THE REEFTON MENING INDUSTRY.

Otago Daily Times, Issue 17635, 27 May 1919, Page 3

THE REEFTON MENING INDUSTRY.

PROSPECTS REGARDED AS HIGHLY FAVOUIiABIJE. By E. Wilson. The linking up of thq West Coast of this island with the east, via the Otira tunnel, will give a big impetus to tho development of a country which, is admittedly tho land of to-morrow. In natural resources it is a veritablo Bonanza, comparatively untouched by the hand of enterprise. Like all isolated things, a good deal of mystery and prejudice is assooiated with it; yet this land of tho setting sun, in the near future, is destined to bo dotted over with innuinerablo dairying farms, grazing concerns, and timber mills, whilst its millions of tons of highly bituminous coal and its millions of gold compassing the Paparoas and Reofton will attract to its borders a tremendous population. In gold alono the West Coast has produced something like 30 millions. This result was produced largely from the surface by the methods of alluvia!, sluicing, dredging, and quartz mining. By tho lastmentioned method over seven millions havo been won from the little-known town and district of Reefton. Twenty years ago Reef ton was practically as extinct as the moa. For 20 years prior to that it was the centre of a busy and bustling life. Tho secret of its attraction was found in its phenomenal quartz reefing system, which in places resembled a jeweller's shop. Thriving companies paid out half-crown dividends fortnishtly. The Welcome Company, on a called-up capital of £3000, ga.ve to the fortunate shareholders the magnificent sum of £100,000. That record has been beaten by the Beefton. New Big River Company, which, on a called-up capital of only £600 —or 6d per share on 24,000 shares, —has given to the shareholders since 1908 tho sum of £100,800 in dividends. At the timo referred to, however, tho whole mining enterprise of Reef ton collapsed. Scarcely any of tho companies then operating the quartz belt were working to a greater depth than 500 ft. . Running all through the areas was a "fault" zone varying in depth according to the contour of tilt) country. It produced a complete dislocation of the entire reefing system. Expert mining opinion did not favour the view that tho reefs would live below the depth mentioned. Efforts wero made to overcome the difficulty by haphazard prospecting, but without success, and tho field collapsed. Eventually overseas capital in the form of tho Consolidated GoldfieMa (Ltd.) picked up three of the "worked-ont" mines, and in each case sank the shaft through the "fault" zone and picked up the reefing system as strong and as rich as ever. Since that .period a steady development in quartz has taken place, producing some of the finest commercial enterprises the dominion has known. Notwithstanding the paralysing effect the war has had on all mining concerns, Reefton has more than survived. A large amount of New Zealand capital is now being diverted to the field. The industry has long sinco passed the experimental stage. The town, hae the honour of possessing the deepest mine in New Zealand —the Energetic, which is part of the Wealth of Nations group. This mine, which has been a conspicuous succcass, has readied a depth of 2000 ft, witii over 20ft in width of reef containing values of loz per ton. Practically all the mines (seven) are being worked belpw a thousand feet and without a single failure. Unlike the North Island mines, there is no water to contend with. All the mines are dry, whilst Nature has provided an , abundance of equipment in timber,, coal, and water-power. The success of £he Blackwater mine, which was opened up 10 years ago, haa directed considerable attention to the field on the part of caoitaL This company has paid back its working capital four times over. Its reefing system at a depth of 1200 ft is producing excellent results.! Unfortunately its nominal capital is a quarter of a million, and is controlled from London. This ako applies to two other mines controlled by overseas oapifeL The quartz belt extends from Blackwater on the south to Boatmans, on tho north, a distance of 25 miles. It is quite within the bounds of reason that this belt will carry one mine per mile. Certainly it is inconceivable that tiie reefs end with the imaginary boundary lino of the various areas held by the different companies. With the assistance of a Government subsidy of £10,000 a New Zealand company is developing the rich lode system of Boatmans. The company has sunk a shaft a thousand feet, and has successfully opened up true reefing country at that depth. The Blackwater North Syndicate has opened up four gold-bearing reefs at a depth of 1360 ft—a. fact which demonstrates the success of the enterprise. The Reefton Gold Mines Company is about to open up the MlDerton, Blackwater South, and New Discovery properties, where reefs which are regarded as highly payablo havo been worked to a depth sufficient, it is believed, to ensure future success. On these properties something like £40,000 has already been expended. The New Kep-It-Dark Company is expending £10,000 in shaft sinking below 1450 ft (the present level). At that depth the reef is sft wide, and ita value reaches in the vicinity of loz per ton, whilst considerable improvements are being made to the adjoining property—the •sWealth of Nations. The Keep-It-Dark, on a called-up of £9000, paid to its shareholders in dividends the sum of £158,000, whilst through the neglect of the old company to Btack its tailings the sum of £100,000 of recoverable gold swept its way into-the Inangahua Biver. Our modern methods of cyanidation and concentration make such loss an impossibility. . This auxiliary treatment to-day gives fully 30 per cent, of additional result, and enables oven low-grade ore to be worked at a profit. x In full focus of all the facts of this quartz centre, Mr David Ziman. who has furnished over £200,000 for this industry, stated before the Industries Commission in March last that _ in his opinion Reefton was the best mining field in the world. Britain controls practically two-thirds of the world's gold output. This fact has been of tremendous value during the past four years. It is really an Imperial necessity that our Empire shall continue this production, and, if possible, increase it Reefton furnishes a field of legitimate enterprise where this can be accomplished without serious risks. . Its gold-bearing ores are akin to those of Bendigo (Australia), California, South Africa, and Kolar (in India), where quartz mining is successfully carried out at twice tho depth of any mine on the Reefton field. In view of this, let us, in the interests of industrial progress and sound commercial enterprise, stimulate this development and materially augment tihe supply. This can be accomplished by the investment of New Zealand capital on the lines indicated. Past results, present circumstances, and future indications warrant the expectation that far more gold will be won from this' country than that which we have already secured. Deep sinking on quartz will prove this contention, which is neither a geological nor a metallurgical improbability.