BLACKWATER MINE

New Zealand Herald, Volume LXXII, Issue 22145, 26 June 1935, Page 7

BLACKWATER MINE

" A FAVOURABLE YEAR " CRUSHING PLANT CAPACITY HEAVY TAXATION DEMANDS [from our own correspondent] By Air Mail LONDON, June 8 "Taking into account the labour troubles during three months of the year, the results for 1934 have again been favourable," said Mr. A. l'oster, chairman of directors of Blackwatcr Mines, Limited (Reefton), at the annual meeting of shareholders on June 5. "In view of the very satisfactory results being obtained, as shown by the monthly outputs, and in developments on the No. 12 level, continued confidence is fully justified. Given a continuance of equally satisfactory results in the two new levels, the question of increasing the crushing plant will have to be considered." Mr. Foster said that, as a result of the strike early last year active operations were suspended for three months and the tonnage milled was 31,80:2 tons, against 45,366 tons the previous year. The working profit was not affected to the same extent owing to the higher price realised for gold. The total realised value of the gold won was £105,218. Average Value of Ore "Against this revenue, taxation demands were extremely onerous," continued Mr. Foster. "The gold export duty paid to the New Zealand Government, and referred to by Mr. Spencer, managing director in New Zealand, as an 'iniquitous tax,' alone amounted to £8436, or the equivalent in New Zealand currency to 6s 6.80 d per ton milled. In addition to this duty, New Zealand and United Kingdom income taxes are estimated to amount to a further £12,500, making a total for taxation of, roughly, £21,000, or equivalent to Is 8d a share.' Mr. Foster said that the yield of gold per ton was 38s lljd, an increase of Hid per ton, or, inclushe of gold premium, 665, as against 58s per ton milled in 1933. The actual value of the ore mined was still maintained on a remunerative basis, independently of any benefit derived through the increased value of gold. The average value of the ore sent to the mill during the year was 9.93dwt. per ton, from which an extraction of 94.55 per cent was obtained, a slight improvement in each case over 1933. Development Results The tonnage milled during the first five months of the current year was 18.090 tons, and the yield of gold 77960z. of an estimated value of £55,778. Working costs were £27,086, leaving an estimated working profit for the period of £28,692. Referring to development work, Mr. Foster said that the total developmentfootage in the mine amounted to 2722 ft., and of the total of 2153 ft driven, risen and sunk, 1600 ft., or nearly 75 per cent, was on reef and averaged 11.2odwt. over a width of 22.31 in. The development results were the more important as being obtained in the present lowest level of the mine, and as justifying with confidence the expectation of their continuation in depth. The chairman said that the company had accepted a 50 per cent interest in Consolidated Goldfields' prospecting operations, the cost being shared equally.

CONSOLIDATED GOLD PR OSPECTIXG OPER ATIONS Speaking at the annual meeting of Consolidated Goldfields, Limited, Mr. A. Foster, chairman of directors, said that dividends from investments amounted to £16,11], and there was a credit balance of £20,289 for the year ended December 31, 1934. Dividends amounting to Is 3d a share were paid and the carry forward was £21,519, against £16,855 brought into the accounts. Mr. Foster said that during the year the properties in the Progress areas received a great amount of investigation and research by members of the Geophysical Survey Department of the New Zealand Government. In the Karamea district the company held 600 acres in likely country, the boring of which it was hoped to do on contract. At Cow's Terrace the company held an additional 1000 acres so far untried. What appeared to be of more immediate promise were 1000 acres along the Glenroy River. Cables from the mining -engineers stated that two bore-holes have been completed .with very promising results and work was proceeding. Details of Black water and Consolidated accounts for 1934 have not yet been received from England. As stated in the Hkrai.i) on May 25, the Blackwater dividend for tile year was 10 per cent, compared with' 12} per cent in the previous two years, and the Consolidated interim dividend in respect of the current year was 6d a share, agninst 9d pnid last venr. LONDON MARKETS TALLOW QUIET AND EASIER The Department of Agriculture has received the following cablegram, dated June 22, from the High Commissioner tor iNew Zealand, London:— Tallow.—The market is verv quiet with an easier tendency. Fine' mutton is firm owing to short supplv. Hemp.—Manila: The market is tinner on American and Japanese buying. K grade for August-October shipment sold at £l3 10s. Closing values £l3 los. Output January 1 to Juno i was 610,000 bales, against 600,000 bales for the same period last year; stocks in the United Kingdom at June 1 were 20,060 bales, against 21,150 bales last year. Stocks in Manila at June 1 were 171,000 bales, against 155,000 bales for last year. Sisal: The market is firm with a fair demand. Closing values for JulySeptember shipment, £l6 7s 6d. Sep-tember-November shipment sold up to £l6 10s. New Zealand: The market is unchanged. On the basis of fair grade the nominal value is £ls 10s. No firsthand sales reported. Stocks in London at June 1 were 24 tons, against 11 tons last year. Fruit.—Karamea and Tongariro shioments discharged in good condition. Apples: There is a better demand at firmer prices. Jonathan, Delicious, Dougherty. Frimlev Beauty and Yates, lis to 14s a case; Ballarat, Statesman, Spitzenberg, Rome Beauty, Stunner and Tasma, 10s 6d to 13s; Granny Smith, 10s 6d to 12s 6d; Cleopatra, Dunn's Favourite and Pioneer, lis to 12s. Jonathan, 12s 6d to 15s; Delicious, Cleopatra and Statesman, 13s to 14s; Stunner and Spitzenberg, 12s to 13s; Dunn's Favourite and Home Beauty, lis 6d to 12s. Pears: Limited supplies are selling at better prices. Winter N'elis, 14s to 17s: P. Barry, L'lnnconnue and Beurre Faster, 9s 6d to 14s; Keiffer, 8s to 10s. Winter Nelis, wasty, 7s to 16s; Josephine, 16s; Keiffer, lis to 12s.