WARNING NOTE.

Auckland Star, Volume LXIII, Issue 260, 2 November 1932, Page 5

WARNING NOTE.

NEW MINING COMPANIES. « MERE SPECTJXATION » UNDESIRABLE. REAR'S RESULTS REVIEWED. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. A note of warning as to the need for care before mining companies are formed is 6ounded in the Mines Statement, presented to Parliament yesterday by the Minister of Mines, Mr. Macmillan.

The Minister states that the estimated quantity of gold produced during the year increased from 120,931 ounces, valued at £499,744, in 1930, to 129,861 ounces, valued at £627,451 in 1931. The bullion, consisting of gold and silver, produced during 1931, decreased in quantity by 74,924 ounces, but the value showed an increase of £106,211, as compared with the previous year. The decrease in bullion, production was due to the fact that the quantity of silver produced was 83,854 ounces less than for the. previous year. The report anticipated an increased output this year.

"It is difficult to separate the speculative element from mining," stated the Minister, "but I feel confident that if greater care and judgment were exercised in the prospecting and development of mining properties to ascertain reliably their value before undertaking the formation of companies to work them, the industry would 'become more of an investment than a mere speculation. It cannot foe too strongly emphasised that before companies, are. promoted and money is subscribed in large amounts to develop mining areas and provide plants for the treatment of gold, the areas should be thoroughly, systematically, efficiently and reliably tested. From a perusal of several of the prospectuses issued during recent months it is manifest. that practically no testing at all was carried out*

The amount of goldfields revenue received by local bodies during the year was £12,010, and the amount paid to native and European, owners and special endowments was £194. During the same period £11,015 was received by way of duty on gold exported.