CONSOLIDATED GOLDFIELDS GROUP.

Otago Daily Times, Issue 18724, 30 November 1922, Page 3

CONSOLIDATED GOLDFIELDS GROUP.

ANNUAL MEETING IN LONDON. A MORE HOPEFUL OUTLOOK. (From Odr Own Correspondent.) LONDON, October 5. There was a greater spirit of hopefulness at the annual meeting of the- L'onsolidaled Group of Goldmines held yesterday than ''•as displayed at the meeting a year ago. In the absence of Sir Wcsthy B. Perceval, Mr A. L. Foster occupied the chair, the other directors present being Mr L. Ehrlich, Air George A. Jones, and Mr L. Wolstoad. BLACK WATER JUNES - (LIMITED). Explaining the financial position of the Black water Mines (Limited), the chairman stated that at June 30 last your the company had an overdraft in New Zealand of £13,522, against which there was gold in transit amounting to £11,424. leaving a deficiency of £2198. At the end of June this year the, overdraft had been reduced to £9668, the gold in transit at standard value amounted to £16.623, leaving a surplus of £6955, an improvement in the company s cash position of £9153. This surplus would have been increased since by the July and August outputs, as well as by the premium obtained on the gold_ then in transit to San Francisco for realisation. For the six month.; ending June 30, 1921, the tonnage milled was 16,354 tons and the value of the gold obtained 31s per ton milled. For the same period this year the tonnage was 19.901 tons, and the value of gold extracted 37s 6d per ton —an increase in tonnage of 3547 tons, and in value of 5s Old per ton milled. For the six mouths to June 30. 1921, the working costs were' 35» 10R1 per ton, and for the same period in the current year 29s 6d per ton—a decrease of 6s 4RI per ton. The operation's in 1921 resulted in a loss of £3607, and in 1922 of a profit of £79so—an increase, of £11,557. Including the estimated value from premium on gold, the working profit for the first six months of the current year would be £10,701, or, say, 10s 9jd per ton milled. WORKING COSTS. Especially gratifying was the material reduction in working costs, the more noteworthy because it was obtained through careful administration and increased eflieienev. Ore reserves were estimated at 55,180 tons of an assay value of 9.sSdwt over a width of 46 inches. This was an improvement on the previous year of 8580 tons and of l.OSdwt over an increased width of 6.40 inches. Upon the present rate of rushing, say. 40,000 tons, this was equivalent to nearly years’ supply for the mill. r J he total development for (ho year nmnnnaed to 2359 ft, of which 1731 ft, or 73 per cent.) was on reef of an assay value of 15.37dwt over a width of 32 inches, or on pay reef of 1,444Jft (or 61 per cent.) of an assay value of 15,52dwt over 32 inches—a marked improvement on the previous year in footage, value, and width. During tho first six months of the current year, the development footage was 1158 ft, "of which 570 ft (or 75 per cent.) was on reef of an assay value of 13.16dwt over 23i indies, or on pay reef—773ft (or 67 per cent.) of an assay value of 14.17dwt over 24 inches . DEVELOPMENT WORKS. The face of the No. 5 level south at the end of the year was 1348jft south of the. main shaft. During the ygnr to July 31 this level had been extended 2265 ft, practically the whole distance on reef, to a point 1575 ft south of the main shaft, the. furthest point in the mine reached, So, far. south of the maiti' shaft. The total, length of reef exposed in this block to thar date was 454 ft, averaging 17.6dwt over 28in. At the end of the year No. 9 level north had reached a point 447-jft north of the main shaft, with an average value of 15.47dwt over a width of 46in. Since then it had been extended a further 187 ft. The first 93ift averaged 12.43dwt over 26in, then a fault intersected the reef, and the drive was now being turned in the direction of, the fault. No. 9 level south was 300 ft sottih’ of the main shaft. During the present year it had been extended 335 ft, of which ?.36ft was on pav reef of an assay value of 11.24dwt. over _l9in —tho last 100 ft averaging 13dwt over 23in. r !he .Chairman then fully explained the reason for the construction of the new water race. The water, he said, would bo brought, from Staircase Greek, a distance of 4f miles, and for 10 months in tho year it was expected- .to , supply, at least. 15 heads. During the other two months the supply might fall' to 10 heads. The main object of Iho new race was to get power 'for compressed air, and Mr Spencer thought that ho would bo able to supply the mine with at least one-half of tho requirements by this scheme in ordinary weather. This additional power could also be utilised at such tiim-s as the water in the. present old water race got low, for keeping the battery going' at full speed, so that quite possibly the gas engine now in occasional use might not bo further required. THE PROGRESS MINES. With the exception of cleaning up and treatment of residues, and the rnamtennnceo of the company’s properly, no active operations, said tho chairman, had been carried out at the mine during the past year. At the request of the board, |)r Henderson, the well-known Government Geologist, visited the mine, but unfortunately the Minos Department made it tv condition of the report that it should be private—a stipulation that was a great disappointment to the board, as it was mainly m the hope that it might to of assistance in obtaining fresh working capital that it was asked for. tic could tell shareholders that the report, although cautiously ■ worded-, was decidedly hopeful and might he most helpful. Dr Henderson thoroughly investigated the surface conditions in tho endeavour to ascertain the probable amount of the horizontal and vortical displacement, which had displaced the ore body in depth. Ho recommended a diamond drilling policy, and nad indicated the points at which the drill holes should bo put down, whore ho thought tho continuation of the ore bodies might bo expected, but this unfortunately meant,, the expenditure of a considerable amount ot money, which 'the company tit present was not in a position to find. Air Spencer thinks it would be a great pity to see the mine abandoned, and says ’that lie woultl welcome tho chance of giving it another go, but, at the same time, he realises it would bo useless to start without sufficient funds to give a good opportunity of testing tho country where Dr Henderson thinks tiie reef will be found, Tho board had asked Air Spencer to approach the’ Mines Department to obtain permission if possible to make fuller and more public uitfe 01 the report, and in the meantime the cost of maintenance and protection cf me company's property is being kept down, as low as possible—the .cost of upkeep this year would m any case be very much less man lor the past year; indeed, so far, the value of (lip gold recovered in cleaning op hau covered tho entire cost of 'upkeep and treatment.

Mr xiusj.lor, a shareholder, questioned the wisaorn of the company retaining this property at all. lie himself, ho. said, had onlv received back m dividends the amount of capital ho had put into the company. THE PARENT COMPANY.

At the Consolidated Goldfields meeting the ciiairman referred to the Wealth of Mutions mine—a property which still demanded the expenditure of .some £IO,OOO to complete the repairs to the old mine, restore mo ventilation, and open up a new level. It had been deemed advisable to dispose of it to a new local company. Mr spencer had been successful i a (Ids eflort, tlie local company had been formed, and a sum of over £1?„0D0 subscribed as working capital. The total nominal capital of the company was £20,000 in 20,000 shares of a-i each, of which 12,000 would ho issued to uiq suuscribcrs of the £12,000 working capital, 5000 to this company in part payment of mo purchase price, leaving 3000 still mi reserve. In addition to the 5000 shares, (hoy were also to receive £IO,OOO 7 per tent, first mortgage debentures ropayaDio in yearly payments of 10 years. Active operations at the mine—which were under Mr Spencer’s supervision—bail already been restarted. In conclusion the chairman referred to tile good work of Mr Spencer and to the rcgreuaijlG death of Mr Felix Campbell, of Groymoulh. Mr Ehrlich and Mr VVelsicad were re-elected directors of all the companies.