GOLD DREDGING

Otago Daily Times, Issue 22296, 23 June 1934, Page 10

GOLD DREDGING

NEW CLUTHA RIVER CLAIM CAPITAL OYER-SUBSCRIBED. (Fuoii Our Own Correspondent.) LONDON, May 11. The investing public are keen on gold shares td-day, and any project which has a reasonable chance of eventually bringing in a return is almost bound to be supported. The prospectus for theClutha, River Gold Dredging, Limited, contained reports on the venture by Mr Robert Lee, the late Mr F. W. Payne, Mr E. Harold Williams, and Mr John Gordon, Mr williams. in his report, dwells on the important discoveries made by the eaiiy workers. He is convinced that not more than 10 per cent, of the ground available was touched by the old machines.; He estimates that the _gold reserve in the whole area exceeds 550,0000 z, and that the life of the property will exceed -0 years for one machine of the capacity suggested by the engineers. Mr Williams has great ; confidence in the merits of the propeltj. I The consulting engineers recommend the installation of a powerful modern dredge 'specially constructed to suit the phjs'cal characteristics of this a r® a - The Capacity will be about 120,000 cubic yards per month, but the greatest importance ib attached to the complete treatment o the rich wash rather than excessive yardage ■ It is estimated that the cost of a dred t ;tad all necessary plant, elected eta the property, including all the necest4irv equipment and buildings, will no ckceed £IOO,OOO. The total expenditure in Nfew Zealand, including working costs, record ing to the estimates furnished by tlVe consulting engineers, should not exceed £25.000. With ore reserves based onl Mr F. Harold Williams’s approximate estimate of not less than 550,0000 z and an aiJprage recovery by one dredge ot over 20tf00oz per annum, the revenue, with eofa at no more than £5 per ounce, would lie - £87.500 after deducting special New Zealand tax, or about £50,000 after providing for working costs, depreciation, etc, Hach increase of 10s per ounce in the/ price of gold over £5 per ounce repress! fts an additional £IO,OOO profit per an Rum. The price of gold on May 2, 19114, was 136 s Sid. The directors estimate that after providing for preliminary cxjfcnses and commissions the pi esent issike will provide a working capital of £1(83,600. , . „ . aU issue of 1,550,000 shares of 2s each was» made at par, and the lists were closed five minutes after the opening bout, the issue being considerably oversubscribed. Tbe directors of the company are:— LieiFtenant-eolonel Charles Edward PonRonlfer, T.D., Cobbc place, Lewes, Sussex (chairman), director of Tati Company, Horace Boot, M.1.C.E., M.l.Mech.E., M.I. E.E., 7 Victoria street, Westminster. S.W.JI,, chairman of Horace Boot and Part tiers. Ltd., consulting engineers. Reginald Pawle. A.R.§.M., M.lnst. AI.AIi Rookwood, Reigatc, Surrey, chairiMtipf Ipoh Tin Dredging, Ltd. Francis Gordon Payne, M.l.Mech.E., Wairnarie. Denmark Hill, 5.E.5. director of Kiuta Kellas Tin Dredging Company, Ltd. • , r „ eoiißulting engineers arc Messrs F. W. l%ync and Son: bankers, Westminster Bank and Bank of New Zealand; and tie secretary is Mr James T, Patterson, N.C.A., of 7 and S Norfolk street, Strand. London. At Ihe office of the company it is stated that t,tenders are being called for the construction of the dredge, it is anticipated that wtork will begin on the river in about 18 months’ time.