UPPER MOLYNEUX MINING.

Otago Witness, Issue 2362, 1 June 1899, Page 29

UPPER MOLYNEUX MINING.

May 29. — Company Flotation. — During the past week or 10 days the topic calling for most comment is that of the flotation of the several - dredging companies which have been placed on the market to absorl the snara ca6h of investors. Those companies that concern this district in particular are the Dunstan Lead and the Vincent Extended. The Dunstan Lead is a company of 14,000 £1 shares, .which iwere fully underwritten before the prospectus was issued by the brokers. Nearly 3000 of these shares have been taken up by investors in this district, evidencing their faith in the paying probabilities of the claim. One noticeable feature about the flotation of this company is the excessive number of paid-up vendors' shares allowed for the claim — namely, 3000. It is surprising that as the capital of new companies increases, in an increasing ratio do holders of claims open their mouths for an increase of vendors' shares. Some maj say, " But the Dunstan Lead is an exceptionally good claim, and will pay dividend"? from the atari." I shall refer to that presently. Let me compare it with the Matau Company's claim. This company was floated with a capital of £7000, of which 800 were paid-up vendors' snares. Now the Matau claim I hold -to be second to none on the river, and you will recollect that long before the dredge was built I strongly advised shareholders to hold by their shares. Now double the caoital of the Matau and all the vendors would have got for their claim would have been 1600 paidup shares. But here we have a company of £14,000 actually floated before the prospectus _J8 issued, and having 'a claim valued at £3000 in paid-up shares — a claim for which, in my opinion, 1600 paid-up shares would have been a fair value. Understand me, I do not condemn the claim, but I do decidedly condemn vendors, on the wave of public excitement, placing an excessive value on* their property. The Dunstan Lead claim is located about' three and a-half miles above Alexandra. The river part of the claim lies between the upner boundary of tiie Perseverance claim and the lower boundary of the Matnu claim, and was more or less worked by Dr Hyde's dredge for about three years. Notwithstanding that Dr Hyde partially worked the ground, but not systematically, I am of opinion that with a powerfu? dredge such as the company purposes putting on the claim, it will pay fairly well. Thn other part of the claim, consisting of about 44 acres, is bank, adjoining tho New 'Alexandra on the left bank of the river, lo this part very, little Has been done to prove the richness of the ground. At the same time, it is assumed that the rich lead in the New Alexandra runs through the bank part of tho claim. Possibly it may; but it remains for the Dunstan Lead Company to demonstrate its existence. My own opinion is that the ground will pay equally as well as the river part.

The Vincent Extended, a borrowed name, lies half a mile above the Clyde bridge, and extends one mile upwards. This is the claim on which the Victoria, nearly two years ago, was unsuccessful in obtaining payable gold. Now the fact of the dredge not getting on to payable wash was more the fault of the dredge than that of the claim. The Victoria <^nld not bottom in the centre of the river*

nor, when she came across hard wash, could she break through it. The nature of the wash as well as the conformation of the river bed in this claim call for a powerful dredge having a long ladder. Rich leads of gold are known to exist in the claim, and in the early days many men acquired a competency working on the river banks adjoining the claim. The Golden Beach dredge, after a thorough overhaul, resumed work last Friday week, su:d washed up on Saturday 420z. The dredge, I hear, is working very satisfactorily. The Moa, owing to running drift, has not yet put up a big record this winter, but as the liver is going down quickly she should improve soon. For last week she washed up 19oz. The Molyneux Hydraulic has come on improving wash, and better returns may now be looked for from this dredge. For last week the manager reports a return of 20oz. The Golden Point is working very steadily, and put up a return of 28oz for the week. The Matau continues to give a steady return, washing up for the week 58oz.

The Unity, I hear, is doing well. The Vincent has evidently got through the Spooned ground, and with a falling river and no drift she should put up her 60oz a week easily. For last week the manager reports a return of 450z.

The Chatto Creek dredge now works very well, is gradually working into rich wash. The week's wash up resulted in 30oz.

The Nil Desperandum has been registered as a public company, so that now investors can, if they pay enough for shares, secure a jpart in a notable claim. The manager reports a return for last week of 41oz.

The Galtee More has not yet become fatnous, but may do so by-and-bye. Her return tor last week was- soz.