Perseverance Gold Mine (Boulder Perseverance Mine), Kalgoorlie Consolidated Gold Mines, Kalgoorlie-Boulder, Kalgoorlie-Boulder Shire, Western Australia, Australiai

Regional Level Types
Perseverance Gold Mine (Boulder Perseverance Mine)	Mine
Kalgoorlie Consolidated Gold Mines	Group of Mines
Kalgoorlie-Boulder	- not defined -
Kalgoorlie-Boulder Shire	Shire
Western Australia	State
Australia	Country

The lease was spoken as the richest 24 acre block on the Golden Mile in 1901. Ten shafts were on the lease, but the two most important was Main Shaft (700feet 1901) in the centre of the block accessing the Perseverance Lode, and No6 Shaft (600 feet 1901) near the southern boundary on the Consols Lode. Measurements are in imperial in keeping with the historic references. Lake View Consols was to its north, South Kalgurli to its south, Associated to its east, and Great Boulder Proprietary to its west.

The general manager of the mine was Ralph Nicholls who arrived in July 1899, about three years after the mine opened. He was in for a torrid time later. A new mill was constructed shortly after to process the sulphide ore, while remaining oxidised ore was taken to Hannan's Public Crushing Company, which the mine owned. All ore was processed at a new mill constructed on the lease in 1910.

Around 1900 a series of scandals hit the Golden Mile mines. From 1896-1900 they had mined incredibly rich ore loads, but as these became exhausted, lower (but still very profitable) gold grades became the norm. Several of the mines had over estimated the potential gold which could be extracted, leading to wild fluctuations in share prices. Employees of the companies were accused of what we would now call insider trading of shares they owned.

Around 1903, the Boulder Perseverance Mine was the latest to be caught in the scandal. The outcry finally forced the Government's hand which launched a Royal Commission. Delivering its report in 1904, it was scathing of the company.

It found the underground mine manager, Michael Flynn, had grossly over estimated ore reserves, had relied on memory, and kept little in the way of paperwork. It found he must have known from his intimate knowledge of the mine his valuations were too high. It stated mine manager, Ralph Nicholls had accepted these valuations at face value, and had done little to search for new lodes. He had been warned several times by his brother, Harry Nicholls, the estimates were too high, but did nothing. It accused the men of working in collusion to fix the share price.

It found the directors had true knowledge of the state of the mine, and sold their shares as a result. That people in the company were taking action on reports from the mine, before this information was released to shareholders. As all the companies on the Golden Mile were managed from London, only one local director, Zebina Bartholomew Lane, could be examined by the commission. They found he had a woeful knowledge of the mine despite many years experience in the mining business. He stated he had to go to London to get information about the mine. This must have pleased unionists who hanged a burning effigy of him in 1892.

The commission recommended:
1. mines be open to shareholder inspection.
2. officials from the Mines Department be able to inspect the mines and test samples.
3. the mine manager be held responsible for misrepresenting ore reserves.
4. all information from the mine be sent to the company secretary and be open to shareholder inspection.
5. mines should hold one month bullion reserve to guard against shareholder speculation.
6. it dismissed calls for the mines to be managed from Western Australia.

The chairman (Frank Gardiner) and several directors resigned. However, the new chairman launched an attack on the commission. He stated no proof had been forthcoming that directors were buying and selling shares with insider knowledge. They had sold their shares on advice from London financiers Bewick Moreing and Co, who were concerned about a potential conflict of interest. The board stated the general manager, Ralph Nicholls, had been careless in relying too heavily on estimates made by subordinates, not helped by his absence from the mine during part of the period. They then re-instated him. The board agreed it would not deal in shares for the company in the future.

The Royal Commission did have the effect of stopping this problem and it didn't arise again on the field.

Now with more realistic estimates, gold grades became patchy and generally lower. By 1913 alarm bells were ringing. Then World War One hit, and all the mines on the Golden Mile suffered increased costs and a labour shortage. The mine was let to tributors July 1918, and the company forced into liquidation in 1917.

The tributors found the mine contained much gold and made a fortune. By August 1923 the company had repaid its debts. It was reconstructed from the Great Boulder Perseverance Gold Mining Company to the Boulder Perseverance Limited. It took over again the operation of the mine. In 1924 they acquired the Bank of England lease and the Great Boulder No1 lease. In 1927 the general manager was Ernest Williams. In 1932 a new plant was constructed. In 1937 they purchased the Enterprise lease. In 1933 the general manager was C.E. Blackett.

Little was found beyond this apart from mining till 1954 when Gold Mines of Kalgoorlie (Aust) Limited took over the company. This was a subsidiary of the powerful Western Mining Corporation. It was a late starter on the field, taking over the Iron Duke mine in 1935. Even back in the 1950's the advantages of consolidating the mines could be seen. The mine closed during the 1970's due to depressed gold prices, but re-opened in the 1980's before being taken over for the Superpit in 1989.

Tomichite
The old Perseverance mine is the type locality for the oxide species tomichite. Discovered by geologist S.A. Tomich in 1978, before the mine was swallowed up by the Superpit. At the time of writing (and possibly still) the species is known from only one specimen. It occurs as tabular 0.15mm, black, opaque, doubly terminated, euhedral crystals in milky quartz, associated with finely dispersed green vanadian muscovite and irregular concentrations of pyrite, with accessory rutile, calcite, and calaverite.

Other Regions, Features and Areas containing this locality

References