CCZ 0.00% 1.1¢ castillo copper limited

Historic report

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    lightbulb Created with Sketch. 55
    From the news article at https://trove.nla.gov.au/newspaper/article/61453203

    The article has been extracted by OCR and there were some errors due to the quality of the original. I have fixed most up, but there will be some left. Does 'winze' mean anything in old mining speak?


    CANGAI COPPER MINE.A FLOURISHING CONCERN.
    UNIQUE RECORD ESTABLISHED.
    Few people in the Clarence River district realise the importance and possibilities of the mining operations now being successfully carried on at Cangai by the Grafton Copper Mining Co Ltd. From time to time reports reached Grafton regarding the mine, but practically no interest was aroused in the matter. Perhaps this was due to the fact that the syndicate owning the property, and which was later floated into a limited liability company, at no time sought to boom the mine. They had a good thing, and secure in that knowledge were content to let the public think what they liked. But the fact remains, nevertheless, that a record almost unequalled in the history of mining in this State has been made by this particular mine. As a rule those who invest in such ventures sink their money in deep shafts and costly workings, rarely expecting a return until the mine has been developed and many thousands of pounds invested. Even then a return of the capital speculated was by no means safe or sure. Here, however in a quiet nook among the mountains, a copper lode was discovered that has been worked for six years, and in that period the mine has continuously proved self-supporting. Up to the present juncture practically nothing but development work has been done, but the ore won in driving levels and preparing for subsequent developments have been sufficient to pay all expenses incurred in erecting furnaces, payment of wages to a small army of miners, wood carters, mechanics and others and leave a margin for a dividend, while yet on the threshold of actual ore producing work. In the six years which have elapsed since the discovery of the lode was first made nearly £25,000 worth of ore has been raised from the leases, nearly all of which has been spent on development.


    HISTORY OF THE MINE.

    The discovery that led to the first lease being taken up was made about six years ago by Mr. John Seller, an old resident at Cangai, who, at that time, was in the habit of shooting marsupials, etc., for their skins. One day, while engaged in shooting bears, he stopped for lunch, and while so engaged the peculiar formation of an outcrop near him attracted his attention. He had previously acquired some experience of mining and at once proceeded to make a more thorough investigation. A portion of the formation was soon removed and it then became clear that he had discovered the cap of the lode which is now being so successfully worked. Having assured himself of the value of his find, Mr. Seller interviewed Messrs. T. Harps and William Volhard, two miners who had been working in the Walter Scott mine, and the three men pegged out a claim of 10 acres. The next step was to procure the lease money, and comply will the necessary formalities. With this objecting view the prospectors came to Grafton where they interviewed Mr. Samuel See and offered him an interest of one-fourth in the mine if he would provide the funds to pay for the lease. Mr. See consented to do this, and the lease having been taken out in the names of all four, the three miners went back to Cangai and commenced to open up the mine. In the meantime, others were attracted by the discovery, and a second lease of 10 acres known as No. 1 West (adjoining the prospectors' lease) was taken up by Messrs Adams, Maclean and Napoleon, who came to Grafton with a view to raising money for their lease, and after some trouble secured necessary funds from Messrs. W. Zietsch, MZietsch and P. Kritsch. Subsequently a third lease of 20 acres was pegged out by a Melbourne syndicate, represented by Cumberland and party. For a time each party worked separately in the form of syndicates: but at a later stage an attempt was made to float No. 1 West and the Prospectors' Lease into a company. An agreement was made between the holders of the Prospectors' Lease and Messrs. Maclean and party, by which Mr. See secured the rights of flotation on a cash and share basis, being allowed two months in which to complete the work. He at once proceeded to Sydney, and placed the matter in the hands of a broker with a view of floating the two leases into a no-liability company, with 80,000 shares of £1 each. The effort, however, was unsuccessful, for after having the scheme in hand for a month in Sydney it was found impossible to secure the subscription money necessary. On returning to Grafton, Mr. See tried to float the company locally under the same conditions. Some of the original subscribers subscribed to the second attempt : but failure was again experienced, Mr. See not being able to complete his task within the allotted period of two months. The agreement with the various owners therefore lapsed, and the properties continued to be worked independently as before.

    LEASES COMBINED.

    Following this some of the shareholders sold out, Messrs. Seller and Harps parting with their interest in the Prospectors ‘Lease, while Messrs. Maclean and Adams sold out of No. 1 West. In the meantime each party continued to work separately, sending the ore won to Waratah, where it was treated. Ultimately an amalgamation was agreed to, and arrangements were made for registration as a no-liability company in 80,000 £1 shares, as originally proposed. The company then secured the services of Father Curran, who became a shareholder and geological adviser. it was also decided to purchase from the owners of the Walter Scott mine the whole of their rights and machinery. In due course the necessary agreements were prepared and signed, and the registration of the documents for the newly formed company proceeded with, when it was discovered that if the company was registered as a no-liability concern ascertain percentage of the shares would have to be contributing. This was foreign to the desires of the owners of the amalgamated properties, as they had no wish at that time to place any of the shares on the market. The proposition to register as a no-liability company was therefore rescinded, and a proposal put forward to form a limited liability company, to be known as the Grafton Copper Company. The necessary documents were prepared, and eventually, after some delay and expense, the company was finally registered as above, the registration fee alone costing £100.
    As soon as the company was formed, the shares were allotted, the shareholders at the date of registration being Messrs. S. See, W. Zietsch, P. Kritsch, G. H. Varley, W. Volkhardt, M. Zietsch, Napoleon, and the Official Assignee in the estate of the Rev. Father Curran. After the registration had been completed, the company acquired by purchase, the 20 acre lease owned by the Melbourne syndicate and known as No. 1 East, making a total of100 acres now owned by the Grafton Copper Co.


    THE VILLAGE SITE.

    The property is situated within the area of the Cangai goldfields, in the parish of Kaloe, county of Gresham. The mine is located on the right bank of the Mitchell River, a branch of the Clarence. The site is about three miles north of the Walter Scott gold mine, and one mile from the old alluvial diggings known as the John Bullfield. There is an ideal site for a township, and this fact, added to the advantage of mountain air, excellent water and agreeable surroundings, will render the spot a suitable one for what must ultimately follow - a mining township. Nor is the place by any means so remote from centres of population as is thought, inasmuch as it can easily be reached in a day's journey from Grafton.
    DESCRIPTION OF THE MINE.
    The leases are on a mountain 800ft. high, and the lowest level is 520ft. below the top of the summit. There are six levels, and 800ft. of tunnelling, the lode varying from 1 to 18 ft. in thickness, averaging about 12 per cent. copper. The lode is believed to be a true fissure deposit, and the country rock in which it occurs felsite. Rich carbonate ores go down to a depth of 80 or 40 feet, where the sulphides make their appearance. The lode has been traced up the western slope of the mountain, and down the eastern side. It is being systematically opened up by a series of tunnels. The lowest level has been driven 115 feet, and a crosscut put through the lode, a good body of ore being passed through. The next level has been driven 880 feet on the lode, the last 50 feet in solid yellow sulphide ore( Chalcopyrite). averaging 8 feet wide, and carrying in bulk 14 per cent. copper. This block of ore extends up to C level, as proven by rise and winze connections, and goes down strongly underfoot. C Level has been driven 118 feet on the lode. This level has produced the bulk of the ore smelted up to date. The lode widened to 18 feet, all of which has been sent to the furnaces. Good carbonates and black ore was broken over this level in the first stages of development level has only been driven a few feet level was started from the eastern slope. The lode was cut by a crosscut tunnel 120 feet in length, giving 94 feet of backs. The sulphide ore exposed is 4 feet thick, and of excellent quality level also starts from the eastern slope of the mountain, and is driven on the lode158 feet. it is over this level the first copper was found, and the area is known as the Prospectors' Claim. Green and blue carbonates, red oxides, and black and yellow sulphides have been produced over this level. The total backs from A up to F levels is 520 feet, and the length of lode proven by them is 1930 feet. The lode also extends through No. 3 section, known as the Melbourne Syndicate's lease. The Syndicate worked about 100 feet of the lode, taking only the carbonates. When the sulphide zone was reached, they sold to the Grafton Copper Co. The latter sank a new shaft, which has exposed 4 feet of solid sulphide ore, assaying 18 per cent copper.


    SOME RESULTS.

    Some idea of the work that has been done may be obtained from the amount of ore won and sent away for treatment. From June 1903, to January 1905, the Cangai Copper Syndicate shipped 298 tons of ore, while during the same period the Melbourne company held their 20 acres lease about 300 tons of ore were sent away. From Feb, 1905, the Grafton Copper Mining Co, shipped to Newcastle and Sydney for treatment 454 tons of ore, 108 tons matte and 37 tons rough copper. In addition to these, there are now 30 tons of metal in transit, 60 tons ready for the teams, and 300 tons on the furnace floor for treatment. The ore in bulk lots of from 7 to 34 tons has assayed from 14 to 40 per cent. The returns, approximately, amounted to £25,000, the bulk of which has been expended in the development of the mine. For last month the income of the company was nearly £2000. At present there are two smelters, each capable of smelting 40 tons per week. Last month 207 tons of ore were treated. Contracts have been let for 100,000 bricks, and it is expected that a third smelter, with a capacity of 80 tons weekly, will be ready for service about February next. With the three smelters at work the company will be able to put through fully 420 tons of ore monthly.

    A FIELD FOR LABOUR.

    As a field for labour, the mine has already proved of service to the district. At the present time employment is found for 79 miners, smelters and wood-cutters, in addition to which there are twelve teams continuously employed in carrying firewood to the smelters and metal to Copmanhurst. About 400 cords of wood are consumed every month, for which the company pay at the rate of 11s 6d for dry and 9s 6dfor green, so that, by this means alone a good deal of money goes into circulation. The wood is obtainable about half a mile from the mine. At the present time the pay sheet for miners, smelters, wood-getters, and mechanics employed about the mine totals £800 a month, and within six months it is anticipated that a very much larger number will be employed. Miners who have worked in the mine speak of it as being a first-class one - well ventilated, dry and thoroughly safe. it is in this connection the future of the mine affects the district, closely, for it should undoubtedly absorb a good deal of surplus labour in the near future. Already several stalwart young local men have tackled the smelting work, and others are applying themselves to the mining section. The work can be grasped in a short time, and it follows that with an extended demand for labour there will be openings for young men of this district. The conditions in the course of a few months will be much improved. Astore and Mechanics' Institute have been established, and a public school will be provided shortly, and in addition the company are arranging for a weekly mail service to Copmanhurst.

    THE MANAGEMENT.

    At the present time the control of the mine is vested in a directorate, of which Mr See is chairman, Mr W Zietsch being managing director, and having associated with him Messrs P Kritsch and G H Varley, Mr J H Gibson filling the position of secretary. There are now about thirty shareholders, all the shares being held locally, so that the mine is in every sense a Clarence River undertaking. Work at the mine is directed by the mine manager, Mr W Mulligan, while the smelting operations are, controlled by Mr George Simon, late of Lithgow. In bringing the mine to its present stage a vast amount of work has been done, entailing a good deal of thought and anxiety. The burden of this work was chiefly borne by Mr. W. Zietsch and Mr. P. Kritsch, loyally assisted by Mr. S. See, while assistance was afforded by Mr. G. H. Varley, who, being a resident in the metropolis, was thereby enabled to forward the interests of the company in many directions.

    MANAGER'S REPORT

    For the fortnight- ending 9th Nov, the Manager reports : "Fair progress has been made with development work. B level has been extended to a total distance of 384feet. The lode in the face is 9ft. wide, consisting of 1ft. of good sulphide ore on the footwall portion, and one foot on the hanging wall, with 1 foot of an intrusive rock in the centre. The rise over B level has been put up 9ft.: the total height above the back is 15ft. This rise is going up in solid sulphide ore, to meet No. 1 winze sunk from C level. There are a few feet yet to rise before the connection is made. The C level has been driven 12ft. east of No. 1 winze, making a total of 94.6. In the face there is 2 feet 6 inches of sulphide ore of good quality. At E level I have crosscut through the lode to the hanging wall, and commenced to drive on the lode west. There is a body of about 18 inches of sulphide ore in the face of the drive, and 3ft. of lode material with bunches of ore through it. F level has been driven 6ft. west (one shift) making a total length of 161ft. In the face there are twelve inches of sulphide ore, with every indication of it widening. The stopes on this back are producing good carbonates. An air shaft is being sunk from F level to E level, and is now down 32 feet. There is good black and yellow sulphide on the full width of the shaft in the bottom. The mine is looking well throughout, and sufficient ore is being produced by development work, only to keep the furnaces going. I intend shortly starting a loading stope over B level to be ready for any demand for ore. The smelting return for the week ended Nov. 9th shows 17 tons of ore and 9 tons of slag were treated, producing 15 tons 10 cwt. of copper matte. Of the latter material 18 tons 10cwt. assaying 35 percent., was treated, producing 11 tons 10cwt. of metal, assaying 57 per cent. The metal despatched totalled 15 tons 16 cwt. 3qrs., leaving 37 tons 14lcwt. on hand, in addition to 19 tons 19cwt.

    BETTER ROADS NEEDED

    Since the mine was opened a good deal of road making has been carried out by the company, but much remains to be done in order to give anything like a good track to the settlement. Now that the mine has been proved, and a mining township is a certainty, the Government might fairly be asked to undertake the making of a road from Apple Tree Flat to Cangai. It is understood that the Roads Department has some twenty men engaged in road work between Jackadgery Creek and Lollback's crossing, and as the local officer is doing all he possibly can to expedite the formation of the "Rocks" road, some of the worst difficulties of travel will be overcome. When these works are complete other sections along the route should be dealt with. The expenditure of about £500 would so improve the track that Cangai could be reached without difficulty.
    Last edited by WombatKeith: 25/09/18
 
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