PENINSULA QUARTZ MINING COMPANY.

Star (Christchurch), Issue 483, 3 December 1869, Page 2

PENINSULA QUARTZ MINING COMPANY.

A special general meeting of shareholders was held at the. Company's offices, Cathedral square, yesterday afternoon, for the purpose of receiving directors' report, and authorising a further call of XI per share. There was an influential attendance, and Mr D. Craig was voted to the chair. The minutes of the previous meeting were read and confirmed. The Chairman having explained the business in hand, read the following reparts : — DIRECTORS' BErORT. " Your Directors have called the present meeting of shareholders in accordance with the Gold Mining Companies Act, for the purpose of authorising them to make another call of 20s per-share, 10s to be paid at once, i and the remainder as may be required. " Your Directors since their last report of Sept. 16, 1869, have progressed considerably i with the different drives. The mining manager commenced a freßh drive at the bottom of the valley under No. 1 reef, hoping to strike the reef at a low level, but after ! going a distance of 80 feet, failed to meet it. It is now supposed that No. 1 reef falls perpendicularly, and does not cross the valley. I "In No. 2 drive, since the last report, the miners struck the reef in about 30 feet, and I went on with it to a distance of 176 feet; the reef was very much broken, and since Nov. 21, the mining manager has been sinking at the commencement of the No. 2 tunnel, and gone down to a distance of feet. "On Nov. 1 1, Mr Walker left the company's service to go to Auckland, and Mr < liriatopfher Sims was engaged in his placo at the rate of fifteen shilings a day. " Your Directors have been very much pleased witli the work, and the rapidity with which it has been done. '• Your Directors now propose that a call of 20s per share be made to enable No. 2 reef to be worked to a depth of 100 feet below the level of the valley, as the reef improves the lower they go. " A balance-sheet is appended, shewing the financial position of the company. " , MINING MANAGER'S RErORT. " Since my last report of Nov. 20, I have in No. 1 drive sunk 2 feet, the length of reef stripped, and broken out the quartz from same ; reef from 2 feet to 2 J feet in thickness, compact and solid, with at present very little underlie to S. " In No. 2 drive I have cut out chamber 20 feet in from entrance, and sunk shaft with the reef 26 feet ; forthe first 5 feet sinking j found - eef regular and solid, from that down to 25 feet level broken and intermixed with veins of rotten slate and clay, the width continuing pretty regular, about 1 foot 6 inches, and the underlie 7 inches in the foot. " I now propose (as the reef in shaft shows signs of becoming more solid) continuing sinking until the water becomes too heavy, and then driving along face of reef west, the stone shewing indications of making in that direction. " Since my last report, I have reduced tbe number cf men employed, and anticipate, witli the present number, being enabled to thoroughly prospect and ascertain the value of tbe reefs now open down to the level of heavy water. •• \Vith respect to reef in No. 2 drive, I propose sinking shaft following the reef." The balance-s'iect referred to in the directors' report was also read. The total outlay for wages, tools, and incidental expenses, was given at £458 123 lOd, ar»d,the receipts at £415 33. On the first half call of 10s per share, £6 was stated to be still unpaid; and on the second, £33 10s, making a total credit of £454 13s, and leaving a deficiency of £3 19s lOd. Mr Cowlishaw moved the adoption of the directors' report, and that a further call- of £1 per share should be made to carry -on the works. Mr Kennaway seconded the motion. * Mr Bird: Before deciding such ah impor(antimatter, it would be advisable to hear from those directors who had viaited the reef, some opinion as to tbe likelihood of attaining a better result by continuing operations. Upwards of £500 had aire idy been expended, and there was really nothing whatever to show for it. Unless there was some reasonable hope of doing better, he did not think it would be advisable to Jo on. Mr Kennaway thought the mining manager tbe only person who <u>uld give a practical answer to such a question, but for himself he considered they were just upon the point of either striking gold or obtaining satisfactory proof that it did not exist, and it would be a pity to discontinue before the matter was settled. He believed in order to do this they must crush some of the quartz. He would not, therefore, advise continuing until visible gold was struck, but only till such time as quartz was obtained which experienced men deemed worthy of being crushed, or say, crush some of what was already on hand. , Mr C. Reynell deprecated the idea of discontinuing, and supported the question for crushiug. He knew many mines in which gold was not visible that had done well, and -the sample tests applied so far were not sufficient to prove the quartz. Nothing but crushing a quantity could possibly do it. Mr Harris asked the manager if he had ever seen the colour in the mine. Mr Sims replied- iv the negative. He had washed the mullock and tried other means, but without success. It was not, however, unusual for mines to prove remunerative without gold being visible. In answer to Mr Bird, Mr Deßourbel. said that work had been suspended at Reynell, Bowen, and Co.'s reef. In reply/to questions, the manager said the appearance of the stone was far from unfavourable He had seen a similar kind pay very well, 'lhe specimens on the table had been taken promiscuously. The reef from which he got the best looking ones, is fifteen inches thick, and runs with the drive. His object in wishing. to

sink was to test the reef of blue quartz some 30 feet below the level of the flat. This lie thought would get at the gold if there was any, in fact, would be such a test as would settle the matter for or against. He considered some of the white quartz already out was worth crushing, and the most likely to contain gold. Mr Deßourbel Baid a practical miner recently from Auckland, after visiting the company's reef, asked whether any of the quartz had been crushed, and on being answered in the negative, expressed his surprise, averring confidently that gold existed in the blue specimens. Mr Reynell also thought these the most likely to contain gold. Mr Palmer asked if i?ny other parties were at work on the Peninsula. Mr Deßourbel replied that there were two or three, including the Enterprise Company, who had got a remarkably good reef, j and Higgins' party, whose manager was very confident of striking gold. j A discussion ensued relative to the resignation of Mr Walker, who, it appeared, had left to fulfil an tngagement undertaken previous to accepting office under the company. He is now prospecting in one of the northern provinces for a reef for private persons. Mr Johnstone, according to what he could learn of the works carried out, and the manager's opinion.;did not think they would be likely to get better stone if they worked for twelve months, and advocated some being sent to Auckland at once. Mr Cowlishaw pointed out that the manager had said he expected to get better by sinking below the f1at, ...... Mr Palmer thought as other parties were at work thej- could not lose anything by suspending operations for a while and sending some of the present stone to Auckland. It would be unwise to expend ail the capital now, as one of the other parties may strike gold, or at least some experience would be gained from their operations, whilst the company were watching the result of crushing at Auckland. Mr Harris made disparaging allusions to some of the directors being interested in other ground, but the meeting deemed them entirely uncalled for and objectionable. Mr Johnstone. deemed it desirable to test the reef as advised by the manager, but that as small a call as possible should be made until another report was laid before the shareholders. He moved as an amendment that a further call of 10s, be made upon each share, and that the directors be requested to send one ton of the white and one ton of the blue quartz to Auckland for crushing. Mr Bird seconded the amendment. Mr Maude agreed with the suggestion for crushing, but thought it would be advisable to suspend operations until the result was known. If favourable, then they could go to work again, with renewed vigour. Mr Johnstone said he had held this opinion at first, but the strong recommendations of the manager, and the opinion which they had heard from gentlemen present, induced him to favour the further work of sinking. Some further discussion ensued, and the amendment on being put was declared to be negatived by 107 to 93. The former number was made up almost entirely of directors, holding large numbers of shares each, and of proxies, whilst the latter comprised all the shareholders in the roo.n, wilh but one exception. Messrs Nathan and Hargreaves, referring to this, stated that as directors, they would not like to work antagonistic to the general body of shareholders. They, therefore, advised that the amendment should be accepted so far as the 10s was concerned. The directors present agreeing to this, the report was adopted, and a call of 10s per share authorised, the directors, on a further motion, being instructed to reserve a sufficient sum out pf the proceeds to pay the expenses of testing one or more tons of quartz. _. Two vacancies having occurred in the Board of Directors, Messrs Cowlishaw and Johnstone "were recommended for the vacancies. A vote of thanks to the chairman terminoted the proceedings.