Mining

Cromwell Argus, Volume LXIII, Issue 3251, 20 February 1933, Page 5

Mining

Quite the outstanding topic in mining circles during the week was reports of sales of interests in some of the properties in the vicinity of Bet. and Kilgour’s and Bell and claims at Kawarau Gorge. Mort* than one small interest in a property there is said to have been disposed of at a cash price given at four figures tor each interest, but nothing firsthand on the price is known. Dame rumour passes it on as reliable. Another interest of a similar nature is said to be under offer at considerably over four figures. It is quite evident that there is still nothimJMjiko a mming boom to attract dormant capital, and the only hope is that tiio investors will receive an ample reward tor their outlay. Quite a little canvas-town in springing up in the vicinity of Deadman’s Point. On the river, above and below the footbridge, several parties are at work, in most casqs tunnelling into the flat. Some a"o going in at a very low level, close to the water-line, and are certainly taking a risk. At the moment the river is nob high, and while wo are lar from inclihed to he pessimistic, after such a long spell of dry weather,, and the absence of rain, it will be quite unusual tor this district if heavy rain and flooded rivers do not follow before many weeks are past.

It is invariably the case that when a rich find is reported in any district, areas in the locality far removed from, the actual find come into prominence.

The present is no exception. 'here is a good deal of activity on Bendigo rlat at the outlet of the creek, where boring- has been going- on for some time. There was an impression that a lead being operated on j extended down the course of the creek to the river. Others have worked it out that a lead probably extends from near the mouth of the Hindis through the flat towards Bend’go. on the eafet. side of the road towards the lull, and ns a result have pegged out an area of some 600 acres on the supposed line. Two prospectors fiom Alexandra haver commenced work putting d.v.vi a shaft on a freehold property at Kawarau Gorge, umQr the foot of the terrace which extmds round towards the cemetery. It is several hundred yards back from the property of Bell and Hooper. Work is still proceeding on the Sarita Development Company’s block, near what s known as ‘Rowes,” and directly bcl ind the two ri h tunnels The met hoi of prospecting this s by sinking shafts The prospectus of the New Bendigo Gold-Mining Company is being circulated in this district. The company is being formed to continue the tunnel in the old Cromwell mm© situated at Bendigo, about twelve miles from here up the Clutha Valley. The tunnel has already been driven for 640 feet and Professor Park, who recently reported on the mine states that by continuing the tunnel for another eight hundred ieet the blocks of sulphide ore left m the old mine should be reached. Assays of this sulphide ore gave values ,of from £\\ 5« to £l7 per ton. ‘ m ore could not be treated in former years' but Professor Park says in his report that there is now, with modern methods, no difficulty in extracting the gold contents. In conversation one of the old miners who worked in the mine many years ago stated that there must be hundreds of thousands of tons of sulphide ore in the mine. They were unable to extract the gold content under thoi old methods. He expressed the opinion that the completion of the tunnel would open up one ot the richest quartz minss in the Dominion. It will be a grerf't day fori Cromwell and the district when this mine is once again in full working. \\© are m a position to state that the shares ha*e met with a keen demand m the atj and lists may close any day. I hoso desirous of subscribing should act at OD, lTie latest interesting information regarding the Sarita Development Company is that it is a company £ISOO capital, the shareholders being Mr P. R- Sargood 750 shares, and Mi Macpherson 750 shares. Its °bjec s are to acquire by purchase or otherwise, plots 37 to 43. inclusive, Santa sub-section and sections io7> 1221, • Block I, Cromwell District now owned bv Cromwell Development Co, Ltd., to cultivate, stock, farm, and manage the said lands and general incidental. The Sarita Development Company has a small party of men engaged sinking shafts on its property near the back boundary of Bell and Hooper’s original claim. The ground near the surface is loose and slow prog-iop.-. has been made. Camps continue to spring up along the banks of the Kawarau between Kawarau Gorge and \\aitin. Between the Roaring Meg and the (Gentle Annie some 20 parties of miners are at work. , In a "-Muerd sense, 00© ©1 the mos., acceptable re ts in mining circles week was that the upp'wat mi. b\ tin Kawarau Ccmpanv Kr a second dam site near Kawarau bridge had Pom before the Wardens bmn- at Quot-n»-i .town and the applicant reco.nmeml.ed to die M.n:ister lor .on-oiu. A conference between me and the several obiectors resulted m an agreemeue being ir.-ivi'i ft. 1!| -- Uelav ot a few molds through a technical obiection was annoy mg b i t .it is some consolation to vll< m '• the first step towards the iuithei < velopme.it of the famous Kawarau I V , S been successfully negotiated. In J o eurlv stages of the Kawarau scheme' local investors poured their SjS into the venture firm ... the belief that if the stream could be s 1 - hcientlv de-wutered it would eMi.tuprove one of the richest rivers m the world. What happened is past history. if unpleasant, and the local public* were disapj but not dismayed. Ih© ll <on'c - „f the wealth of gold winch lies u (u*d ot the stream never wave c l an .•vents of the last two yeais only -Vycd to confirm that optimismrons as to the extent to wfm h : ! : ftl kr would be reduced h . dam 1 .roved wide ot hKawarau K . proposals to stem the mark, and , a „d Arrow with H«w ot the Tlot , , IC into additional- clanm . dam ' <lid Hs ■effect Jhe . j frpm the two work but the dis h.t Vu .\ c _ rivers mentioned "a. . Nevertheless the water vvm> ‘" . v reduced during lavorabk « h l f ‘K'vo ho red"-. <0 quality and a —*

dam such an that now aimed at should have the desired result. In addition to controlling the flow of the Shotover and Arrow and other small feeders,

i it will also hold back any seepage from | the lake structure, and this, in our | opinion, is far short of whit is sometimes estimated. Results of operation s last winter wore something*, in the nature of a triumph' for those who have an unswerving faith in the richness of the river. Of several parties operations no definite figures are available. One party set in on a sec tion of river when the darn was closed and remained there during the full period of the closing. Four figures in 'atuc was mentioned as ihe result of their labors. Two other parties were reliably credited with yields til 100 ozs and 50 ozs for a few weeks’ work, and gold to the value of won bjy three Cromwell residents in three days was openly on view in a shop window. Other big parcels for short periods were similarly displayed. Such results cannot he denied. To those who have a knowledge of mining and the river generally these figures leave no doubt on what the bi d of the river still holds. We think we are sale in asserting that in the narrow gorges the miners have in no instance reached a point within at least 25 feet of the bottom. Likened as it is to a vast tail-race traversing a water-shed which according to the Mines Department’s records las ! produced £21,000,000 worth of gold, one does not need to bs an optimist to visualise the wealth, which, on sound linos of argument, must lay in that stretch of natural tail-race, worked down during the course of years Irom te rich alluvial, deposits! which exist along its course. xVt ma.iv points along the river can bo fee t areas front melt the early pioneers won big | yields. Even to-day ugh terraces from 200 to 300 feet above the river which through a shoi tage of water were not disturbed by the pioneers, are proving highly aur l Herons t > prospectors under the unemployed scheme. Coming back to last winter’s figures the aggregate won can, m value, certainly be spoken of in thousands, and in all cases was rocc*.c#:‘d with practically no plant. In suite cases it simply was, to use a c mutton expression, merely picking it up. If wo desired, we could continue at length in support of the general opinion as to the wealth whim the Kawarau still holds. It is gratifying to know that} the preliminaries towards ihe second dam have been disposed ol and anther developments in connection with the proposals are eag.-riv awaited. .'summarised we believe that if ihe erection of the second dam as sugl- - can be successfully accomplished, the gold product ion from the stream which will tedow v. ill astonish the Dominion. Tee controlling of any other feeders will ihen be a mere, detail.

Messrs If. Credgington an I T. Ritchie, two of the provisional directors of the new Kawarau Company, were in Cromwell last week, cn route to Queenstown for the sitting of the Warden’s Court, at which the application for tbs dam site was recommend-

ed. in) conversation with our representative Mr Cvedging: m said these at the head of affairs were keen to' “get going.” . Once the Ministers consent to the Warden s recommendation was forth:-.iitmg things would move along*. Penn incut directors would first have to ho appointed, while the details of finalising the company and the interests of subsidiary concerns would entail a lot of work. However, as far ns lay m their power there would be no delay-! Everything would be pushed ahead as expeditiously as possible, and at no distant date ho hoped to see a large body of men engaged on the site of the dam in the river.