WAITAHUNA CINNABAR COMPANY.

Otago Witness, Issue 2524, 30 July 1902, Page 24

WAITAHUNA CINNABAR COMPANY.

The following report for the year ended June 30 last will be submitted by the directors of the Waitahuna Cinnabar Company at the second annual general meeting of shareholders : •• We would remind you that when the position of the company was put before yon iv July last year a cro3s-cut drive, to cut the lode, of 231 ft had just been completed. After some considerable delay, owing to want of funds, the tender of Messrs Gibb and party for driving along the lode, was accepted on December 4, 1901, and the drive has now been completed for a distance of 173 ft, but owing to bad weather the work had to be stopped. Trie report of Mr L. O. Beal, jun., the company's engineer, is appended hereto, and, as pointed

©nt toy him, the present appearance justifies -further expenditure. The directors have had considerable difficulty in getting in the arrears of calls, and were compelled to place the matter an the hands of a solicitor. The legal expenses are somewhat heavy, but it is gratifying to note that £257 8s 6d unpaid calls at 31st December last has now been reduced to £71 18 7d, and unless these calls are paid shortly steps will be iaken to have the shares forfeited. As the arrears were so heavy, the directors thought it was only fair that those shareholders in arrear ehould be pressed before fresh calls were made, «o no call has been" struck since January last. It will, however, now be necessary to call up more capital before work can be proceeded with. There is yet 5s per 9haTe available, and, provided shareholders pay regularly, this amount •will, in the opinion of Mr Beal, be quite sufficient to thoroughly prove the claim. During last year Mt "William Crossan vacated his seat on the board, and the directors deemed it unnecessary to fill the vacancy. In accordance ■with the articles of association. Mr Robert A. Ewing now retires from the directorate, also Mr HoTjcra-ft, the auditor, but both are eligible end off?r themselves for re-election." The following report from the engineer accompanies the directors' report- — " The driving along the course of the reef has now been completed for a distance of 173 ft. The character of the reef has been improving as the tunnel has been extended, and the last 10ft has been the best class of lode material yet driven along, and is still so in the face of -the tunnel. The footwall has been strong and very well defined, a-nd has carried a good pug ; Ihe hanging wall has been /airly well defined the last 40ft or so. The farther the tunnel is extended the better are the indications, both on the surface trenches opened on the reef and in the tunnel. There is now 125 ft of backs to rise upon, and if a rich pocket of ore is opened it 'can bs risen upon to the surface. What I have shown as the near junction of another small reef with this main reef is 95ft ahead, and the main junction of the reef on which the origin al prospecting operations were done with this main xeef is 155 ft ahead — at the former junction there is 162 ft and at the latter 192 ft of backs. I found on my last inspection (July 8) that Mr George Gibb, one cf the contractors, has found on the surface another reef. This new discovery I consider important, as it is a larger reef than the one we have been driving along, contains much more coloured reef material (especially a pink colouring), has a good, well defined foot•wall, and is running parallel 25ft behind the foOvWall of the reef driven upon. I would advise continuing the present tunnel a distance of 90ft, and cross-cutting into the new reef found 25ft. If a rich pocket of cinnabar is ■truck I would advise rising upon it at once to the surface and discontinuing the driving, as with the backs available a few tons of rich cinnabar ore cculd be obtained. I estimate the further extension of tunnel to cost 27s 6d a loot', and Ihe cross-cutting the same rate, and a rise 6ft by 3ft 20s per foot. In my opinion the present appearance of the opening-up ODerations thoroughly justifies this expenditure. The extra price per foot allows for ventilating •work."