NEW DREDGING VENTURE.

Auckland Star, Volume LXX, Issue 189, 12 August 1939, Page 4

NEW DREDGING VENTURE.

MIKONUI GOLD DREDGING (N.Z.), LTD., GOES TO ALLOTMENT. The investing public will be interested to learn that Mikonui Gold Dredging (X.Z.), Ltd., has gone to allotment. In recent years the attractive and profitable nature of gold dredging operations on the West Coast has been demonstrated to the public in no uncertain manner. The American-owned Rinui dredge in particular has recovered gold exceeding £1,000.000 in value on the current price of the precious metal, while small wooden dredges such as Argo and Xemona have already, in a comparatively short period, returned to fortunate shareholders total dividends exceeding 100 per cent on the nominal capital. Since commencing operations in December of last year, both the American controlled Grey River dredge and the! Australian controlled Kanieri ilredge have provided further concrete evidence that the industrial development of the gold dredging industry in Xew Zealand by means of modern excavating equipment warrants the serious attention of the investing public.

The Orey River dredge ha* proved conclusively that a correctly designed allsteel, capacity gold dredge is capable of consistently treating a thruput of 4,000,000^ cubic yards per annum at the rate of 700 yards per hour, under New Zealand conditions.

This fact is of great importance and it ir to note that Mr. Paul >. J arker. of New York, who designed both the Rirau and Grev River dredges is now engaged on the design of 'the* -Mikonui dredge, which will be the heaviest and most powerful gold dredge erected in New Zealand.

Ihe comprehensive economic schedule published in the Mikonui prospectus discloses that whilst the total selected yardage i« 70,000,000 cubic- vards. an unusually high prade zone exists containing 41,000,000 cubic yards valued at - S^ alns . i.e., 14d per cubic yard. This zone represents the first nine jears life of the Mikonui dredge, and based on the thruput rate established . V, r P y , . lver tlle dredge, while operating m this high-grade area, should effect an annual yield approximating £262,.>00. Allowing for the deduction of pold tax and with operating and administrative costs based 011 the actual results of the big dredges already referred to, this yield is equal'to a return sliprhtlv in excess of 50 per cent of the share capital of the company.

The i eports published in the prospectus ui>clo>c that tlie Mikonui area, has been intensively drilled by X.Z. Prospectus and Mining, Ltd., who have had manv years of experience in testing <To]dbearing alluvial deposits. The sponsors of the venture are well known in New Zealand and Australia, having scoutdrilled the Kanieri and Arahura areas as well as completely drilling the Xgahere area on which the erection of a powerful modern dredge is now nearing completion. Administration of the Mikonui company s affairs will be in competent hands and both speed in bringing the d red ere Production and economy and efficiency in subsequent administration can be relied on. Application will be made for the listing of the Mikonui Gold Dredging (X.Z.L ?'tcl.,_ shares on the Stock Exchange both in New Zealand and Australia.' It is considered that t lie genuine investor should find these shares attractive both on the score of capital appreciation over' a pei iod and for consistent income at a later stage. Ihe position of gold in the economic structure appears to be firmly established, while the metal itself is admitted bv world authorities to be the only commodity the future price of which can be predicted with certainty. On the clearly established facts now demonstrated by many sources-—Bulolo. South America, California. Russia and Xeu- Zealand—mechanised industrial mining in the form of bucket dredging is not only a fool-proof but a highly profitable method of extracting = the metal.— (Advt) °