“Having been appointed by you to prospect and report on your tin properties in Northern Nigeria, to which place I proceeded in March, I have now much pleasure in submitting to you the following particulars:
“Situation.—Your property is situate one day’s journey in a south-westerly direction from Zungeru, the present capital of the Colony, and one and a half day’s journey north-east of Jebba, which is an important railway centre.
“There is one important point as regards its position, which places it far ahead of any property of any company at present working in this Colony. That is, you have as boundaries, on the north the Lagos Railway (Northern Extension), on the west the Kara River, and on the east the Kaduna River.
“It is a granite country, and although in the Naraguta district reefs have been proved to exist, large alluvial deposits, which yield cassiterite (tin oxide), are of chief importance.
“Mining.—For a couple of years the natives have been working in the rivers adjoining, and also on your property, treating the ore in their usual primitive way by means of ‘washing’ with wooden pans or calabashes.
“Under my supervision a large number of bore-holes were put down, varying in depth from 10 feet to 35 feet. I can form no idea as to the depths of the tin-bearing soil, as on the western boundary I have reached 35 feet in depth without getting to the end, on the eastern boundary about 30 feet in depth. You have over the whole of your area alluvial deposits existing on a very large scale. These deposits yield cassiterite (tin oxide) containing on an average 62 per cent. metallic tin, which proves the alluvial to be as rich or even richer than you find in any other part of the world.
“I estimate the yield at 7 lbs. per cubic yard—equal to, say, 5 s. per cubic yard, with tin oxide at £85 per ton. The cost of production would be approximately 6d. per cubic yard.
“The extent of the property is great, the natural facilities for mining are favourable, and the output of tin will be simply proportionate to the number of men employed. Assuming that a minimum of only 250 natives be employed, they should produce 500 tons of metallic tin per annum. Taking the price of tin oxide at £85 per ton, there would be a profit of some £36,000 per annum.
“The mining rights are over 3,200 acres, or five square miles, granted by the Northern Nigerian Government, and are subject to an annual rent of 5s. per acre.
“There is also a 10 per cent. royalty on the net profits derived from production, but I can assure you that there is every prospect of a reduction taking place in the near future.