NEW NUGGET AND CORNISH QUARTZ MINING COMPANY.

Lake Wakatip Mail, Issue 1060, 30 May 1878, Page 3

NEW NUGGET AND CORNISH QUARTZ MINING COMPANY.

The half-yearly meeting of shareholders in above company (adjourned from 2 o'clock p.m.) took place on Tuesday eveniug at Eichardt's Hotel. Mr R. Black in the chair. Minutes of previous meeting were read and and confirmed. After correspondence had been read and disposed of the following reports were read and received : Mb. Hicks' Report to the Directors. Queenstown, May 13,1878. Gentlemen,—ln compliance with your request I visited the New Nugget and Cornish Quartz Mine on May 11th, and thoroughly inspected it. The mine is being worked m a very systematic manner, and from the amount of work done since my last visit every economy must have been used. The stope is 36 feet from the back of the level, with both ends left oaen for future workings, and a main pass in Jlne centre, divided, one part for a ladder-way Mind the other to hold quartz, which is let into the truck from a trap-door. With regard to the stone I find the reef is not properly formed yet—it appears to be a bunch of quartz made frOm a reef coming in from the foot wall and not the main lode, and dipping into the hill about six inches in a foot, proving satisfactorily, to my mind, that the run of stone from the old workings is not yet cut; when cut no doubt it will be found to dip into the hill at the same angle as the present stone is dipping. I find the men at present employed -cannot keep the machine going with quartz, at which I am not surprised. I may say here that the manager informed me before the machine started to work he would not be able to keep it going full time, and I perfectly agreed with him as I could not see how it could be done without the pass being put to the surface or old workings—in fact, the mine will not have a chance to pay until the pass is through, and the sooner it is done the better ; even the present stone could be worked then to a much greater advantage. In putting the pass to the surface or old workings the run of stone previously worked on will be cut, and levels can then be opened out so that stone can be raised at a much cheaper rate, and there is not the slightest doubt the quality of stone will be much better from the average obtained in the upper workings. From the miue I visited the battery, and here again there appears to be every economy used, and from what I could see there is no chance for gold to escape. The great faults are the self-feeding (which I understand was pointed out by the manager to two of the directors before the engine left) and the spur-wheel breaking, in neither case can any blame be laid to the manager. In conclusion I must say the manager has had no chance yet to make the mine pay. The stone worked on certainly has not turned out .as anticipated—that, however, is no fault of his; but it is not the stone for which the level was driven. I see no reason, therefore, but to endorse all £hat has been done with the means at command. —I am, &c, Thomas Hicks. Report of the Directors. Queenstown, May 21,1878. Gentlemen,—We are very pleased to find ;by Mr Hicks' report the prospects of the New Nugget and Cornish Quartz Mine, are still so encouraging, although we have not yet been ■able to accomplish what we expressed to the .shareholders at the last half-yearly meeting. The stone struck in the level has not tturned out as we expected. From the quality .of stone got in the shaft or winze sunk in the level about 15 feet deep, there is every indication of a richer lode going down, than we have had in the stopes. The stone at the bottom of ithe winze is quite as good as that struck in the level, but on rising on the same stone it proved 4o be poorer going up and there is every appear.ance of soon getting to the top of the block. You must bear in mind this stone has no connection with the stone for which the level was driven, it is dipping into the hill fully 6 inches in a foot, and, the higher we get the more the dip appears to be, proving beyond a doubt, it is not the run of stone from the old workings. The question would naturally crop up why not have continued the winze if there is the best stone ? This we would have done if practicable, but, owing to the pass not being through we could not do it for want of air, and the pass was not put up for want of funds. Of course as we stated before the stone operated on, did not give us the funds we were led to expect from the prospects got in the level. This, however, does not alter our opinion of the mine, except that this block of stone (averaging 6 dwts) will make the mine more valuable, and we have every confidence that as soon as the run of stone from the old workings is cut the mine would not be long before it is * in a position to pay dividends. Our grounds for this belief are that the stone inthe old workings has been thoroughly tried and. there is equally as good stone going down in the bottom of the old level as was taken out above —affording, we consider, strong data to go on. What we would propose is that the shareholders take up the 621 shares unallotted out of the reserve so as to give funds for putting up the pass and paying off the pressing liabilities such as wages and working materials. Under the agreement entered into with the men, all expenses cease (with the exception of the salary of manager and clerk) until the pass is through. When the pass is through the Company is not liable tor their wages, but they (the men) will have all the proceeds from the mine until their wages are paid in full. This arrangement we consider is a very fair one both for the Company and men, and it shows the men have every confidence in the mine, which should be great encouragement to the shareholders to persevere and carry the work through to accomplish that for which the level was driven. We cannot say the machine has given satisfaction ; the spur wheel appears to be too weak for the work it has to do and from the reports of the manager he cannot drive the machine at proper speed, viz, 75 blows per minute. It •will therefore be necessary to adopt something that will stand—a wrought iron wheel or belting has been suggested, neither of which would be very expensive. In conclusion, we would urge upon the shareholders the necessity of taking up these shares to enable them to realise on the amount they already expended, which will be entirely useless unless this pass is carried through and thus ent the stone for which the level was driven. : .The mine will have no chance to pay unless this . is done, and for the small amount required -tfcetcr should be no difficulty in accomplishing |. it. Calls .could be made to suit' the recrajp. " ; ments and thus make it as easy as possible for the sharehoders.—Yours &c, d, . 1 Robert Black. *&• [fg VM; J. MALAGHAN. Directors. S Robert Ross. - (Thomas Hicks. The balance sheet was brought'up and adopted, subject to slight adjustment.- ' , _ , 1 It was- proposed by Mr Hicks seconded by Jfrßoskruge and Carried :-That MOO of the I

reserve shares be offered to the shareholders at 15s per share—ss to be paid on application, and 5s per month afterwards. Each shareholder can apply for any number of shares, but not more than 1,400 will be allotted. Applications for shares to be f vwarded to the Manager, or the Office of the Company, on or before June 12. It was proposed by Mr Eoberts seconded by Mr Rogers and carried:—That in the event of sufficient shares not being taken up to meet the requirements of the Company, then all unallotted and reserve shares be given to those who will become security for the liabilities, and who will advance money to meet expenses for putting up the pass, which monev is to be refunded after all other debts are paid. Resolved that the two previous propositions be embodied in a circular and sent to each shareholder. The meeting then adjourned, with a vote ot thanks to the chair till 12th Jane.