By comparison with the results obtained in the district it is estimated that, when the property is opened out, an output of 50 tons a month or 600 tons a year of “Black Tin” should be obtained, and the following results may be anticipated on the basis of the report:—
| Sale of 600 tons of “Black Tin” at £90 per ton (the present price being over £100 per ton) | £54,000 | |
| Cost of production (maximum estimate) at £15 per ton | £9,000 | |
| Freight under present conditions at £29 10s. per ton | 17,700 | |
| Administration, rent, royalties, &c., about | 4,300 | |
| 31,000 | ||
| Estimated nett annual profit | £23,000 |
By about March the new freight conditions should be in force, which would increase the estimated nett profit to about £29,000 per annum.
Life and Tonnage.—Assuming Mr. Wethered’s figures that more than two-thirds of the area carries 3 to 5 lbs. per cubic yard for a depth of from 1 to 4 yards, the following is an estimate of the tonnage of tin and the life of the property:—
1,000 acres 2 yards deep at 3 lbs. per cubic yard should yield about 13,000 tons of Black Tin over about 20 years, which at £90 per ton represents a profit (taking into account reduced freight) in excess of £500,000.
Management.—An arrangement has been made with the Lucky Chance Mines Limited, for the superintendence of the company’s interests, and for organising the work under a suitable manager.
The following report by Mr. Walter Wethered, one of the pioneers of the Northern Nigeria Tin Fields, was made on the original concession, which comprised an area of six miles along the river, of which this company have acquired one half.
“This property is situated on the south-eastern side of the Bauchi tin fields, between the pagan towns of Forum and Rein.
“The area encloses about six miles of a stream flowing in a northerly direction from Rein to Forum, where it junctions with the system of rivers on which the Ribon, Bisichi, Doss, and other properties are situated.
“The area is three-quarters of a mile wide by six miles long, an extent of four and a half square miles, practically the whole of which is tin-bearing alluvial. The alluvium is composed of a sandy material of an extremely free nature, and the bottom is the usual coarse grey granite. The latter outcrops in very few places, and carries from about a yard to four yards of alluvial ground. Although the bottom could be reached in only a few places in the stream bed, good prospects of black tin were obtained in nearly all samples panned, and from the alluvial flats, as exposed by the banks of the stream, the results ran from about 3 to 5 lbs. of tin per cubic yard. The panning concentrates contained 10 to 15 per cent. of titaniferous iron sand (which was allowed for), but this mineral presents no difficulty, and can be easily eliminated by the ordinary dressing operations.