PADDY’S POINT GOLD MINING COMPANY

Otago Daily Times, Issue 21828, 15 December 1932, Page 14

PADDY’S POINT GOLD MINING COMPANY

ANNUAL MEETING The fourth annual meeting of shareholders in Faddy's Point Gold Mining Company, Ltd., was held in the Otajgo Motor Club rooms last night. The chairman of directors (Mr Robert Moen) presided, and there was a fair attendance of shareholders. In moving the adoption of the annual report and balance sheet, the chairman said that at the time of the third annual meeting the company’s operations were still confined to the mining reserve, and at that time it was expected that several months would elapse before the reserve would be finally worked out. The first few months of the present year had been occupied in completing the sluicing of the mining reserve, and from the last three paddocks taken out better returns were obtained, the figures being 71 ounces, 804 ounces, and 90J ounces. He was pleased to be able to report that the company at the present time was mining in its freehold property, acquired from M'Caw Bros. In March of this year the company had taken possession of this property, which had previously been held under option from M'Caw Bros., and so far £250 had been paid on account of the purchase price of £9OO. Before transferring operations to M'Caw’s freehold, an arrangement had been entered into with them for the right to sluice about two acres of their property adjoining the back of the mining reserve at the side opposite to the 60-acre block. At this point there was a small gully in their property opening out into the reserve, and tins area appeared to contain promise -of good gold. The result obtained from the first of these paddocks at the mouth of the gully mentioned had been very satisfactory, resulting in 195J0z for about eight weeks’ sluicing. This was the highest return which the company had so far obtained. Although the return had been a good one, it was due more to the size of the paddock than to any exceptionally high values contained in the ground. It was estimated that the values of this paddock ran about 7d per yard (on the basis of gold at £4 an oz). On the completion of this paddock, it had been decided to take qut another one higher up the gully, but owing to the narrowness of the gully and to clay banks being encountered on either side, the amount of wash had been limited, and the return of 970 z from the _ paddock must be considered very satisfactory. The plant had been removed to the front of M'Caw’s 60-acre block, and sluicing had been started there at the beginning of October. It would be the policy of the company to sluice through the frontage of the 60-acr§ block and thus gam access at as early a date as possible to the company’s own freehold property. The first paddock taken out here had been completed on November 11, and had been included in the accounts for the halfvear. The result was GsJoz, but it was hoped that better values would be struck as the farm property was approached, as the run of gold was recognised to he located further away from the road. While operations were being carried on at the back of the mining reserve, an automatic hydrant had been set up on the border of M'Caw’s property, where the face was high. Whenever the water was not otherwise in use, it was turned on to this plant, and during a period of several months, quite a lot of ground had been treated, which was washed up recently for 21oz. This was not included in the year’s operations, and it was very encouraging to think that £l2O had been obtained from this source with practically no costs attaching to it. Shareholders would notice from the balance sheet that thfi company was in a stronger financial position than it had ever been. All of the company’s old debts had been paid, including the £IOOO which had been owing for several years to the Dunedin Engineering Company, Ltd., and the company had approximately £6OO in hand after providing for current liabilities. The directors had considered carefully the question of paying a dividend, but they were reluctantly compelled to accept the view that a dividend at the present time would not be opportune. The profit and loss appropriation account bad a credit Balance "of £I7BB, which Was sufficient to write off preliminary expenses and to cover a 5 per cent, dividend, but as part of this profit was tied up in the' purchase of M'Caw’s freehold, it was not available for the payment of a dividend. If, however, the ground now being sluiced came up to expectations there should be no difficulty in the company paying its first dividend some time before March, 1933. The company had applied for a water right which would give not less than five to , six heads throughout the year from the Bungtown Creek. This application would come before the warden on December 19. When acquired, this additional water supply would be a valuable asset to the company. During the year the price of gold had remained at a high level, and had returned the company an average of £6 per ounce. At the present time gold was again exceptionally high, and a small parcel of gold which was now with the Bank of New Zealand, Dunedin, should realise £6 10s per ounce. The high price of gold had been of material assistance to the company during the year, and had enabledit to obtain a very satisfactory financial position while still working in its poorer ground. The company’s success during The year was in no small measure attributable to the efficient management of Mr Webb, who was extremely confident that he was going to achieve even better results during the coining year. The company was only now starting to mine the property for which it had been formed to sluice, and he could only add that he was confident that the manager’s expectation would be fulfilled during the ensuing year. Mr P. S. Tyson seconded the motion. He said that the balance sheet was unique, as there was no account for travelling expenses. The expenses had been absorbed in the amount allotted to the directors for their fees, but these did not cover the amount of the directors’ disbursements. This was particularly so in the case of their chairman, who, he might add, visited the claim at least three times a month. Mr H. Halliday referred to the prospects of the company and strongly urged shareholders not to part with their shares. The motion was carried. The retiring director, Mr Robert Moen, was re-elected without opposition. The directors’ remuneration was fixed at £IOO.