DORAN'S REEF GOLD-MINING COMPANY (REGISTERED.)

Nelson Examiner and New Zealand Chronicle, Volume XXX, Issue 28, 5 August 1871, Page 11

DORAN'S REEF GOLD-MINING COMPANY (REGISTERED.)

The first half-yearly general meeting of tho abovo Company was held at M'G-ee's Hotel, on Monday evening, the 21th ult. j A. Le Grand Campbell, Esq., in the chair. The following report and balance sheet were read by the Manager, and on the motion of Mr* Hale, seconded by Mr. SiiiTn, was adopted nem con : — G-ENTiEaTEN — In accordance with the terms of the Deed of Association, your Directors have convened this meeting for the purpose of laying before you a statement of accounts up to the 30th June, 1871. Your Directors presume that most of the shareholders are aware that the whole of the battery, manufactured by Mr. Moutray, has been placed on the company's ground, and that it is far advanced towards erection on its site ; also, that the fluming is as nearly as possible completed. The wire for the wire tramway, resolved by your Directors to be erected as the most economical, and as they hope it will prove, under the circumstances, the most efficient mode of transit of material from the mine to the battery, has some time since arrived in Nelson from Melbourne, but the other portion of the material for the tramway, which was ordered from Aucklandj has not yet been received, although from advices, your Directors are fully in hope of receiving it by the next steamer ; immediately on its arrival it will be dispatched to Wangapeka and placed in position as soon as possible — your Directors hope in six weeks, or at the latest within two months of the present date. This will, however, depend in a great degree on the promptness with which the shareholders meet the calls made. The shareholders will bear in mind, that it was resolved to consider the company formed, and that active operations should commence as soon as 600 shares had been subscribed for, contemplating that tho whole of the subscribed for shares, if paid up with promptitude, would enable your Board to complete all necessary operations up to the point of the commencement of crushing. The dullness of the times and subsequent scarcity of money, has no doubt operated to some extent in frustrating the anticipations of your Board in regard to the prompt payment of calls, but it has at the same time to express its regret that many of the ehareholders who are well able without inconvenience to respond promptly to the calls, have not done co, and the result has been that even -with the assistance of the Bank of New Zealand — to which bank your Directors found it necessary to remove the Company's account, and which permitted an overdraft in anticipation of calls being readily responded to — your Directors have not been enabled to proceed so quickly with the necessary works as they desired. Your Directors have reluctantly considered ifc absolutely necessary to take legal proceedings for the recovery of the culls most overdue, and this determination, they are happy to state, has produced the desired result, and they trust will induce more prompt payment in the future. They have, however, finally to urge on the shareholders, that unless the whole of I ho amount of the capital subscribed in the 666 shares sold, be paid up with promptitude as the calls are made by your Board, the works will be much impeded, and the success of the undertaking in which your Directors have much faith, endangered. J. E. Dodson, Chairman. The balance sheet showed a total expenditure of £2,069 11s. Bd. The assets, without plant, were, unpaid calls, £597 ; calls that may be made, £999. Proposed by Mr. Moutray, seconded by Mr. Cartes, and carried unanimously, "That the directors be requested to close the share liafc previous to the first crushing." After a vote of thanks to the chairman, the meeting separated.

GENERAL MEETING- OF THE PERSEVERATSCE MINING- COMPANY. The Annual General Meeting of the Perseverance Mining Company (registered), was held at the Odd-Fellows' Hall, on Monday evening last. Mr. A. J. Richmond was called to the chair. The Legai Manager (Mr. J. R. Mabin), read the Directors' report, and the statement of accounts, printed in our issue of Saturday last ; also, a report of Mr. J. C. Richmond's, and those of the Working Manager, and of Mr. Bain who recently made a survey of the mine. We give the first-named report : — I Beport op the Directors op the Persevebance Mining Company, fob the Haif-teab ending 15th June, 1871. Tour Directors have much satisfaction in reporting that, after a suspension of operations for about four months, the machinery has again commenced crushing. Soon after concluding arrangements with the Golden Gully Company, in accordance with the resolutions passed at the special general meeting of shareholders held in November laßt, contracts ■were entered into for increasing the watersupply ; and on Thursday, June 22nd, the water for the Grst time ea.me down the new race. Whilst these contracts were in course of execution, the expenses of the Company were reduced to the lowosfc possible point by the discharge of all hands afc the mine, except the Mining Manager and the contractors for Drive No. 3. The cost of this increased water-supply has been about £885 ; £6G2 12s. 6d. of which was paid previous to the 15th June, and the balance since ; but if to this amount be added the proportion for salaries and expenses during the suspension of work, the cost would be about £1,000, or nearly £200 under the limit assigned by the resolution of shareholders in November last. The whole of the work has been executed in a satisfactory manner, and sufficient water, after allowing the Golden Gully Company its stipulated proportion, can be delivered during the greater part of the year at the company's turbine to work more than double the number of stampers at present at the mine. But notwithstanding the substantial manner in which the new race has been made, your Directors cannot ignore the fact, that it will entail a large annual expenditure to keep in repair, for where water is brought such a distance over a very rough country, and along the sides of precipitous hills, it will always be liable to accidents from freshets, land-slips, trees falling, and various other unavoidable causes. As a report by Mr. J. C. Richmond, on the new water supply, and other matters connected with the mine, will be presented herewith, your Directors need not further enlarge on this subject. The usual half-yearly accounts will now be laid before you. The amount to debit of profit and loss, at the end of the half-year, stood at £2,688 18s. 3d., in addition to which there are the sums paid since on account of the increased water supply, which will bring the amount up to about £2,900. In addition to the usual accounts, the Legal Manager has preparad a statement, showing the receipts and expenditure of the Company from its formation to the 15th June, by which those not conversant with the technicalities' of book-keeping may readily obtain a knowledge of from what sources the funds your Directors have had at their disposal have been derived, and how they have been dis- , bursed. It will be seen therefrom that ifc has taken half the authorized capital, together with the proceeds of the gold obtained from the mine, to pay the promoters the £600 stipulated to be paid on the formation of the Company, to supply and erect machinery, pay for materials, contracts, wages, and the increased water supply ; in addition to which there were liabilities outstanding on the 15th June amounting to £593 17s. 7d., and these have since been increased to about £800. Drive No. 3, which is the lowest level yefc put in, has been completed. The length is 667 feet, in addition to which there are 256 feet of winzes, &c. ; the total cost thereof, including timbering the outer portion, has been £720. The vein of quartz having proved continuous throughout, makes from 6,000 to 8,000 tons of stuff available for crushing without any further expense for driving. The same vein has been struck by the Decimal Company, but at a considerable distance from and at a much lower level than in the Perseverance mine, which shows the extensive naturo of the auriferous strata, and must considerably increaso the shareholders' confidence in the mine. Whilst the drive was in progress, a vein of galena, blonde, and other minerals, was intersected. Specimens therefrom were forwarded to the Geological Department, afc Wellington, for analysis, and Dr. Hector has furnished your Directors with an interesting report thereon. As this has beon published in all tho Nelson newspapers, it is presumed that most of the shareholders are aware of its contents. At the suggestion of Dr. Hector, cross-drives have been made through this lead of minerals, and he haa promised to send over Captain Hutton, Assistant Geologist, to examine them, and report on the prospecta of the mine. Contracts have recently been entered into for stoping and trucking 1,000 tons of quartz, and supplying the necessary timber ; and ifc affords your Directors much satisfaction to be able to state that these have been taken at from 20 to 30 per cent, less than the last ones, and at a much greater reduction, compared with the average of former contracts. The average cost per ton of extracting gold from the 1,869 tons of quartz crushed before the increased supply of water, was about 405., whilst the proceeds thereof was about 375., thus entailing a loss of 3s. per ton. Tho cost under present arrangements will be as follows : —

£ s. d. Contract for stoping , . . .073 Truckage . • 0 011 Timber v . # 0 2 6 Working materials . . . .060 Wages, salaries, &c 0 4 2 Maintenance of race . . . .016 Depreciation of plant . . . .016 Miscellaneous expenses . . .009 14 7 To which will have to be added the cost of making drives, which although not at present going on or immediately necessary, lias been incurred, and is in part chargeable to the current work 0 2 5 £17 0 This, afc the average already stated of former crushings, viz., 375., will leave a profit of say 10a. per ton. From this short statement of facts of most interest which have occurred since the last report, your Directors now direct attention to the future working of the Company, and tho prospects of its paying a dividend. With a small but excellent plant, and a supply of water considerably in excess of present requirements, and the mine opened up and its auriferous naturo proved, the payment of a dividend depends — 1. Upon the regularity with which the battery is kept at work ; 2. Upon the quantity crushed ; 3. Detailed economy in all the Company's operations. As regards, the first, with the present large supply of water, nothing bufc accidents to the race or machinery is likely to prevent the battery working with regularity ; but, after allowing for interruptions, ifc is estimated that the quantity crushed will bo about 100 tons per week, which, according to tho foregoing calculations, will leave a profit of £50, or, say, £2,500 per annum. Afc this rate, it will take more than twelve months to cover the amount to debit of Profit and Loss, and it therefore becomes necessary for your Directors to decide on a speedier process, which can only be obtained by increasing he number of stampers. As funds accrue, the first thing to bo done will bo to pay off existing liabilities, after which the amouut to debit of profit and loss will gradually be reduced, and the cash being repaid to the Capital Account, will be afc the disposal of your Directors. They propose applying a portion of such funds, when they arise, to the purchase and erection of a second battery of somewhat heavier construction than the present. By this means double the amount of quartz will be crushed ; whilst by distributing the expenses over a larger quantity of material, the profits would be proportionately increased, and may be fairly estimated afc 15s. per ton ; so that after twelve months' work with the double battery, at least £7,000 of profit would have accrued, in addition to which there would be the profit arising from the working of the present battery until the additional one is erected. This would be applicable for the contingent payment of £1,000 to the promoters, and leave a surplus for dividends. As to economy, the shareholders may rest assured that the Directors have practised it in every detail, and that they will lose no opportunity of making all possible reductions in future. The battery commenced work on Monday, June 26, and continued up to July 25. During that time there have been 432 tons of quartz crushed, from which has been obtained a gross weight of IGI ozs. 5 dwts., or about 145 ounces of pure gold. This is somewhat below the average of the total of former crushings, but is to be accounted for by the fact, that the material crushed included a quantity which had been laid aside from former crushings as poor, but which ifc waß thought advisable to put through in the absence of sufficient stufl'from No. 3. During this crushing, tho stoppages from mishaps to the race, caused by the late heavy rains, have been more frequent than they are likely to be on an average in future ; but notwithstanding that, the number of tons put through has fully equalled the quantity estimated in the foregoing calculations. It will now be your duty to elect four Directors in the place of Messrs. J. C. Richmond, A. J. Bichmond, James Burnett, and Henry Baly, who retire by rotation, bufc are eligible for reelection. W. Wells, Chairman. After a little discussion, the report was adopted, and the three Directors whose ,term of office had expired, were unanimously re-elected.