GREY RIVER GOLD DREDGING COMPANY.

Greymouth Evening Star, Volume XXXI, 15 October 1901, Page 4

GREY RIVER GOLD DREDGING COMPANY.

Directors’ Report.

The Directors submit to Shareholders at the •i"-d •■•(•ting to be held on 30th, the following .Report and Balance-Sheet covering the Company's operations for the half-year which ended on the 30th September, 1901.

During the period under review gold to the value of £1359 15s 8d has been sold to the Company’s Bankers. Of this amount £53 I4s lid was obtained during the last week of the previous halfyear, and allowing for the value of gold on hand for the last week of the current period, viz: £75 3s 9d, the nett yield for tire period covered by the attached Balance-Sheet was £1382 4s Od, or a weekly average of £49 6s 4d. During the half-year the total working cost (including outstanding accounts) was £1316 7s 3d, or a weekly average of £SO 13s 7d. This shows working expenses in excess of receipts amounting to £34 3s 9d, or an average loss of £1 6s 3d per week during the half year. TJndemoted is a summary of the Working expenses:—

As the Company’s dredge has been working a full year it may be of some interest to Shareholders to review the cost and results for the full working Ijeriod. During the year tho gold yield tas amounted to £4259 Os 3d or a weekly average of£Bllßs Id. The working cost has totalled £2635 2s 9d, and shows a weekly average of £SO 13s 6d. The total yield in excess of working cost amounts to £1623 17s 6d, or a we kly average profit of £3l 4s 7d. Following is a summary of working expenses since Dredging operations were commenced :

Total. Weekly ave.

The Plant is in good order, and notwithstanding the fact that it has been subjected to continuous and hesjvy work there have been very’few breakages and the cost? of renewing worn out parts has been very light in comparison with a good many other dredges on this Coast, which have not the same difficulties to contend with, and have been working a much shorter time, and whatever cause

may exist for disappointment in other respects there can be no cause for com- . plaint in so far as the durability and strength of the dredge is concerned. The Company has in its employ an efficient Dredgemastcr (Mr C. Curtis) and a reliable crew, whose efforts are always directed towards securing the best results at the lowest cost. In the last Half-Yearly report your Directors intimated that the ladder of the dredge would be lengthened when reliable data was available to guide them in effecting the suggested alteration. During the last six months Boring operations have been carried on, with a view oh ascertaining the depth and quality of the ground in parts which cannot bo bottomed with the present dredge. Three separate Boring Contracts have been let to different persons, but in the first two instances the Contractors found it impossible to drive the pipes below a depth of thirty feet in solid wash, and after breaking their pipes and sustaining considerable loss they abandoned their contracts. A good many holes were sunk in different parts of the claim by these contractors, but in all cases it was found that no gold existed below a depth of 25 feet. In these abortive tests the contractors used pipes measuring 3 inches and 4 inches respectively in diameter, and when it became evident that pipes of this size would not stand the strain of driving through the tight, heavy substrata, your Directors decided to Intake a test with smaller pipes, and arranged a contract with Messrs Welch and Adams, who arc using a boring plant in connection with 2 inch pipes. This firm put . down several holes to a depth of 30 feet, but again the pipes broke and had to be withdrawn. The contractors, however, stuck to their work in spite of considerable loss, and finally managed to sink a hole to a depth of 68 feet without reaching the reef bottom, and as no gold was met with below a denth of 20 feet the work as discontinued on the instruction of your Directors. Whilst the boring onerations have been in progress on the Company's claim, similar work has been carried out by other companies, whose claims are situated higher up the river in proximity to the Company’s ground. These tests have been conducted in lighter ground and the pipes have been driven to depths varying from 45 to 55 feet before reaching the reef, and the invariable result (goes to show that no gold exists in any deep ground. Payable dirt in some cases can be found to a depth of about 20 feet, but below that depth the ground is practically barren. Having regard for the extensive tests made on our own and the adjoining Claims, your Directors arc forced to tlie conclusion that there is nothing evident so far, to warrant them in incurring expense in effecting any substantial alteration to the present dredge, which on present appearances will serve the full requirements of the Company in dredging the shallow portions of the Company’s area. The dredge is now working on the south hank of the Grey River, about the centre of the claim. Along this stretch of beach about’half a mile in length there is a network of submerged timber lying . about 18 foot below the surface, and by dredging shallow and avoiding the worst of the timber it is probable that payable returns will bo obtained in tin's locality for a considerable time. The dredge has ' now been working on this beach for two weeks but owing to unavoidable causes it has not been possible to work full time. The return for the first week was 20 ozs for 80 hours, and for the second week 20 ozs for 90 hours work. Given uninterrupted work it is probable that from 30 to 40 ounces of gold per week will bo obtained throughout this stretch of beach, though it is impossible to do more than hazard this estimate from rough surface tests, which may possibly prove misleading. Guided by the results : of the boring tests there is nothing to 1 justify the opinion that any more rich patches, 1 such as were obtained last 1 November and December, will bo met 1 with again, but there is fair indication 1 that portions of the claim will afford proStable .rrtunwv 1

A good many shareholders have written to the Secretary from time to time directing attention to what they have considered bad policy on the part of the Directors in Continuing to work the dredge in its present condition, and your Directors desire to state clearly herein, that there is nothing evident at present to warrant the alteration which*Shareholders not acquainted with the claim ,seem to think would he productive of better returns. The rich returns obtained about the end of last year were secured in a shallow part which was not extensive, and guided by the results of the boring tests it now seems fairly evident that the rich patch was an isolated one formed by the action of the river in that locality.

From the attached balance-sheet it will be gathered that the net credit balance of the Company amounts to £33 7s Bd, after allowing for gold on hand and amounts owing to Company, and deducting therefrom the Company's unpaid accounts and now (hat (lie expense connected with the boring operations has ceased, coupled with the prospect of better returns your Directors hope to ho able to add substantially to the credit balance. For the Board of Directors, J. Taylor, Chairman,

Total. Weekly avo. Wages including boring contracts £800 7 4 £30 15 8 Goods, coal, lighting etc., including freight and cartage ... 239 8 4 9 4 2 Ecnewal of Plant and Foundry repairs ... 114 0 S 4 7 9 Salaries Directors 1 fees, Office and General charges 162 11 2 6 5 0 £1316 7 3 £50 12 7

Wages including , Boring Operations ...£1638 10 7'£31 6 ,4 Goods, coal, lighting etc., including freight and cartage 491 15 6 9 9 2 .Renewal of Riant and Foundry repairs 206 14 7 3 19 6 Salaries, directors fees, Office and General expenses 308 2 1 5 18 6 . £2635 2 9 £50 13 6