MINING

Hokitika Guardian, 17 September 1940, Page 7

MINING

WEST COAST DREDGES. Commenting on results from 4he Kanieri, Arahura and Barry town dredges, the “Wild Cat Monthly” says the group, which is controlled from Sydney’s Jamieson. Street, had a prosperous time last year, and all throe producing companies are now out oi debt. Together, Kanieri, Arahura, and Barrytown contributed £356,720 to the Dominion’s gold yield, of which £197,190 was profit. J. M. Newman, also of Tableland Tin (North Queensland) and Ngaliere, resigned his directorship of the Pratten companies during the year, his place being taken by J. W. Hannan.

KANIERI. From a profit viewpoint, Arahura has so far put up the best performance. But Kanieri, because of better recoveries, is well up in the race, and is exhausting its property much less quickly. Here is its production record from the beginning:- - Year 1939 (four months) treated 542,000 cubic yards, for 4,131 ounces of gold; grains per cubic yard 3.36; costs per cubic yard 4.72 d; profit £21,171. Year 1940, treated 2,985,000 cubic yards, for 14,548 ounces of gold ; grains per cubic yard 2.34; costs per cubic yard 3.76 d; profit £73,418.

Year 1941 (four months) : treated 980,0'j0 cubic yards; 4,638 ounces. ? Owing to large boulders and the tightly-packed wash, dredge capacity of 400,000 cubic yards monthly has not been attained. But a recovery last year of 85 per cent, of bore indications is encouraging. Of the year’s profit £IB,OOO was absorbed by a maiden shilling distribution and dividend tax, and £40,000 was sent to reserves. There have been two further shilling dividends since the ,close of accounts. Boring indicated 55,000,000 cubic yards of wash, recoverable value 3.1 gr. gold, so that treating, say, 250,000 cubic yards monthly ,there is some 17 years of digging ahead. Working surplus foi the first four months of the current term is down to £23,470, but that should be a matter of only temporary moment. At March 31, surplus liquids amounted to £28,328.

ARAHURA. Arahura. did not commence digging till last August; in the eight months following the dredge turned over 2,760,000 cubic yards for 11,3590 m smelted gold, a recovery of 1.87 gr a cubic yard. Working costs were only 3.32 d. Of the £69,789 of profit £12,419 was used to eliminate preliminary expenses, etc., from the accounts and £40,0(X) was earmarked’ for specific reserves. That left £17,370 to carry forward, from which an initial shilling dividend was paid in May. Though the dredge has done most expected of it in the matter of turnover, returns have

been considerably, below the average of the property; but as only three bores have been cut through a Comparison * between bores and actual recoveries may be misleading. The company’s selected area was estimated to contain million cubic yards of 3.2 gr. wash, indicating a remaining 10-year life at the current rate of treatment; That does not include an appreciable yardage of low-grade material which may also prove profitable. At balance day more or less liquids amounted to £32,366 and the outside debt to £13,001. Net earnings on operating, account this term have been at the rate of £105,000 per annum.

BARRYTOWN. At Barrytown, the recovery problem —the gold occurs in an extremely fun state in heavy black sand—and buried timber in the overburden have upset original estimates of monthly working profits of £6,750. Last year was the best experienced, the profit of £53,982 before providing £35,000 for reserves, springing £33,963; Year 1938: the cubic yards treated were 1,306,000; gold 4,701 ounces; grains per cubic yard 1.73; costs per cubic yard 3.67 d; profit £12,102. Year 1939: the cubic yards treated were 2, 469,000; gold 6,842; grains per cubic yard 1.33; costs per cubic yard 2.81 d; profit £20,019. Year 1940: the cubic yards treated were 2,055,000; gold 10.402; grains pci cubic yard 2.43; costs per cubic yard 3.01 d ; gold £53,982.

1941( four months! the cubic yards treated were 856,000. g0k12.351 ounces, grains per cubic.yard 1.31. The rich , lead then being dug has out out, however, and working profit for the first four months of the current term was only £8,894. A revaluation of the property puts remaining dredging reserves at 15,500,000 cubic yards, anticipated recovery I.sgrains. Handling 2,000,000 cubic yards annually, there is thus almost eight years work ahead. With surplus liquids at’balance day of £30,175, the company is now m a position to distribute any profits as they are earned. A first payment of 6d a share, calling for £SOOO, was made it; June.

NOAHERE. Commenting on results from the Ngahere dredge, the “Wild Cat Monthly” says disappointed shareholders think they discern some encouragement in the return for the first half of August —136,500 cubic yards for 456 ounces bullion, or 1.6 grains a cubic yard. That is still well below bore expectations, but provided dredgi turnover, which lias also disappointed, can he stepped up, oven that grade would be very profitable, as the expert once of Arahura Dredging, which is getting very little better recoveries, shows. Unless the values early expect cd commence to filter through S'Kin. it is unlikely they ever will.