Prospectus of Ferguson's Mining and Smelting Company, Limited.

New Zealand Herald, Volume XLIV, Issue 13455, 6 April 1907, Page 9 (Supplement)

Prospectus of Ferguson's Mining and Smelting Company, Limited.

Sl T PPLEMENT TO TTTIV N'KW ZEALAX 1) HERALD. SATURDAY. APRIL 6. 1907.

Dated the 6th day of April. 190/. and tiled with the Registrar of .Joint Stock Companies

1. The registered olticc of tin* Company is Vcan's Puddings, Lower L>ueeii-sireet. in the City Of Auckland. . ■['he liability of members is limited. 2, The Dir.-tors are: — \LEXANI I» i'W All. (lent lcman. Auck- " landr. v pistil, book-idler and Stationer, A lit' kfaint v (II'VXT ,i"ii > > < )N, M.A., I lent lcman, *' AiK'ki'aici. ilKOl't'b KM' '!'- butcher, Auckland. r>.. \. OSlfOi.'W KMC I IT- Medical i'racti. tioner. Ait'' 1 . ,ilid. jOSKI'H ST A i ' ■ A 1 »'• Au- la ml. JOHN S'l't! A 1 ;; 1! -N- A wilt. Auckland. M'LIyITOKS: - John Sr. < law. Queen stroot. Attckland: ('has. i'. Walker. Queen-street. Auckland, of c -i- r and IV:,k. C \ X K I Its : 4. National Hank of New Zealand. Limited. sri'lli I XT I IXl' i X <; A X I CONSEL'I INC KXt'i! Nil mi: : 5 Charles II Stoiic .M. Fed. lust. M.K., England). Mining. Chemical, and Metallurgical Kng:!.' . t lie Laboratory, Princesstreet, Auckland. SUCK E TA I! : 6 Seeling 11. Matthews. [•. X'.Z. A. A.. \cctniiitaiit a.nd Auditor. F.ndean's buildings. Queen Street. Auckland. i m iid; : 7. Stanley (i. Cluiinbers, A.A. 8 The objects and powers of the Compitty are set out in the Memorandum of pati} Association. * 9. The Capital of the Company is £125,000 divided into 125.000 shares of £1 ouch. Of the abovc-ineiitiomd shares, 58,800 10 Of the ;il><'Vi'-iiHMith»ih<i shaios, oo.oUl) are held by present members as fully paid 6.000. represent ing £6.000 of the nominal capital of the Company, are or are to be issued and credited as paid up in full in consideration tor services rendered, particulars of the contract for which are given in paragraph 17 hereof. 15,050. it-presenting £15.050 of the nominal capital of the Company, are to be issued ami cietlitetl as paid up in full in part consideration of the .-ale to the Company, particulars of which are given in paiagraph 17 liereot. and these 15.050 shares are to be issued with a, condition that the same shall not be sold In tore the 12th day of March, 1908: 45.150 arc to be held ill reserve to be dealt with as the Direct think lit. in accordance with the Articles of Association, particularly in the purchase of new pro]tics! and for the [impose of adding inure units to the Company's proposed Smelting P ant : and the remaining shares, namely. 20.000. are now ottered to the public for subscription to be paid tor as follows : — Five Shillings per share on application, Five Shillings per share on allotment, and it extia, money be necessary the remaining ten shilling-, per share shall be payable as the same may be called up by the Directors in accoidance with the Articles of Association: but calls slut I not exceed two shillings and sixpence per share, anil -hall be made at intervals of not less than one month. That in the allotment of shares the application for share.' by present shai elm dors to have t lie preference at the discietioii of the Diiectors. 11. The number of shares fixed by the Articles of Association as the qualification (>/ a Director is 100. 12. T.-. provision in the Articles of Asration a- ... i he ; ■m.i...-r tt ion of Doctors is its follows: — "The Directors shall be paid out of the funds of the Company by way of remuneration for their seivices. such sum or sums as the Company may from time to time fix at a general meeting, and such remuneration shall be divided amongst them in such proportions and manner as the Directors may determine. 13. There lias been no previous offer of shares to the public for subscription. 14. The Company has increased its capital and is offering the said 20.000 shares to the public for subscription to procure funds for the purpose of: — (1) Developing its valuable copper properties of 2.600 acres, more or less, situated in Kaon District. W hangaroa County, Hay of Islands, which are held under Governors Warrant, under the .Milling Act. 1.905: the balance is held under lease from the native owners, a few of whose signatures for small interests are yet to be obtained. These lands were inspected by Mr. Charles Edward Storic. M. Fed. lust. M.K., England. in January, 1906, and were again inspected by him in January. 1907. His reports and deductions arc appended, and the Directors ha.ve no hesitation in stating that the scheme of development and progression as outlined and recommended by Mr. Storic cannot fail to be a financial success. They have had the subject matter under careful consideration for some months past, and their confidence is such that the Smelter and Machinery have been ordered, and they expect delivery in 5 months. In the mean time < out act s will be let for excavations. foundations, buildings, etc.. and they hope to be 'in active -.inciting wink in Novo b. r I:vt<2) Acquiring tin- estate, right, title, and interest in other land- and mining propel tics containing gold. silver, copper, ami other minerals, which lands and piopet i. a t c spi eilicd lieieulider. and as have been reported upon and valued tor the Company by their engineer. whose rep,lts are appended. (a) Tin: ('()|.( >I{A 1 ) Sl' ll* I A L QUARTZ CLAIM of 50 acres, more < a- less, situated in \\ a i olno ('ink. W'aioino. 1 haiin s. (h) Till, M() N I A N A SPECIAL Ql.'A / LA I M of 100 acres, more or less, situated <>n a tributary st I ea 111 to the WaiolllO Creek-', Waioliio. Thames. (cl Till! I.L N ATP INS SI'IK I A I. til' \p 1 Z. "1. AI M of 88 acres, mo • ..: 'c. , situated on I 'adIlia!'" ■ 1 'l ci k. CoMitliamlel. (tli Till ' ' 1111 i M \XDKL QUKKX Split. i \ L (Jl'AltTZ CLAIM of M, .111 es more or le-s. situated s iii' li ... i ... A I X a I ion:- Special (nit!' /. t '1.-im. (el TWi 1 ! I *' >N Fi, EX Pit* i I'll I!I II - A I < ( >-« iMAX DEL of IT'O acics. nen or ess, conuecf- . . i J with t ht 1 - a oina ie I. ' W ha rt main load. a':d ha li ha.ve i. en appli d i'-.r at the Wardens t "ait. and : • known as the " M ecu of l i.-- North" and \ r i zona" Special (Quartz ( h; Ills. (1) A i ! M EST' >XK FLEX I'lK >- Pl ; I V ,\T COl'i 'MAXDKL. ot 150 acres, moie or I-'.--, situ--111 ■ on the main < oast line be!en ( 'ol oiiialidel and < 'abbage (3) At tp a' mg a Mat hint' Site or Site-. Wat- i Pact or Paces, and erecting Upon all Site or Sites a Pyrit-; Sill" Itg Plant of a capacity of 100 (oils per da v of 24 boms, and M it ill • IV and Accessories thereto (and : i add thereto more units as retptir--d) for the reduction of gold.

silver, copper, and other mineral ores, and to work the sa.id Smelter with cither hot or colli blast, and the Machinery a.ml Accessories by water. steam, gas. cm othei motive power or by a coinhination of powers as may lie most suitable and e< oiioiilical" (a) M Mil IN I SI I I-: of 11 acres, more or less, situated oil the main road 1 hames to ( 'oroina.n del ami a 1 nit I i n_ r oil Waioiuo Crok, W aiiiinii, Thaancs. and « liich is in a straight line w it 11 lie jet 1 v el oct oil ill the 1 rout of the property. lb) WA'I lIP INCUTS, being portion ol the W a lomo St ream lie ow the Monow id Mill Site. (4) Electing aerial tramways and dam lines upon the Company's propertie-;. or upon lie properties under niter to the Company, or upon propel ties hereafter acquired, and working the same hv water, steam, gas, or other motive power or by a combination of powers as may be most suitable ami eonvenient and eeoiKiinit a'. (5) Enriching tile products of the Smelter by the purchase of copper, gold, silver, and other mineral ores. either free milling or refractory, and mixing certain proportions with the products from the Company's own mines. Ib! Mining and buying (luxes lor Smelter chaises; mining for coal, contract for coal, coke, wood, charcoal, and fuel necessary for the working of the said Smelter. Macliineiy. and Accessories. i7l Doing all such matters and tilings as may lie required in the ling and disposing of the copper, gold, and silver matte produced bv the said Smelter. The profits to be derived from a combination oi (.'upper, gold, and silver mining and smelting have been continued by cxhatistive inquiries and reports of .similar protvssrs in other parts of the world where the conditions are not as favourable as in this province. The Directors deem it unnecessary to make detailed comments on. the reports and recommendations of the Company's Superintending Engineer annexed hereto, anil they state that the processes involved have been proved to lie scienitiea ly sound, and that similar concerns in Tasmania., Australia, the United States. Spain and her countries have lieeti in successful operation tor some tune past, producing large profits from much lower percentages of copper, gold, a.nd silver than the values proved to exist in our own propel ties and those under option to the Company. They have ev- rv confidence in asking the public to support a venture ill which largo profits a.re assured. and at the same lime assist in establishing one of the most promising mining inilu.-t i ies of model times— in industry which will practically and scientifically obtain tile high values in gold and silver known to exist in that large retracfoiy belt of country at Thames. Coromaiidei. and other places in the Auckland province. Some of the Directors have personal.y investigated a.nd examined the localities and properties as to their accessibility and suitability for the purposes intended, and they have no hesitation in confirming the Engineer's report* annexed heieto. 15. The contract for the sale to the Company of the properties enumerated in Clause 14. sub clause (2). (a) to (I). and subclause l-vi. a) -and (b). is dated the day of 1907. aJid is made between Charles Edward Storic. Auckland. Mining Engineer, of the one part and the Company of the Other part. The pi ices to be paid for the sa.id respective properties by the ( 'otnpany are a,> fol'ows : — ill For "Colorado" Special l.hiart/ claim. £5.450. payable £550 ill • ash and 5.100 shares in the capital of the ( ompany of the nominal value of £1 each inly paid up. :2 ) For ■•Montana" Special Ouaitz Maim. £2.450. payable £250 in cash and 2.200 shares in the capital of the Company of the nominal value of £1 each fully paid tip. (5) For "All Nat-ions" and " Coromatldel Queen Special Quartz Claims. £5.450. payable £550 in cash and 4.900 shares in the capital of the Company of the nominal value of £1 each fully paid up. (4) For "Queen of the North" Special Quartz Claim. £1.400. payable £150 in cash and 1.250 shares in the capital of the Company ot the nominal value of £1 each fully pa.id no 15) For " Arizona" Special Quartz Claim. £2.000. payable £200 in cash and 1.800 shares in the capital ot the Company of the nominal value of £1 each' fully paid up. (6) For Limestone Flux Property. £2.000. payable £200 ill cash and 1.800 shares in the capital ot the Company of the nominal value ot £1 each fully paid up. (7) For Machine Site and Water Rights at Wa.ioino. £250. payable ill cash. Memo: —No part of the cash to be paid to the Vendor shall be paid until 20.000 shares ottered for subscription by the Prospectus shall have been subscribed for. and thereupon £500 shall lie paid on account and the balance shall lie payable upon the expiration of 6 months from the time when the Smelter proposed to be erected bv the Company shall have commenced work. 16. The Company have agreed to pay a commission at tin' rate of £5 per cent, oil application and allotment amount of all shares of which subscription is procured and which shall be allotted, and that the commission be paid on allotment. 17. Tile report 111 ions, estimates, and deductions of Mr. Charles Ivlwanl Storic. M. Fed. lust. M.1... England, consulting and pel ending engineer, a.lso copies ot the .Memorandum of Association of the ( ompmv. and also the contracts referred to in palagiaph 15 licrcol and al. other material contracts (particulars whereof a,re given ill the following schedule) can be inspected during business hours at the • Hlicc of the Company. Liidean Puddings, Queen Street. Auckland. — /. p ~ X 'f 7. ~ ~ 7 f /. -. — ~ — -*■- /. --- /J J 1 ~ ~ g 7. O r* r--7. — r_- r_- > p v

18. I lie minimum subscription on which the I )ii< (tors mav proceed to allotment ha!! Ik 20.000 shares.

some exceptionally valuable copjx r-heanng lodes exist, throughout the ].ro}>erties ; and. owing to these ores consisting of large masses of copper-bearing iron pyntc ot asuitable character for fluxing with the more siliceous .lies contained in the propeiti-s. acquired at, Thame- and ('■orollialldel. tlcy will become a Valuable adjunct to the smelting project. Tlic-e ore bodies, althoug'n containing large percentages of copper, ale unsuita.hlc tor tieatment except in conjunction with the valuable siliceous ores of tin Peninsula in reality they aie only lit for fluxing purposes. The chemical composition ot tin ores of W hangaroa are almost identical with those of Mount Lyell. whereas the ores that ale in the Thames -and 'oronia districts compare very favourably in their general analysis with those that occur at Ninth Mount Lyell. and these two ores form a unique smelting composition. The facilities tor transport are favoiirab.o. and a vol v low-glade copper content will pay handsome profits when smelted oil a large scale. The locality is not suitable for the election of a reduction plant, and profits could not be expected from working with reverheratory furnaces on the spot. There is all almost entile absence of suitable fluxes in the vicinity: and. owing to the small amount of water available. I have, on economic grounds, no option but to condemn any proposal for local treatment : the only commercial proposition, a.f the present, time, is the transportation ot the elude ore to the Smelter site selected at Waioino. In my estimates of costs the value of these ores will appear in their proper relationship. REPORT ON THE COLORADO SPECIAL QUARTZ CLAIM OF 50 ACRES. MORI'. OR LESS. SITU AT I'll) AT WAIO.MO CREEK. WAIO.MO. I'll A MI-IS. EE AII'RES: The country consists of aiidesitic rock, or "sandstone" the characteristic rock of I lie Thames gold 1 i 1 c 1. The lode traverses the high spur and runs approximately with the lis,, of the spur "rom the level of the deck to the noi l ii-eastern boundary, a. distance of 50 chains or thereabouts. About 500 feet of backs are avallabe. I he ore body in the face of the drive (which is ,n about 70 feel) is 5 feet in width, and occupies t he full fat e of the drive. CHARACTER OF THE ORE I'.oDY : Tile oie hodv is a i|iinrtz containing iron pyrites, zinc blende (traces), galena (say 6 per cent.), (upper (5.4 per cent.), and gold and silver to the value of £2 lbs. making the total value of the copper, gold, and silver content about £5 16s per ton. Many samples from this mine have been handpicked and shipped to Australia for treat ment. and I am in possession of assays, repoits. and smelting l et ills giving the averago values of these samples at £29 per ton. In estimating my values for smelting purposes I have assumed the low average of £1 per ton. which leaves a large margin of safely for variation in the bulk. SI'ITA 111 I.ITY OF THE ORE I'.ODY FOR TP I'M EXT : The or,, body, or the great portion of it. is practically self-fluxing: that is to say— the sulphur and iron present in combination Willi the metal values will combine with and eaiiy off the greater portion of the silica (which exists in qu.i.lifify) as a fluid lice ''mining slag. AC( 'KSSIISI LITY : The mine is close to the main road Thames to Coroinandol. and on the County Council road from the smelting site to the New Monowai Pottery, and from this point a fairly good Hack is constructed. I estimate that the cue call be delivered into hoppers at the Smelter sit,, for 2s 6d per lon. The mine is easily worked, there is abundance of timber, and the quart/ is of a, friable easily broken character. No cross-cut tunnelling is necessary to reach the ore body, consequently it call be mined for a minimum of expense- about 4s p. r ton. inclusive of timbering. REPORT ON THE MO XT A SPECI AL QUARTZ CLAIM OF 100 ACRES. MORE OR LESS. SITCATED AT WAIO.MO, THAMES. EEATERES: The country consists of a kindly "•sandstone" of a similar character to the Colorado. The lode has a north and south strike, and runs into the spur at the south of the Mount Zeelian Mine, ami west of and adjoining the Monowai Deep Special Quartz Claim. CHARACTER OF THE ORE I'.ODY: The ore body consists mainly of a triable quart/, containing a small amount of galena, copper pyrites |2 per cent.), and gold and silver to the value of £5 per ton. making the value £4 12s per ton. Ry a low level this mine would command a largo amount of backs, approximately 250 feet. SI'ITA I'd LITY OF THE ORE FOR TREA I'M EXT : The ore is of a suitable character for smelting, and agrees in the main characteristics with the whole of the lodes li. this district. ACCESSIBILITY : The mine is situated close to the main Thames load and is by road about 2 miles from the Smelter site. A good track is constructed up the stream that intersects the workings, and the ore could lie mined and delivered into the hoppers for a sum of 7s 6d per ton. inclusive of all costs. REPORT OX 111 11 ALL NATIONS SPECIAL QUARTZ CLAIM AND COROMAXDKL QUKKX OF 150 ACRES. MORE OR LESS. SITUATKD OX CADMAX'S CREEK. COROMAXDEL. I-'KATUR KS : The country rock consists ol lhan.esTokatea amiesite. The lodes, of which there arc six. traverse the high spurs ol the main range between Comma ndel a ml Tiki, which they cross and inn into the highest point at an altitude of 1.(00 feet above sea level. The main exposllies occur in the gorge of ( 'adman s Clock, at a height of 400 feet above si a level, thus giving 1.300 feet of backs. The lodes are a s follows : — 1. ROSS' REEF: Approximately an extension of the reel's ill the Ka l'a ka block fa 11 lit r north. It has the same general stiike. and is of a free milling chaiacter. Free gold is to lie seen ill tin quartz on the tip head, anil can lit panned oil' in the dish. The reef is 2 feet wide it has been driven on for about 300 feet, and would command 600 feet of backs from the creek level. 2. WESTERN I.ODE is across the creek, adit driven oil course of the lode 80 foot. The width of lode is from 5 to 8 feet at 500 feet above creek, and 400 feet of backs are avail at this point. The lode mav lit l wo iked by lower adit from crook level, which would give 800 feet of backs to the top of the spur. This lode occurs in 4 distinct bends, and is well defined. The quartz is mineralised

with pyrites, copper, blende, and gah-na (in small quantities), gold, and silver. The lode dips to the south- at an angle of 60deg. In- haiigingw all country is perfectly green, with largo masses of topper lit I iron sulphates and caibonat'-s. which have leached through the wall. This indicates the proximity of a huge or highly mineralised ore hotly in the immediate vicinity, and this can be proved readily by driving the lower adit, which would command the 800 feet of backs- I received a quotation of os per '.on for delivery of ore from this point to the Coroinaiidcl wharf, and this point is conveniently situated for the mining of ail the ore bodies in i In- property. In this connection 1 made application to the County Council tor the track to be chared out and put in order, to facilitate tlalispolf. 5. ALL N A'l INS LODE : Occurrence at the creek level, being not th 10.1.-g. cast, south lOdeg. west, width of lode 4 feet. Drive put in north 40 feet. This lode appears to bo on the main fault or fissure, travel sing the belt in -i northerly and southerly direction. The hangingwall loth consists of a highly mineralised quartz formation. from 2 feet in width, with copper sulphide, tarrying gold and silver as its dominant mineral. The foot-wall lode, on the other hand, is about the same width as the hangingwali lode, but contains high values in silver and lead, with a little gold — lead sulphide being the dominant mineral. The reason why I assume this to be the main fault, or fracture, is that the same mineral characteristics may h.traced: for some miles northerly and southerly. This persistency of mineral character is to be found right through the high spur, at 1.700 feet above sea level, into the Coroinandol Queen property, and I infer from this that the lode extends right through the two properties (All Nations and Coroniandcl Queen). These lodes converge to the south towards .No. 2 (western lode), a nil should intersect in the high spur in a coinparatively short distance4. EAST AND WEST LODE: This intersects No. 5 lode at the Creek level, and runs into the high range at tin hack. This lode has been driven on about 30 feet. and worked for (toe gold. Its width is from 5 to 8 feet, and evidently carries a high peieciitage of mineral, judging from the amount of gossan outcropping on the back of the lode here exposed at the surface. Sufficient work has not been done on this lode to prove its values. 5. EMPRESS LODE : This is close to the northern boundary of the All Nations lease, height above creek 200 feet, and is appatciitly continuous with No. 5 lode. It is 4 feet wide, and a strong hotly of quartz has been driven till for 120 foot. The lode is readily accessible from the gorge below. Specimen stone may be picked from the dump showing free gold. There is also copper. lead. iron, and silver in payable quantities. Tin re -arc 200 feci of backs. 6. COROMAXDKL Ql IIEN : Several lodes exist on this spur of lie same general characteristics as lodes Xos. 5 and 4 of the All .Nations, arc apparently continuous with them, and the facilities for milling arc similar. I purpose that these lodes shall be worked from the same point. I lie levels, or drives, on this pnl ion of the lease having fallen 111. it was impracticable to inspect the workings: but my valuations were made from samples taken indiscriminately from the tip heads. Those oies. as Indole mentioned, vile similar in mineral contents and values to Xos. 5 and 4 lodes of the All .Nations, and my general remarks upon that mine will apply also to this property. CHARACTER OF THE ORES : The general character of the ores in both properties are similar to those of the Colorado Mine, with the exception that they carry less silver, but a higher percentage of galena (but not sufficient to interfere with the treatment) and a larger percentage of copper and gold to the ton. I might mention that from No. 5 lode (All Nations), values of £30 per ton and upwards were obtained from treatment in Australia ; hut for my purpose I have taken a general average over the whole property. SUITABILITY OF THE ORES FOR TREATMENT : They are uiisuited for any method of treatment other than pyrite smelting. I lie sulphides, as in the case of the Colorado property, will prove a valuable fuel and tin for the silica, which will leduce the cost- of treatment by lowering the consumption of coke and limestone. ACCESSIBILITY : The distance of the property from deep water is about 3 miles, and the greater portion of this distance is along tile main road from the Coroinandol wharf to Whangapoiia. From this point a branch track leading up (.'adman's Creek has been constructed, and a small expenditure will put it. in lirst-class order, enabling the contractor to deliver ore from No. 5 lode al the wharf for 5s per ton. Every facility exists for economic milling and cheap halloiing. and the cost should not exceed 4s per ton. inclusive of timbering. The assay results ami my figures as to the value of the property for smelting pin poses are given in my piolits. costs, and comparisons'. REPORT OX IRON FU PROPER I OF 100 ACRES. MORE OR LESS. SITUATKD AT COROMAXDKL. AXI (ON IK '1 ED WITH Till. WHARF PY MAIN ROAD. This ore body consists mainly of n1 - pliide of ilon. with .a low percentage of silica. The lode is 8 feet in width, is easily milled, and carries gold anil silver values. The large percentage of imn sulphide, conihimd with the precious metals, renders this flux an ideal one for smelting purposes. With the use of this flux the coke consumption in the smelter charge can be kept down to about 5j pi 1- centREPORT OX LIMESTONE FLUX PRO PEIM'Y OF 150 ACRES. MoRI-l OR LESS. SITUATED OX THE MAIN '((AST L 1 a 1-1 P.KTWK.KX ('( (MAN DEL AXI) CAR RACK PAY. Ellis deposit is a high-grade crystalline limestone, containing a very high percentage of cat Imitate of lime and magnesia.

The dejN.sit lis,.* abruptly from deep water to a. considerable height—-some hundreds ot feetand may be quarried and delivered dire f into scow m steamer. 1 estimate that the cost •>; this flux delivered into the smelter hoppers at Wai"iii<» will be 6s per ton. which is 9s [>• v toll cheap. I than the Whatigaiei quotation for a similar flux. REPORT OX MACHINE SHI. OF 11 ACRKS. MORE OR LESS. Willi WATER RICH IS. >111 A I 1.1) AT WAIO.MO. 11l AM ES. If nils spot had been made to older no better jHksitioii could have been procured. It- adjoins the main road----Thames to Coroinaiidcl. It is in a straight line with the jetty, and its formation allows of automatic handling floin tin- hopper level to the discharge tloor. The immediate background lias ample supplies of fiiewood tor the hot blast stoves, which could be tlelivt ted by single aerial line, or other mechanical means, direct to the furnace, at very low cost. The jetty already erected nearly opposite the property may have to lie strengthened, nil [K-rhaps extended to deeper water ; but this can be done at a moderate expense. An extension would enable vessels to discharge at any state of the tide within two hundred yatds of the furnace floor, and this feature will be appreciated when it conies to handling 600 to 700 tons of crude ores per week. A tramway along the jetty laid to the hopper floor will enable 100 toils to be discharged from steamer or from scow in three hours, and the, vessel could return on the same t it It-. The. site is lietween six ami seven miles fiom Thames, an hour's drive on a good level road, and by oil or steam launch in about the same time. amnio is the centre of the refractory belt of country between Thames and Tapu. and the Company is to be congratulated upon securing his prop.-i tv on a 21 years' le-asc. at a rental of £25 per annum, with right of renewal for another teim at same price. Owing to its central and commanding position. it will save many thousands of pounds in freight, transport, and handling. In conjunction with the machine site, water lights have been secured tor all oflb ciciif. and permanent supply of water which will meet all l ireiueiit s. If al'teiwaids: found necessary, or advisable, these water rii:'lllis could lie enlarged to 1.000 li.p.. and this would give sutlicieiit power to diive the plant electrically ami light the works. PYRI N-'. SM ELI INC. 11l New Zealand, at the present time, smelting is existent, and it is reason •able to assume that very little is known of the processes and principles involved. Who the view of making these matters understandable" to the lay mind the following brief . xplaiiatioli Is made in as plain language as is possible, and all scientific references have been discarded, in older not to contuse the reader. The science of smelting is the alt of liroducing foe necessary chemical reactions; iIV the aid of heat, thus forming lite 1 mining and fluid slags of such specific gravity as will allow the heavier metallic panicles to readily separate and sink to the bottom. The forming of such slags limn any given ore is accurately determined by quantitative chemical analyses, and by such means only. After the actual constituents of the ore bodies have been determined, it is possible to forecast with mathematical accuracy the values obtainable from each charge, and in I'vrile Smelting these results would be 100 per cent. gold. 98 per cent, silver, and 98 per cent, copper. The fundamental piiuciple is to utilise the reactions between the iron and sulphur compounds in the ore bodies lor the generation of a smelting temperature. Ellis, with the hot blast, volatilises the zinc, antimony, and arsenical compounds, which, if left 'in the slag, would lie detrimental to the recovery of the precious metals- thus the hot biast expels the impurities that cause inconvenience. It is necessary that some medium should be present- in the ore body as a collector of the precious metals, and the most suitable olio is that containing copper. It is also a necessity that large quantities of silica for fluxing purposes should be contained in the ore bodies, and it this silica carries gold and silver values, as do the Thames sulphide lodes, then you have one portion of an ideal smelting mixture, from which high values can be obtained from every ton used—without the necessity of using a barren rock as a flux, 'lieother poition of the smelting combination is found at ('ordinandi ! and Whangaroa. where ore bodies exist containing high percentages of copper and sillplilll . with gold and salver. Thus the Thames sulphides, combined with the iron and copper sulphides found further north, form a mixture eminently suitable for smelting, ami the combination is of such a high grade that it probably has no parallel in the world. It can now be understood why the attempt, insult' many years ago, to smelt the Thames sulphides failed—-the ores wei'" unsuitable for separate treatment, tiefluxing was ineffective, and the principles not understood. Any method aiming at separate treatment will certainly tail, whereas by such a combination as I have herein d. scribed, success is positive. Another advantage of Pyrite Smelting is the low com uinptoii of fuel (coke), due to the combustion of tin- sulphur compounds ill the ore bodies. At Mount Lyell. Tasmania (when- Pyrite Smelting is in operation). flic consumption of fuel is not 11 lot than three per cent, of "the cliaige when using hot blast, and many tines they run wit bout fuel altogether, the sulphur compounds being sufficient to maintain he smelting tempei'.itin -■ In Pyrite Smelting there an- absolutely no metallurgical bugbear- to lie met with in the treatment. Ores ot in- illy identical composition ale mated daily thioiighout Australia. America, and loin.ally, and tile companies make handsome pmlits ami pay large dividends. 'I he cost ot a P\ 1 It' Smelting Plant is not .-xce-sive. all t". precious metals ale -av-d. Hid tic highel percentages I ei'i i y.'l .'d have so ] educed tilcost per unit that the I 'ess . ompai-es favourably wit h eiilot inatlon and > yauidat ioll. Although the cost of treatment is about equal to < hlol'ill it 101 l lid cyanidatii in, Pyrite Sna-lting is applicable to \i.i. (iiti-:s. (11l the other hand, ehiorinatioii and cyanidation arc only suitable for sptciai ores. Cyanide dees not save the .opp.-r ■and silver to the same extent, aid lose-, an,lilt 50 per cent, of flu gold villi. - ill a i('fracture ore. In eyaiiiding and chlorinating. the ores i.'quire leduciug. crushing in rolls or mills, and roasting: the treatment in Pyrite Smelt ing l (on-ists of taking the ore direct fmm the mine and dumping straight into the furnace, merely spa 11 in g the 111 111I]is and mixing the lllixe-. There is no single proo s- which call save, practically, all of the values of gold, silver, and copper so simply and so economically as Hot I'last Pyrite Smelting. Yours 1 e.s|K>ct fully. CHARLES K. SToRIK. Mem. Fed. Inst. M 1'... England.

19. Applications 'for shares should be made upon the foi in .u-t nying this Prospectus, and sent to the Secretary, together with the amount payable on application. If no allotment is made (and no allotment w ill be made unless 20.000 shares aie subscribed) the deposit will be returned in full, and if the number of shares allotted on any application is less than the number applied tor tin- balance, of the application money will be applied in reduction of the allottees' a Influent money due ICI the shales allotted. As the 20.000 shares must be allotted within ninety days afier lie lit st issue of this Prospect lis, the subscript.ion list will close on of 11 day of July next, or sooner, if the 20.000 shares arc applied for before that date. Prospectus and forms of application for shares can lie obtained at the office of Company. 20. This Prospectus has In en duly tiled with the Registrar of Companies at Auckland. Dated at Auckland in the Colony of New Zealand the 6th day of April 1907. 1! 11 tl! I' OX 11A XO A >A COPPER PPOPKItTIKS. THE PROPERTIES TO I'd. ACQCIPKI) ELSEWHERE. AND AN ESI IMATIIoI THE PROFITS AND WoIMvIXO EXPENSES OF A 100 TON PYRIIII SMELTER WOKKIXO 500 DAYS PI 111 AX X I'M. AND A COMPARATIVE STATEMENT OF TDK EARN I Xl IS (IF KSTAISLISH 111) PLANTS. P.Y ( 11A id-lS EDWARD s i OKI 11. M. Fill). INS I . M.K.. KXC.LAND, CONSCLTINO AND SUPKR--1 N'T EN DIX(; KXCIXKKR. the laboratory. Princes Street., Auckland, March sth, 1907. The Chairman and Directors, The Ferguson Milling and Smelting Co..' Ltd.. Auckland. I lent lemon : — There are four essentials necessary to the success of any mining enterprise, and these are : ----- 1. Pi opci ty 2. Engineering, 6. Administration, 4. Capital. I do not propi.se to touch upon the administration and capitalisation of the proposed Company, as that would be outside- my province as consulting and superintending engineer. 1 >nt in passing I tvoultl im|.r.ss upon the Dncctoratc thai sutlicient capital is indispensable: it a proposition requires £50,000 to make it a success, and the Coin pany is able to laise only half that amount, the shareholders wil. never receive dividends. 'I lie linn financing of a. proposition is as necessary to success as arc proven ore bodies and efficient ami experienced management. It is my business, however, to deal with the Properties and the Engineering problems involved, and I purpose in this report to show extensively and exhaustively that the proper! ies ow ned by you and those under oiler to your Company are well located as regaids transportation facilities, water, timber, etc. I shall show likewise that the ore bodies arc already proven, p-e i nianeiit. continuous, and of large proportions; that they possess high values in topper, gold . a lid silver : that the conditions tor extending development:; arc very lav oiirable: and that evciy i eiplirement of the "property essential' is more than covered in the properties mi mended. I shall show so that never before in the history of mining business in New Zealand has there been afforded an op|torfunity to make honestly and legitimately such large profits; and. at the same time, to assist in the establishment of a permanent industry. There can be no more honourable undertaking. nor one hich men should be more justly proud of carrying to success, than obtaining a portion of the inexhaustible wealth deposited iu tin Thames and Coroniandel Peninsula. As a copper proposition alone the project is unequalled : during the past 20 years the copper mines of the United States and Mexico have paid in actual dividends £60.000.000 (sixty millions), a.ml during 1906 ten copper i oinpanies alone distributed in earnings nearly £1.000.000 (four millions). The fact is that copper millets are paying over half of the total dividends paid by the whole mining industry. No metal of all metals is iii such demand in the world as topper, a.ml (lie enormous increase in its consumption and the list- in price have been coincident, with the vast extension of the uses of electricity. The consumption of brass is growing rapidly, and brass is twothirds copper. This growing consumption of copper can bring about but one result, and that is the continued rise in price ami the i.apidly growing profits of those ho have interests in copper pro|>ertios. The mining of copper is making more millituia.ires than any other industry, and it is making them quicker. For instance: A mine in Aii/ona is paying annually £2.000,000 (two millions) in profits; in Montana the United Verde mine pays £250.000 a month, and the Anaconda mine has produced in copper, gold, and silver over £200.000.000 (two hundred millions). To conic nearer home, the Mount. Lyell Smelting Co.. Tasmania, paid for the halfyear (up to September, 1906) a net profit; of £256.000: the Mount Morgan Company is now smelling its copper deposits, and the results are highly profitable. The Smelting concerns in Queensland, New South Wales, and West Australia ate paying large dividends. lint it is not only as a. producer of marketable copper (and the large profits attendant thereon at a i-elling price ol £108 per ton) that I advocate the erection ol -i Smelling Plant, but because the best and most profitable results will arise from a combination of processes whereby the Smelter " ill produce copper, gold, and silver ill the matte. Irrespective, therefore, of the selling price of copper, irrespective of its rate of production, the Smelter value in gold ami .silver contents can lie kept constant, increased or decreased, with almost mathematical precision: anil, oven it copper dropped to halt its present price, your profits would continue, owiii" to the god a.nd silver values, and what copper was produced Would be profitable even it' disposed of at £50 per ton. In your progenies and those under option there is i-vei y combination of metals and lluxes necessary for smelting purposes, and this w ill make you independent of anv outside pi oposit ions and influence- ill fact, the ■,inject i- so complete and self-con! that voli have ill these properties ores Sllt".jit to last the Company for at least 100 years. The propel t to which I refer arc the toll.wing, and my inspection reports and analyses are herewith submitted. My deductions and comparisons ate given in the st at i incut all el w a.i Is submitted in tabulated form. PORT on I'll II COPPER PROPER TIPS AT WIIAXCAROA. | inspected tile above properties at \\ haii 'iroa and Kaeo in 1905-06. and rcc.uummided that tertain development work should lie undertaken. December. 1906. I was called upon In von,. Company to make another inspection. and submit a' further report on the de\elopinent work above leforred to. Aeeonipanicd by your Chairman of D utors and Mr. John Strafhcrn. Ie 1 At' |. |Ml | ~u Thursday. January 3rd. 1907 a-id a careful and exhaustive examination of' the several properties comprising your interest Mv inspection on the Kaeo side. " , ,he c.ovcriiment block Omanau a.ml Stive block Pukepukc.. confirmed the nioii , expressed 12 months ago. that

Tin' Company was incorporated in 1905 under the name of " FI-IRI I I'SO.N'S SYNDICATE, LIMITED,'' as a Company limited by shares. iI be change of name ot the Company to " Ferguson's .Mining ami Smelt ing Company. Limited." was approved bv ! ■ Supreme « ..;i: on the ] ">t 11 March. 1907.!

i cive hi:i.i)\v i iii; assay kksfi.l's run the sevlkal iPLR TIES It!-: PORT Kit ON" AND IVM'I-.i "TIT) f'.Y ML i :>>!<! .in' 1 Silver. 1 |• |"-i". Whano-aroa In. I olorado t.'2 17 0 •> t Montana ;; no 0 All at inn- 1 111 it -j < 'oroinatidel i,Mit .!i I |u II 'J Iron I' lux 1 I■_> ii Should tlie-e values be maintained. tin' dask output f..|- -m>-It:: i_r lift ton- of ore, based u] " 111 tin- folio wi ii'_' :il.l .li. N 1111 iI• ■ I'll' mi \ ! 11l e, w.iuld I •>• a- t'lllou -; - ('op:>«-t- lII'. '' I | ami Silver. •JO tons - I 'i at i'mi pi'i' tun, I'll; o u 2" ton-.'!■ I at so >»■!• tun, with 'J' !7 o p. i lon ... 111 s 0 2 i ton- • 20 at t>o per ton. -'. oh til 0 it per ton ',«•_* ft n lo ton- 2 •"> at I'M) pet '.mi. with i I 10 n per t ■ >ti '.'7 I" " -•") ton- with L' 1 I- ii jiff ton l'i ii (I 100 ton- (.in-- \"a 1 •of In- 1 laiiv Out put tint 1- li The Daily < 'o-t Sheet tut ; 11.- above ( iro-- Out put would bo .v- tola M ining ami Deli wry iit 20 ton- of 4 . op p. t UiPiti '.iii.iin^ Or 7 pet toll i.7 II II Freight of 'Jo inn- to Smelter <<> t> • pet 'on ... ii 0 " .Minnie' ami I >eli very <■! 20 ton- Colorado U:e at Stm-iter (" li (i per ton (no freight i . t"> In " Mining all■ i Deliverv of 2n ton- Mont.a:, lire .it Smelter (•j 7. (i per ton (no freight) ... 7 1" 11 .Mining ami Delivery of 1 o tat- of All Nation- i »re at Coromuidel wharf (<• 7 - per ton •' *• " Freight of lo on- to Stile It of at .*> li per ton 2 1- '> Mining ami Delivers of 'Jo tons of I-lux at I'm 'tii'imlel wharf <•: 7/- | >er ton ... .. ■■ ■ s .i 0 Freight of "Jo toils to Smelter (" .'Mi per ton ... ... I . '» Mining, Delivery, and Freight of 20 tons of Limestone at Smeller (•' li • per ton . ... . linn Mine Management, Supervi-ion. Tools. Explosives, Timber, Fuel, etc., -ay ... ... ... 10 " 'I 1 ha initio- and Handling I'_'o ton- daily at dotty to Smelt hoppeis, '<■ Mi per ton . ... .. !' " 0 Contingent Fxpelidit lire, say . ... . I" '-> 0 I otal Daily Mine Expenditure on 1-0 tons •ij ore and 'luxes, inclusive of delivery ... ... s.'i <> 0 i '. So 0 0 Average cost i' ton, D Li In j Adding Lai •our and Supervision to the Mining' ami Delivery we get lhe follow illj_r : — Smelter Labour, 120 ton- ... M In ii A--a\ino and Sampling ... ... 2 In 0 Superintendence and Management .. I 12 ii Olliee Expense- at Smelter ... ... - " 0 — 27 l.'i 0 Add Fuel. Oil. Light. etc. : l.'i ton- ( 'oke (■' oil/- ... .'l7 111 0 .Seoul- Firewood <" I.V- ... ... ... 2 ■> " (i tons Coal for Roilers ( ( / Is • ... ... ... o S <) Oil. Light, Wa-te, etc. ... ... ... 2 I) II 'out indent. Ex pen-e-. say ... -II (I n (i 7:: it To the above Ex |ifmlit in e -hould lie adih d charges not usually reckoned. hut which it is necessary (o consider I 'ost of Freight of ('rude Matte to purehasers ) .1 i nt r ••!>««•• nii-l . 1 lisposal and llf lining < 'ha r-es ... / I'M illWll Wlllllil In- I , J)isjM)Nil and Kr|imnn ( ... ... fM. |M . r l()11 im f j. - 0 BrokrrnjM' jmii u!t iiiiiit « k Salt's t-\| kmh lit mo i daily ore limimut'. i ot l lie result tint < 'upper ami Ihillion ) 101 l imis (a II , The 'Total Expemlit lire therefore tiuld he ... ... I'l'.i'J lii 0 < iross <liitput in < lold. Silver, and ('opper values per day i.i ... ... I'll Is (l (doss pond it ii if per day, as show'ii a ltn\, is ... . .. Ml- 111 " Net I'rolit per day of ill hours .. .. .. ... J- -1 '-1 - 0 Assuming .'Kill working days per annum, and allowing a further -'I discount from the Daily Net I'rolit for repairs, stoppages, and ot her conl indent lo.—f-, we fftt he following :- Daily Vet I'rolit ... ... .. U'-'I'J - " Workine- Days ... ... ... ... ... ">"0 li.'t.ii.'io 0 o Deduct _>( I ; ... ... ... ... .. I -,7-li <1 II Net I'rolit per Year of .'!UH working days ... ... .. toll,ill) I (I I) ('(iItdMAVDKL SCHOOL OF MINES, Coi;oM a sum., March lis, 11107. .Ml!. STOIiIE, Aland UESEETS OF (IFF- ASS A S. I.'iplil per lull. SihlT |M'l' lull. ,iliif pel' tell. No. 1— (,'olorado Lower Level ... 1 '07 o/s. IS li o/.s L'.l 0 1 No. -1 — Colorado Upper Level ... OF) " I■> 10 No. 15—All Vat ions Creek Level ... ... Flo ' II .'{_ «i 0 I Vo. iS All Vat ions (picked for''u.) ... (I'll! 110, " !' .» This me I'lllltMillS nut •if cupper. D. V. ALLEN, li.Si ~ AO S. M., /hi'/ i /or. FOR PURPOSES OF COMPARISON I APPEND PARTICULARS OF WOItKIVO COSTS AVI) PROFITS, ETC., OF SOME TYPICAL PYRITE S.MELTIXO PLANTS. i Tasmania ! ... ! m British 1 Nimv Ml I.veil 1 eimessec. , Mcxic. <'• >1 inn I >ia I /calami. | " i - ... j .... | A j li C D list ima ted. nort; - per '24 hours ... l! 1 'J S t'O 10 111 £0 0 .'{ not oiven j £1 l'2 I Ciikk — per '2,0110 His '2 12 0 014 7 ! 0 •"» 0 not. oiveu j *2 1 S .Minim; —per 2,000 11 is. ...j 0 1 0 0 .'i II j 0 ."i 10 not triven ! 012 l> 1 I - , - s ! Delivery—per 2,000 lhs. ... 0 I I j 0 0 0 0 0 .> i 1 Sampling and Assaying .. jOO *2 ! not, oi\en ! not oi veil I. ( ( . 0 0 ."i Smelting—per *2,()(i() is. ... oin 0 (l •> '2 | 0 S ti j j <• 12 7 Supervision and Manajienient 0 0 K | (» II .'! ! 0 II •> J J 0 011 Convert iic-per 2,uiio lhs. ... 0 I "> i 0 I 0 0 0 7 not ' Disposal Charges 0 :{ -1 0 I !l 0 .'{ !l t'O 2 Si 0 2 (I ! Vam'Ks ok Ores :— j Copper 2-.r/ 0 2'")/, 2' l/ (> not oiven ■ .TO */,, aver. Silver ... ... . . '-'oft. Trace | 2 o/..5. not-riven : I )( . av Cold I'll "> 10 Trace t'" 0 0 not given ij | , Analyses or Ores : - ' .cad .. ... •• ... | (i'o'7„ aver. Zinc .. ' ... j Traces Iron toil !{S o'/ -12 0 I very low j ISO/, aver. Sulphur IC O/ 0 2! I'l I/. 44 11 /, very low j '20-O"/, aver. Silica ... ... ... .V!>/ ll'o / I i'l'/,. not ci veil | ."(()'() /, aver. Itarvta . 2 0 ••• I'd / not given j ... - Alumina ... ... ... , 0 , (i 0 / •!'"/, not. given j .'TO aver. Magnesia ... ... ... ... I'll' | . . not given j 20/ aver. o , I i i Capital A i'tiioi;i-ki> : ... t'l,:{i 10,000 I! 1 ,iini),un(ii t'l 72r»,tWO !'.'!,(100,000 .t'.120,n00 Issued ... ... ... I .200,W0 S7~>, I 10; 1, 7 2."i,()' 11 2,711", ("111 Dividends Paid ... .. 1 not veil 1 7">,000: 1,02."i,0Hii 270,000 Latest Dividend per share CO li •'> i-'O •> j t'n I .S CO I '.{ 1 •S/- probable Dal of last Dividend ... I!in(i •Inly, I !)o(i;Se),t., lOOliSept., I -11 111 [ A. The liist **.x-Imj»io i- from t.lie Mt. Lyell mine of Tasmania. 'I lie oh- is ,iii exceptionally pure iron pyrites, containing about 2.3 per cent, copper. 2oz silver, and 0.0 ioz 1.5/10) gold*. Ihe ore is t lea ted by I'v rite Smelting, HI which tin- til pi i ill' and iioil are mailt* to take the place of fuel almost entirely. the product nt tin- ote stiH'ltinii' is " titst matte" <il Bto 10 per cent, copper. I 11is is conit tit I a ted 1• X" a. .second smelting to "collViitff matte" of 35 to 'In |*'i flit, copper. Finally, this i- blown up in eoiivertei- to a metal commonly firmed "blister copper. earrviug about 99 per cent. copper, and nearly ail the precious metals ot he ore. The* blister j-v sent by steamer, via Finland, to the I "int. d States foi i. tilling and sale. li. This example i- from the work of tie T.-iine.— Coppei ( oinpany. I tie oie i- a )ivt rliot which contains about pi' cent, copper, and traces ot the precious metal-. I'he blister C.ippel is .-•lit to New York I"I letllllllU and -ale. C. — I hi- example is li.'iued tor an oie in Mexico. , r r) mile- fiom a railway. Copper content about 2.4 per cent., wit ii '?.<>•/. -ilvet, a ii' I 6s Will til lit gold. lie' ticatinent. I- the same as that at Mount l.yell. and tie- blihter copper is forwarded to New Yolk at a freight eo-t of £6 >- per ton. D.— I iii.-s example is taken Mom the published reports of 190 a. Ite' total copper produced for that ve.ir was 7.119 tons. lie- and the I etitieSsee work linobablv the chi.i|ir-t in tin- uorai. and represents, in a manlier, the two extremes of copper practice. At T-nnes.-ee. the object of the smelting i- to burn up a- much it on and sulphur a- possible, loi the put pose of concent] at ing th« valuable nut. i'- ol tile ore in the matte, while at the Cianby Mine, in lititi-h < '<1 1 u 1111 • i.a. tie- ore tontains sea reel v sulphur and iron suliieieiit to form a -lag and provide the necessary matte vehicle for the separation of the copper. In the New Zealand estimate, it will be every leipii-jte present for a successful and noticed that tin percentage of copper pie. ideal smelting proposition—its iron, Mllse 111 i- higher thai: in tin* eoiiiiiai i-ons jihur, and silica percentages are neither too given, and the gold and -i.Ver value-, com- huh nor too low. .1 lid the - I jilt pt i < lit IJO paled with Tasmania and Mexico, ate over of lead present w ill not be .let: 'mental to 900 percent, in e\..-- 1 in* analyse- show the pro. .-- that the New Zealand ores .-elected havAPPLICATION FOR SHARES is Till. FERCI/SON'S Ml N INC AND SMELTINO coMPAV V. I.IMIIID. To the Dim-tors. I hereby make application for . Shares in cite a•■ •' C ;..•> • . and 'Herewith enclose tin 1 sum of £ : : , oe.ng Five Sic -j- -. i' ■ the total milliner. And 1 hereby agree to accept the same, or ,::v -n • - : umber, that, may lie allotted to in*. and to pay the balance in respect o: sin .. - . aivrding to the term- of the Prospectus dated the day of Apr'.', 1907. And 1 authorise you to register me .is ~ bolder • » -.-i •** at -. *;•! 1 agree to be bound by the Rule- and Regula t ions ~> the I on. [ .t: i j - X'anie ill full Vil It* -s Usual Signature . 11 ■'tp.itnui Dated this.. , day of . .. 1 ••• , \>