Western
Holdings and African and European Investment Company thus came to
possess a common boundary and a compact area south of Odendaalsrus,
comprising the Western Holdings area on the west and what came to be
known as Blocks 7 and 8, controlled by African and European, on the
east. This was the area in which history was to be made and which was
to pass ultimately into the hands of Anglo American Corporation.
♦ XXIII ♦
Despite
the almost feverish activity in the formation of companies, the
acquisition of options, and the proving of the ground, the outlook in
the mid-thirties was not too promising. One after another, options
already taken up were being abandoned and active operations were being
suspended.51
61
The story, so far as Anglo American Corporation is concerned, can be
followed in detail from R. B. Hagart's statements to the shareholders
of Western Reefs and from Ernest Oppenheimer's statements io the
shareholders of West Rand Investment Trust, and from the annual reports:
(a) To the shareholders of Western Reefs on 28 April 1938:
'Last
year I referred to the item "expenditure on joint prospecting
ventures", which appeared in the balance sheet, and explained that the
company was directly interested in the prospecting of certain areas
south and south-west of its mining lease area in the Orange Free State
and south-western Transvaal. The expenditure on this account during the
year under review amounted to £19,934. The
investigation of these areas was pushed forward during the year by the
controlling houses, and a considerable amount of diamond drilling and
geological mapping was carried out. For the most part it is as yet too
early to state that any final conclusions have been reached as to the
potentialities of these areas. One fact which has emerged, however, is
that the reef-bearing series which extends into the Orange Free State
is covered by a very considerable thickness of Ventersdorp volcanics,
and has, in addition, suffered from a certain degree of erosion prior
to the outpouring of the lava. This fact, coupled with the absence of
payable disclosures in those reefs which have been penetrated by
boreholes, indicates that certain portions at least of the areas taken
under option hold out small promise, if any, of economic mining
propositions. In those parts where further expenditure does not seem to
be warranted, drilling has ceased and the options have been abandoned.
Work is, however, continuing in other parts where the indications have
been more favourable.'
(b) On 26 April 1939:
'During
the year the company spent £7,079 as its proportion of the cost of
prospecting the areas in the Orange Free State in which it is
interested. The extensive areas in that province and in the
south-western Transvaal, in which the company had an interest, were
found not to offer any inducement for the continuance of prospecting
operations, and most of the options have been abandoned.'
(c)
From the 6th and 7th annual reports of Western Reefs for
the years ended 31 December 1938 and 31 December 1939:
(i)
'As the results of further exploratory work carried out during the year
were not encouraging, the prospecting ventures in the Transvaal and
Orange Free State, in which your company was interested, have mostly
been abandoned. The options over the Wit. Extensions area are, however,
being maintained,
