GOLD MINING IN OTAGO.

Evening Star, Issue 10401, 24 August 1897, Page 1

GOLD MINING IN OTAGO.

In the Mines Statement submitted to Parliament in the session of 1896, which covered the period of the financial year 1895-96, the Minister of Mines expressed great pleasure that the revival in gold mining which was evidenced during the previous year had continued, and showed no signs of abatement, the output of gold showing a very large and gratifying increase, which proved that the revival was based on very substantial grounds. Judging from returns already published and recent developments, Mr Cadman will have an even more satisfactory statement to make when Parliajjieat meets in regard gold mining, an industry which, we needly hardly say, is of the most vital importance to the Colony in the production of wealth, affording a remunerative field of steady employment and the promotion of settlement in the interior.. In 1895 and 1896 there was a large influx of foreign capital for the opening up and working of mines, principally in the North Island, but the distinguishing feature of the last twelve months has been the application of local capital to the working the auriferous river beds in the South, which have proved in places to he abnormally rich. Although as yet the workings have been limited, owing to the time necessarily occupied in providing the requisite appliances, the effect has been marked in the comparative returns for the several mining districts in the Colony for the half-years ended June 30, 1897, and June 30, 1896. During the latter period the quantity of gold raised in Auckland was 41,7280z; in Marlborough 4780z, in Nelson 1,885pz, West Coast 41,0320z, and in Otago 35,9920z ; the Otago goldfield coming thus third in regard to production, and being '5,7560z below Auckland and 5,0400z below the West Coast. During the half-year ended June 30 last the returns . show : Auckland. 49,9630z ; Marlborough,- 7S7oz ; Nelson, 1,1340z ; West Coast, 30,6490z ; Otago, 47,1340z. Auckland thus heads Otago by only 2,8290z, whilst Otago ■ beats the West Coast by 16,2450z. The total quantity of gold raised in the Colony during the half-year ended June 30 last was 129,6670z, value £509,744, against 120,6100z during the corresponding period of last year, value £475,004 an increase of 9,0570z. There is good reason to anticipate that the yield of the Otago goldfields will show even better results during the current half-year judging from present prospects in Tuapeka, Vincent, Maniototo, and Lake counties, where the output has been steadily creeping up every quarter. It maybe interesting to note here that the total amount of gold entered for exportation from New Zealand up to the 31st March last has been 13,383,5280z, valued at £52,668,246. Of this 5,308,0070z, valued at £21,001,424, was raised in Otago. Mr Warden M'Carthy, in his report to the Under-Secretary of Mines, under date June 1, 1896, published in a parliamentary paper laid upon the table of the House in the session of that year, gave some intimation -of what has since occurred in the old Dunstan, which is within the boundaries of his juriodiotion. From what he had observed, he said, during the short time he had been in charge of the Dunstan-Wakatipu mining district, he was satisfied that in Clyde and Alexandra, as well as in the districts immediately surrounding, the mining industry was “worthy of being further developed,”-and that there were “not want- “ ing signs that there is not only auriferous “ ground capable of making a fair return, “but men ready and willing to risk capital “ and labor for the purpose. There is no “ doubt, in my opinion, that those directly “ engaged in gold mining will show a sub- “ stantial increase during the coming “year.” In regard to dredging, the Waiden stated that this was still the chief attraction to capitalists wishing to devote their attention to gold mining operations. A great many claims, he said, had been pegged out during the year, and several powerful dredges were in, course of construction. Great hopes were entertained of ultimate success, and quite a number of claims had been applied for in that locality in anticipation. Circumstances have fully justified the hopeful view taken by Mr M'Carthy, and there is just now something very like a boom in dredging speculations, company after company having been floated with a celerity unknown during the last two decades. Exceptionally rich results by several of the dredges now working are recorded, and most of them, both on the Molyneux and the Clutha, are securing payable returns. Remembering the boom of ten years ago, when so much money was expended and lost in purely speculative enterprises, we would give a word of warning in regard to the many somewhat fascinating schemes by which capital is sought to be attracted. In many instances it is proposed to incur heavy expense in providing dredges and other material for the working of ground which is practically untried and unprospected on the assumption that yields of gold realised above, below, or in the immediate neighborhood demonstratively prove that the claims taken up will be payable. The fiasco of dredging in the Shotover, of which many unfortunate shareholders, no doubt, have a painful recollection, should be a warning against rash speculation and a too sanguine view of probabilities. Had the companies formed in 1887 and 1888 tested the ground before spending thousands of pounds on steam dredges there would not have been such heavy losses. No doubt, in gold mining, and particularly in mining river beds, presumptive evidence as to the auriferous character of the bottom may reasonably be accepted up to a certain point, and may justify considerable expenditure in prospecting; but it is seldom, we think, safe to go further without some assurance as to the deposits. Runs of gold are frequently, very eccentric, as every old miner knows, and the holders of a claim contiguous to ground which has proved a very jeweller’s shop to the owners not unfrequently .find themselves as far off from a fortune as a ticket-holder in Tattersail’s sweep who draws the next number to the one that wins the first prize. We sincerely hope that the dredging operations now being so enthusiastically entered upon may prove an all-round success, but there would appear just at present to he some risk of more or less wild speculation, and this, for many sufficiently obvious reasons, is to be deprecated.