Messrs Bourke Bros. The offer was made conditional that the Dredge should start on Messrs Bourke Bros. Idnd by January Ist.. 1937, and in order to comply with this condition the dredge was shifted from the Company’s own claim tc Messrs Bourke Bros.’ area, and commenced production there in January. 1937. After some twelve returns had taken place an exhaustive test proved that the Dredge was not saving the 90 per cent, of gold called for in the specifications with the dredge contractors, and further payments to the contractors were stopped. At the present time there is approximately £7OO which the contractors claim is due to them, together with £5OO worth of shares which they state should be allotted, but the Company has refused 'this payment, and allotment of shares, and is counter-claiming on the contractors for reconstruction expenses referred to later. After the exhaus tive tests had proved that the dredge was not recovering the 90 per cent of gold on the yardage specified in the contract, it was decided to shut the dredge down and commence al terations, giving a much greater spread of tables, and at the same time making other adjustments which had been found necessary. The dredge is now equipped with a spread of tables approximately five times the spread that it originally had, and it appears at the present time is saving gold satisfactorily. These tables consist of a first series of vibrating tables carrying first rubber matting and then plushes, followed by two fixed tables carrying plushes, and so efficient have the vibrating tables proved, that on tests made to date il is ascertained that most of the gold is caught on the first rubber matting. This reconstruction cost was £2,379, and it was again necessary to borrow these funds to enable this work to be completed, and whilst just prior to this reconstruction taking place the Company’s affairs looked very serious, I am now pleased to state that these alterations have proved all the Directors were expecting, and has greatly altered the outlook of the Company. After the reconstruction was completed, the Dredge commenced operations early in September, and since then till December has given us very consistent returns averaging 33J ozs. per week When it is taken into consideration that the Company has been making adjustments and working approximately thirty hours per week short time since the reconstruction took place, these returns must be regarded as quite satisfactory, considering!

.also that the operating costs including the royalties payable to Messrs Bourke Bros, are in the vicinity of 17‘- ozs. per week. Although at present the weekly yardage is about 6,500 yards, we expect to step this up by another 1,500 early in the New Year, which will mean a correspond ing increase in the returns. The dredge is now gaining a steady profit per week, and substantial progress is being made in the reduction of the liabilities. During the period ■the dredge has worked, 820 ozs. of gold have been won of a total value of £6,512, of which £569 has been paid in royalty, and in Export Tax £512 10s Od. In 31 weeks of actual dredging 220,116 yards have been worked, the gross value per yard being seven pence. Since the reconstruction the average value psi’ yard saved has been 9.6 pence. I am confident that unless something unforeseen occurs, that when our next 'annual meeting takes place, the balance sheet to be presented will then show a very great reduction in the liabilities. The retiring Director is Mr. T. W. Perry, who offers nimself for re-election. The Company’s auditor, Mr. H. Bicknell, also retires and offers himself for re-election. 0 MOSSY CREEK. The Mossy Creek dredge washed up for a return of 19ozs ldwt of gold from 7821 yards for 132 hours. ALEXANDER. The mine report for January states: —No. 6 Cross-Cut was extended 94 feet making 1140 feet from the ..mouth. The country has been good driving, and is carrying very little water. The stopes above No 5 level and below No 4 level are being worked in four faces. The stopes south of the bottom of the winze below No 4 level maintains its width of 27in. The battery crushed 200 tons of ore for a return of 177 ozs 8 dwts of melted gold. The Cyanide Department did not clean up. The estimated value of gold won is £1,197. In addition, 4.8 tons of concentrates were saved, valued at £lBO. QUOTATIONS. Alexander 11s 4d‘ —; Alexander (15s paid) —, Ils Id; Argo Gold —. Is lid; Barrytown —26 s Id; Big Ki ver — ( is 4 d ; Gillespie’s Beach —, Is 3d; Grey River (8s 9d paid) —, Ils 7d; Maori Gully sd, 6d; Mossy Creek —, Is 2d; Nemona Is 3d, Is 6d; Worksop 9d, Is; Mount Lyell 30s 4d, 30s 6d; Mount Morgan 9s Id, 9s 2d; Kanieri 16s, —.