GOLD MINING

Otago Daily Times, Issue 26273, 3 October 1946, Page 10

GOLD MINING

DECREASE IN PRODUCTION EFFECT OF WAR CONDITIONS (From Our Parliamentary Reporter) WELLINGTON, Oct .2. During the year 1945, 372,9080 z of gold and silver bullion valued at £1,389,959 was produced, a decrease in quantity , of £97,6600z and in value of £128,160, compared with the previous year. The gold content of the bullion is estimated at 128,3640 z, valued at £1,353,207. These figures are given in the Mines statement presented to the House of Representatives by the Minister of Mines, Mr O’Brien. The decline in production of gold commenced in 1941 and the output shows a decrease of 13,9230 z of gold compared with the previous year and is the lowest production since 1930. Conditions brought about by the war, and the shortage of skilled labour and equipment, together with increased working costs, have been partly responsible. Exhaustion of the available deposits is, however, also a factor and this is particularly true of alluvial mining and of dredging operations on a small scale. The construction of dredges, which had to be deferred because of the war, is again receiving consideration and it is expected that the number of the high-capacity dredges which have been so successful on the West Coast will be further increased, while it is possible that additional areas suitable for similar dredges may be located by further prospecting. Any further expansion of gold production in the Dominion appears dependent on large-scale dredging operations carried out on relatively lowgrade ground which has not been amenable to the older types of mining methods. Notwithstanding this fact, the policy set out in the Mines Statement of 1941, whereby the dredging of land of good or potentially good farming value shall be permitted only provided conditions as to resurfacing and resoiling are strictly complied with, will be rigidly maintained even if it should render dredging operations uneconomic for practical purposes. There are only two quartz mines at present producing gold—Martha and Blackwater—and the shortage of skilled labour and increased working costs have of years created problems at both mines,. In the absence of new discoveries, it is evident that the field for new quartz-mining ventures is very limited.