'15th August, 1900. 'With further reference to development in the 2nd Level of the Mexican Reef, I am glad to say that since writing you last on this subject the developments carried out have been satisfactory. Up to yesterday I have 23 ft. of reef opened up with an average width of 28 in. The assay value over this distance is 22 dwt. by milling assay and 24 dwt. by fire assay.
'I am glad also to remark that the No. 5 Winze still maintains its good value, and yesterday's sample milled 77 dwt. over a width of 28 in.'
'3rd September, 1900.
The value of the reef opened up has been very good indeed, and although I cannot give you the average fire assay, the average milling assay is over 33 dwt. for a width of 27 in. This I consider very satisfactory, as it proves the depth continuity of the rich schute in the Left Bower Reef, to a depth of 300 ft.'
The East Drive has been advanced 11 ft. on the reef, the total from the cross-cut now being 35 ft. The value of the reef opened up has been close upon 3 oz. over a width of over 2 ft.
'No. 5 Winze has been sunk C ft. in the period under review. The total depth is now 93 ft, which only leaves 7 ft. more, before starting off the 3rd Level. I am pleased to say the value of the reef is maintained, the last assay, from sample taken at 93 ft., showing a value of 23 dwt., over a width of 34 in.'
'1st October, 1900.
In comparison with this shute on the 1st Level, the 2nd Level comes out favourably, both in length and value, and working on the same basis in obtaining average values, the following are the respective results: -
40 ft. ...
27 in. ...
70 ft. ...
27 in. ...
'I think, however, that reducing all samples over 60 dwt. to this figure, is being hard on the average, as in the 2nd Level shute eight samples, all practically following each other, are over 60 dwt.
'No. 5 Winze. - This Winze has now reached the 300 ft. Level, and driving East and West has been started. The average width of the reef exposed is 35.2 in.
'This Winze has been remarkably good, and taking a straight average of width and value, I find that with 43 samples the following result is arrived at:
'This you will understand is taking a straight average right through, and allowing nothing for very high assays, but taking them in just as they are.'
* 1st January, 1901. 'East Drive at No. 4 Winze. - This lode is the continuation of that in 1st Level, West Drive; and it is striking South 55 degrees to 60 degrees East, is already exposed in this direction for 11 ft. from top of No. 4 Winze, and averages 11 in. in width and 8 dwt. 12 gr. assay, the last sample showing an improvement in both size and richness.' As will be seen from the above, the Gatling Hill block has been proved to contain every prospect of becoming a payable mine, and it is thought that, with the moderate capitalization proposed, the property has great chances of success.
Inasmuch as there is a large number of reefs on the property, it is probable that, in addition to those already opened up, others of them will prove to be valuable.
Mr. Telford Edwards has laid out a series of cross-cuts, for the purpose of proving the value of the reefs not yet exploited. It is confidently expected that this work will expose further bodies of payable ore, and add considerably to the value of the mine.
The minimum subscription on which the Directors will proceed to allotment is 50,000 Shares, the total number now Offered for Subscription.
No promotion money nor underwriting commission will be paid.
By the Articles of Association it is provided as follows:
'Save as mentioned in Article 79, the qualification of a Director shall be the holding of not less than 200 Shares.' (Note: Article 79 exempts the nominee of the British South Africa Company from complying with Clause 80.)
' The Directors shall be paid out of the funds of the Company, by way of remuneration for their services, an amount equal to the sum of £150 per annum for each Director, with an additional £50 per annum for the Chairman, and such remuneration shall be divided among them in such proportion and manner as the Directors may determine.'
'If any Director, being willing, shall be called upon to perform extra services, or to make any special exertion in residing or going abroad, or otherwise, for any of the purposes of the Company, the Company shall remunerate such Director either by a fixed sum or by a percentage of profits or otherwise, as may be determined by the Directors, and such remuneration may be either in addition to or in substitution for his share in the remuneration above provided.'
'The remuneration of a Managing Director shall, subject to the provisions of any agreement, from time to time, be fixed by the Directors, and may be by way of salary or commission, or participation in profits, or by any or all of these modes.'
The Directors have had allotted to them by the Company the qualification Shares above-mentioned, and the Shares applied for by the signatories have also been allotted - in all 607 Shares.
The following Directors are interested in the formation of the Company and the property proposed to be acquired: Dr. Hans Sauer, A. Davidson (as Directors and Shareholders of the Rhodesia Exploration and Development Company, Limited - which Company is the Vendor to this Company).