MINING.

Evening Star, Issue 14535, 10 December 1910, Page 8

MINING.

The work of sluicing, which has been suspended at the Island Block claim during the past week on account of scarcity of water and effecting repairs to the races, will bo resumed on Monday. Some rain has fallen in the vicinity of tho dams, and this will considerably augment tho water supply, and will enable work to be proceeded with for somo little time. The next wash-up v,-9\ take place about the end of the week. Prospects are very fair. Tho New Trafalgar dredge worked the Terrace scctian last week.

The Waikaka United No. 2 dredge did not wash-up this week, she Wing engaged in dredging out a dam for No. 3. The men working on the quartz reef at Mokihinui have now uncovered tho reef for a distance of 40ft, and find it making stronger than ever.

Messrs Fink and Co., at Hydo, have now everything in good working order, and crushing is proceeding steadily. A number of new hands havo Lately been put on. During the past week the south-east crosscut in the Watchman mine, Thames, has been advanced 20ft, making 465 ft to date. Tho crosscut is penetrating a good class of sandstone, both for the presence of gold-bearing reefs and speedy progress. The quartz- met with on Thursday last proved a email r/cf from 18in to 20in wide, and .so far no gold has been seen in it. Another 10ft has been driven on the Windfall reef, and, although no gold lias been seen for the last lew foot, all tho indications are the same as in the level above. Water continue!; to flow freely from the hanging wall. The quartz coming to hand from tho City of Dunodin roof is of good grade, and shows freely. The ore stacked on the surface is being forwarded to the buttery for treatment. Tho llydo Deep JxxkLs Company havo struck good wash, giving returns of from J,dwt up to 2dwt to the dish, the wash averaging a thickness of 2ft. This small company havo persevered in tho face of many "diftiouitics for tho past twelve months, and havo driven, a total distance of over 600 ft, as well as doing a lot of sinking and boring. As tho jn-esent wash is 40ft lower than anything yet -worked in Hyde a good field may be opened up. Thus tlui Wellington ' Free Lanco' : The mining market is flat and unprofitable. There is a little business doing. Tho dulness of the market is attributed partly to tho holiday influence, and partly to the kind gamble in Auckland. The "market is sure to keep dull for two or three weeks, and it is tho tune to biry. After the holidays there will be a great deal of optimism and a great deal of money floating about, and speculation will Tovivo and become vigorous, it will then be the time to sol!. Tho shrewd speculator can turn over money profitably by carefully selecting and buying mining snares. Wiiihi shares are down to £5 _lss 3d. and the writer cannot help but think that they ought to be exceedingly good buying at the price. At any moment tho development work may give sensational results. NYaihi Grand Junctions keep low. hut how mueh is due to manipulation and how inm-li to natural weakness it. is difficult to say.

nil': SHARK MARKET. nvNT.ni>: kxchangi".. Two sales in Junctions at 31s 6d for forward delivery comprised the sum total of to-day's business. A sale was reported in Old Haurakis at 2s Id. Quotations: ■ —Dredging.— Blackwater (con.)— Sol" 11/. (iolden Bed—Sel 19/. Hartley and Riley—Hoy 8/3, sel 12/. Island' Block 5/9. Manuherikia—Sel 10'. Mystery Flat—Sel 10/. No Town Creek—Buy 8/6, sel 9/6. Olrig (ord.)—Buy 1,7>. Itise and Shine—Buy 41/, sel 43/.

—Sluicing.— Boss Ooldfields—Sel 2/8. .Muddy Terrace—Sol 21/. —Quartz. — Blackwater Mine.:?—Sel 52/. Consolidated Goldfiolds—Sol 20/. May Queen--Bu v 2/9. sel 2/11. N.Z. Crown Mines—Buy 4/2. New Sylvia—Buy 3/7, sel 3'9. New Four-in-hand—Buy 2/1. sol 2/2 J. Talisman Consolidated —Sel 52/. Watchman—Sel 3/2. Wailii—Buy 114/, sel 116/6. Waihi Consolidated—Sol 3/5. 'Wailii Extended Buy 2/10.], sol 3/1. Waihi Grand Junction —Utiv 30/6. sel 51/. . Bank of N.Z.— Buy 116/, sel 117 6. Bank of N.Z.—Buy 215/, sel 217/. Standard Insurance —Sel 26,3. N.Z. Shipping Co.—Buy 16 9. Westport Coal Co.—Sel 139/6. Wostport Stockton—Sel 7/. Dunedin Stuck Exchange Rvoprietirv Buy 60/. Milburn Lime and Cement (£l) Sol 41/. N.Z. Paper Mills—Sel 23/9. WA.THI RETURN. The. Waihi Company during the fourweekly pcrhxl ende<] the 26th ult. orii.shed and treated 55,549 lone of ore for a return of bullion of an estimate*.! value, of £68.170. This rep-iwcnts a decrease of £125 upon the reuirn for the precc*liii£! four weeks, when luiliion of an estimated value of £68.293 was won from 35.755 tons. The total value of the bullion won from the mine* is £9.031.855. The amount p;ti<! in divi<leM<V aiwl bomifcw it", £4,031.853. AN'OTHER GOLD Rf T SH. Press Associilien —P.y Tcio^raph—Copyright. SYDNEY', Deeembor 9. A. rush has taken place, as the r<snilt of the find near N'.wnimlwa. The fiel<] icJ bebevril to be a continuation of t.ho famous Wvaloiig and Teuton. »'old bolts. Ten pounds weight of specimens vjeldod ledwl. or -old. MUDDY TERItACK SLUR'ING COMPANY. The following is the director.-' report:— On this or-cTisi in directors are able to furnish for the first time a report on the result, of the company's-mining operations over a period of twelve months. The balance-sheet shows the company's liability to be (apart, from allotted capital) £14.251 19s. the chief item of which is mortgage debt to Mines Department. £9.000." of" which £I,OOO has been paid since the close of the financial year. The assets to meet, the mortgage, and other debts of the company, including (.'old in hand at end of financial year, .-'mounted, as shown in balance-sheet, to £37.298 9d. the chief item of which is the rapiUil expenditure on the company's water race, pipe line, claims, and plant. £33,529 8s 7d. for which (lie Board consider the company possess ;-esets of more than equivalent value. The profit and loss account shows the amount of gold won dnring the year to be 1.R630z. of the value of £7.419 11s s'l. the cost of obt-ainin," same, being £1.933 6s 2d, leaving a credit balance of £2.526 5s ,'H oti this year's working account, which represents, say, 121 per cent, on the capital. This result, the Board consider very encouraging in view of the fact that this is (lie first year in opera, tion, and that owing to the phenomenally dry weather there was fully four months lost, during which no productive work v.-a.-? carried on at. the claims, am) during several of flie months on which work • was carried on the water supply was intermittent. Of the £4,935 6s 2d working expenditure, the item interest Ls necessarily large while the debt remains owing to the Government, but shareholders will be glad to notice that it is a gradually decreasing charge which will finally disappear, and the cost", of renewals and maintenance, should be considerably reduced in future. The Board now feel justified in estimating that the miming expenses (working account) will ultimately settle down to, say, £-1,000 per annum, leaving the balance from the annual gold yield to go to dividend account when the debt is liquidated or rearranged.

The directors issued to shareholders in iV, mgnti^-March.JJifdcnuaßOEaßdran

No. 3, which indicated what was being' done by the manager to the staunching of the race during the period of enforced stoppage of works on the claims. These repair works were very effectively earned out and completed in time to seenro the water which came with the autumn rains. The work accomplished during February and March was justified by the results obtained by the extra water supply during the winter and spring nnJnths, definite the fact that the winter was marked "by light snowfall and very heavy frosts. Notwithstanding that, no stoppage of tho works on the claims occurred due to frosts, which fact is encouraging for the future history of tho company's operations. During the four months preceding tho close of the linancial year the average monthly yield of gold was over 2500z, and had the usual annual rainfall which Soutliland has been in the hah.it of experiencing occurred during the hist twelve moutlis the yield would have reached fully £11,000; but unfortunately, as is well known, the whole province of Otago has been affected by a phenomenal dryness of the seasons, now in the fourth year. It may bo hoped and expected that this period of drought may be followed by seasons of moisture similar to what prevailed in former years. One satisfactory result of tho experience of this winter has been tho fact that tho race, while giving every indication of permanency, carried to tho penstock and delivered forty-five to fifty heads of water, a quantity which will yet be increased. During this summer, when the men are unable owing through dry weather to work on the claims, it is intended to put thorn to constructing certain short feeder races from tributaries which hitherto have passed nnder the line of race. Some of these tributaries have already been brought into tho race with good results as auxiliaries. The claims liavo developed well, and tho engineer's and manager's reports from time to time indicate that a long life for the company's workings may bo confidently expected. As to likely future results, the Board and management feel that any opinion must be expressed with duo regard to the dry weather which still unfortunately prevails If a fair average rainfall wore experienced during the rest of the financial year upon which the company have now entered, it would be quite reasonable to anticipate that within that period tho company would, out of the profits from gold won, so reduce tho Government joan and open accounts of the company as to be able to finance any remaining portion of the loan and place the company upon the dividendpaying list This, in" a word, is tho hope and aim of the directors and manage. <i>iit., and only a fair average rainfall is needed ti> enable that desiro to be attai.iri.