CENTRAL OTAGO MINING NEWS. (From Our Own Correspondent.)

Otago Witness, Issue 1905, 25 May 1888, Page 17

CENTRAL OTAGO MINING NEWS. (From Our Own Correspondent.)

Naseby, May 22. A confirmation of the reported discovery of a 6ft sandstone reef in the Golden Gully Company's claim, at Serpentine, was received last night from the contractor. He states that he has now tested the lode for over 60ft in length, the reef maintaining an average width of 6ft, and carrying gold all through in payable quantities. On the western end the lode is hardening slightly, and becomes more of the character of quartz. The assumption is that this is is favour of the theory that the lode will become permanent as it is driven and sunk on. A Splendid Property.—Messrs Withers and Tb,oinas, of the Great Eastern Company, Rough Ridge, have just finished their inspection of the special tailings' claim in Main Gully, Hamilton, comprising 150 acres of land recently applied for by some Dunedin investors. The experts were engaged three days in ascertaining the value of the claim, during which period they sank between 30 and 40 holes, commencing at the Taieri river and finishing up at the head of the gully. I was with the party during a portion of the time, and I must say I was astounded at the results obtained. The prospects varied between sgr and 16gr of gold per ton of tailings, and in the solid ground even better results were obtained. The tailings were subjected to a most exhaustive examination, fine particles of gold being found wherever tried for. The presence of so much of the precious metal in the tailings iB accounted for in this way. It appears that a large quantity of highly auriferous cement occurs in many of the claims, and instead of treating this cement by some pulverising process it was rushed down the tail races in the ordinary course, and finally deposited in the gully, where, in the course of time, it became broken down by various agencies and added its valuable quota of wealth to that already lost from the claims. There is a good deal of clay about the diggings, and this has also assisted in robbing the tail races of the precious metal and making the tailings a long way richer than they would have otherwise been. The experts broke off several pieces of cement in one of the claims at the head of the diggings, all carrying splendid gold, easily visible to the naked eye. An average piece of the cement with a prospect washed from one dish of tailings by the experts has been forwarded to Mr J. A. Chapman, Dunediu, so I understand, and an examination of them by investors and others will conclusively prove that the contention of several of our scientists that more gold is being lost than saved on the various diggings is really based on a very sound basis. The experts believe that thousands of tons of gold-bearing rock which should have been crushed at the battery have been run out of the tail races into the gully, and they conclude that thousands of ounces of gold have been lost simply for the lack of a little intelligence and knowledge of treating the auriferous cement. The speculation is believed to be a thoroughly sound one, and in their report the experts recommend the company to commence operations so soon as they possibly can. Plenty of water is available during the greater portion of the year, and the ground is easily worked. The preliminary outlay will be insignificant, and they are quite satisfied that the company will be one of the best dividendpaying concerns up country. I understand the whole of the shares in the company have been privately placed in Dunedin, so that it will not be requisite to make an appeal to the public. The Mareburn Reef.—A slight hitch in the arrangements for floating the' Mareburn reefs into a company has taken place, so it is said, and a further delay of a week must take place ere the prospectus can be issued. A good deal of impatience is evinced among local speculators at this dilly-dallying, and they say the company

could, and should have been boated months ago However, we are promised that % prospectus will be out by the end of next week. NOTES FROM REEFTON. (Fhom Oms Own Correspondent.) Reefton, May 22. Gfiobe. — The general cleaning up over the recent crushing was completed this morning, tho result being 848oz of amalgam from 240 tons. The quantity of retorted gold is 2050z. The reef on the low level is reported to hold well. Its thickness at the eastern end is 12ft and at the western end 3ft. HttSeward Bound. —At a meeting of the directors to-day Charles Clifford, a well-kHOwn miner, sent id a» offer to find a reef on the company's ground. The offer was accepted under the following conditions >— Clifford to receive a bonus of £4QO upon his finding a new reef 2fts thick, and which upon a crushiog of 100 tons shall yield an average of 2oz of gold per ton. The Riverton correspondent of the Southland News states that an old and experienced reefer from Melbourne recently examined the South Riverton reef and expressed the opinion t-bafc the prospects were so good that he would nob bother any further with testing, but would put stampers to work at once, and he was sure he ; would get good returns. There is some probability of a company being formed for the purpose of supplying electric power to drive the whole of the machinery of the | Macetown mine*. Mr Edwin James Ford, engineer, who is agent lor Messrs ElwellParker, Wolverhampton, is, we believe, favourably impressed with the idea. There are a number of mines in the district with proved reefs which, it is believed, could be worked at a profit if the project were given effect to, as the quartz could be cheaply crushed with very little handling when taken from the mine. The crushing plants of such mines as the Homeward Bound, Lady Fair, Premier, Maryborough, Sunrise, and other leases could be worked from a central station where water power could be easily obtained in continual supply. There is little dout t that such a company would be of great benefit to shareholders in these mines, and its own shareholders ought to secure fair dividends. Our London correspondent writes : — " A company with the rather peculiar name of the New Zealand Beaches Company (Limited) has been registered by Mrs Beale and Co., 28 Great George street, Westminster, with a capital of £50,000, divided into 200 shares of £250 each. The object is stated to be to acquire by grant, lease, or otherwise, areas or tracks of sea beach, foreshore, or land, in the colony of New Zealand, and to explore the same for the discovery of gold or other metals or substances, and either by (dredging or other means, to win gold or such other metals or substances, and to purchase and work all necessary machinery for such purposes ; to carry on either in the colony of New Zealand or elsewhere, the trade or business of dealers in such metals, substances, and things and other commodities, and articles of a similar or analogous description ; to carry on any trade or business, manufacturing or otherwise, incidental to or arising out of or whiph can be conveniently or advantageously carried on by the company in concction with the businesses or any of them."