WAIOMO SULPHIDE CORPORATION.

Auckland Star, Volume LXI, Issue 309, 31 December 1930, Page 6

WAIOMO SULPHIDE CORPORATION.

The reply of the managing director is not an answer' to my criticism showing a less of 16/lf per ton on the 1774 tons of crude ore treated. Either my figures were true .or false. We assume the accounts certified by a reputable firm of auditors to be correct. "Erroneous principles"—the proverbial red herring— is not a denial that the ore treated resulted in a lose of £1432 11/6, in comparison with £10,378 4/9 expended in mine development; comment is unnecessary. To depreciate an. industry which has '"'employed thirty-five men regularly since April last" was not my intention, but an industry needing additional capital, which, the public is asked to find, has to obtain, and retain confidence to live. A year ago the shares of a mine in Ohinemuri were fetching 10/; when the crushing returns were published the shares became waste paper. The expenditure, however, had exceeded £120,000. To avoid the repetition of a similar disaster is sufficient justification for these comments. I prefer to accept Dr. Bell's and Mr. Colin Fraser's summing up of the Ifonowai section as a low-grade proposition to 3lr. McCoy's inference that the ore is worth £3 10/ per ton. Assuming a tonnage (not stated) assaying that figure it would give a profit of 2/10 per ton with 90 per cent extraction, i.e., £2 5/2 mining and preparing for shipment, plus 7/6 haulage. 7/6 extra handling, etc., and 7/ extraction loss. In the heyday of the Monowai Company the manager claimed an extraction of 85 per cent. oil flotation; according to Mr. McCoy, only saves "8S to 90 per cent" of the values. The Ferguson Smelter Company expended over £10.000 on the Monowai; it broke them. Metals, Ltd., 4ts« bursed a large sum in opening up and cleaning the levels (they did no development) to enable Mr. Stansfield to examine and report. He advocated an expenditure of £15,000 to reach the objective ore body (value unsnosvn). Dissatisfied with this reply, they engaged two certificated mining engineers to further investigate: practically their reports were negative, for substantially" they agreed with Mr. Stansfield that a large expenditure was ne:cssary before an ore bodv would be located. ZEEHAN.