Black Flag Proprietary Gold Mine, Mount Pleasant, Black Flag Goldfield, Kalgoorlie-Boulder Shire, Western Australia, Australiai

Regional Level Types
Black Flag Proprietary Gold Mine	Mine
Mount Pleasant	Mountain
Black Flag Goldfield	Ore Field
Kalgoorlie-Boulder Shire	Shire
Western Australia	State
Australia	Country

Over the course of this project, innumerable mines have been found where companies were floated in London in the 1890's, with inordinate amounts of money taken from shareholders to line the pockets of London based directors, only for the mine to collapse in a financial heap two years later. Shareholders usually lost everything. For every one successful gold mine, there were ninety nine that ended in this situation. Many of the mines were payable propositions, ruined by greed and bad management.

The Black Flag Proprietary is one of the most extreme cases in this category, such mines locally known at the time as a 'wild cat'. This mine was on the initial discovery of gold at Black Flag by prospectors Garrity and Clancy (surnames), who had sunk a 3 foot pot hole next to a bold outcropping reef along a ridge. They obtained much gold, at least as much as a pot hole could contain.

The lease was sold to the Parramatta Syndicate for 35 000 pounds, headed by Lord Sudeley, and four state Governors. It was a huge sum for the time, but nothing like what was to come. It then passed to the Central Exploration Company, and Black Flag Proprietary was floated
in London in August 1895 with no less than 600 000 pounds capital. It was probably the largest amount of funds raised in the 1890's to pay for a Western Australian mine. All based on a 3 foot pot hole.

A main shaft was sunk, square in some places, round in others, and 10 feet out of line at the bottom at 250 feet. A 50 head battery, one of the largest on the goldfields, was ordered before hardly any development work had taken place. It was poorly erected and only sometimes worked.

Pumps, trucks and machinery were ordered. A palatial mansion built for the mine manager. Various impressive buildings were erected, including a sawmill which rose church-like over the mine. It was used as a wedding reception venue when the mine manager, Nicolas Holman got married, and when he was entertaining groups who visited the mine on social functions. Brush awnings were constructed so the miners would not get sunstroke as they went to and from the mine.

Various well connected people with little or no mining experience came out from England to be employed in managerial positions. The storeroom contained more whiskey than most of the hotels in the region.

Meanwhile the miners underground spent their time playing two-up, cards and talking sport. One converted a chamber into a studio, and spent his shift painting by candle light.

Of the 600 000 pounds raised, only 80 000 pounds reached the mine as working capital. It was spent within 8 months with not a single crushing taking place. So the company in London was reconstructed.

As was usual for mines controlled from London, the directors and shareholders relied entirely on reports from the mine manager, and the occasional mining expert employed. The directors would promote the mine with rosey descriptions, flowery speeches and outlandish promises. At the meeting to reconstruct the company the following was stated by the director:

'There can be little doubt that in spite of the difficulties attending to mining in Western Australia, when the large amount of machinery now on the sea, and in course of erection has got to work, there cannot fail to be a marked increase in output, and addition to the dividend paying mines. The quartz we have won so far does not represent more than one two thousandth of the ore contained in one of the reefs alone, and yet in those small workings we have discovered such quantities of rich ore, that it seems scarcely possible that the mine can prove otherwise than an enormous producer of gold, and a handsome dividend paying mine for many years to come'.

One question followed from a shareholder about the qualifications of the mine manager (which was not answered directly), and then a further 150 000 pounds was raised.

Crushings finely took place but from surface open cuts. The underground workings had collapsed and then the shaft fell in. It was a large very low grade lode. By 1900, the money raised had been spent. The total mined was 14 959 tonnes of ore for 4303 ounces of gold.

The first party of tributers took out 3000 pounds worth of gold in 12 months. Over subsequent years tributers were unable to make the mine pay, and the battery was left to corrode away. The company continued to limp along for a few years, and had the cheek to be granted a government subsidy in 1904 to drill on the lease.

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