MINING.

Otago Daily Times, Issue 16288, 22 January 1915, Page 7

MINING.

The master of the Success dredge reports that the return of 330z lOdwt for the week ended January 17 was won from the middle section of the cut. The nature and depth of the ground has not changed, but the large amount of buried timber to be dealt with made dredging slow. During'the holidays the engines were overhauled. New tables are being put on under the »sluice box and the head line bevel wheel drive of the winch, which broke on the Bth inst, has been replaced. During the week a heavy flood was experienced, and a lot of silt and tailings was deposited on the claim. This will probably cause a slight reduction in the.next return.

Tho following report has been forwarded to shareholders by the directors of the Taranaki Oil Wells (Ltd.): —"Rotary bore No. 1: The phenomenal pressure of gas encountered at this well has greatly retarded developments, and although oil in fair quantity has been recovered, the management has decided' to carry this bore down another 500 ft to the more prolific oil horizon from which Nos. 2 and 5 obtain their main supplies. Bore No. 2: This well has been cleaned and recascd, and drilling is now proceeding. The depth at present is 3040 ft. This bore flowed oil for three years, averaging from '75 to 100 barrels weekly. Recent advices from the manager indicate that the well when completed will furnish excellent results. Bore No. 5: The weekly output of this bore is 70 barrels, and the oil is of very fine quality. Hie bore has flowed for two years and a-half. Bore No. 3: This bore has been flowing for three years with a weekly output of 45 barrels. Rotary bore No. 2: A new derrick has been erected, and, when capital ig available, drilling operations will be proceeded with. Refinery: The refined products as a whole have met with a ready sale, and in most cases the demand exceeds the supply. It is greatly to be regretted that the crude oil production from our own bores and from outside sources (which at the time of writing, we understand, is nil) is insufficient to allow the refinery being run continuously, instead of intermittently. The excellent qualities of most of our products will always obtain a ready market. The demand for petrol/ heavy benzine for motor lorries, kerosene for gas-making purposes, Diesel engine oil, etc., are all easily marketable, and we obtain good prices and ready &xio for our wax. A. demand is also being created for lubricating oils and bye-produots."

REEFTON MINING INDUSTRY. The uovenunent subsidy of £10,(M), to be demoted to the development ot .boatman s Consolidated, snould give an impetus to a proposition wnioh is clearly .vithm ttie soope ot legitimate enterprise. To write the; history ot Boatman'a would' be to describe the salient features of an industry which in that district lhas produced six millions of gold. Boatman's, when it was in full swing, was occupied by several small companies, employing over' 200 •men. '■the area covered a mile in length, and was known as tne richest mile ot reeling country in New Zealand. One company alone, the Welcome, on a cailed-up capital of £3750, paid over £100,000 to the fortunate shareholders. This result was produoed by a rough-and-ready battery treatment, without tlio aid of cyanide. With the Welcome, the Fiery Cross, the Just In lime, all adjoining each other, the total gold yield amounted to half a million, paying about £200,000 in dividends. The above results were obtained from the reefs which were worked' down to a vertical depth of 500 ft. Mining experts and geologists believed at that time that no reef in the district would live beyond that depth. As a result of this belief, the shareholders of several important companies refused to put any more monoy into the industry, and several companies closed down, Boatman's among the number. Matters on the Reefton field remained in a stagnant condition until Mr David Ziman, with foreign capital, entered the field and purchased three of these Reetton mines—Golden Fleece. Wealth of Nations, and Progress,—and put the tlieory of the geologists to tho test, sank down the shafts 200 ft or 300 ft and found the reefs going deeper and stronger than ever. This lact brought into operation tho Consolidated Golafields of New Zealand. From that period the Reefton mining industry has steadily advanced. There are now six mines in operation, with a minimum depth of 1200 ft, an(J a maximum of 2100 ft. Dr Henderson, dominion geologist to the New Zealand Government, states that the Reefton mines can be profitably worked to a depth of 5000 ft. Since there is an entire absence of water in the low levels, no pumping machinery is required. One of the latest local companies to put tho deep-sinking theory to the test is the»New Big River. After being practically abandoned, it was and on a call of sixpence, amounting to £600 in all, it has paid back £84,000 in dividends, or £3 10s per share. There is not a single failure on the field; hence the action of the Government in providing £10,000 to develop Boatman's, which, it is claimed, constitutes the richest property in Reefton, since every ton of quartz taken out averaged £8 0s 9d to the ton, without the aid of cyAnide. The total working costs per ton for the field works out at 235. Boatman's will be opened up and controlled by Now Zealand capital. In addition to a board of directors, to be eloctcd by the shareholders, a committee has already been elected to watch tho administration in the interests of the New Zealand Government. This committee will work in conjunction with the board of directors.