KAWARAU GOLD

Otago Daily Times, Issue 21694, 12 July 1932, Page 8

KAWARAU GOLD

CLOSING OF THE GATES itv • MANY PROSPECTORS ABROAD NEW PROJECT DISCUSSED SECOND DAM BELOW ARROW RIVER .t. . . (From Our Special Reporter.) CROMWELL, July 11.

Though keen interest is still being displayed in the mining operations that have followed the closing of the Kawarau dam, greater' enthusiasm has been •roused by the official announcement that the Amalgamated Company, after considering Professor Hornell’s report, has decided to take definite steps to proceed with the erection of a dam below the Arrow River.

Miners are almost unanimously agreed Sth at the Kawarau River contains huge stores of gold which are as yet untouched, and some do not hesitate to -express the opinion that if it were possible to lay bare the bed of the river /sufficient gold could be obtained to pay 'the national debt. Though it is agreed that the erection of the proposed dam ; alone will not solve all the difficulties, the immediate returns that would follow have already been discussed in terms of 'hundreds of thousands of pounds. It is the huge estimates that have been -made by experienced miners of the amount of gold which the river contains, together with success of the operations on those portions of the river that .‘were uncovered in the early days, that causes such keen interest to be aroused when the Kawarau Dam is closed, but ~tho almost tragic disappointments that the first closing have dispelled any feelings of optimism with respect to the results that may be expected to follow any drop in the river that is not ‘of very considerable extent.

-n It is now realised that the river’s hidden wealth will never be recovered - without the adoption of some scheme such as that now proposed. It is not surprising, therefore, that the local people arc showing such enthusiasm in a project, which, if all their expectations were realised, would provide one of the most sensational passages in. the history of gold mining throughout the world. In the meantime, the miners are not losing the opportunity provided by the drop in the river, which is still falling •gradually. It is not expected that the lowest level will be reached for two or : three days, but any further fall will ■ probably not be sufficient to raise the hopes of better returns. Experienced prospectors are reported to have obtained up to £2 worth of gold yesterday, but if any large finds have been made they are not likely to be disclosed for a few days. The methods which are being employed are in most cases primitive, and the results can only be obtained by arduous work.

The number of men on the river be- . tween Alexandra and Roxburgh is reported to be large. Little is known as to the results obtained in this .area, -but it is anticipated that most of the "seekers will win some gold. , It is reported that the ground now being worked at Skippers has proved to be rich, but this is quite unconfirmed. ARROW DAM PROPOSAL At a meeting held here last week Mr James Ritchie, local chairman of the Amalgamated Company, explained the cletails of the proposal to‘throw a dam acrosd the Kawarau below the Arrow River. if After considering various other projects, he said, the plan to erect a dam' in the rock-bound gorge below the Arrow 'had now won favour with the directors. The proposals for its construction were Ito pierce the rock on one side with a tunnel, and, with the gates closed at the lake to divert the water through this tunnel, to enable the foundations of & heavy concrete sill to be laid in the stream for the gates. This sill would be erected to the level of the 'present gates on the lake, the fall be- ' -tween the two points being only 15 feet. With the sill constructed the gates at the lake would not be necessary and could be placed on the new dam in the river. To increase the storage capacity of Lake Wakatipu, Professor Hornell had suggested that the sills in the original dam could be lowered three feet, enabling the water in the lake to be held for three months under normal conditions. The river scheme was the one on which the directors were now concentrating, and was one approved by Professor Hornell, except that the site might be altered slightly. The estimated outside cost of this was £IOO,OOO, and the capital of the new company would probably be £350,000. It was at present proposed to go to Australia for the capital required and later, if necessary, to London to place some shares there. He said that shareholders would be surprised to know the number of letters at present being received from residents of the Dominion who were anxious to invest in the new company, and he had no doubt on the score of raising the capital. Before that could be done a license for the site had to be secured, and that was now being attended to by Mr Bodkin. Nothing in the way of engineers had been decided upon. He considered that arrangements should be made with the Public Works Department to design the dam and supervise its construction, and to be reasonably recompensed for this work. Mr Ritchie went on to say that he had approached the Unemployment Board for labour and had received a promise that up to 300 men would be allocated to the work at the directors’ choice, on the usual scale of pay, additional remuneration to be With the company. He was quite satisfied that the river proposal was a practical one and the beat to ensure dewatering the area, as it would hold the Shotover, Arrow and any seepage from the lake. Further developments, he added, would follow in the immediate future. /

The meeting then entered into a free discussion with Mr Ritchie on numerous points. He stated that if the company were successfully floated, Professor Hornell was to receive an increase on the fee already paid. The capital of £350,000 seemed large, but it included the shares to be handed to the subsidiary companies and the parent company in the original scheme for their interests. A number of shares would probably remain unallotted. In view of the great possibilities of gold production the capital was small. All the original companies were to be allowed to come in for shares to the extent of the amount paid to the original Kawarau company, varying

from £B7O to £SOO. No further cash payments would be looked for. It was only fair that those who had put their money in originally, and could not go further, should participate. There were still to be considered those who, in addition to payments to the Kawarau company, had spent further capital on their claims. In Wellington, Mr Bodkin had assisted them in these matters. EXCITEMENT AT ALEXANDRA NO SUCCESS REPORTED. (Special to Daily Times.) ALEXANDRA, July 11. Considerable excitement was caused in Alexandra by the closing of the Kawarau dam. From 4 p.m. on Saturday until 4 p.m. on Sunday the Molyneux River at the Alexandra Bridge dropped 10 inches. The banks of the river presented an animated scene, parties of miners cradling and fossicking in any crevice the river left bare. So far as could be gathered last evening their efforts had been mostly in vain, as scarcely more than a colour was found by any of the miners. The river should go down a good deal more during the night, and better results may be hoped for during the week.