PONSONBY GOLD DREDGING COMPANY.

Greymouth Evening Star, Volume XXXI, 21 June 1901, Page 4

PONSONBY GOLD DREDGING COMPANY.

The first annual meeting of the Ponsonby Gold Dredging Company was held at the Dunedin office of the company, recently. Mr J. G. Sawell, chairman of directors, presided.

The following was the annual-report submitted:

“Your directors upon taking office after due consideration, did not deem it advisable to proceed with the letting of contracts for the construction of a dredge, as, in view of the then busy state of the foundries, it would have proved almost impossible to let contracts at sucli a price as would be within the capital of the company. They also consider it prudent to await results from dredges then under construction for other claims situated on the Grey Eivcr. Your directors regret that the results from these dredges have, so far, proved rather disappointing, and, being anxious to have additional information respecting the claim before proceeding further, they, in March last, made arrangements with Mr J. P. Smith, mining expert, to prospect the c'aira by boring, and report fully npon the value of the same for dredging purposes. Mr Smith’s report will be laid before you at the meeting. With a view to curtailing the expenses of the company your directors and secretary several months ago agreed not to draw any further fees until it was decided what would bo the best course to pursue with reference to the claim. This matter of fees will not bo left in the hands of tba meeting. During the year Mr W. E. Cook retired from the board, and Mr W. G. Somerville was appointed in bis place. Me Somerville now retires by ballot, and being eligible, offers himself for re-election. The auditor, Mr Duncan, also retires, and is eligible for re-election, and offers himself accordingly. ”

The Chairman said that there was not very much for him to say in addition to what the annual report set forth, beyond the fact that they had received Mr Smith’s report on the claim. He thought that before asking those present to adopt the report and balance-sheet he ought to read Mr Bmith’s report, as it was referred to in the annual report. He might say that the directors thought it advisable

that they should have something to lay before the meeting with regard to the probable future of the claim, and got Mr J. P. Smith to report upon it in order to guide shareholders to a decision as to what was to bo done.

The following is a summary of Mr Smith’s report: —•

“To put down a series of bores in a line at right angles to the trend of the Grey Yalley, to place beyond doubt the possibility of a lead of bottom wash traversing your claim, would bo very expensive. On the other hand, if no lead exists the ground will not pay to dredge. In the deeper ground, on the Ahaura side of the river, the bottom wash would require to bo rich and the lead continuous to pay for the removal of 25fc of barren drifts, the occurrence of which has been proved. On the opposite side, near No 2 bore, the overburden would help to pay for the cost of stripping, and the bottom wash would not require to be so rich to give payable returns. The ground is made up of excellent dredging material, and could be easily dealt with. The largest boulder in view on the property does not exceed one and a-half cwt. The gravels consist of well-rounded pebbles of granite, slate, and quartzite, Unless a dredge capable of dredging to a depth of say, 35fc could be hired for prospecting purposes, and there are none available at present in the neighborhood, you will not bo justified in going to further expense to prove the ground. I d i not think that this part of the Grey Yalley, taken from bank to bank will over pay to dredge, nor is it possible from surface indications to select indications to select one portion as likely to prove better than another, as the river has at different periods run over the whole width of the valley. The following is ths journal of the bores:—No 1 bore, depth 26ft 4in ; no bottom ; fair prospect of drift gold from surface to 4ft Gin, an occasional color to 14ft, no gold from 14ft to 26ft 4in. No 2 bore, 31fc to bottom ; a little gold down to 24ft, none below; no wash, all river drift. No 3 bore, 22ft; no bottom; gold from surface to sft. down, no gold below, all river drift. This boro was lost through a faulty piece of fuse failing to explode a charge of dynamite. The charge could not bo withdrawn. No 4 bore, no gold to 17ft, no change. The balance-sheet was road and adopted.

Mr W. G. Somerville was re-elected a director of the company, and Mr Duncan auditor.

Mr Howca suggested that a copy of Mr Smith’s report should bo sent to the vendors, and if it was thoughtdesirable to go into liquidation that they be asked to make no claim on tho company. He did not suppose they would make any objection, after seeing Mr Smith’s report, Mr Adam moved that tho directors call an extraordinary meeting of shareholders to consider the advisability of winding up the company.

This was agreed to, the meeting to be called as soon as the vendors had been communicated with.