Mining.

Dunstan Times, Issue 1974, 29 June 1900, Page 5

Mining.

The boiler foe the Vincent Extended dredge arrived at the claim on Friday last. Prospecting operations on the Rise and Shine are concluded, and the boring plant has been shifted to the upper claim, The result of these operations has been to show that the Upper Clutha valley contains auriferous deposits that do not lie in the present river bed. There are, we firmly believe, hundreds oP aces of land between Cromwell and Wanaka, formed of a gravel deposit from 30 to 40 feet deep and carrying e:o ld at from six to ten grains per yard, or about eight grains on an average, and in the ne ar future when Hartley and Riley returns are not looked for, this ground will be worked by alargo fleet of dredges and will yieldan immense quantity of gold, This is not prophesying at all but is simply stating a fact patent to all who know the country,— ' Argus.' We understand that the Springvale dredge has shut down. The New Alexandra is working very steadily this week, and it is reported that she has struck good wash. The river is gradually going down, and is now only 1 foot above normal. The Vincent dredge washed up 740z for the mid-week wash-up on Wednesday. The prospects are excellent. The Sixteen Mile pontoons are expected to be launched at the end of next week. Owing io the delay in the arrival of machinery the work of fitting up the Half Way House dredge has been considerably delayed. Dredging material is still coming to hand at the Lawrence Railway Station at a rate that the carriers taking it up country are simply unable to cope with, and the consequence i is that the station yard is stacked from end to end with timber and machinery for the different dredges iu cause of construction. Several new teams have lately been put on the road, but the assistance of these has msde no appreciable difference. —' Tuepeka Times.' It is currently reported that the Woolshed No. 2 dredge, working at Waikaka, has gone into liquidation. This is the dredge which some interested parties reported obtained 9Soz. for a week's work. One nlember of the party is said to have sold his share his ahare (a sixteenth) for ±,200 immdiately before the meeting at which it was decided to cease operations.— ' Tuapeka Times.' The following is the report of the Monte Christo Dredging Company to be submited to the shareholders: —The Company was formed in May last year with a capital of 7000 Shares at £1 each, which was subsequently increased by a special resolution passed at a general meeting held on October 6, 1899, by the issue of 1000 extra shares. Out of this 1000 new issue shares, 957 we're offered to the shareholders at par value in accordance with the said special resolution, and 939 w.ere taken up. The remaining fil shares will be sold at market value, for the benefit of the Company. The machinery contract was let to the Clyde Engineering Company, of Sydney, at £2900, and the work is progressing satisfactorily. The contract for the pontoons was let to Jas. C. Ritchie, Esqr. of Gore, for £1,485. Considerable delay has occurred j in the construction of the pontoons, which delay, the contractor advises us, was occasioned by the difficulty of getting material transported from Dunedin to Central Otago. The timber is, however, all on the claim now, and work will be prosecuted as expeditiously as possible. Should the machinery come to hand, as early as the engineer anticpates, it is still possible the dredge may be in working order before the river rises. The ' Tuapeka Times ' understands it is the iutention of a number of the Lawrence shareholders in the Point d'Or Dredging Co,, a bank claim on the Molyneux River. (Clutha), near Cromwell, to take steps to have an extraordinary meeting of shareholders called for the purpose of considering the advisability of putting the company into liquidation,' This action is being taken as a result of the reports of several of the shareholders who have visited the claim. The Morning Star dredge, we are informed, has been shut down, owing to the frost. Jlr N. D. Parcell, the local broker, reports that the Roxburgh claim known as Macgregor's Freehold will shortly be placed on the market under the title of the King's Beach Company. The vendors intended bringing out the King's Reach some three months back, and Mr Parcell then booked applications for 1500 shares. He was, however, only able to secure 1000 shares. He now informs us that owing to the increased demand the Clyde quota has againbeen reduced one - half; Applicants are requested to confirm their orders immedi ately, A disagreement between the directors of the Waimumu Central and their manager lias resulted in the appointment of another dredgemaster. It appears (says the N,Z. Gold Dredging News) the directors wanted the fireman, in addition to looking after his engine and boiler, to keep the race clear. Mr Mailer who has great experience on dredges, pointed out the absurdity of asking a man to do the extra work, not only on account of the extra labour, but the danger to the man's health through exposure" after the heat in firing. In advocating that a man be appointed to look after the chute, he romted out that an extra two ounces would cover all the outlay, which would be more than saved by the extra amount of stuff put through, as there would be no stoppages to clear the boxes. In support of Mr Mailer a number of hands resigned, BANNOCKBURN. (FROM our own correspondent.) King frost has put his foot down, and mining is just at a standstill. Messrs Hancock and party are doing some dead work in the shape of extending their tail-race. This party washed up a short time ago, and netted something like lfiOoz. Now a six months' run, for two men (with say £GO worth of water) this yield must be considered not bad, and the Bannockburn not quite done yet. The Carrick Company finished washing up the other day, I haven't heard the result, when it is big we generally hear it. This Company's claim adjoins Hancock and Co., and they are trying hard to get on the same run, they have not struck it yet. CROMWELL. (FROM OUR OWN CORRESPONDENT.) The Maori dredge has been stopped for .some necessary repairs. She will probably be idle for a week. The Junction Electric No. 2 had the misfortune to break her shaft, which will necessitate a few days idleness. The work of erecting the machinery on the Richard's Beach is i>roceeding apace, most of the machinery having been fitted up. The Alpine, which sunk last week, is lying close to the bank on the opposite side of the river from the road, and is nearly submerged by water—only the head of the top tumbler showing. Shu is lyiflg

on a slope—the bows being considerably higher than the stern. I understand that it will not be a very difficult undertaking to raise the dredge, as she is close to the bank. Mr Kitto, manager of the Magnetic, is, I understand, going to superintend the work. The Electric No. 1 stopped work at the beginning of the week, owing to her ladder being disabled. The Hartley and Riley is, I hear, to be shifted to the lower end of her claim. NEVIS. (PROM OTTR OWN CORRESPONDENT.) The sinking of-the Ngapara No. 2 was not so serious an affair as was at first supposed, being only submerged for about fonr days, The engine was not under water at all. The Keep it Dark Co. are shut down, waiting the arrival of some machinery, which has to come from Auckland. This is unfortunate as it means 9 men out of employment during the months she hoped to prove her ground. ALEXANDRA. (FROM OUR OWN CORRESPONDENT.) Good progress is being made with the work of erecting the machinery on the Manuherikia dredge. The engine has been placed in position, and the screen and chute have been erected. The boiler is expected to-morrow. The contractor has started operations on the First Chance Company's pontoons. Three loads of timber for the Fraser Flat Company's pontoons arrived last Saturday. The work of erecting: the housing on the Olrlg is completed, but everything is frozen up. The Golden Beach stopped work last Monday, owing to the cracking of her top tumbler. I understand that it was caused by the severe frost. The Moa is being shifted to Frenchman's Point, as she was unable to bottom at Italian Bend. The Ngapara No. 1 is to be shifted to the lower end of her claim. She is at present cutting out into the river, and it is expected that she will get through to-morrow. DREDGING RETURNS. The following are the returns from tha dredges for the week ended June 23 :—• oz dwt grs Junction Electric No. 2, Cromwell 150 12 0 Vincent, Clyde 118 6 0 Junction Electric No 1 Crom. 70 9 0~ Golden Beach, Alexandra ... 62 16 0 Matau, Clyde 60 0 0 Perseverance, Alexandra 58 16 0 Unity, Clyde ... ... 41 10 0 Magnetic, Cromwell .« 39 0 0 Earnscleugh No 2, Alexandra 36 2 0 Maori, Lowburn ... 34 0 0 Cromwell, Cromwell ... 32 15 0 Empire, Waipori ... 29 12 12 Jutland Flat, Waipori ... 28 15 0 Hartley & Riley, Cromwell ... 26 11 0 Golden Gate, Island Block _ ' 26 9 0 Success, Waipori 26 8 20 Waimumu Central, Gore ... 23 0 0 Waimumu, Gore 21 0 0 Golden Treasure, Miller's Flat 19 14 0 Earnscleugh No 1, Alexandra 19 8 12 Lawrence, Tuapeka Flat ... 18 16 3 Inch Valley, Palmerston .- 18 0 0 Manorburn, Manuherikia ... 18 0 0 Tuapeka, Tuapeka Flat ... 12 5 0 Golden Point, Alexandra ... 12 0 0 Waimumu Extended, Gore 12 0 0 Otago, Miller's Flat ... 10 17 0 Chicago, Alexandra ... 10 15 18 Upper Waipori, Waipori ... 10 4 0 Charlton Creek, Gore .- 10 0 0 Chatto Creek .. ... 8 15 0 Nugget, Waikaka 6 18 0 Morning Star, Manuherikia 6 4 0 DIVIDENDS. The following dividends have been declared during the past week: — Matau Dredging Co., Is 6d per share. Golden Gate"Dredging Co., 6s per share. Golden Treasure Dredging Co., Is 6d per share, THE PRESENT POSITION OF THE DREDGING INDUSTRY. FROM AN INVESTOR'S POINT OF VIEW. [Contributed.] v; It must be now evident to the most obtuse that we have arrived at a period (not full stop) in the history of gold dredging, when investors must sail on a new tack, for the gentle trade winds which have prevailed so long on the Molyneux, are being succeeded by contrary gales, and it consequently requires skill to steer clear of dangers which may founder the struggling barque. Up till very lately any Tyro had only to embark, set sail and allw ent beautifully. A sunken shoal was struck the other day in the Marsden Lead, where nine enterprising gents—copying the worst tactics of Wall Street—got a squeeze on. You have already explained the nature of the squeeze. The'squeezed were so ungentlemanly as to squeal, although the same sort of thing is done very frequently in business circles, and is considered all in the game. There is nothing, however, not even originality, to recommend their action, but it is as well for the man at the helm to be aware of such possibilities. Where skill is now required is to gauge the true value of dredging properties, as there is no doubt a tendency to panic, and to Undervalue. This then is the wise man's chance. There are some cheap things already, but the opportunity may easily be lost by waiting until the tide is at its uttermost ebb. Now as to the cause ! The returns have been quite good enough. As an example, last Saturday's extra showed an average for 13 dredges of 50oz, or £2OO. These were the only returns available, and consequently were not selected. It is therefore obvious that there is a decided improvement rather than a falling off in the yields. Are the causes not: over-flotation, over-loading, overspeculation, increased cost of all machinery, cartage, repairs, high wages, and want of foreign capital ? These causes were bound to arise in an industry which developed so rapidly, affording instances where fortunes were easily and quickly made, and the same effects, under similar conditions, will again arise as long as human nature is human nature. The industry itself is being proved day by day, as the ground is developed, to be on a sound and lasting basis. Now what is the remedy ? Fortunately most of the evils will cure therriselves. Take the cost of machinery ! Already contracts have been let at cheaper rates in Sydney, Melbourne, and in many cases it has been found cheaper still to import from England and Germany —dredges are also being constructed in America. The repairs are costing in many instances double what they used to do, which is a serious drawback. Engineers are getting 5 per cent of the total cost and are making fortunes. The labor is paid as no oihur rnkung labor is paid in New Zealand or elsewhere, the consequence being that young educated men are offering from all parts lor dredging work, and many of

the older hands find it difficult to obtain billets. This must in time lead to a more moderate rate of remuneration aa the competition becomes keener. As soon as an industry begins to pay wages out of capital that industry is on the road to liquidation. Now that properties are coming down to their dividend paying values, or lower, these questions become of vital importance to the investor, for no longer can he unload at the nimble premium, but must wait patiently for the diwy, or sell at a sacrifice. It is very noble to be freehanded, and pay like a Lord, but how will the investor look at liquidation, when he finds that all hands have had a cut out of the capital, viz., high wages, salaries, prices, envolvments, loadings, engineers, secretary, foundries, directors and vendors, and have only left him the bone. These presents are for the investor, the speculator can look after himself. THE MARKET. Mr N. D. Parcell reports sales as under— Vincent—74s 6d Vincent Extended—49s, 4.8s Golden Chains—ss d New Alexandra—2Bs 9d Quotations — Vincent—Buyers 765, sellers 77s Vincent Extended—4Bs, sellers 49s New Alexandra—2Bs 6d, sellers 30s Cairnmuir— 13s 6d Monte Christo—l2s 6d Golden Links—l3s 6d Golden Points—26s, 27s ; ~.' , Electric Extended—los, sellers 12s