THE MINES

Otago Witness, Issue 1476, 28 February 1880, Page 21

THE MINES

We have of late had many indications that what we may term true mining for gold is about to receive a fresh impetus in Ofcago. Such results as those obtained by the Cromwell Company, and the Tipperary Company at Macetown, demonstrate the existence of valuable lodes which have, no doubt, been the parent stems, so to speak, of the auriferous detritus which at first yielded such a rich harvest to the superficial efforts of the alluvial miner. In various parts of the Province reefs are now being opened up with excellent prospects. Some of them, like the Hindon, may yield but a small quantity of gold per ton, but show a large body of accessible stone. Others are of a far richer but more uncertain character. The latest enterprise which has proceeded far enough to afford grounds for reasonable calculation, was described by a reliable correspondent in a telegram from Kiverton published in our issue of Friday. Our correspondent obtained from men of Btanding and character who had just visited the Long wood reefs, and especially Printz's claim, such information as justifies the belief that stone of wonderful richness has been discovered, such as was scarcely surpassed by that found in the celebrated Caledonian mine at the Thames. It will be somewhat singular if the two richest mines in the Colony should be respectively at the extreme {South and the far. North, but the indications are that such will prove to be the case. One claim, at all events, at the Longwood will, after many years of prospecting and expectation, be fairly tested in a few months. The only tiling in any measure of doubt about it is how large a supply of the extraordinarily lich stone which has over and over again, been taken out of the tunnel is obtainable. It is scarcely to be believed that such stone, contaiuing hundreds of ounces of gold to the ion, can be measured by thousands of tons, and yet that which is in sight would lead to the belief that large quantities of payable stone musb exist along the line of the appavent'y well-defined reef. Although the country is difficult, ifc is thickly timbered, so that both firewood and the necessary timber supports for the tyjKmel, go difficult tp obtain 'nfc Mace-

town, will be readily obtaindUe atl Longwood. Even if the rich, stone gives cut, it is probable that much payable stone of a poorer character may be found, as considerable alluvial finds were formerly made at the foot of the same range ; but as yet all that is absolutely known is that some tons of stone yielding the most wonderful results on the roughest crushing are in sight : the rest ia conjecture. As a battery is on the ground and in a few months will be erected, this promising claim will be fully tested. We believe that such results may be obtained- as will occasion considerable excitement, and our correspondent wisely warns Dunedin capitalists in time, that there are other adjoining claims whose owners may seek to place their scrip in the market, with nothing but proximity to justify them, on the strength of these results. The present proprietors of Printz's claim value their interest at thirty thousand pounda, and we are mot prepared to say, considering the money and time expeaded in opening the claim, and the prospects now disclosed, that this is an over-valuation. But as a rule we much prefer to see mines developed in such a way that the prospector stands in for his fair share with the rest of bis shareholders after being repaid his actual outlay, and only obtains his third or fourth preference from the actual yields ; so that if the mine pays he receives his just reward, and if it does not pay the shareholders only lose the actual outlay on opening it up. We think it would be well if a model deed of association embodying this principle were drawn up by some of our lawyers for the guidance of capitalists in all mining speculations. There is no good and valid reason why " bogus " claims should be loaded on the market, to the ruin of the tooconfiding public, as was the case in Auckland to such a lamentable extent during the height of the quartz fever j and we are strongly of opinion that if our business men would insist on some such provision in all deeds of association of mining companies as that to which we have referred, much swindling would be prevented. It is but fair that the prospector should be in the same boat with the shareholders who provide the] necessary sinews of war. tf lie ia at the outset a large gainer whether the enterprise succeed* or fails, he will go on to the end of the chapter, gulling specie lators, and doing no real mining work. Risk there always must b« in mining speculation, but we enormouJy increase the natural risk if we do nob carefully guard against trading on shadowy prospects. • The very name of mining scrip has got to be regarded with utter distrust by all prudent men, because it represents so often nofc solid fact but mere moonshine. The simple expedient we advocate is, in brief, the paying of no premium till it is justified by actual realised results, and the maintaining strictly of the principle which underlies all sound partnership, namely, an equality of risk in proportion to ultimate gains. It should be in the power of no shareholder to make large profits out of the losses of his co-shareh elders. Jf this principle is embodied in our mining speculations, we shall, we believe, gradually find confidence in such enterprise — which is as legitimate in itself as any other — increasing j bub if we play into the hands of the men who merely shepherd claims to make a " rise,'' disgust and loss, if not absolute ruin, will surely result to many.