MAHAKIPAWA GOLDFIELDS, LTD.

Press, Volume LXVIII, Issue 20491, 9 March 1932, Page 12

MAHAKIPAWA GOLDFIELDS, LTD.

NEW DEBENTURE ISSUE. ANNUAL MEETING OF SHAREHOLDERS. Mr J. K. Templin, chairman of directors, presided over the annual meeting of Mahakipawa Goldfields, Ltd., last evening. There were 80 shareholders present. In moving the adoption of the report and balance-sheet, the chairman said that up to August the prospects were decidedly promising, as work was then being carried out in a depression west of the main south drive. However, the payable ground in this area was limited and it became necessary to push development work in order to locate new areas of payable wash. A drive running east on /what was known as the eastern sidling, found good coarse gold and indications were that the Company had again picked up the payable run of wash. The undulating nature of the bottom rock necessitated a large amount of unprofitable work in order to obtain drainage. Frequent Bich Patches. "We frequently found very rich patches of gold, but up to the present time nothing of sufficient magnitude in order to produce consistent payable returns," he continued. "Since October our returns have been most erratic and unfortunately insufficient to pay our expenses, the results being that our financial position at the present time is entirely unsatisfactory, and if additional capital is not forthcoming, it will be impossible for us to continue operations unless our returns improve. "I visited the mine last Friday, and on this date there were three faces being worked which were carrying payable gold, although prior to this only one payable face was being worked. The bottom rock of three drives going south is dipping in such a manner as to lead us to believe that we are on the edge of a depression in the stream bed, which is carrying payablo, wash." The speaker read a telegram received just prior to the meeting stating that in the No, 8 east cross-cut a dish prospect yesterday gave loz 17dwt of gold. *'Unfortunate to Cease Operations." "The direction of the stream bed is due south, and we have approximately 360 f- to drive before coining near any of the old workings. I feel that it would be unfortunate if it becomes necessary to cease mining at this juncture of the company's operations, and most sincerely hope that the shareholders will be able to provide additional capital. "Mining operations are being carried out as economically as possible, and great credit is due to Mr Barrance for his conscientious work. "At the last meeting you were advised that negotiations were being carried out with a syndicate who propose to bore the company's ground for dredging purposes. These negotiations did not eventuate, as the conditions put up to the company were such that your directors considered them unsatisfactory. However, further negotiations are now being carried out which at the present juncture appear to be protecting your interests. We desire an indication from this, meeting whether or not we are to finalise with this syndicate. "I desire to express my appreciation of the whole-hearted co-operation which I have received from the directors, and also from.* the secretary and manager &nd the mien who are now employed at tho mine." In seconding the motion, Mr R. H. Livingstone emphasised the substantiai economies that had been effected in the working of the mine during the year and the great increase in efficiency that had been obtained from the utilisation ol more modern plant in the mine. i The report was adopted after discussion. Negotiations With Syndicate. • Th A « hl » rma * explained to the meeting that the directors were at present negotiating with a syndicate that de«red to obtain an option to dredge the area over which the company held minj The matter was left with the directors to complete negotiations. Debenture Issue Decided On. Prior to the annual meeting a Special meeting of preference shareholders was ealled to consider the following motion:— 6 | That provided the general meeting of the company adopts a resolution authorising the directors to issue a series of debentures to an amount not exceeding £2500, the directors be and they are hereby authorised to issue such debentures so as to rank in priority to the preference shares authorised by the general meeting held in August, 1929, and issued thereafter. This motion was passed by the special meeting, and the general meeting subsequently ratified the authority of the directors to issue debentures as provided in the motion. Mine "Manager's Report. The report of the mine manager, Mr K. M. Barrance, stated inter alia:— "The two Allen electric sinking pumps are in efficient working order, and one of them throttled back to half its capacity can deal with the incoming water for most days of the year. » "Since the close of the year the development drives south .of No. 7 east crosscut, and the extension of the main south drive, indicate that gold values are continuing to the south. At the furthest point south they appear »to be confined to a width less than one chain wide, where levels taken show that the greatest erosion of the riverbed has taken place. The south fa-ce it about 360 ft north of the Alice Fell shaft sunk on the road in the early days. This face is being advanced south at an average rate of 16ft per week." The report was adopted. Weekly Report of Operations. The advisability of publishing a weekly report of mining operations, and of the gold won, was discussed, and the directors were authorised to publish such reports through the Press. A motion, moved by Mr A. L. Gray, that the shareholders express their appreciation of the excellent work of the mine manager, Mr K, M. Barrance, and of the men, during the past year, was carried unanimously. The two retiring directors, Mr R. H Livingstone and Mr J. D. Renton, were re-elected unopposed. Mr F. G. Dunn was re-elected auditor. A vote of thanks to the secretary and the directors was passed.