LATEST AUCKLAND NEWS.

Thames Guardian and Mining Record, Volume I, Issue 278, 29 August 1872, Page 3

LATEST AUCKLAND NEWS.

(from our own correspondent.) MEETING OF CALEDONIAN G.M.C. The annual meeting of the Caledonian G.M.C. was held at the Insurance Buildings, Auckland, yesterday, C. J. Stone, Esq., in the chair. Mr Tothill, the legal manager of the company, read the reports and balance sheet as follows : directors’ report. The directors again congratulate the shareholders upon the result of another year’s operations. The quantity of quartz raised and crushed during the year has been 15,777 tons, which yielded 73,7320 z of gold, or at the rate of 4oz 14dwt 15gr per ton. The amount paid in dividends during the year has been £154,440, or at the rate of £54 per share, thus completing a payment to shareholders of £l9B 10s per £l2 share, or a total distributed in dividends during the last two years of £569,710. It will thus be seen that though the past year’s return fell far short of the brilliant yield, of the preceding year, yet they are of such magnitude as to keep the Caledonian in the position of the largest gold-producing mine in tho colony. During the year just ended the directors have completed the erection of the new battery ef 40 head of stamps ; the company now have an efficieut battery of 66 head of stamps. The directors have also provided (attached to the battery) a complete plant for the treatment of tailings, so that the whole process of crushing, treatment of tailings, and -meltihg the gold ready for sale is now done by the company’s officers on the company’s own premises. Your directors congratulate the shareholders upon the successful starting of the large pump erected by the combined companies. It has cost more money a*d has taken more time than was anticipated, but it is satisfactory to know that it is thoroughly efficient, and that further time and experience has convinced your directors that nothing less than this large pump would have been satisfactory or less costly in the end. The obstacle to deeper sinking having thus been overcome, no time will be lost in exploring the deeper sections of the company’s property, and your directors hope with a successful result. The mine manager’s report annexed will explain the state of tho mine, and, as far as known, the prospects for the future. Your directors have nothing to add to what has been written by the manager on this subject. Tim heavy outlay for machinery and plant is now over. The tailings plant will henceforward augment the company’s returns ot gold, and whatever yields are obtained from the mine and the tailings plant, after payment ot current expenses, will be available for dividends. The honorarium voted at the last annual meeting has been paid to the directors in proportion to the attendances giveu at the directors’ meetings with satisfactory results, showing that increased attention has been given to the company s affairs. The directors recommend the tion of the sum of £SOO for directors honoiarium for the current year. -*-“ e director retiring by rotation is MrJ. iM. Crombie. There are two candidates tor the vacant office, Messrs Warwick Weston, and Robert Bleazard. l’oi the directors, . C. J. Stone, Chairman.

MINE MANAGER’S REPORT. I have the honour to submit the following report on this company s mining operations from the date of my taking charge, namely, December 4th, 18*1, this time. Previous to my taking office, the principal sinkings were coufiued to the main run of gold in No. 1 reef, and the specimen leader, No. 1. The richer portion of both these places had been taken out, and in order to keep up anything like a respectable yield, I was compelled to depend in a great measure on the quantity of quartz raised. No. 1 Brock.— l therefore made arrangements for stoping out the No. 1 block, south of No. 3 winze, and towards the Tookey and Golden Crown boundaries ; and also the No. 2 block, north of No. 3 winze, and from the No. 2 to No. 1 levels. The former block contained the remnants of the main run of gold, which after being worked on for some three months gradually fell off in quality, and ultimately became so poor as not to pay the cost of working. No. 2 Block.— The No. 2 block being the largest, has continued to give steady returns of from one to two ounces per ton to the present time. Now, however, this block is reduced to very small dimensions, the portion being worked on being confined between the No. 1 and 4 winzes, and some 20 feet below the No. 1 level, leaving a block standing to support the ground in the neighbourhood of the engine shaft. Specimen Leader No. 1. —This leader lias been taken out from the No. 1 level down to the No. 2 level, and from a point 40 feet south of No. 2 winze, as far north as the No. 4, or Otago winze, aud continued on to join the Otago run between the No. 1 and intermediate levels. The portion taken out under my supervision has yielded about two ounces per ton. Specimen Leader No. 2. —This leader was discovered some 20 feet south of the No. 2 winze, and in the hanging wall of the No. 1 leader, or footwall of the No. 1 reef, and gave excellent returns for a short time. This appeared to be a connecting link between the No. 1 reef and No. 1 leader, and accounts in some measure for the comparative poorness of the latter leader, south of No. 2 winze. At an early date I turned my attention to the further development of the mine at a deeper level, and, with this object in view, commenced sinking the engine shaft. After repeated attempts we managed to strike and sink through the No. 2 reef at a depth of 32 feet below the No. 2 level, but at this point were completely overcome with water. Having failed to accomplish this work to the extent desired, I commenced under the sanction of the directors a thorough system of prospecting, and opening up the No. 1 and 2 reefs at the No. 1 aud 2 levels. I was led to this course from the fact that tha.richer portions of the mine (discovered up to this time) were gradually being worked out, and there was no possibility of sinking deeper. The result, I am happy to say, has exceeded my most sanguine expectations. The discovery of the lost Otago run (from which we have been obtaining such remunerative returns of late) is one of the results of thoroughly opening up the ground, and is in fact the salvation of this mine. Another very important discovery is that of the leadenruuniug into the No. 2 reef at No. 2 level, and from which we crushed 18oz odwts from 16 tons broken down on the rough. The No. 2 reef only requires to be systematically opened-up, when I feel convinced this company will derive similar returns to those being obtaiued by our neighbours the Cure Goldmining Company, who are at length reaping the reward of their long persevering struggle.

No. 3 Leader. —We have also discovered a leader, varying from nine to eighteen inches thick, several feet cast of No. 1 leader, and immediately under the line of the main run of gold. So far, this has not proved itself to be very rich, still the stuff as broken down gives a good average yield. There are several points of interest in tho mine at the present time, amongst which I may mention the leader referred to as running into the No 2 reef at No 1 level, and on which a rise is being put up to communicate with the Cure Company’s workings, where gold has been seen several times. The No. 3 leader, as described above, is the hanging wall leader over the head of No, 3 winze, from which we have taken a quantity of good payable stone. The point indicated on the plan, and marked “ winze chamber,” is at the No. 2 level, and some 17 feet north of the point where the Otago winze communicates. Here I have been preparing to sink a winze. The reef is from 20 inches to two feet six inches thick, well defined, and we have seen gold several times, and 1 look on this place as about the most promising for picking up the lost main run of gold. Lastly, jbut not least, the Otago run, really a wonderful place, so different to anything ever seen in this or any other mine, that lam aware of. The reef being worked on is*fully 14 feet thick, composed of clay and quartz, with numbers of small veins running in various directions. The place is constantly changing in appearance, but still maintains its general features, and principal characteristics. I am led to think the re-dis-covery of this run (having jumped northward and downward) will be a pretty good guide in our further exploration in search of the lost main run, which no doubt has followed a similar course. Deeper sinking. —Everything is ready for further sinking the engineshaft so soon as the water is reduced by the United Pumping Association. I think I may safely congratulate the Company on our improved prospects as compared with some two months since ; then everything looked very dark ; now however with a steady return of gold, the outside expenses cut off, such as erection of battery and tailings plant, supporting the Tookey’s pump to enable us to keep down the water, I trust we shall be enabled to pay regular dividends until such time as the mine is opened up at a deeper level.—l am, &c., S. E. Richards. Mining Manager.

The balance-sheet shows that the gold extracted from the mine during the past twelve months has realised £207,604 2s 3d, and tailings, £1,599 19s 9d (after paying all expenses attached thereto). Tailings sold amount to £2,607 16s, and 6,250 tons of tailings on hand are put down as valued at £12,500, or an average of £2 per ton. The receipts bring the revenue of the company up to £224,C52 7s lid for the twelve months. The debtor side of the account shows that £31,181 9s lid has been expended in working the mine, £10,738 10s lOd on the battery (that is, for working expenses only, and does not include the erection of the now plant, which amounts to £7,902 19s 3d, of which the modest sum of L2OO is paid to the engineer for the superintendence of the work) and £2,600 on incidental expenses. Add to this £154,440 paid in dividends, and a balance in baud of £25,863 is shown on the 31st of July, 1872. From this it will be seen that the total receipts are £224,852; total expenditure on work £44,522. Dividends, £154,440, and balance in hand, £25,863. The total amount of gold returned is 73,7310 z 9dwt 12grs. The Chairman moved tho adoption of the report and balance-sheet. Mr Russell seconded the motion. Mr Rowe, in a long speech, condemned the mode of work in the mine at present being adopted: also the erection of the machinery, which he said was a waste of money, and he believed that after a trial it would he found that they would be able to crush the stuff much cheaper at private batteries. Mr Russell replied, and defended the action taken by the directors. The election of a director in the place of Mr Crombie, resigned, was next gone one with. Mr Wardrop moved, and Mr Aitkin seconded Mr Warwick Weston as a director. Mr J. M. Lennox moved, and Mr W. Rowe seconded, the nomination of Mr Bleazard. After some considerable discussion, Mr Weston was declared duly elected by a majority of GOO votes.