THE SUTHERLAND GOLD MINING COMPANY.

Marlborough Express, Volume VI, Issue 298, 21 June 1871, Page 2

THE SUTHERLAND GOLD MINING COMPANY.

ADJOURNED MEETING. On Monday evening an adjourned meeting of shareholders took place at James’ Assembly Rooms. Upwards of twenty were present. John Barleyman, Esq., occupied the chair, and after some preliminary business called on H. Pitt, Esq., the Legal Manager, - to read the following THIRD REPORT OF THE SUTHERLAND GOLD MINING COMPANY (REGISTERED.) In the ad-interim Report presented to the HalfYearly Meeting, your Directors considered it advisable to recommend an adjournment of the General Meeting in order that particulars could be gathered of the result of crushing, and a better opportunity afforded of forming an opinion of the property of the Company. In this they are again disappointed, but trust that the result of the first crushing will be known in a week, the battery having successfully commenced operations on Wednesday last. The Directors feel that they are justified in congratulating the shareholders upon the succesful completion of the various works undertaken for developing the resources of the mine. The property of the Company consists of a lease from the Crown under the provisions of the Gold Fields Act, 1866, of sixteen acres of land on a spur lying between Quartz and Criterion Creeks, both tributaries to Bartlett’s Valley. Extending for about 1,100 feet, nearly the whole extent of the land leased is the quartz lode bearing S.E. \ E. by N. W. i W., and dipping to the eastward at an angle of sixty degrees. Before the organization of the Company this lode had been prospected. In 1864 a shaft had been sunk on the eastward side of thelode, nearly atits southern extremity, for a depth of 70 feet, the parties had however sunk through the lode unknowingly, and at the bottom of the shaft had driven a distance of 12 feet to the westward, the opposite direction in which the lode lay, not having found the lode they abandoned operations. In 1869 Messrs Sutherland and Nichols visited the lode, and after discovering its bearing and dip, found that the shaft before alluded to had gone through it. They then sunk upon the lode from the shaft at the intersection of the two, for a depth of 15 feet, and having found a fair prospect, determined to put in a tunnel from the eastward side of the hill at a depth of 115 feet from the outcrop of the lode at the southern end of the present leased land. In the tunnel the lode was again struck, and opened out for a distance of 25 feet. One ton of quartz taken partly from the lode in this tunnel and partly from the surface stone was crushed at the one-stamp battery of the Perseverance Company, and yielded 1 oz 5 grs of gold, 22-2 carats tine. This then was the state of the lode when your Directors were appointed-; the development of the resources of which being the object before them. For effecting them the following works have been executed :

A tunnel lias been put in from the western side of the spur at right angles with the lode, at an elevation of about 800 feet above the bed of the creek, and at a point about 400 feet from the southern boundary of the property. This struck the lode at a point where a dislocation had occurred, and at 60 feet below the level of the outcrop. Considerable expense and delay were occasioned before i+ could be satisfactorily determined in what manner to proceed ; after however having continued the tunnel eight feet further, the true position of the matter was ascertained. Driving was then commenced along the lode to the southward, the drive being about 90 feet below the level of the old tunnel, and about 200 feet below the outcrop at the highest point on the Company’s property. At intervals, for about 20 feet, the lode varied in thickness from 1 foot 8 inches to 4 feet, then from 2 feet 6 inches to 3 feet 2 inches. For a distance of about 30 feet the country was as hard as the quartz, and driving was very slow and expensive, it then became softer and the work proceeded more favorably. A party of six have now undertaken to drive for 50 feet at 32s 6d per foot. At the completion of the contract the drive along the lode will be about 86 feet. As a continuation of the tunnel, and as the highway into the mine there is a short tramway extending 90 feet along the face of the hill to the paddock at the top of the tramway. The tramway for transporting the quartz to the mill is 22 chains and 2 feet in length, and consists of three wooden rails laid upon sleepers with a double-way in the centre of its length to allow the trucks to pass. It is self-acting, viz., that by means of a wire rope and a pulley the loaded truck pulls up the empty one, the motions of both being controlled by a powerful break, There is one bridge on the line over a gully, the remainder being upon solid ground. A paddock at each end of the line is provided to receive the quartz, the one at the top enabling the truck to be easily filled from a shoot. The trucks are so made as to discharge their contents on arrival at the mill by a self-acting appliance. This is believed to be the longest tramway in New Zealand worked by one break. The water race extends for about a mile up .Quartz Creek, and is capable of delivering twelve sluice heads of water on the wheel. There are 51 chains and 36 feet of cutting, and 26 chains and 18 feet of fluming boxes, besides the lead immediately in connection with the wheel. The mill consists of a timber building, weatherboarded, and covered with shingles ; the motive power being an overshot water-wheel, 36 feet in diameter, partly iron and partly wood, hung in a strong wooden frame outside the building ; this drives a battery of ten stampers, each of 6401b5. Your Directors are assured that the machinery for crushing the quartz, and the appliances for saving the gold, are of the best description, and that the Company is indebted to Messrs Frazer and Tinne, and also their representative here, Mr McKay, for carrying out their contract in a conscientious and honorable manner. The work has not been completed within the time specified in the contract; and, had this delay been the cause of loss to the Company, it would have been a subject for consideration how much of the penalties provided by the terms of the contract should have been enforced, but as the company has not been ready to make use of the machinery, and as Messrs Frazer and Tinne have not attempted to hurry on the work for the purpose of evading any penalty to which they might be liable, the

Directors consider that the object of the contract is sufficiently accomplished. Your Directors regret that they have been unable to complete the works within the time estimated, and that the cost, as shown by the statement below, has exceeded the amount estimated. It is also a serious matter of regret that the result of the first crushing could not be known before the meeting, as so much of the future of the Company will depend upon that. The Directors cannot close this Report without expressing their satisfaction at the manner in which Mr Alexander Sutherland has performed the responsible duties devolving upon him as manager of the works of the Company. By order of the Directors, Harry Pitt, Legal Manager. Blenheim, June 19th, 1871. STATEMENT —ESTIMATED TOTAL COST.

Estimated unpaid Liabilities on May 31st ... ... £549 2 9

The Chairman said the meeting had been delayed with the hope of the crushing commencing earlier, but owing to various circumstances beyond their control it had not taken place. Mr Lawrence suggested that the meeting adjourn till the report of the result of the crushing arrived. In reply to Mr Robinson, Mr Pitt said they did not expect to receive official intimation of the result of the crushing till about Wednesday week [next Wednesday]. In reply to Mr Connal, the Chairman said this was an adjournment of the annual meeting. Mr Gorrie proposed that the report be adopted. Mr Greenlaw asked how the cost of the mill was made out. Mr Pitt said the statement included all the expenses already incurred, but had been divided into the several heads for the information of the shareholders. The heading “Mill” included .an item of quicksilver. Their object was to show how much capital had been expended, Mr James T. Robinson said it would have been better if the accounts wore in greater detail. The Chairman said it was not desirable to publish all these details, but they were laid on the table for the information of the meeting, and could be inspected any day at the Legal Manager’s office. Mr John T. Robinson considered the present mode objectionable, as laying it open to people to say the accounts had been cooked. The mill, site, &c., should be separate. Mr Wcmyss showed that the published statement was only intended as an abstract of the different headings, the details of which he explained. The (lhairman said the return was compiled and was approximately correct, but if they wished for more detailed accounts being published, it should be done. Mr Robinson thought it should be done for the sake of the shareholders residing at a distance, who could not attend.

Mr Connal said he was quite satisfied with the statement of the Directors, and seconded the motion that it be adopted.

The motion was then carried. Mr Pitt laid on the table the balance sheet for the half-year, dully audited. Mr Greenlaw moved for a detailed account, to be submitted to the next meeting, of the race, machinery, site, tramway, Frazer and Tinne’s contract, buildings, tools, chemicals, &c. Mr Robinson seconded, and Mr Gorrie spoke in support, and the motion was carried unanimously. Mr Greenlaw had heard that Mr Sutherland, the working manager, had tendered his resignation, and enquired how the Directors would act in that case.

The Chairman said no such resignation had been accepted or considered by the Directors, but he believed something had been said, resulting from a mis-apprehensien. In reply to a question, Mr Pitt said every means would be taken by the Directors to publish the result of the crushing as soon as it was known. A vote of thanks to the Chairman concluded the proceedings.

£ s. d. Preliminary Expenses 48 6 10 Stationery and Furniture 43 17 10 Management ... 158 13 3 Rent 12 0 0 Mill ... 1503 10 8 Tools and Powder ... ... 157 10 4 Tunnel and Main Drive ... 343 2 8 Tramway ... ... 395 16 11 Water Race ... 167 17 10 Miscellaneous 50 0 0 £2880 16 4 Cash Payments ... £2331 13 7