EXPLOITATION OF CINNABAR DEPOSITS

Hokitika Guardian, 18 April 1929, Page 7

EXPLOITATION OF CINNABAR DEPOSITS

OPERATIONS OF ENGLISH

COMPANY.

AUCKLAND, April 12,

Quietly ami unostentatiously a new industry is being established north of Auckland on some 600 acres of land at Ngawlia Springs, near Kaikohe. Forty men are engaged erecting the buildings and plant necessary to exploit the valuable Cinnaber deposits found in that region, and it is likely that everything will be ready to commence operations in about three months.

The work's arc being erected for the Kaikohe Development Ltd. Company registered in New Zealand with £25,000 oi English capital. It is an offshoot of Imperial Chemical Industries Ltd., Great Britain, a combine formed three years ago with Lord Melchett as chairman of directors and £58,000,000 of issued capital. The manager of the subsidiary New Zealand company is Mr I?. H. Goodwin, who was sent out to the Dominion by, the British combine a year ago, and who is now supervising tbe erection of the works and the installation of the machinery. Air William McNeil has been brought out from Home to act as engineer. The greater part of the machinery is being manufactured in Auckland and forwarded to Kaikohe by schooner and motor-truck via Opua. The plant includes two rotary furnaces, required to vaporise the mercury in the ore, and condenses, through which the mercury fumes are drawn. After solidifying in these chambers, the resultant chemical will lie treated to remove impurities. The mercury at Ngawlia Springs is held in suspension in the earth, and the cost of its recovery is therefore less than in the case of ore which has to be crushed before passing through the furnaces. The machinery will be run by an internal eombusti n engine, although electricity will be generated on the property for lighting purposes. A dam is now in the course of construction in furtherance of a scheme for supplying tile works with water, and bores are being put down with the same object. Quarters have been built for the men, and a residence has been erected for the manager. Foundations have been made for tbe machinery, and a great deal of grading, levelling, and road-making has been completed. It is expected that something like £75.C0."i will have been expended at tbe works by the time everything is in readiness for operation. The mercury product will lie dispatched direct to the English market, where* at the present moment it is worth £22 10s a flash of 751 b.