THE NEVER DESPAIR COMPANY.

New Zealand Mail, Issue 37, 7 October 1871, Page 4

THE NEVER DESPAIR COMPANY.

The adjourned meeting of this company took place on Monday night at Barrett’s Hotel, Capt. MTntyre in the chair. There Was a very good attendance, Messrs O. O’Neill and J. C. Brown, M.H.R’s being present. The minutes of tne last evening having been read and confirmed, The Chairman read the report of the Committee, which was as follows : Your committee beg to report that, in compliance with the wishes of the shareholders in the Never Despair Gold-Mining Amalgamated Company, Messrs MTntyre, Palmer, and Wright visited the mine in company with Messrs O’Neill and Brown, the two practical gentlemen invited to report on the company’s mine and works, and which we beg to submit to the favorable consideration of the shareholders, and fully endorse, with the exception of the clause which recommends the sending of five tons of stone to the Thames to be crushed. The company haß already sent half a ton to Auckland, with a result of half an ounce to the ton ; half a ton to Melbourne with the same result; and 440 pounds stone crushed at Mr Chew’s stamper gave 16dwts to the ton. The difference between the stone crushed on the spot and that sent to Auckland and Melbourne, is accounted for by the gold getting wasted in transit over the mountains, and being shifted into different bags, and the stone being of so very soft a nature, by being rubbed and knocked about it wastes the gold. Further,*the whole of the summer would be gone before the necessary works could be proceeded with, as in the instance when the stone was before sent to Auckland some months elapsed before the return of the result was obtained.

Mr O’Neill, at the request of the Chairman, read to the meeting the joint report furnished by himself and Mr Brown on their visit to the mine :

Repoet by Messes O’Neill and Brown ON THE NeYEE DESPAIE GOLDMINE. Wellington. 30th September, 1871. To the Directors of the Never Despair Goldmining Company, Wellington, Gentlemen, —In compliance with your request as conveyed to us on your behalf by Messrs Wright and MTntyre, we have the honor to report that we visited the Never Despair Company’s claim, at Terawhiti, on Monday last, the 25th instant, in company with Capt MTntyre, and on the ground we met Mr Wright, the manager, and Mr Palmer, one of the shareholders in the company. We then entered the main drive, or tunnel, which is situated at about 630 feet above the sea level, and extends for a length of 605 feet or thereby, bearing nearly east half south. At the further end of the drive a band or dyke of sandstone formation is cut, running nearly north and south, and gold-bearing. The sandstone is veined with carbonate of lime, &c., and is nearly similar to the band of goldbearing stone at Baker’s Hill. In the presence of parties some of the stone was taken out from the different parts in the band or dyke referred to, and after being crushed in a mortar the stuff was panned off, when the yield in each case was a very fair prospect, which we now produce. The quantity of stone crushed was about four pounds weight in the one lot and about two pounds in the other lot. The manager informed us that at a level about 300 feet above the main drive is another drive 120 feet long, which belonged to the “ Hard Working Company ” j in this drive this gold-bearing band was from eighteen inches to two feet thick, and at the top of the hill, or about 100 feet higher up, the goldbearing band was only nine inches thick. From this evidence it seems the gold-bearing dyke begins at top at nine inches thick, and widens or batters until, at 400 feet it is twenty feet thick. At that ratio it should be a considerable thickness at the sea level. The company has also a drive above thirty feet long on the opposite side of the hill, and a cutting at top of about twenty feet. The company have also stacked on the beach above 14,000 feet of sawn timber. The whole expenditure up to the present date has been under £IOOO, a very reasonable sum for the amount of work done, and reflecting high credit on the constant attention of he Manager. We are of opinion that, judging from the practical trials of stone made under our own immediate direction, and proving clearly the existence of gold, that the gold is in such quantities in the band or dyke referred to as may fairly be considered payable, provided Buch sufficient machines may be erected as may crush large quantities, the machines being worked by water power. And we understand that sufficient water-power can be obtained on the flat at the base of the hills, to which place this gold-bearing stone should be conveyed by wire tramways, such as are used at the Thames; or, by ordinary wooden rail tramways. The erection of machines, formation of tramways, &c., will necessarily require a considerable capital, but unless good and sufficient machinery be erected, and tramways, &c., formed, it would be unwise to incur any further expense in connection with the claim f or thiß work must be on a large scale and complete to be payable but before investing to any extent further capital, we deem it prudent (although we have the best belief in the ultimate success of the claim) to recommend that no less than five tons of stone be taken out by a cut right across or through the twenty feet of the gold-bearing band or dyke referred to, and sent to the Thames to be crushed at one of the best batteries there, and that the manager be directed to go in charge of the stone, and see the whole quantity crushed and the tables “cleaned up,” and then make report; and if such report be favorable you can then proceed without any hesitation in the erection of sufficient machinery, &c. We would wish to impress upon the direc-

tors that the law for the distribution of gold is still unknown ; that gold may be found in streaks, spots, pockets, or patches, and that it is nearly always “ tricky.” The gold found in your claim is not out of' what is known as a quartz reef, but out of a great band or dyke of sandstone growing thicker as it descends, and if gold continues in the dyke in the same proportion as that we have seen in your main drive, then our anticipations will be more than fully realised. In reference to the distribution of gold generally, we submit a short extract from a report by Mr. R. Brough Smyth, F.G.S., the able Secretary of Mines in Victoria, which we consider will be very interesting : “ The way in which gold is distributed in rocks has led to many mistakes. If it was as plentiful as the ores of copper, or lead, or iron, and not more valuable, or if it were as easily traced as a bed of coal or lignite, we should hear of few controversies regarding its mode of occurrence. Gold in great quantities is not found every day in certain strata ; the fact of its existence in connection with them is. not forced on the mind, and many persons obliged to hold some belief, are unable to admit the possibility of its occurring at all, or in any form, in these strata; they are incapable of judging of evidence, and do not seek for proof. This condition of mind has always operated a 3 the most serious obstacle to the progress of science. The result is seldom so plainly shown as in this colony and in America, where, but for apparently rash exploration, undertaken through ignorance, the geology of gold would not have been known to the world.” In conclusion, we have to express our obligation to Messrs. Wright & Mclntyre for their courlesy and attention to us when visiting the “ Never Despair Mine.” We have, &c., Chaeles O’Neill, J. C. Brown.

Mr Palmeb proposed, and Mr Weight seconded, a vote of thanks to Messrs O’Neill and Brown, for their kindness in inspecting the mine, the latter gentleman stating that they had performed a work that was much required for the satisfaction of the shareholders.

Mr O’Neill acknowledged the vote, and in answer to a question from Mr Evans, said he thought the prospect was about equal to what had been obtained from the Baker’s Hill claim, although from the varied quantity of the stone tested he could not sa y what the actual result would be. He was exceedingly obliged to them for their kindness in passing a vote of thanks to himself and Mr Brown, and could only say in return that he had always taken a great interest in the search for gold in Wellington, because he had great confidence that there was any amount of it to be obtained in the neighborhood, and that it only needed a fair trial to get at it. The meeting would see by the report that it was the of himself and Mr Brown that with the advarffr age of sufficient machinery they would produce results that would leave them little difficulty in raising a capital of a million. He had every confidence that they would find gold for miles and miles in the country of this province, and any advice they required that it was in his power to give, he would accord them with the greatest pleasure. The Chaieman having invited discussion on the report, Mr Evans said he quite agreed with the report of Messrs O’Neill and Brown, excepting that portion of it referring to the sending of the five tons of stuff to Auckland. He thought that would be folly. Mr O’Neill had told them, in answer to a question, that the prospect was equal to that of Baker’s Hill, which had given 19 dwts to four cwt of stuff, and, from other tests, they had half an ounce to the ton, which he thought was payable, particularly a 3 they had plenty of stone. His opinion was that they only wanted machinery, and to get machinery they must increase the capital. That was what h wanted to do at their last meeting, when they had a majority of the shareholders present, by passing a resolution to that effect, but as there was not a majority present at the meeting now being held he doubted whether they could legally pass such a resolution.

Some discussion ensued upon this matter, and .a copy of the act having been procured, it was ascertained that a proposal to increase the capital could not be entertained at the meeting, in consequence of an insufficiency in the number of shareholders present. Both reports were then put to the meeting for its opinion, and were unanimously approved. Mr Weight, in answer to a question from Mr Loggie, said the only proposal the directors had to make was to increase the capital for the purpose of endeavoring to ascertain whether the stone would prove payable. The drive was now in 605 feet, and the whole of their land was auriferous. He was prepared individually to go the utmost extent in taking shares to keep the company going and for the purpose of purchasing machinery, and with that object he would take 200 additional shares in the company, Mr Smith said he had made careful tests of the stone, and went into calculations as to what it would crush, and he found it would be from 12 to 16dwt,s to the ton. If they used steam power to crush it it would cost 22s 6d per ton, and by water, with a berdan wheel, about 18s. He thought if they had good men, men, and a good mining manager, so as to get the stuff out at an economical rate, they should make the claim a payable one. The gold he considered to be worth £3 15s per ounec.

Mr Quick said they had already spent a good deal of money, and were now asked to spend a good deal more, but he would ask what title they had to the property. That was a question to which the shareholders had never had any satisfactory answer. Mr Weight said there had been negotiations between Messrs Brandon and Quick

and Mr Travers, and the lease was already signed, but he had never been put in funds to pay the £4O of rent due. With Mr Mowbray there would be no difficulty whatever. Mr Palmer thought, in the event of their increasing the capital, there should be a clause in the lease giving the company the option of renewing for twenty-one years at the expiration of the present lease. There was nothing unreasonable in that request. Unless an enormous sum was spent on the ground they would never be able to make it pay, and they must have some security for that. If they were successful the whole of the property in the neighborhood would be benefitted, and if that on which the claim was situated were his he would be quite willing to take a peppercorn rent for it. He thought before they expended any more money they should have such a clause inserted.

Mr Quick thought there would be a difficulty in r,he way on account of the lease being granted by a trustee on account of certain minors, but, Mr Mowbeay, the trustee, thought the proposal a reasonable one. Mr Buchanan wished to know what the probable amount of capital required to be raised would be.

Mr Weight saiditwasMr O’Neill’s opinion that they would require about forty head of stampers ; the half-mile of tramway would cost about £SOO, and then there were buildings to erect. The stampers would cost from £1,500 to £2,000. Then again the fittings were expensive, and it would not do to commence without any capital in hand, so that they would require not under £4,000. He thought it would be advisable to make the capital £IO,OOO, and call up £4,000. Mr Buchanan, wishing to obviate the future stoppage in the business of the company, asked if there was any provision for voting by proxy. He bad had many applications from absent shareholders who desired to vote on the proceedings of the company. Mr Quick said the question was owe on which, as there was some little ambiguity in the act, they should take the opinion of the company’s solicitor. Mr Evans, to settle the point, proposed “ that the directors should take the opinion of the company’s solicitor as to whether the shareholders can vote by proxy for the increase upon their capital or for other purposes.” The motion was agreed to. Mr Smith thought they might discuss the ways and means proposed by which to raise the capital. The directors should lay something before the meeting of the mode in which they intended to do so, and whether any calculation had been gone into in the matter. He was sure Mr O’Neill was totally wrong in saying that the forty stampers and the tramway could be erected for £4OOO. Another thing he was sure of was, that if they were to send a sample of the stone to Melbourne, have it tested, and place the result before the people there, they would have no difficulty in raising the money; it would be raised in three days. The people of Wellington, he thought, were not the kind of people to go into mining at all. If they put £1 into anything they wanted a dividend in a week. Mr Palmer said he did not contemplate being brought up standing by the possibility of their proceeding being declared illegal. However, he would submit to the meeting a few resolutions which he had prepared. Although they could not be passed at that meeting they might be considered and discussed at the next. The 1 resolutions were :—“ 1. That the capital of the company be increased to £IO,OOO by the issue of 9000 new shares at £1 each; 4000 to be now issued, and the balance held in reserve ; per share to be paid on allotment, and the balance by calls not exceeding per share, or at a less interval than months. 2. That in the event of the company declaring dividends before the whole of the new issue of shares be called up, the new shares receive equal dividends with the old. 3. That in the allotment of the new shares the full number applied for be granted to the old shareholders before any are allotted to the public. 4. That in the event of more than 4000 shares being applied lor by the old shareholders, they be alloted in proportion to the number at present held by them. 5. That on the 4000 new shares being taken up, a general meeting of shareholders be called to elect directors and determine upon the future management of the claim. 6. That no shareholder be eligible for the office of director who holds less than fifty shares. 7. That a clause be inserted in the lease giving the company the option of renewing, for a further period of twenty-one years, at the expiration of the present lease. 8. That a lease for years, renewable at the option of the company, be obtained for a suitable machine site, with water privileges (if obtainable), and a right of way from the claim to the machine site, either for tramway, railroad, or wire tramway.” A list was at once opened in the room, and the following shares taken up, on the condition that the £4OOO should be subscribed : —Mr Wright, 200; Mr Palmer, 200 ; Mr Mills, 50 ; Mr Buchanan, 50 ; Mr Burrett, 50 ; Mr Evans, 10 ; Mr Atcheson, 20; Messrs Brandon and Quick, 20; Mr Brown, 10; Mr Dorset!, 10 ; Mr Hack worth, 10 ; Mr Mowbray, 10 ; Mr Smith, 10 ; Mr Player, 5 ; Mr Nicholson, 5 ; Mr Short, 5 j Mr Cooper, 5; Mr Sievers, 5. A vote of thanks having having been passed to the committee who inspected the mine, Mr Weight proposed a vote of thanks to Mr Palmer, who, he said, had done a great deal to forward the interests of the company. Mr Palmer thanked the meeting for what he considered an undeserved compliment. He could not feel otherwise than interested in a matter which was likely to be of the greatest importance to all of them. But he must add that it grieved him to see such a property lying at their very doors, and the I people of the place would not take advantage of it. The Caledonian claim was one that must

be worked out in a short time, while we had an enormous field before us which he felt convinced would not only prove to be of great benefit to them but to their children’s children. He had a sincere desire that the proposal he had made should be carried out, for he felt convinced that they would all be well remunerated for their outlay. Mr Buchanan, before the meeting closed, would like to make a few remarks with reference to the proxies. He would remind those who might hold them that they must be deposited at the office of the company fortyeight hours before the meeting, so that gentlemen receiving them from absent shareholders would have to be careful to do this or they would be invalid. After a vote of thanks to the chairman the meeting broke up.