SOUTHERN MINES LTD.

Sun (Auckland), Volume 1, Issue 21, 16 April 1927, Page 2

SOUTHERN MINES LTD.

DIRECTORS REPORT PROGRESS GOOD PROSPECTS

Optimism regarding future prospects radiates from the second report to shareholders issued this year by the directors of the Southern Mines D*. velopment Co-operation. Ltd. a resume of the report, which covers three fields of the company’s operations, is as follow: Hercules Gold Mine.—Development work has been carried out in this mine which should result in a considerable saving in working costs. In the main drive a very promising four-foot reef track is being developed. This virgin country links up the Wealth of Nations and Keep It Dark Mines from which over a million and a-half in gold has been taken. Work to date on the Hercules lode offers the most substantial evidence of the value of this property to the Southern mines. Murray Creek Gold Mine. — As forecasted in the last report, the directors have purchased the rights of tributers who were working on a reef containing values as high as £ 4 a ton. and a star, has been made developing this property, with good results. Black Water Oil Area. —The Murchison Oil Company’s bore on the adjoining property resumed working a fortnight ago, after being closed down for three months awaiting machinery front the Old Country. At a depth of 2000 feet —the present position— the bore continues to give evidence ol! the presence of oil. while the geological data supplied in the strata through which it operates offers the most convincing evidence of the proximity of an undoubted oil field. This practical evidence is now supported by the testimony of an eminent British oil expert —a Doctor of Science—who recently visited Murchison and who has now placed on record his unprejudiced belief that Murchison supplies all the essential geological features of the commercial oil fields, which he asserts should be extensive and of very great value. It is also interesting to note that this outside expert testimony confirms the opinion held by our own experts, Messrs Sydney Fry and H. J. Stewart, and gives promise of early practical results. Mr. J. R. Thurlow, of South Africa, also gave a favourable opinion on the prospects of the field.