'The reefs are not of the lenticular order, occurring interbedded in altered sedimentary rocks, but bear all the accepted characteristics of fissure veins, and the rock formations immediately enclosing the reefs are apparently diabasic in character.' Mining Facilities. - The position of the property will enable operations to be carried on under favourable conditions. The claims being comprised in one compact block, development expenses should be low.

There is a good supply of timber in the neighbourhood, which, it is anticipated, will meet all requirements of the Mine for fuel.

Water

The property is very favourably situated as regards water, the Ingesi River running within 2,000 yards of the Mine.

In a Report, dated 20th January, 1900, Mr. Telford Edwards makes the following remarks: -

'In the matter of water, the Gatling Hill Mine is more than usually well situated, and a pipe-line entailing a length of about 1,800 yards would obtain a splendid supply from the Ingesi River, and while an excellent supply of water for cyanidation, battery and steam-producing purposes is thus readily obtainable, the Mine itself appears to be one which is going to be very free from water troubles.'

Mine Developments

As stated in Mr. Telford Edwards' report, dated the 17th October, 1900, at the 30th September, 1900, shafts and winzes had been sunk on the property, totalling altogether 1,518 ft., and 1,285 ft. 6 in. of driving and 856 ft. 6 in. of cross-cutting and rising had been done. It is estimated that at least 500 ft. have been sunk or driven since then, making in the aggregate not less than 4,160 ft. of sinking, driving, and cross-cutting. The results obtained are considered very satisfactory. In each shaft where the reef has been met, driving on the reef is being vigorously carried on.

Stamps

It is proposed to erect a 20-stamp battery, which it is thought should be ready to start crushing in about twelve months, at which date, as appears from the report of the Engineer, the Mine will be sufficiently opened up to keep well ahead of the battery.

Reports

The following are further extracts from the reports of Mr. Telford Edwards, under whose supervision the Mine has been developed, and upon whose reports, together with those of the Mine Manager, the Directors base the statements as to the Mine appearing in this Prospectus. Report dated 20th January, 1900: -

Capitalization Of The Property

I think a proper nominal capitalization of a property like the Gatling Hill Mine would be from £130,000 to £150,000, while I think in order to develop another 25,000 tons of ore, and to properly equip the Mine with a modern 20-stamp mill, including cyanide works, buildings, pumping plant, etc., etc., would require a working capital of £50,000 to £60,000.

'As you will have noted from my quotation of Mr. Evans' Report, dated 6th December, 1899, he anticipates that every six months, now that the Mine is properly started, an additional 10,000 tons of ore could be opened up. I, therefore, think that with twelve months' active development from the present date, and providing no great stoppages occur through insufficiency of native labour, etc., the Mine should be made ready to start crushing.

'The three reefs which have been principally exploited are the "Junebug," the "Left Bower," and the "Mexican," the most work having been done on the "Left Bower."'

Report dated 17th October, 1900:

"Tonnage of ore developed, and values -

Developed in Mine ............

15,000

Ore at grass ..............

500

Total ..............

15.500 tons.

Average estimated recoverable value - Mill..............

7 dwt. per ton.

Cyanide or other process ...........

3 " "

Total ..............

10 dwt. per ton.

Summary Of Assays Made On The Mine During The Year

'The following is a summary of fire assay results obtained on the Gatling Hill Mine from 30th September, 1899, to 30th September, 1900, the whole of which assays have come from below the 1st, or 100 ft., level: -

Name of Reef.

No. of samples.

Average width. Inches.

Average value. Dwt.

Left Bower.....

176 ...

33.06 ...

13.21

Mexican....

65 ...

27. ...

15.91

Total average...

241 ...

31.50 ...

13.93

General

I will summarize the main points regarding the Gatling Hill Mine as follows: -

'(1) The reefs appear to be permanent ore occurrences.

The shute of good ore on the "Left Bower" has been sunk upon for 300 ft. vertical, and at that point it maintains good value and definement. The length of the shute at the 200 ft. level is better than at the 100 ft., and at the 300 ft. level it is, as far as can be seen, going to be at least quite as good as at 200 ft.

'(2) The "Mexican" Reef has been sunk on for 200 ft vertical, and at that depth shows a shute of ore, by development work so far done, 70 ft. in length, for an average width of 27 in., and with an average fire assay value of 27 dwt.

'(3) The Mine is fairly well situated for wood and water, and there are parallel reefs with old workings still unexploited.

'Looking at the net result of the development work done on the Gatling Hill property during the year, I am of opinion that it is decidedly encouraging, and the Mine is in a better position to-day than it has ever been before, and I look forward to this property, on a moderate capitalization, proving itself of a payable order, and it is in every way a genuine mining venture of moderate extent.'

Mr. Telford Edwards was last at the Mine in the early part of this year, and under date 28th January, 1901, he wrote: -

'During my visit to the Mine I resampled the 90 ft. of driving in the East Drive on the Mexican Reef at the 200 ft. level, with the result that 90 ft. of reef is very rich, my results being higher grade than Mr. Evans reported, three of the samples going over 100 dwt.' The Mine Manager (Mr. Evans), in his reports as to the progress of work, repeatedly refers to the encouraging nature of the assay returns, and to the very promising outlook generally, as the following extracts show: -