THE AURIFEROUS CAPABILITIES OF THE PENINSULA, DUNEDIN.

(By Oue Special Reporter.)

i For the past week our special mining reporter [ has been busy exploiting the auriferous nature of I the Peninsula, and iv the following report are compiled the mults of his inspection, suggestions for the consideration of interested parties, and his opinions on the value of the auriferous alluvia! deposit and of those confined in lodes, GENERAL OBSERVATIONS.

Looking at the geological map of the Middle Island of New Zealand, it will be noticed that the auriferous belt of rocks extends from the north-western corner of the island, following the West Coast of New Zealand in a narrow ribbon broadening out suddenly till it overspreads nearly the whole of the provincial district of Otaso—the widest part of the island—till it reaches the E«st Coast, and there dips under the Pacific Ocean. This belt is nearly 700 miles in length, is composed of three different kinds of rocks, intersected by bands of alien formation, which, however, do not appear to affect the continuity or value of the auriferous nature of the belt. The northern portion consists mainly of rocks belonging to the sandstone family. Iv Otago, which contains by far the greater portion of the auriferous belt, highly metamorphosed schists predominate, giving place to basaltic aud tracbytic formations on its eastern boundary.

Iv the whole of this belt gold occurs pretty generally, but neirly always under strongly marked peculiarities, and nowhere are these more conspicuous and clearly defined than is the cisc in the stretch of country extending from Blueskin to the Peninsula. At the latter place, near Harbour Cone, some prospecting has been done, which revealed the presence of gold in rock that has not yet been classified, and which, according to the bast colonial and Home geological authorities, is unique in composition and construction, To convey a rough idea of its appearance, it may be described as a flinty trachyte.

That mining under such conditions has not been successful hitherto iB from the above reasons not very surprising, and probably further prospectiug will be required before the actual value of this rock can be ascertained. As an inducement for such further prospecting, the practically unlimited quantity of the available material may be pointed to ; and as a means to promote tha necessary pro3pectiug works, the ruks-in-aid drafted by the Government may be recommended. The rules provide for grant6-in-aid to prospectors, made upon the recommendation and under the control and supervision of county councils. It is true the grants-in-aid are not very liberal, but they are still an assistance and an incentive in the prosecution of a work where all J3 outlay and the return at best problematical. To be effective, such

PROSPECTING -WORK MUST BE DONE UPON A

SYSTEMATIC PLAN. Plans, specifications, and estimates of cost of the intended work 9 should be prepared by an expert, and when adopted should be adhered to aud carried out as projected, without vacillation or alteration, except in cases where the progress of actual exploitation makes an alteration desirable or necessary.

lawyer's head.

This headlaud is of a basaltic nature, and is intersected by bands of auriferous quartz and other rocks, from which prospects can be obtained, indicating the presence of gold in paying quantities. The width of these bands varies from a foot up to two and three feet, and can be cheaply worked, as material for working and securing the mine can be procured at a minimum cost, aud fuel for the generation of motive power i 3 aleo obtainable at a low rate. I believe several claims have been pegged out in this neighbourhood, and I learn that a quantity of stone is to be tried shortly at Messrs Kiiicaid and M'Queeu's battery. TOMAHAWK BEACH. The recent dredging excitement has once more turned the attention of miners to this part of the coa3t as a likely spot for dredging purposes. Amongst others Captain Moss, of the b.s. Bdina, informed me that sd long ago as 14 years gold was obtained from this beach, but as dredging was then understood the prospects found were considered not good enough. AH this has now been altered, and a very small percentage of gold can now be made to pay, provided that the gold-beariug stuff is to be had in quantity.

It is not at all surprising that the coast from the Taieri Mouth to the Peninsula should be strewn with auriferous sand, because the Taieri river is fed by streams taking their rise in some of the richest goldfields in Otago, and for its whole course flows through highly auriferous country. Besides that at various points on this part of the coast occur gold-bearing rocks, as notably at Saddle Hill and upon the Peninsula.

I hear that both by siukiug and dredgiDg ruby saud has been found, and also that gold can bu washed from every shovelful of the sand. Nexb to the gold itself this ruby sand is the be3t possible indication of extensive and regular deposits of beach gold, and where gold is found in paying quantities, whether on the east oo weat coast of our island, this sand is always found associated with it. It is intended to prosecute borings on the Tomahawk Beach, and to thoroughly prospect the whole locality before placing dredging machinery on the beach. hooper's inlet.

At this point again gold in the matrix concurs conjointly with free alluvial gold upon the beach oa the Pacific shore of the Peniusula. It is here where we enter unon the strange formation of rock described above, and which extends without a break to Portobeilu, a distance of three or four mile?, and it is as yet difficult to say how much further. In strike this formation extends as far as Bluwkin and even beyond it, giving place at the point of its disappearance to the metamorphosed schists of which Centra! and Northern Otago is composed, and which schists appear to dip below ths truchytic furruation. At Hooper's Inlet Mr W. Reid has done a considerable amount of work, and spent a no small amount of money in attempting to prove the real auriferous value of the rock. A fi'.'tBtamper head battery was erected, and about 100 tons of rock crushed. Prospecting and exploiting is still going on, and gold, though not in payiog quantities, is found to exist almost everywhere.

On the beach ah Hooper's Inl.-fc gold is obtained from shnu interlarded by liytrs of ruby sand, and the prospectors ;tre sanguiuo or meeting with Buoctesy, nnrl develop a thriving concern so soou as they !wvo defiaed the runs of the gold.

TIIM HAIIHOOIt CONE MINE,

near Portobello, was visited last Thursday by our special in company with Mr Hunter (of the Port Chalmers branch of tho National Bank of New Zealand), Captain Moss (of the s.s. Ediua), who is well versed in the history of the Peniusula aud all tho events of local importance and interest, aud an experienced miner recently of Nenthorn. The mine is situated on thu side of a gully close to the bor.ler of an inlut on tbo Pacific slope of tho Harbour Cone. A shaft

was found sunk to the depth of 40ft, from which a drive 30ft long had fcjen dtiveu in a westerly direction, aud another on the opposite side of tho shaft. There are also adit 3 entered into the hill sides, and other excavations in many different directions aud at varying levels, from nearly all of which prospects, dr at least tho colour of gold was obtained. But there was nothing in the shape of trenching or other systematic prospecting works. It must bo distinctly stated that in this mine or neighbourhood the gold does not occur in auy defined lodc3 and bauds, resembling a quartz reef as that term is generally understood, but is disseminated throughout tho rock, so that one part of tho mine is quite ns valuable a1? any other part. However, bauds of a granitoid nature are met, but besidc3 being harder than the ouclosiug rock, they are in no way distinguished by richness in gold from any portion

of the rock forming the Peninsula at this point. The only other goldfield in New Zealand upon which trachyte predominates is the Thames field near Auckland, and probably the trachytic rock of the Peninsula contains quite as much gold us did, and does, ils northern prototype. However,there isthis distinction,that whereas the gold at tho Thames is confined to very narrow bands of quartz, which are easily worked and reduced, the metal at the Peninsula is diffused throughout the whole of the rock, and to make it profitably get-at-able enormous quantities of the rock must be treated at a cheap rate, and the appliances for the saving of the gold must be as near perfection as possible, but neither of tbeso conditions have been brought to bear upon the Peninsula stove as yet.

Gold has been found to exist in the Peninsula rock as long as 14 years ago, and in 1886 several test samples were sent to Ballarat, in Victoria, for treatment. These samples varied from 3dwts up to 17dwts per ton, so that even the lowest grade of stone tested would pay handsomely considering the facilities with which both the mine and crushing machine could be worked. About two years ago a 10-head stamper battery was erected, and crushing stone in, it must be said, a very desultory manner, was proceeded with. The result not being satisfactory, and the loss of gold from the tables pretty evidenti the management set about devising, inventing, and experimenting with a new gold-saving apparatus, which diverted energy and attention from tho mine, so that it and the gold-3aving apparatus suffered to such an extent as to prove fatal to both, and about six weeks ago operations were entirely suspended. This is to be regretted, as in its present condition the miue cannot be said to be sufficiently proved, for the want of success ib not of such n nature as to pronounce the miue a " duffer." On the contrary, gold was found in all the stone crushed, and, judging by the arrangement of the tables, and especially of the quicksilver wells, it is surprising that any gold was saved at all, for it must b3 borne in mind that tho gold here, as at the Thames, is of the finest description, aud therefore exceedingly difficult to save.

The rauge iv the value of the stone, as indicated by the trials made at Ballarat, shows that there are places more highly impregnated with the metal than othera. These place? should be selected, and crashing persevered with till—say 100 tons—are put through, and treated with the greatest care and bstter appliances than those now at the mine, for which purpose a berdan may be suggested.

The Harbour Cone mine offers unequalled facilities for being economically, efficiently, and continuously worked—a steam engine is upon the grouud, there is an almost unlimited supply of firewood close at hand, and stone can be broken out at a minimum of cost. With such prospects and facilities in its favour, it would be a pity to allow the mine to siuk into oblivion after a trial that is scarcely worth the name— perhaps not.moro than 50 or 60 tons in all having been crushed from the mine. It may here be mentioned that uudef exactly similar conditiens as obtains at the Harbour Cone mine the Black Hill at Ballarat was made to pay handsome dividends, even when stuff was put through the mill which went only l^dwt per ton, aud that it never exceeded 3dwt per ton, and that at this yield the whole hill has now disappeared from off the face of the earth.

At this spot again (Harbour Cone), and just below the miuo, there is another inlet filled up with sand from the ocean, and iv tUe sand Mr Olsen has obtained tho colour of gold. The inlet has been marked off e.% a dredging claim, and prospecting is going on to prove the value of the sand. Should this lead to the discovery of gold in payiog quautilies, the iulet would offer unexampled opportunities for dredging, as a Baud bank protects the mouth of the iulet, inside of which there is about Gft of water, so that a dredge could work all the year round without interruption fcom wind and weather in the greatest of safety, and at the lowest rate of cost, as firewood abounds all round the inlet for steam power.