MINING ACTIVITY DANGERS.

Press, Volume LXIX, Issue 20915, 24 July 1933, Page 7

MINING ACTIVITY DANGERS.

TO lIIK EDITUIt OP I TUB TRESS. Sir,—At the risk of being considered a wet blanket, I would like to make a few observations on the dangers that attend milling booms. The recent f'uvj discoveries on Cromwell Flat are in every way likely to be beneficial to the country generally if they are developed in a proper manner and on gtrictly business lines. If, however, this is not done, and a boom is started, they will become a financial loss to the community, and may possibly prevent future legitimate mining ventures from being afforded a chance. Speaking at the last mining conference in Dunedin in 1926, as Minister for Mines, I ventured the opinion that there was no reason why gold mining should not. be carried on under ordinary business methods. Had this been done during the dredging years from the middle 'nineties till, say, 1905, much money would have been saved to shareholders and many "wild cats" •would never have been born. There is no reason why practically every alluvial gold mine should not be thoroughly tested by boring, shafting, or tunnelling before it is placed on the market for the subscription of capital for development. The most successful dry-land dredging ventures in New Zealand were well bored before the general public was asked to provide capital. This was done at Bimu Flat and at Okarito, and these dredges have been stiecessiul. In each of these cases the boring tests have been amply justified by the work oi the dredges and the returns therefrom in gold. The King Solomon's mine at in Southland, is a case where a mine, to be worked on much the same method as that likely to be adopted at Cromwell, was proved by boring before capital was asked to develop it. I may bo wrong, but. I do not think that any boring has been done at Cromwell Flat. I understand that geophysical tests have been made, but perhaps I am too old-fashioned to accept these tests without the more practical, and proved, boring tests as •well. Several short tunnels have been driven into the flat from the river banks, but no such thing as systematic proving has been done, so far as I am aware. This should certainly be done before any attempt is made to float companies to which the general public is asked to subscribe, especially if these companies are well loaded with promoters and other non-contributing shares. No business of any other kind than mining could be floated into a company unless it were well certified for. If after boring, shafting, or tunnelling, the flat is proved to be richly auriferous, and the gold can be won so economically that it will furnish profits large enough to provide not only fair dividends, but also reserves to repay the capital invested, then there would be no feature of gambling in the ventures. The prospecting would prove not only whether there was gold sufficient to provide against loss of capital, but would also enable the mining engineers accurately to calculate the cost of winning the gold. Cromwell Flat is largely composed of shingle, gravel, and sand, which is not usually the best holding ground. I shall be much surprised if every foot of the shafts and tunnels has not to be closely timbered. There is no timber growing near Cromwell. It will all have to be railed or carted from South Otago, Southland, or the Lakes district. These are, of course, matters for the mining engineers, but in order that there shall be accuracy in the recommendations of these gentlemen, the country should be thoroughly tested as I suggest. I would, therefore, point out to those who desire to help the development of this field that it would be wise if

they insist upon thorough and reliable piospecting. There scarcely ever is a > ' ( tC / > u <^C r i c h gold-bearing wash at, the bottom of such deposits as that on Cromwell Flat, although there may be a little gold all through the gravelly overburden. At St. Bathans there is a rich deposit of gold-bearing wash under a heavy overburden of quartz dritt.| It was found by the company u r l - 1 vvas f° rrr >ed to work this by shafting that such method failed owing' to running ground being met with. Before, therefore, there are any companies floated, with large capital, especially if there is much watered slock in the form of non-contributing shares, thorough investigation should be made as to the best methods of working the deposits on Cromwell Flat

Worked nn business lines, and file minimum of speculative operations, there should be a profitable future before the field, with satisfactorily payable returns. But this can only be assured to the investor by thorough prosoecting and proving by honest and capable men.—Yours, etc., G. JAS. ANDERSON. Eastbourne, July 20, ISJ33.