MINING NEWS.

New Zealand Herald, Volume LIII, Issue 16202, 12 April 1916, Page 5

MINING NEWS.

ROSS QOLDFIELDS.

COMPANY WOUND UP,

VOLUNTARY LIQUIDATION.

LOW VALUES THE CAUSE.

Shareholders in the Ross Goldfields Reconstructed, Ltd., yesterday agreed by resolution to the voluntary winding-up of the company. An extraordinary meeting to consider the matter was held in the afternoon at the Chamber of Commerce, Mr. George F. Davis, chairman of directors, presiding.

In outlining tlio position of the company the chairman said that in 1907 the Ross Goldfields Company was formed to mine the Ross flats and remove tho valuable wash reported to exist at various levels. The Government granted a subsidy of £15,000 to assist in draining and opening up tho claims. The company installed electrical equipment, and drained the area formerly worked by the Ross United Gold Mining Company. Its funds were then exhausted, and after six weeks' work the company was compelled to close down, having spent £35,000 cash from shareholders and the £15,000 Government subsidy, and having incurred from £6000 to £7000 liabilities.

The company was reconstructed in February, 1911, continued the chairman, the shares being written down to 12s 6d, making tho available camtal in cash £26,250, leaving £19,000 after paying off liabilities for prospecting and developing tho property. Ten months later tho present directors took office and found themselves faced with the difficulty of unwatering the old mines in the flats. Supplementary plant was installed and operations were continued till August, 1914, when tho company's capital was exhausted. During the period the Government again came to tho company's assistance, granting a loan of £7000. Operations carried out by tho Ross Goldfields Reconstructed | No. 1 disclosed tho fact that the many seemingly reliable reports and tho general opinion that very valuable gold deposits had been abandoned by tho early company were incorrect. At the same time, however, prospecting had disclosed layers of wash at the sixth and seventh levels of such value that the directors considered that prospects looked encouraging and war ranted further development. A committeo of Auckland shareholders was set up to confer with the directors and mine superintendent on this point, with tho result that the company was again reconstructed, and shares written back to 18s, thus making a further £7000 available to continue prospecting and developing the mine. Work was carried on until funds were getting low; then, for tho third time, the Government gavo assistance in the nature of a subsidy, £1600, thus enabling the company to thoroughly complete- /be work of prospecting. A total of £1350 of this subsidy had been drawn I and spent on the claim, and the directors I wero now of the opinion that the Ross Flats had, after exhaustive testing, proved valueless as a mining proposition. They were, therefore, compelled to recommend shareholders to cease pumping, abandon the mine, and wind-up the company. The solo cause of tho company's failure was the low value found in tho mine.

Tho chairman moved a formal resolution agreeing to the winding-up of tho company, and Mr. H. D. Vjckery and himself were appointed liquidators. Votes of thanks were accorded to tho directors and to tho Government for its financial assistance. WATCHMAN. Tho manager of the Watchman mine, Thames, reports that the oro rained and crushed last week was of payab'i .grade, all of it coming from the parallel reels above No. Ia level. North of No. 1 rise the reef is smaller, being from 2ft to Ift wide, but of good grade. South of No. 1 rise tho lode is up to 3ft in width, and of payable quality. North of No. 8 risa the reef is 2ft wide and payablo. The country hero is exceptionally heavy, necessitating timbering and making progress slow. South of No. 8 rieo the reef is 18in wide, and of pood grade. HAURAKI REEFS. A good deal of gold was seen in the quartz broken in the stopes over No. 3 lei'il in the Hauraki Reefs mine, Coroman.l':). last week. The manager reports that u.; reef in No. 3 faco is still in good country. In the drive east on the Wynardton reef a good reef is showing in good country. Sinking is proceeding on the Wynyardton reef, and sft has been sunk. Strong gold has carried down for that distance. NEW SYLVIA. The reef in the d?ivo north of the winze in tho New Sylvia mine, Thames, has opened out to a width of sft, and is well mineralised. In the leading stope the reef is 4ft wide. The reef maintains its size in tho stopes between the winze and No. 3 rise. South of tho winze tho reef in the stupe is 7ft wido and of fair value. In tho stope south of No. 2 rise the lode is sft wide and very heavily mineralised. The drive on the Norfolk reef was advanced 16ft during the week. The lode is 2£ft wide, well mineralised, and of fair value.

WAIHI WARDEN'S COURT.

[n? telegraph.—own correspondent.]

Waiiii, Tuesday.

At the Warden's Court to-day, Sir. F. J. Burgess, warden, presiding, Groat Northern Gold Mining Company's application for Totara and Extended and Totara West special quartz mining claims was granted.