CRUSHING SUSPENDED.

New Zealand Herald, Volume LIX, Issue 18019, 18 February 1922, Page 8

CRUSHING SUSPENDED.

GRAND JUNCTION DECISION,

HIGH PRODUCTION COSTS.

DEVELOPMENT AT DEPTH,

[BY TELEGBAPH.-OVfN COHMSPOKDeSt.)

WAim. Friday. The Waihi Grand Junction Gold Company's battery will close down a f . from to-morrow, and crushing will not be w . sumed until such time as the reef sy 8 . tem in the deeper areas of the mine has been sufficiently developed to permit 0 f the regula • supply of sufficient ore to keep the full complement of stamps (60 head), working continuously. Exactly how long the mill will be idle cannot be determined at present, but it will doubling be S'irae months before operations underground will be sufficiently advanced to permit of a resumption of work at thi battery.

Interviewed to-day the company's managing dire, lor, Mr. S. Leah, stated that the decision of the London directors to suspend crumbing for the lime being had been arrived at as tlip result of a report furnished by Mr. H. Stan<-neld, formerly general manager of the Talisman Con". solidated, al Karangahake who is now acting as consulting engineer lo t ne Grand Junction Company, This w; )s due mainly to the excepti"iial!y Inch cost of production brought ab»ut by war conditions. While the. metal! won were standing at about 20 per cent, above prewar prices, production costs had advanced nut of ail proportion, many of the essential supplies being from 100 lo 200 per cenl. above pre-war rau>s, while wages had gone up very considerably,

Mr. Leah said it was unfortunate that the course adopted wvuld throw the majority of the battery woreerj and a nrunber ol other employees out of work in tie meantime. but no other alternative offered.

Touching on the future, Mr. Leah said the mine position was quite satisfactory, with the outlook at depth Mr. Stansfield had prepared certain schemes for the development of the property and these had been forwarded to the directors in London. As these works were put in hand operations underground would be pushed forward with all possible despatch and when these were sufficiently avanced the treatment of the ore wonld he resumed at the battery, qaite likely later in the present year, from thea on the whole of the stamps would bt utilised.

Surh of the miners working at present on oro-producing points as employment conlr] be found for would in the meantime he diverted to carrying on the development works outlined i.i the schemes prepared hy the consulting engineer.