April 22, 1897.1
CHINA OVERLAND TRADE REPORT.
Hoping I have not wearied you,—I am, dear sir, yours faithfully,-THOS. BLAMEY"
Captain TILLETT-Yon said in your report. that you were going to say a few words as to why a change was not adopted earlier. I fail to see anything in the remainder of the report which points to it,
is met with at about the same depth in all, or at least most of them. If any one require evidence of this I will ask him to take the case of Mal- don, Victoria, Australia, and its gold mines known as the Parkins Reef G. M. Co., the south German Reef G. M. Co., the Derby United G. M. Co., and others. All of these mines were good at the top, but when about 560 ft. had been reached they gave out altogether, so far as pay-earlier ? ing dividends was concerned.
"To-day they are among the best paying mines in Australia, and that of the South German is, second to but three in the whole of Victoria.
"In Bendigo the same thing happened, only in the case of that gold field the poor zone was only reached at about 800 feet from the surface. What will happen at Punjom it is impossible to say, as we are the pioneers and have nothing to guide us. I can only say that having an enormous body of ore enclosed in conntry rock (clay-slate), reckoned to be se- cond to no other, and carrying all the minerals usually found associated with payable gold, I see no reason why we should despair of being equally fortunate there.
"And it must not be forgotten that the reef where seen to the west of the new shaft at the 200 feet level, although lying at a very low angle, is much better defined than has been that of our reefs where seen in the upper part of the mine. What the striking of payable ore at the 300 feet level would mean I cannot tell you, but with a concession such as this Company has at Punjom it could not fail to greatly enhance its value. The sinking of the August shaft another 100 feet will not cost very much, and whether gold is got to meet it or not (from the mine), I would say do it by all means.
"What the cost of sinking the 100 feet and driving the necessary crosscut to the reef will be will depend greatly on the quantity of water met with and the nature of the ground encountered in sinking the shaft. We have taken more than ordinary precautions with regard to all surface water, and I am hoping we shall be able to sink. comparatively dry. In the matter of the ground to be sunk through, I may tell you that a course of fairly good ground has been discovered to the west of the August shaft at the 200 feet level, and that as this has a dip or underlie to the east it should soon come into it. Of course advantage would be taken of this better chan- nel of ground by driving the crosscut at the 300 feet level along its course and so keeping away from the hard ground encountered when driving the crosscut at the 200 feet level. If the circumstances are as favourable as I have reason to hope for, the sinking should be com- pleted within five months from the date of com- mencing the work, and the crossout should reach the reef in another three months.
Tthink the cost will be about $1,000 per month but this estimate does not include the cost of any European supervision other than what is employed down in the shaft, nor the cost of keeping the Robey engine at work, as this would have to be done in any case if work
went on.
"I need not tell you that the necessary, pipes, etc., including a new 6-inch draw lift and the necessary
wind-bore, etc., for the 100 feet of sinking, are now on the mine, and that the Robey engine foundations have been renewed in a substantial manner.
*
"The upper part of the shaft has been put in good repair and the head gear straightened and put in order.
"
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"We have a fairly good stock of requises, such as pumps, ropes, steel, mercury, fuse, stamper heads, shoes, dies, shanks, lime, filter cloths, etc., on hand, and hence the expenses for some months should not be very heavy.
"And now I think I should say a few words as to why the changes about to be made at the mines were not adopted earlier,
"I have but little to say, however, further than that having always looked upon Punjom as having a great future before it, I pursued a policy of prospecting wherever there was a chance of success, improving and adding to the plant where practicable, and endeavouring to see that at the end of each month everything was in a better state of repair and in better working order than was the case at the end of the month preceding it.
A
Mr. BLAMEY-Why. It was not adopted
Captain TILLETT—Yes.
Mr. BLAMEY-Up to last November our yields were very good. We were then work- ing a chute of gold in the north of Panjom which turned out to be very satisfactory indeed, much more so than I anticipated when working, there some months earlier. I might say that in a place like Punjom, where you have a limited staff of labourers, every labourer should be kept if possible, unless it is absolutely necessary to send him away The moment you dismiss him he goes straight ont of the district and he is gone and you can not get him back again. We went on hoping that instead of sending the men away, we should find profitable employment for them.
307
sent, but I think that in the present posi- tion of the Company we would not be in- clined to accept any sum unless it was a good one: (Applause.) He left Hongkong, I think, about two weeks ago, so that he is now on his way to the mine, and he intends to spend about a month there; therefore in about a month or six weeks hence we hope to hear from him and I trust his report will be a favourable one. There is another matter that probably share- holders are not aware of. The following tele- gram was received from the mines on Monday, April 19th:-"Have struck a small pocket of ore in the stopes above the intermediate level, Has given 133 ounces."I presume of pure gold" Have begun to sink. (P August shaft.), We are suspending operations at Guban, Driven sixty feet. Advise you to continue sinking." This telegram, I think, is a very important one, and immediately on receipt of it we sent a telegram to the mine asking for information regarding the position of that part of the mine in which a pocket had been found. Mr. Blamey informs us that if it lies to the north it means a very important find to the Company.
Mr. BLAMEY-It might be, Mr. Chairman, The CHAIRMAN-It probably will? Mr. BLAMEY Yės,
find
The CHAIRMAN-I think the report Mr. Blamey has presented to us gives us a very fair idea of the present state of affairs at the Jalis mine. The information is perhaps. somewhat vague and indefinite, leaving us.
CHAIRMAN It is a very important very much in the position of waiting for the Company. Even if it is to the south something to turn up." At the some time there is still a large amount of rock there that you all know that gold mining is one of might possibly yield a large amount of gold. the most speculative ventures that any man Finding a pocket of that kind is a very hopeful can engage in, being most frequently ac feature for us. It was found on the 110 feet companied with the greatest disappointment, level-above the intermediate level and I uncertainty, and failure. So far the inventive think it indicates that in all probability there, mind of the scientist has failed to provide us is a large amount of rich rock in the with any hard-and fast laws for prospecting neighbourhood of this pocket. However, that: and following the true course of the is more or less conjecture, but from what gold-bearing. rock, thus leaving the we have found there on former occasions I.. course to follow on the lode entirely to the think we are almost safe in drawing that con- judgment and experience of the miner. Certainly clusion. Perhaps it might be as well, before there are many indications met with daily in discussing the business for which we have met the workings which to the eye of the expert to-day, if I gave, shareholders an opportunity miner conveys much reliable information re- of asking any questions regarding the mine or garding the lay of the ground, but unforthe working, and I shall be very glad to answer tanately these signe are not. always reliable, any questions as far as I possibly can, and Mr. but often lead us away from the lode we are Blamey, I am sure, will be very glad to afford. making every, effort to discover. No one is you any information that lies in his power. more competent to give a frustworthy opinion (Applause.) on the Jalis mire than Mr. Blamey, who has Captain TILLETT-I think I may remark been our resident manager for over five years, that the majority of shareholders with whom so that the whole formation of the country I have had conversation are distinctly dis- rock, the lay and dip of the lode, and almost satisfied. The management has been going on- every foot of the drives and crosscuts have come for five years and the result that we have under his careful observation, giving him a arrived at to-day has caused a good deal of fund of knowledge and experience which well dissatisfaction. For five years we have been qualifies him to give us the information we sa going on in this way and now we are next door much desire as to our future hopes at Punjom.to being landed in bankruptcy, and from time After reading the report very carefully I am to time the expectations that have been held of the opinion that notwithstanding the dncer- ont have always fallen to the ground. tainty that exists with regard to future deve- lopments there is still some evidence of a hope ful nature which fully warrants the sharehold ers in making another effort to keep the mine going. We never were in a better position than we are to-day, and with the strictest re- gard to economy, combined with efficiency in the management, I trust that the good fortune which we have strugled so long and so patiently to obtain will before many months be realised. There is another matter with which I think it will be as well to acquaint shareholders before Mr. BLAMEY then replied to the criticisms, we proceed with the business for which we which chiefly referred to the increase of have met to-day, and that is that Mr. Bailey, expenditure since October, 1895. This in- a mining expert from America, and the repre- crease Mr. Blamey pointed out was to sentative of a very large syndicate there, has be anticipated owing to the introduction come to China and Korea to make investiga-of new plant, including the calcining and tions for the investment of capital in gold cyanide works. He had been managing, mining. He has completed his investigations mines for the last twenty-five years, had in the north of China and in Korea and he is never been urged in his life, and if now in the Malay Peninsula with a letter of anyone wished to know anything about him introduction to the acting manager at Punjom. application crud be made to former em- His object in visiting the mine is to report ployers in Melbourne and London. He then upon the country rock there and to ascertain read a long port, dated 9th April, in which far as possible its richness and the he showed the the expenditure could be reduced probability of finding payable ore in the by $2,100 without in any way interfering with district. He has heard a great deal about the efficient working of the mines. Punjom and he has an idea that if the investigation should be as favourable as he expects it will be from what bo has read of Punjom, he has no doubt that on the represen, tations made by himself to the syndicate they will be prepared to make the Punjom Company a very favourable offer for the mine. It is impossible for me to name a sum at pre-
as
Mr. BLAMEY asked the 'shareholders not to spare him, but to criticise him on the report of the private meeting which was held on the 16th March. There were criticisms there which he would very much like to reply to.
Mr. Cox thereupon suggested that Mr. Blamey should be invited to reply to the criticisms.
The CHAIRMAN agreed with the suggestion and said that whatever Mr. Blamey said would be of interest to the shareholders.
The CHAIRMAN There is one remark of Mr. Blamey's that I would like to refer to, and that is in regard to his letter of November which called the attention of the Board of Directors to the falling off in the quality of the ore. It is true that the atten tion of the Board was called to the falling off of the ore, but at the same time if you
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