MINES STATEMENT.

Auckland Star, Volume XXVIII, Issue 226, 29 September 1897, Page 8

MINES STATEMENT.

PKOGKESS OF THE GOLDFIELDS.

A HOPEFUL OUTLET

(By Telegraph—Own Correspondent.)

Wellington, This Day.

The annual statement' by the Hon. 'A. J. Cadman, Minister of Mines, was laid on the table of the House to-day. The Minister says : —

"It is my pleasing duty to announce that the progress consequent on the impetus given to gold-mining during the year 1895-96 still continues. The demand lor a field for investment has resulted in a large number of claims being occupied, and in many cases mining properties have been acquired by agents representing well known English and Continental investors. A great addition to the number of mining companies has been made, and on their behalf extensive mining operations are carried on to open up the older as well as the newer mines by the sinking of shafts, driving" long tunnels or adits, and the construction of water races for the development both of quartz mines and alluvial workings. In the , prosecution of these works new and improved machinery —some being on a very large sca le__has been introduced for winding, pumping, milling, ventilation, etc., in quart.*; mines; also for dredging, elevating, cement crushing, and hydraulic sluicing in alluvial drift and river bed workings. The expenditure ■upon works of this kind had hitherto been beyond the resources of many of the New Zealand mining companies, and it is only since the investment of outside capital has been directed to the colony that these necessary works could be undertaken. Prospecting work in search of reefs containing gold and silver has been vigorously carried on throughout the Auckland district, especially in the dense and hitherto unexplored and almost inaccessible bush localities. Numerous new lines of reefs have been discovered, and hundreds of men are already engaged in exploration works to-open up the lodes. Samples of quartz tests, which in* many instances have given very encouraging results, tend to show that many of these newly-discovered reefs are valuable. In the Middle Island goldfields prospecting for reefs is pursued with favourable results. The alluvial drifts containing gold are being further tested, and river claims have been taken up in localities that were not previously deemed suitable for working by means of dredges. Although the tables and returns attached to the Statement have, as usual, been compiled to the 31st of March last, I have, however, owing to the late period of the ordinary meeting of Parliament this year, endeavoured as far as possible to furnish the latest information procurable as to the position of the mining industry at the present time. It will accordingly be found that tne results to be obtained from the returns are in some instances supplemented by more'recent information in the StatementM?NEßAL PRODUCTION. The quantity of gold, silver, coal, and other minerals, including kauri sxim, produced for the year ending] the mt December last yvill be found

■ — in Table 1., annexed. The total production of gold nnd silver was 358,001 ounces, representing- a value of • £1,052,017, compared with a value of £1,172,843 for the pdeeeding year. This shows.a,decrease of £120,826. Of other minerals, 'including coal, 800,205 tons were produced, representing a value of £ 862,224, as against 734,693" tons, of a value of £ 826.045, for the previous year. The production *■ $- kauri gum .was 7126 tons, valued at j £431,323, as compared with 7425 tons, ; valued at £418,766 for 1895. The quantities and values of the i chief mineral productions for the ! .year ending 31st December last were | as follow:-— j Product. Quantity. Value. ' Gold 263,694 oz. 1,0.1.-2. ! Silver 9-1,307 ~ 10,589 j Antimony Ore .. .. '. '.J. tons -150' Manganese Ore .. '■**.. 205: 'Mixed Minerals .. 1 ( 33d j Colonial coal exported, ; including ■ that used I by Home steamers .*...'• . 71,984 Coke exported .. .. l*.i 263 Colonial coal consumed ! in New Zealand .. 713, __7 ~ 356.884] Kauri Gum .. .. 7,136 ~ 431,323 Total value of production for 18.05 1,998,891 Total value of production for 1596 1,914,241 Total decrease.. £84.650 The total value of the gold, silver, coal and other minerals, includingkauri gum, exported up to the end of 1896 was £66,759,531. GOLD-MINING. The decrease in the yield of gold during* last' year may.be accounted for in several ways, and is not altogether due to the scarcity of the precious metal. As, for example, the increased demand for mining properties by English companies and the I consequent change of ownership of: many of the gold-producing' mines,; tog-either with an alteration of policy, in preparing for extensive exploring; operations, with the object of the j more efficient, working of the mines I

in the future, led to a contraction | in the quantity of the ore mined, j Many crushing-plants were thus left* comparatively idle, not for want ofj material to operate upon, but because it was deemed more advisable to let the. ore remain in the ground until improvements in gold-saving* appliances were effected than to continue mininp- and milling* on the hand-to-mouth principle of the past. This applies both to the Hauraki district! and lo Reefton, which is the chief I centre of quartz-mining on the West j Coast goldfields. The. alluvial fields! of the West Coast and Otago also', shoAV a decrease in the yield, chiefly j owing to the scarcity of water. A | satisfactory yield of gold will, 1 have; no doubt, however, be maintained in! the near future when the new quart/.-j .crushing mills now in course ofj erection are completed and kept fully employed. ! Many of the claims taken up are now in the hands of persons who have given evidence of their desire to develop the areas by the expenditure of large amounts upon new: works, but there are many claims and water-rights held by persons who | have failed to show what work they | intend to do, and who are evidently j not prepared to comply with the j conditions under which they hold j their properties. The certainty of tenure depends in a large measure | on the holders of rights themselves J due protection being given to all who: carry on work in a bona.tide manner, whilst those who neither comply with the conditions nor take steps to obtain protection are liable to have! their titles assailed at any moment. It is the policy of the Government to aid. in every way by giving security of title and other advantages to those who are developing the mining resources of the colony, but the holding of claims and other mining rights for merely speculative purposes will not be permitted. The quantity of gold entered for exportation through the Customs for the year ending 31st March last, was 256,913 oz., representing a value of £1,015,741 ; while the quantity exported for the same period of the pre-; ceeding year was 302,090 oz., valued at £ -,'196,081. This shows a decrease of 45,777 oz. Of the quantity expor-i ted Auckland contributed 93,876 oz., , Marlborough 759 oz., Nelson and West Coast 74,082 oz., and Otago 88,166 oz. QUARTZ-WORKINGS. This important branch of the gold : mining industry continues to make rapid and advanced strides, notwith- : standing that the yield shows a slight decrease compared with 1895-96. this '' decrease has been in the most part, from the mines in the North Island ; and at Keefton, the cause of which has already been pointed out. During last year 113,731 tons of quartz and tailings were treated in the Auckland district, yielding 198,547 oz. bullion, representing an estimated value of £354,256, as against bullion to the value of £378.107 for the former year, being a decrease of £23,851. In Nelson and the West Coast 15,369 tons of quartz were crushed on a return of 10,217 oz. of gold, valued approximately at £40,900. In the future treatment of quartz for the extraction of gold the new plants erected on the different fields will be in a marked degree superior to those formerly in use. The. adoption of labour saving appliances, stonebreakers, elevators, and self-act-ing feeders for the mills, the concentration of tailings and slimes, and improvements in the methods ox dealing with the pyritous matter will be the means of reducing the cost of extracting the gold and silver from the ore.

The cyanide process, which is already used with success, is being made the subject of exhaustive experiments with a view to improvements in the methods of percolation, filtration, etc. In the Hauraki district 77.7 per cent, of the quantity of gold and bullion produced was won by this process. The quality of the bullion extracted by the cyanide process was, however, of a lower grade than that obtained by amalgamation, the proportion of the value of the former being only 64 per cent. From the increase in the number of plants in which the Cassel Company's patent will be used which are already erected and in course of construction it is evident that this method of gold saving will be even more extensively used in the future. In view of present importance and the continuance of future great benefit; arising from the use. of the cyanide process, which is eminently suitable for the extraction of gold from a large proportion of the quartz found in New Zealand, it has been decided, subject to the approval of the Legislature, to acquire by purchase the existing patent - rights within the colony for the use of cyanide in the extraction of gold and silver. COROMANDEL COUNTY. The Hauraki mine continues to produce the richest quartz in this locality. The other mines—namely, the Scotty's, Kapanga, Success, Hauraki North, Tokatea and Royal Oak—have produced payable quartz, but the returns were limited,

the operations carried on being chiefly towards development, and not in workingout the reefs. The Kapanga shaft, which is the' deepest in the colony, has been sunk to a depth of 1,000 feet. and boring operations have been again resorted to, with a view of further deepening the shaft. The Scotty's shaft is being; continued, and has now reached a depth of 3*25 feet. Other shafts are also _ being put down in this portion of the district; while at Kauri Block, especially where three years ago the probability of mining activityappeared very remote, no less than fifteen engine-shafts may now.be seen, in all of winch mines vigorous operations ' are being- carried on ; and hopes are entertained that the Hauraki reef will be traced through the ground, adjacent to that now famous mine. The low levels atTokatea are also being further worked, and a shaft is now sunk 100 ft below the adit-level. At Kuaotunu the i work of development in the Try Fluke and j Kapai-Vermont Mines is steadily progresj ing, and throughout the 'Kauri Company's I laud a good deal of prospecting work is being carried on. In this district 18,748 tons' of quartz and 100 tons of tailings were treated during the year, yielding 35,5460/; and 40oz of gold respectively, representing a value of ii J 00,911. The number of miners in this district was 1,329, of which 750 were employed, in connection with the 'old-producing mines. Dividends: The Hauraki Goldmining | Company, since the date of registration on the sth" December, 1894, sold gold to the value of £220,866, and paid dividends up to date amounting to £136,000. . THAMES. This portion of the district, where the rich ore-deposits yielded such marvellous returns in the past, is now receiving the attention of English companies, and the j low levels are about to be again opened up. ! The Wjueen of Beauty, and Deep Sinker 1 shafts are heing sunk in the southern end io. the field, whilst the Moanataiari and ■ Kurauui-Caledonian mines shafts are being , sunk and working extended to develop | the low levels afc'the northern end. To j the eastward the Adelaide and New Al- ; l bumia shaft*-; are heing sunk to test the : ! reefs at greater depths, and the Moana- ! taiari low tunnel is also being extended. lln the other parts of the district low-level tunnel.-, are being driven to prospect ground lately taken up, as well as in the older claims where reefs were formerly worked, with very profitable results. During the past year 15,601 tons of quartz were crushed, yielding 10,8290z of I gold, and 1.1,367 tons of tailings yielded j 2,6120.: of gold, representing an estimated ! value of £..i,254. The 'number of miners lin this district was 1,527, of which 572 ; were employed in the gold - producing I mines. Dividends: The Waiotahi mine during* ' the year paid i 2,250 in dividends, and j since the incorporation a total of £34,500 ! has been paid in dividends by the ComI pany. | OHINEMURI COUNTY. | The returns from the mines that have ; given continuous yields are again most satisfactory. A vast amount of work has been carried on in the Waihi district by the Waihi, Union, Waihi-Silverton, Waihi Consolidated, and other mining companies jin the development of their reefs. In the I Waitekauri district, and also at Komata, i Mnratoto, Wharekeraupunga, Owharoa, j and Karangahake, important reefs are j being explored and additional milling | machinery erected, which are evidence that I the yields will be largely augmented in the j near future.

During the past year 64.463 tons of quart/, and 2,52*2 ton's of tailings yielded by amalgamation .Jloz, and by cyanide 148,5350z of bullion, making a total of 148,62G0*. of bullion, representing a value of £'218,068, which is equal to about €1 9s 4d per ounce, as against l-_7,5000z of bullion, valued at J. .74,355 -equal to £1 3s 7d per ounce—for the previous year. Dnrinc the year the number of miners in j this district'was 1,820, of which 1,018 were ! employed in the gold-producing mines, compared with 1,720 for last year. | Waihi Coldniining Company : During | the four weeks ending the 24th July the ; Waihi (.oldmining Company crushed and '■ treated 3,120 tons of ore, for bullion valued ! at. £11,665, the average heing £3 lis '){_. The present return shows enhanced va.ue \of the ore on that of last month, when ! 3.240 lons gave £11,823. the average being 13 12s lid per ton. That in its turn was also an advance on the month before, when £11,297 in value was extracted from 3,294 tons, the average being £3 Ss 7d per Lou. I The grand total won from the mine, corrected to date from the figures absolutely realised in London, now reaches £571 "040. Bullion Won T. its. ,-G s. fl. In i.<-<jf) 21,112 13 fi In HOI 23,935 .*> 11 In IS!)*. 18,231> 41,-SSJ. 2 1 Im i*.'*;-. ii).sn.*j (il.fioo in ii In 1891 '-'LSI*I 82.827 2 2 In 1593 33.070 121),:.;.. 2 2 111 18'Hj 31,100 137,321 S 2 Period ending fith Kcb- ! ruary, 1897 4,110 11,010 11 1 I Four weeks ending 6th j March, 1897 3,120 10,585 7 4 ■ Four weeks ending 3rd ■ April, 1897 3,150 10,033 2 0 i Four weeks ending Ist ! May, 1897 3,000 9,393 If. 5 Four weeks ending 29th May, 1897 3,291 11.297 0 0 j Four weeks ending 2(jth ! June, 1897 3,210 11.823 0 0 i Four weeks ending 21th ! .Inly, 1897 3,120 11,668 0 0 Four' weeks ending 21st August, 1897 .. .. 3,120 11,757 110 £582,797 6 10 The number of dividends paid since the inception of the company was seventeen, amounting to £2*28,500. Waitekauri (..oldmining Company : Dividends amounting to £21,450 have been paid from this mine. Crown .Mines (..oldmining Company : A dividend of Is per share on 200,000 shares, or £10,000, has been recently paid by this company. PIAKO COUNTY. This district is again receiving a considerable amount of attention. Prospecting works are being carried on at Waiorongomai, where the New Zealand Exploration Company is engaged in driving an expensive tunnel for the development of the reefs. This tunnel, when completed, will be upwards of two miles in length. In the vicinity of To Aroha township the owners of the Montezuma and Mount Morgan claims are introducing the therino-liyperphoric treatment of quartz, a new process, for which the highest results are claimed in dealing with complex and refractory ores. The Key, J. Campbell has the conduct of operations, and the necessary plant is heing erected under his supervision on a suitable site near the township. At the Tui district the Champion Company is again engaged in taking out quartz from their mine. The quantity of quartz crushed and treated during the past year was 934 tons, yielding 3,7030z of low-priced bullion, representing a total value of £986. During the year one hundred men were employed on this field.