GOLD VENTURE IN OTAGO

Press, Volume LXXXIX, Issue 26943, 20 January 1953, Page 6

GOLD VENTURE IN OTAGO

WEIR TO BE ERECTED ON SHOTOVER RIVER AMERICAN INTEREST IN SCHEME The first step will be taken soon in a scheme to lower the levels of two Otago rivers, the Shotover and the Kawarati, so that virgin banks and beds may be explored for gold. A 35ft weir of multiple arch buttress design will be built on the Shotoyer river at Big Beach, about five miles from the confluence of the Shotover and Kawarau rivers. A member of the Shotover Goldmining Syndicate Mr W. A. Dunstan, said yesterday that the completion of initial payments yesterday would make available finance to cover the erection of the weir at Big Beach, which was estimated to cost about £lB,OOO. This weir will make possible the lowering of the level of the water in the lower reaches of the Shotover and in the Kawarau from the confluence with the Shotover as far as Cromwell. The syndicate is negotiating with Mr H. A. McQuilkin, who recently comSleted a concrete-lined tunnel more ian a mile long through the Ardmore Hills to supplement Auckland’* water supply. He is now available to l>egin work at the. Big Beach gorge. The weir will probably be completed by about August. Before work begins on the weir itself it is proposed to drive a 230 ft long diversion tunnel. Within a few months it is hoped to begin the second phase of the scheme. That is the erection of a similar, though larger weir, costing about £30,000, on the Shotover at The Branches, about 25 miles up from the confluence of the river with the Kawarau. This weir will allow the level of the water In a further 22 miles of the Shotover to be lowered. Negotiations are now in progress to utilise the water impounded by the Big Beach weir to generate electricity. It is expected that the return from electricity generation alone would make the scheme profitable. Interest is being shown in the scheme overseas, and representatives of American mining interests have approached the syndicate, to ascertain whether they would be interested in an offer of 150,000 dollars and 10 per cent of profits for the syndicate’s rights. The offer has been declined by the syndicate, which is confident that the scheme has great possibilities. Christchurch men are prominent members of the syndicate, and the main share of the finance for the project is coming from Canterbury, though other parts of New Zealand are also represented.