(To be Incorporated and Registered under the provisions of " The Mining Companies Act 1886."

New Zealand Tablet, Volume XVI, Issue 12, 13 July 1888, Page 29

(To be Incorporated and Registered under the provisions of " The Mining Companies Act 1886."

CAPITAL ... ... ... £20,006 la 40,000 Shares of 10b Each, Of which the Vendors agree to take 20,000 Shares in part payment for the several properties, the remaining 20,000 Shares being offered for Public Subscription on the fallowing terms — viz., 6d per Share on Apphcatioa, 6d on Allotment, the First and Second Calls of <5d each, and the balance (as required) in calls n:>t exceeding 31 per skaro at intervals of not leas than one month. (In view of certain satisfactory arrangement! that have been made with the Bank of New South Wales, it is not anticipated that the requirements of the company will necessitate the calling np of more than 3s per share, including the amount paid on application and allotment , PBO VISIONAL DIBBOTOBS : Hon. W. J. M. LA.RNACH, 0.M.G., M.H.R., Sandymount, Danedin VLNOENT PYKB, M.H.R., Dunedin Hon. P. A. BUCKLEY, M.L.0., Wellington How JOHN MArtTIN, M.L.0., Wellington JOHS ELLIOTT, Esq., J.P., Gladorook Station, Btrfcth-Taieri JOHtf LAVBRTY, Esq., M.C.0., Hyde CHARLSS SLATER HAY, Esq., J.P , Deep Dell Station, Mareaaa HIS WORSHIP THE MAYOR OP NA3EBY (N. P. HJORHIsa, Esq., J.P.) RICEARD R. BROWNE, Esq., 0.E., (Engineer of the Maoitote County Council), Naseby ROB SET STRONG, Esq., Manager of the Naseby Hydraulic Mining Company (Limited), Naseby JAM US MITCH HILL, Esq. , Builder, Naseby JOHN B. NSALB, EbQ., General Manager Green's Reef and Seam Workings Cjmpany (Limited), Ophir LESLIE A. NOtMAN, Esq , Managing Director of the Great Eastern Goid Mining Company (Limited), Rough Ridge. c THOMAS POSTER, Kbq , (Foster Bros.), Hamilton South W. E iIOi REYNOLDS, Usq , Tafe l Lake Station, Hyde. ALEXANDER rEVIOTDALE, Esq., Manager Mareburn Gold Mining Company, Hyde. Bankers : THE BANK OF NEW SOUTH WALES, Naseby. Solicitous : Messrs. STEWART, HOLMES, & DKNNISTON, Liverpool street, Dunedin. Brokers : Messbs. R. STRONG AND CO., Leven street, Naseby. J. ALWENT CHAPMAN, Esq., Princes street, Dunedin. JAWEi HENDERSON, ESQ . Hereford street, Cnristchurch. MES3KS. T. KENNEDY, MACDONALD AND CO., Wellington. Tempobaky Offices : LEVEN STREET, NASEBY, OTAGO, NEW ZEALAND. The Mount Highlay Consolidated Quartz Mining Company (Limited), is being formed to acquire and to work, on an extended scale, those valuable gold mining claims at Mount Higblay, near Hyde. Otago, known as tho Mount Highlay Company's and MAuley and Go's licensed holdings, situate on the right-hand bank of Mareburn Creek. The claims in question are known generally as " THE MAKEBURN REEFS," and under that designation have been before the public for some considerable time past. The properties offered comprise two Licensed Holdings of 25 and 30 acres respectively, a 'gregating a total area of 55 acres ; together with Water Races and Water Rights, Machine Site, and the Lease of a valuable Water Race rising in Mareburn Creek, whence the motive power for propelling the company's machinery will be obtained. The claims referred to, at» well as the whole of the mining privileges enumerated herein, will bs purchased by the company from the vendors for the total sum of £9500, to be paid as under :—£2ooo: — £2000 in cash, and the balance of £7500 (reserved aa already stated) represented by 20,000 shares in the company (10,000 shares to be paid up to 10s each and the other 10,000 to 5s each. 20,000 shares are offered for public subscription, and the amount (6d per share) payable on application and allotment, together with the first and second calls, will realise exactly £2000. This amount represents the each to He paid the vendors ; but in order that no delay shall occur in commencing operations, the Bank of New Souih Wabs has arranged to allow the company a working overdraft of several hundred pounds, so that the work of reducing golden quartz can be commenced immediately all the machinery is in efficient order. It is conjectured that, under favourable circumstances, the machinery should be in readiness for staiting work by November at the latest. The vendors will pay all the preliminary expenses incidental to the floating of the company, including brokerage, commission, printing, advertising, and all other costs incurred up to the time of the allotment of shares. The report of Messrs. K. A, Withers and Matthew Thomas, two first class authorities on the subject of quart z mining (annexed to the prospectus), is so very exhaustive and explicit that very little need be said as to the value and poten laluies of the properties offered by the vendors. The report in que-tion shows conclusively that the Mareburn reefs are highly valuable properties ; that they are true lodes; and that during the first three years of the Company's operations the profits for division among the shareholders will bo at least £29,000 On reference to the report it will be seen that the experts base t eir estimates on a very low average. Thus, one crushing of stone jeilded nearly two ounces of gold per ton ; a second, treated in

Melbourne, produced about 30dwt ; while assays by different miner* alogists of unpicked Btone have given returns as high as 6oz per ton . Thus, while the crushings of stone that have been treated have given an average of nearly 2oz of gold per ton, the experts base their calculations solely on stone realising loss. That this estimate is very moderate, and, if anything, considerably under the average value of the stone, will be acknowledged by all competent anthorities ; and it may safely be asserted that the profits anticpated by JMessrs. Withers and Thomas will prcbably be exceeded by several thousand pounds. It is computed by competent judges that the crushing of stone reduced in Dunedin should have yielded 4oz per ton ; but for reasons explained by the experts only about 2oe per ton were secured. Some time later on, Mr. Vincent Pyke, M.H.8., being about to visit Australia, undertook to arrange for the treatment of a ton of stone at one of the principal metallurgical establishments in Melbourne. Over 22cwt of quartz was Bent down from the claim to Dunedin, where it lay for several weeks. On reaching Melbourne, however, it was found that the quantity of Btone had been reduced to 16cwt lqr ; and it was subsequently' ascertained that while in Dunedin specimeo -hunters had amongst them carried away over 6ewt of quart* 1 Mr. Pyke, being asked to explain the circamstances of the crushing, has replied as follows :—: — " Wellington, May 22, 1888; " The parcel of quartz from the Mount Highlay and Mareburn reefs which I took to Melbourne, was 16cwt lqr in weight. It had been so picked over by specimen-hunters, and such a large proportion of it carried away, that wben examined at the Footscray (Melbourne) Metallurgical Works by thoroughly skilled experts, with the assistance of powerful magnifying glasses, we were unable to discern a single speck of gold in the parcel. Nevertheless, it yielded loz ldwt 16gr of reterted gold, or at the r«te of l£oz per ton of quartz. Under such circumstances, I feel confident that 2oz to the Un would be a low estimate for a fair so/mj>le. The alloy was silver in small proportion , but in sufficient quantities to pay for saving. — Vincent Pyke." The memorandum rec eived from the Manager of the Footscray Metallurgical Works iq respect to the crushing is as follows: — "Quartz, 16cwt lqr, which produced loz ldwt 16g of retorted gold. The stone carries 3 per cent, of pyrites, low in gold. It is good crush i ng stone, containing nothing iuimical to free amalgamation.'* (The net price obtainable for the gold in New Zealand is £3 17s 10£ d per oz.) On the strength of the crushing and Messrs. Thomas and Withers report, an influential Victorian syndicate offered to float a large company in Melbourne to purchase and work the properties ; but as they demanded as a sine qua non that they should be permitted to retain at least one -half the purchase money and paid up shares received for the claims, the vendors refused to listen to any proposal on such a basis, consequently the negotiations fell through. The vendors have since had a second offer on similar lines, but it was refused on the same grounds as the first one. The lease in MAuley and Co.'s lease varies from 4ft. to 9ft. in widtb, with a well-maintained average of 7ft. The lode within the Mount Highlay Company's holding is smaller (it averages about 4ft), and carries fine gold in payable quantities. M'Auley 'a lode is exposed, bas been prospected and proved to be highly aurifi rous for over a quarter of a mile in length. Recently the lode has been picked up about 2£ miles east of the claim. It is there over 6ft in width, and carries gold in quantities computed at at least loz per ton. The Mount Highlay Company's reef can be traced along tbe surface for fully half a mile, maintaining an average width of about 4ft the whole distance, and carrying a payable percentage of gold. Water is abundant nearly tbe whole year round, and the experts propose that, as the facilities for devoting this to the service ot the , company by an insignificant outlay are of a really exceptional charac- ( ter, the whole of the motive power for propelling the machinery should be derived from a water-race situated at an elevation of at least 200 It above the site of the battery, and only requiring the erection of not more than 300 ft. of iron piping in order to deliver the water into the hurdy-gurdy Pelton wheel which will generate the driving power. By making good use of the water-race referred to, the whole cost of raisiDg quartz and reducing it at tbe battery will not exceed 10s per ton. In other words, stone yielding only 3dwt of gold per ton will pay all the expenses contingent on the working of the claims. The reefs in question are in the vicinity of some of the most famous alluvial deposits in Central Otago — to wit, the Four-mile Diggings, Fullarton's, and Hyde, and the inference is that the fabulously-rich golden supplies of tbe two former diggings were fed by these and other lodes known to exist in the locality. It is proposed to erect appliances of an entirely novel character, so far as Otago i 3 concerned, for treating the quarts and working the claims, arrangements having been entered into to obtain a Huntington centrifugal roller quaitz mill, with rock breaker, Frue ore concentrator, an Ingersoll ellipse rock drill, etc., all of which have been proved to be valuable adjuncts to quartz mining in A inerica, different parts of Victoria, New South Wales, and Queensland. It will be no' 3d that tbe total cost of tbe whole of this machinery, erected on the claim, will not exceed £2000, and directly everything is in readiness it only remains for the company to commence reducing golden quartz, no exploring whatever being necessary. It will thus be seen that the prospects of the company are of F the most promising description. There is no doubt whatever that the dividends will be forthcoming at regular intervals imnr ediately after the erection of the necessary machinery. The opportunity, it may be said without exaggeration, is one that offers to investors tbe prospects of immediate returns and remunerative dividends, combined with the certainty of shares acquiring a material value above par as tbe undertaking gradually become? more developed. The attention of intending investors is drawn to tbe experts' report annexed hereto, on reference to which it will be seen that tbe anticipations of the prospectus are based on particularly sound grounds.

Applications, accompanied by a deposit of 6d per share, may be forwarded to any of the brokers of the company, or to the Bank of New South Wales, Naseby. In cases where no allotment is made, the deposit will be returned in full ; and where a less number of shares is allotted than shall have been applied for, the balance of the deposit will be applied toward tbt further payment securing on the shares which may be allottad. As a large number of shares have already been subscribed for, immediate application is necessary. In the event of the capita! being over-subscribed (which is quite possible, in view of the applications already in hand), a pro rata distribution of shares will be made. No application for less than 20 shares will be received by any of the brokers. Any further particulars may be obtained from any of the brokers of the company, from whom also copies of the prospectus, with the experts' report annexed, can be secured. The Share Liet will be OLOBED on MONDAY, July 23, 1888.