Central Otago Notes. (From Our Own Correspondent.)

Otago Witness, Issue 1905, 25 May 1888, Page 12

Central Otago Notes. (From Our Own Correspondent.)

Naseby, May 17. Some little stir has been created in speculative circles here during the past week by one or two good washings at St. Bathans, and by the dircovery of a valuable lode in the Golden Gully Company's claim, Serpentine. A week or so ago several of the directors of the Golden Gully Company visited the works at Serpentine aud after deliberation they !ei a contract to sink a shaft to catcii Cogan's reef 35ft or 40ft from the surface. The work was at once put in hand and with such satit factory results that Mr John Oogau was enabled to come iuto Naaeby last Saturday and report that a sandstone reef between sft and 6tt in width had been struck after 35ft of j sinking. The walla are clean find well defined and the lode carries gold from wall to wall in the proportion of from lfidwc to loz per ton. Further exploiting is dow being dona with the object of opening up the reef and bringing a large crushing to grass. Simultaneously the battery is being placed in repair, and early in the spring crushing will be commenced in all probability on a paddock containing several hundred tons of stone The tunnel is now over 1000 ft, and Tnrnbull's shoot may bu met with any day. This discovery lias had quits ivn inspiriting effect on the company's stock, parcels of which are changing hands at premiums ranging from 6d to 9d. A Mining Boom. — St. Bathans contains some of the most enterprising miners in New Zealand, and in addition their system of : mining is as far in advance of that in vogue in other parts of Central Otago as the moat primitive method followed in this

district if -superior to that of the savages who win the gold from the beds of the streams of. South America by means of sheepskins and similar appliances. For Instance, Mr John Ewing has evolved such a scientific system of hydraulic mining that he obtains a profit out of a cubic yard of washdirtwhich yields him only a single grain of gold, a result, I dare cay, hardly yet obtained by any other gold digger in Otago . For several years past St. Bathan s miners have been expending thousands of pounds in the execucution of vast mining works, comprising inter alia the construction of two deep tail races to work the auriferous deposits respectively of St. Bathans basin and Surface Hills. They are now beginning to reap the reward of their energy and enterprise. The United M. and B. Company washed up at the New Year with a yieid of 700oz, out of whicn liabilities to the amount of £1500 were liquidated, and a dividend of £5 per share declared. 'Xhe Scandinavian Company, finished cleaning up last Monday, obtaining BOooz as the result of the season's work. Heavy liabilities have been payed off, and a dividend of £4 8s paid on 240 shares. Several other companies are also engaged in the same interesting operation, all with similar excellent results. Shares in the M. and E. and Scandinavian Companies are quoted at large premiums, and for the shares of tho latter company i £21 each is offered, but there are no setters at tho price. As a consequence of all this, mining matters at St. Bathans especially, arecausiug some stir. The Mareburn Beef. — I understand it has been resolved to place the Marebnrn Reef on the market at once. An influential directory of local and metropolitan business men of good standing has been formed. A report by two well-known experts has been obtained, which will be published in connection with the prospectus, which will be ready for issuing in all probability in the course of next week. Recently a Victorian syndicate made an offer to take over the properties and float a company in. Victoria to work them; but as the syndicate modestly demanded at least half the profits of the sale the owners of the lease thought it was hardly good enough, and would not deal on that basis, comequently the negotiations were dropped. The capital of the proposed company .will be £20,000 in 50,000 shares of 10s each, of which 20,000 only will be offered for public subscription, the remaining 20.000 partially paid-up > being retained by the proprietors as a proportion of the purchase money of the claims. The properties offered comprise two lt-ases of a total acreage of 55 acres each, the claim containing a payable reef within its boundary, in addition to water races and various other privileges. It is considered probable that the venture will be floated in less than a fortnight, inasmuch as several thousands of shares have already been privately subscribed in the district.