GOLD DISCOVERY.

New Zealand Herald, Volume LXIX, Issue 21130, 12 March 1932, Page 12

GOLD DISCOVERY.

REEFS AT TE AROHA. STRONG BODIES OF ORE. FAVOURABLE ASSAYS MADE. An important discovery of gold-bearing reefs which have given very favourable assays is reported from Po Aroha Mountain, where a syndicate headed by Mr. W. J. Gibbs, late borough engineer at Te Aroha, lias pegged out claims covering an area of over 300 acres of the reef system. The claims are on the Kararigahake side of the mountain and tlio reefs wero located in virgin ground. Eventually eight reefs were found and these, it is stated, have all been traced certain distances. Samples of stono wero taken to tho Waihi School of Mines for assay. Mr. J. W. Smith, supervisor of the prospecting schemes at Thames, at the request of Mr. R. Scelly and Mr. Ilarnel, who are associated with Mr. Gibbs, visited the properties early in February and reported that the reef then being operated on was a strong body of ore averaging 3ft. 6in. wide. In the top level the reef had been explored about 30ft. below the surface and along the reef for 70ft. The whole of the ore at this level was oxidised and showed considerable leaching and from any part of the reef dish prospects of gold could bo obtained. At about 100 ft. below tho top level a crosscut had been put into tho hill 200 ft. It intersected tho reef, showing it to bo the same width as tho lop level. The drive had been extended along tho course of the reef 70ft. At this level a decided change had taken place in tho nature of the ore. There was less leaching of tho quartz and the bulk of the ore was sulphides. In Mr. Smith's opinion further development on tho reef at this level would expose very rich shutes of ore. The country was a good gold-bearing class of andesito similar to that of the Ivarangahalic, about five miles to tho north, and from which tho Talisman Company's mine produced just on £3,000,000 v;(yth of bullion, mostly from sulphide ore. No pumping or winding was necessary and transport would bo by aerial tram to a treatment plant in the foothills, where electric power was available. It is tho intention of tho parties interested in the field to go direct to London for capital for development on a large scale, and it is not intended to float a company in New Zealand.