THE MINING REVIVAL.

New Zealand Mail, Issue 1775, 14 March 1906, Page 72

THE MINING REVIVAL.

REVIEW OF THE POSITION. GROWTH OF AN IMPORTANT INDUSTRY. For some time past there have been signs of a revival in the goldmining industry, more particularly so on the Northern fields of the Auckland district. It is not, therefore, surprising to hear the Premier adopting an optimistic tone in this connection. To anticipate another “boom,” such as broke out at the Thames in the days of the fabulously rich strike of gold in the Caledonia and other famous mines, would be going too far. On the other hand, a careful review of the present condition governing the industry inspires a great deal off confidence, with less of the speculative element about it than existed in fever-heated times. Then, the miners were raising specimens and picked stone which gave very profitable returns. But there was comparatively little for those individuals and companies who were mining lowgrade ore. Now, the rich hauls are few and far between, but low-grade ore has been made to pay, and investment in mining ventures has been placed upon as solid a basis as is feasible in an industry that has ever-pre-sent drawbacks about it.

A RETROSPECT. Following upon the flourishing days of the seventies, and almost up to recent times, there came the inevitable slump. It was only natural. Capital came to grief over several New Zealand mining ventures, and the sources of it dried up. A few years ago the Thames was a dreary waste of lonely-looking poppet legs, of neglected shafts and machinery, and. of water-logged underground workings. Coromandel was the same, and only Waihi went on improvingly. Precisely when the revival began to set in would be bard to say. The advent of cyanide undoubtedly helped largely to turn the tide, enabling maiiy a losing proposition to be turned into a profit-producing concern. But, even after the application of cyanide to the saving of gold—and for some time after—there were failures and withdrawals of capital. . Curiously enough, prospecting work did little towards the better state of things that now obtains, except in cases where it was rather development than prospecting. Development was carried on with persistency. Many instances could be quoted of mines that are now paying handsomely, or in the way of doing so, that owe their healthier fortune to the pluck of shareholders. At all events, the fact remains that the revival which Mr Seddon and others anticipate has set in, and there are great hopes that it will be lasting. To attempt to float a mining company in Auckland a year or two ago, for example, was to undertake a very uphill task, and. the most glowing prospectus was received with hesitation. There is a recent instance, however, of a property which was floated in Auckland by a gentleman who, without leaving his office, filled an 80,000 share-list in a few days. THE THAMES FIELD.

It may be fairly reasonably assumed that the first definite move in the revival was made at tho Thames—• where it was, perhaps, most needed. The chief part in it has been, and is being, played by the Waiotahi mine. This property’s recent history is of interest. For years it has been a divi-dend-payer, but only on a minor scale. The shareholders, numerically small, were oontented, year by year, with inconsiderable monthly returns—about £3OO to £4OO per crushing. Some eighteen months ago, a reef was struck that altered not only the fortunes off the shareholders, but the policy of the company. The find was a rich one. It created a sensation, for the situation of the ore-body in which it came to hand was in the same golden belt of country where several rich hauls were made in the early days. The £3 s aies rose to £lO and £l2, and held th* value until it was decided to let tne general public in. To do so the shares were converted to a nominal value or 6s each, shareholders receiving ten of the new issue for each one of the old. At the present time these 6s shares aie quoted at from £5 10s to £5 12s and a little time ago, were over £6. In the meantime, and to account foi this, the mine baa been yielding thousands a month instead of hundreds, as previously. (The last return was over £18,000). INFLUENCE OF A FIND. The Waiotahi find had an influence far more .wide-spreading than its mere effect upon the sharemarket. It gave

a fillip to the industry itself. Owners of properties in the vicinity—not only those on the same line of reef, but others in the auriferous area off the field—were encouraged to the more vigorous prosecution of the development of their workings. Several mines were being worked, of course, before the Waiotahi struck •it rich, but some sprang into activity in consequence of it. At the present time a portion of this activity would seem to have been relinquished, though in no sense to such a serious degree as was the case three or four years hack. There is always the fact to encourage mine-owners of the district that the Waiotahi lies in a portion of the field where rich patches are likely to be obtained. In the meantime of all the Thames mines working this one remains in the centre of the public eye. Probably a reversion to the old policy of the Waiotahi management would appeal to many as a wise move, for under the present conditions, assuming that no reserve fund is being placed aside against future development work, the policy of getting out all the gold and paying dividends is at least risky. It would appear that a wiser policy would be, whilst on gold, to provide funds for further exploration at deep levels. Rioh as the Waiotahi run of gold is at the present level, there is very little doubt, on the part of those who know the locality and the mine itself, but that it will be richer still at the levels below. There is more than theory to warrant this assertion. A great deal might be written on the recent history of this mine—of the scare that a “ break ” or “ fault ” in the reef once created. THE DEEP LEVELS QUESTION.

If the revival is to be permanent, to far as the Thames is concerned, there is one question that must be grappled with and settled. This is the all-im-portant exploration off the deep levels of the field. It is one on which the companies in the district have been apathetic far too long. The whole cause of this apathy is want of uniformity of ideas, interests, and action. There is a barren strata of country, underlying the auriferous area, that has never yet been sunk through. It is well-nigh certain that, underlying in turn this barren belt, thero exists a second auriferous area, and it is computed that, for the purpose of efficiently exploring this, a depth of 1000 ft requires to be sunk. Tho old Thames Hauraki Company’s shaft, where the big pumping plant now belonging to the Government is situated, would be the most convenient for the undertaking to be entered upon. The Thames Hauraki Company was, it will he remembered, one of those which came to grief through the Whitaker Wright smash. The Government took over the liabilities, mine, and plant, the latter of which they had heavily subsidised at the time of its erection. This pumping plant is now under the control of the Thames Drainage Board, by .arrangement with the Government, and is unwatering all the mines in the drainage area. The point is that, whereas it is now only pumping to about the 50Cft levrt, it is capable of draining down to tho 1000 ft level in the event of deep levels development being undertaken. It would mean so much to the industry if it were undertaken that it seems deplorable the opportunity should not be availed of. One company approached the Government some time ago with- a proposal to sink the shaft to a greater depth, but the scheme did not for good reasons meet with the approval of the Minister for Mines (the Hon. James McGowan). He contended, and still contends, that, whilst the Government is justified in giving assistance to deepsinking proposals and bona-fide prospecting propositions, where they are in the publio interest, they would not be justified in doing so in the interests c any private company or individual. That was the weak point in connection with the scheme. A comprehensive proposal for reaching tho deep levels was, some years a S°> evolved by the Jato Mr C A; Harris then attorney in New Zealand for the Thames Hauraki Company. It taken up. This proposal was that a company should bo formed with a capital of 1,000,000 shares of Is each fully paid up. A working capital of ni to 000 W as proposed to he raised, half fn 1 L& and theother half in tho shape of Government subiklv Tin’s, Mr Harris proposed, should ho expended as follows Sinking seven ffinfts 1 to 1000 ft each, £48,660; drives affioimting in all to 7542 ft, £11,313; completing the Queen of Beauty shaft to 1000 ft and fixing plant, £17,500; three years’ pumping to 1000 ft, £36,000; erecting a forty-head battery, £16,000; cost off working the old Big Pump for three years, £6000; and sundries, £14,527. He proposed further to drive on every reef cut in the main or crosscut tunnels, they more than paying their own expenses, and also to bring about complete arrangements whereby all tho companies concerned should, work in conjunction. WHAT THE MINISTER FOR MINES THINKS. In the opinion of the Minister’ for Minos this scheme was not a good one, but, on. the other hand, Mr McGowan Considers that anything would be better than nothing. In his opinion the vari-

ous companies should go down to th* deep levels, and, for the purposes of ventilation and drainage, connect th« north end of the drainage area with the south end. If they would do so he, as Minister, would be prepared to recommend to the Government that assistance Should bo given to them. Whilst, however, single companies and interests attempt to get the better of their neighbours, Hie Government would not, ho contends, be justified in dealing with cases of that kind. Thus, then, stands the position, in so far as the Thames deep levels are concerned. It is plainly in the interests off the mines of the district that some move should be made to test them, for no permanency must be looked .for so long as surface, and shallow level, workings are the only ones depended upon. The Waiotahi is an isolated case, and even there the deep-levels question will have to he dealt with. Many tribute parties are. certainly, getting fair gold, particularly in the Kuranui-Caledonian and May Queen properties, but they cannot look to permanent results as they can, as a rule, only work out ground that is already opened up. Mr McGowan puts the whole position in a nutshell. He says:—“Mining in future, in the older goldfields, will require to bo carried on at a greater depth, and consequently fit a greater expense. The prize may be expected to be also greater.” ' IN OTHER DISTRICTS. No review off the revival stage off the goldmining industry would be com piece without reference to Waihi—its mainstay for years past. The parent mine of this district is in the most flourishing, and at the same time promising, period of its history. The huge underground workings are every day revealing fresh resources. The deeper the several reef-systems in the property are worked upon the better becomes the quality of the ore mined. Large quantities of quartz are grassed that carry but comparatively poo-r values, but, to such a fine art has the company (through countless experiments) reduced tho process off . extraction of gold, that it is all made to pay. In addition, many rich veins of sulphide ore, frequently of great width, are constantly being opened _ up, and “sweetening” the returns. The fact th: t every month this company is producing over £50,000 worth of bullion, with every prospect eff increasing returns, speaks eloquently of what is still ahead of the district. At least two off the Waihi Company's near neighbours—the Waihi Grand Junction and the Waihi Extended —have reasonable hopes off being big gold-producers ere* long. They are both working upon reefs that have run into their ground from their rich neighbour’s area. Activity at Waihi is consistent, and there seems to be no serious problem ahead of it. At Karangahake, a few miles from Waihi, the Talisman mine lias lately yielded such good results that very optimistic views are held as to its future. The fact that for .several years this property has had all it could do to meet expenses, makes its present prospects the more encouraging. This, and Waibi’s securo prosperity, are factors to be reckoned with in the present revival. The Coromandel field is still, as it has been for some time, very depressed. It was always more noted for rich .patches than for paying reefs. There is a -scheme afoot for the amalgamation of two of the mines—the Bunker’s Hill and the Hauraki—on which some hopes are pinned. Otherwise but little of importance comes from that direction to mark the revival. Kuaotunu, a portion of the Coromandel field, has been rather dead, but here a fillip has been given lately. The Government are erecting a small battery on behalf of the district, as an encouragement to prospectors and workers of small claims. In this the district and the County Council are taking an interest, and the latter are becoming trustees for the plant. A good deal of gold came out of the Kuaotunu mines in the early days, and there are those who believe it to bo well worth, further exploration.

AID TO PROSPECTING. The Government believe in the policy of aiding legitimate prospecting, and, with the fulness of the revival upon us, prospectors are hound to come to realise this. Considerable sums have been spent by Government this last year in prospecting work. That being carried out in different parte of the oolony under the Government Geologist (Dr Bell) has already borne good fruit —as instance the Wilberforce reefs in Westland—and this work is now being actively carried on in several parts. As the Minister for Mines puts it, the Government are anxious to aid the mining industry in every way possible, but it is not their function to rake up the position of mining speculators. They are prepared to aid all legitimate prospecting, and no reasonable case will fail to receive fair consideration.