April 1, 1899.
MOUNT MACDONALD MINES.
The Sydney Daily Telegraph of February 25, in a review of the mining industry for the year 1898, makes the following reference to the Mount Macdonald Mines, in which Hongkong is interested:
CHINA OVERLAND TRADE REPORT. these Hongkong companies, that their enter business of English and foreign companies prise has no parallel in this colony. Were the generally conducted on the same lines, there would be no necessity for deputations to wait on the Minister to advocate reform of the law relaxation of the rules. Mining would ** hum " to everybody's advantage. Why every subsequent consideration--not first rob- Because the mines would be the primary and bars and aliarking jobbers' "most capacious
or
maws.
GREAT BASTERN AND CALE- DONIAN GOLD MINING CO., LIMITED.
shareholders of the above Company was held at An extraordinary general meeting of the the offices of the Company, No. 7, Queen's solution for the purpose of increasing the cap. Road Central, on 28th March when a re- ital of the company was submitted. Mr. R. C. Messrs. G. C. Cox, A. Denisou, R. Abesser Wilcox presided and there were also present (directors). L. Lambotte (secretary). E. S. Joseph, E. Georg, S. A. Joseph. Elias, A. W. Best, J. D. Michael, G. Graca, C. Moir, D. Warres Smith, Bacros, J. C. Remedios, C. Schwencke, J. M. G. J. Chapman, G. Forstmann, and Ip Chew.
The SECRETARY read the notice convening the meeting.
Mount Macdonald, which is situated about a mile a half from Milburn Creek, is a bustling gold mining camp. but we do not hear much about it in Syndey. The mines now at work are owned solely by Chinese companies, and re- markable pluck and perseverance they have dis- played. They have been identified with the Held for many years, and it is generally sup. posed that in mine purchases and mine expendi- ture they have spent not less than £125 0 0. On this so far they have received no return, but one company now appears to be on the right road towards success, Should it be achieved, it will be most thoroughly deserved. Without doubt had it not been for the enterprise of the Hongkongites the field would have been deserted long ago. It is a camp of many peculiarities. The prevailing strata are highly indurated sedi:uentary rocks. Nothing tougher or more costly to work is to be found in the colony. The lodes are very bunchy and patoby. A peculiar feature of them is that if a lode 3 ft. wide carries 12 dwt. per ton, the same lode, when it widens out to 9 It., carries only the same quantity of gold as the three feet, or about 4 dat. per too. It is not until recently that this peculiarity has been specially noted, but now the managers are thoroughly satisfied as to its existence, and they are able to regulate their operations accordingly. The principal mine is the Oliver's Freehold, formerly known as the Eureka. Hare extensive operations are being carried on. The first results were excellent, but the returns gradually lowered until they got far below the paying point; this was when the peculiarity above referred to was not understood. Latterly, however, the results have been improving, and from the ore now actually in sight a succession of payable yields may be expected. During the year the company crashed 6,884 tons for 2,251 oz., of the value of £8,164 8s. 5d. The average was thus slightly over 7 dwt. per ton. As showing the improvement, the returns for Oc- tober, November, and December averaged nearly 8 dwt, while the January (1899) yield was nearly 19 dwt. per ton. The cost of mining and crushing is very beary, owing to the hard- ness of the rock and to the system of grinding in Watson aud Deuny pans, which do very effective work; but an average of 10 dwt. per ton will leave a fair margin of profit. The com- pauy conjointly with the Queen Mines Company, adjoining, are about to erect an eight-drill air- compressing plant, which has been ordered from Thompson and Co., of Castlemaine. Within two or three months this plant will be at work, and it ought to show a substantial reduction in the mining costs. Complete tests are also about to be made to determine whether or not the adoption of the cyanide process will reduce the cost of treatment. There was great excite ment at the Mount a month ago when it was reported that rich stone had been struck in the Queen mine at a depth of 400ft., the deepest workings on the field. The rich discovery was merely a patch, which did not extend upwards or downwards, or lengthwise. The lode where intersected was very wide, and mullocky. The manager now reports that in both ends of the level the ore is consolidating, and that better prospects are obtainable.
There is a strong probability that in the north drive a continua- tion of the rich shoot worked from the surface to about the 250ft. will be met with. The im-
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at least a dozen different ways of spoiling man with a grudge against the manager to put crushing, so that it would not be difficult for a what he might call a spoke in his wheel. That such things are not uncommon on the Austra lian gold fields the following letter in the Sydney Morning Herald from the Secretary of the Gallymont Gold Fields, Limited, will show ::
News' from your correspondent at Mandurama, We note under the heading of Mining that it is stated the stoppage of work at Gallymont - mines is a serious blow to the district, and that nearly 100 people are out of employment. We beg to inform you that the works at the wine are not stopped, although for a few days operations were susė pended underground in consequence of an at- tempt having been made by certain parties 10- the same on tribute. wreck the miue for the purpose of obtaining
One of the accomplices: has made a statutory declaration to that effect,' We have. I fear, been made the victims of some uefarious plot, the design being possibly to make However that may be, it is not our intention, the shareholders dissatisfied with Mr. Georg. gentlemen, to throw ap the sponge because, at a oritical moment, we have had a slice of ill luck dealt out to us, possibly by unfriendly bands.
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e must go warily in the future but we shall push on with the work of developing the mines To do that however, and to pay our debts. we must have fresh capital. We owed at the mines, The CHAIRMAN meeting has been summoned for a special pur- of which £500 was for battery plant, in excess
said-Gentlemen,-This according to our last adrices, £1,00), 118. 3d.,· pose, one which your directors had hoped might of the estimates sent. We have remitted £300, of fresh capital. It is no new experience in not prove necessary, viz., to sanction tue raising and we estimate that gold has been sold to the bistory of mining companies to require ad- since then working expenses have probably the value of £500, making in all £800, but |ditional capital; but this company had, as we
been £500, so that we are most likely some thought, arrived within sight of payable crush-
£709 still in debt. To meet this we have a little been got into working order, and we had more ings. After several delays the battery had
over one thousand dollars in hand here, and it is therefore imperatively necessary that for crushing. But either an enemy lurked in than a thousand tons of quartz at grass ready the manager should be placed in a position to ambush, or we have suffered from want of ex-
carry on without undue delay. Owing to perience on the part of our managers, for it
the scarcity of water we shall perhaps not be able to proceed with the crushing at once. seems very clear the result of the crushings did but in the meantime we shall take the oppor not represent the value of the ore. The pro- tuzity of filling up our paddocks with ore ready duct of the crushing from the Great Esteru for the battery after the next rains, which ap- mine was almost nil; as our manager remarks pear to be rather later than usual in New South in one of his letters, almost any stuff at Mount Wales. Well, gentlemen, I do not know that I Macdonald would if crushed pan out better have anything more to
Buy to
you before propo- than that. The quartz from the Zula Mine, sing the resolution I hold in my hand, but I which in trial crushings bad yielded over au wish to mention, in order to anticipate and we do not believe for one moment that otherwise be disposed to make, that though it is ounce per ton, was also most disappoiuting, auy objection to its terms some of you might the result was a fair one. Mr. Heorg bas, in proposed to take power to issue` 16,000 more or- the opinion of the Board, committed an errordinary shares it is not our intention now to ask of judgment in dismissing Mr. Cash. The old for subscriptions for those shares. The 70,000 saw about the unwisdom of swopping horses preference shares are all we intend to issue now, when you are crossing a stream applies in this and we trust these will be subscribed for by the We had certainly come very near to existing shareholders. With this explanation I failings may have been, Mr. Georg would have the brink of our river, and, whatever Mr. Cash's | beg to move the following special Resolution :---- That the Capital of the Company be in- done better to have struggled on with him until creased to $500,000 by the creation of 16,000 the battery could be got into working order. ordinary shares of $5.00 each, and 70.000 Pre- Moreover, Mr. Cash was an experienced miner, ference shares of $1.00 each; such shares to be knew the field thoroughly, and with tactful issued at the discretion of the Directors, pro- management might at least have been used for vided that they shall be offered in the first ins- the time to supply the requisite technical know- tance to the existing shareholders in proportion ledge. Mr. Georg was, however, in charge, to the amount of the capital held by them at the and it is only fair to say he did not use his time of such issue. Cash of his intention, powers autil after more than once warning Mr. It might have been better had be referred the matter to the Board for instructions, for that would bare given him time to think over the expedience of the step contemplated; but he dismissed Mr. Cash first and reported the fact afterwards. I am quite sure that this course was taken in what Mr. Georg belived to be the interests of portance of the discovery of a payable body of that it was a mistake. Mr. Georg has taken the Company, but all the same the Board think ore at this depth could not be exaggerated. The Great Eastern and Caledoniau Company have will and the energy, but he is rather impulsive, too much on his own shoulders. He has the erected a splendid 20-head stamper battery, and there is a limit to the powers of one man, Company, the holders of the said Preference "4.-In the event of the winding up of the which was set in motion about a month ago.especially if, when managing a mine, he is not a The mill was started on a large heap of ore practical miner.
Shares shall be entitled to have the surplus which was known to be of comparatively low stractions to Mr. Georg to engage an expert in repaying to them the amount paid up on the We have telegraphed in- assets of the Company applied in the first case grade, but, according to rumour, the yield was fa bow expaōtations,
for the battery, and we shall not sanction any Preference Shares held by them respectively, The battery is now running on stone from which good returus are battery is under compstent management. I belong to and be divided among the ordinary further crushing until we are assured that the and the residue of such surplus assets shall expected. The company cannot have spent have intimated that there was some reason to shareholders of the Company, and if there shill less than from £25,000 to £30,000 to date, and suspect that there had been foul play in be more than sufficient to pay the amount paid it is to be sincerely hoped that the disappoint- connection with the crashings. Mr. Georg up on the Ordinary Shares, such surplus (if any) ment of the first orashing wil: be more than says, in recent advices, that chemicals must shall be divisible between the holders of the compensated for by the result of the second have been employed, as crushing. It is to be said, to the credit of
the copper plates | Preference Shares and the Ordinary Shares were half destroyed by chemicals. There are rateably.
"2.-The holders of the said Preference Shares shall be entitled to a cumulative prefer- ential dividend at the rate of 12 per cent per
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3.-Whenever the profits of the Company in respect of any year shall be more than suf- ficient to pay the preferential dividend for such year at the rate of 12 per cent per annum on the Ordinary, Shares, the holders of the said in the surplus pari passu with the holders of Preference Shares shall be entitled to participate
the other shares.