MINING. THE GOLDFIELDS STATEMENT.

Otago Witness, Issue 2319, 11 August 1898, Page 18

MINING.

THE GOLDFIELDS STATEMENT.

THE MINISTER'S ANNUAL REPORT.

(From Ouk Own Correspondent.)

Wellington, August 4-.

11l his annual report on the New Zealand mines, the Hon. A.. J. ouuman states that tho impetus given to the industry through the investment of foreign capital has directed increased attention to mining pursuits. The large number of companies formed to prosecute gold mining ventures, although now greatly reduced, owing chieily to insufficient capital being subscribed, are in many initances carrying on works that must ultimately prove reproductive, and the mines which should become profitable concerns thereby increased. In the Auckland district of lh.B North Island prospecting work entailing the emploj'ment of numerous parties oi men is now very much curtailed, and areas of mining land over which an option of purchase had been nominally secured on behalf of British investors aro now thrown back on the hands of the original owner.-. In most cases, however, this has taken place in connection with laud in which a fair and reasonable prospect of successful discoveries did not exist. In the Middle Island throughout the West Coast, Collingwood, Otago, and Southland districts, many of the mining companies are carrying on extensive works in quartz, as well a 6 in alluvial mining, and in the latter more especially in dredging and building of dredges.

MINERAL PRODUCTION.

The total production of gold and silver for the year ended December 31 last was 435,5370z, representing a value of £1,001,076, compared with a value of £1,052,017 for the preceding year. This shows a decrease of £50,941. Of cither minerals, including' coal, 849,105 tons ■were produced, representing a value of £856,517, as against 800,205 tons, of the value of ££62,224, for the previous year, the decrease in the value for this year being in a great measure due to tho less value of the mixed minerals, as dptlared to the customs. The production of kauri gum was 6611 tons, valued at £398,010, as compared with 7126 tons, valued at £431,323, for 1886. The quantities and values of the chief mineral productions for the year ending 31st December last were:— Gold, 251,6450z, value £980,204; silver, 133,8920z, value £20,872; antimony ore, 10 tons, value £157 ; manganese ore, 180 tons, value £541; mixed minerals, 1561 tons, value £5892 ; colonial coal exported, including that used by Home steamers, 76,0/3 tons, value £69,595 ; colonial coal consumed in New Zealand, 764,610 tons, valuo £382,320; kauri gum, 6641 tons, value £393,010. Tho total value of the gold, silver, coal, and other minerals, including kauri gum, exported up to the ond of 3X97 was £63,617,177. Tho works connected with the production of gold, on which large sums of money have been expended by companies, are in many instances unfinished, or only so lately completed that returns from tho mines have not yet made any material addition to the yields from tho quartz mines in both islands. A.s Ji result of the planlq already in operation, the yield from many of the mines and claims lia" been augmented, and with the additional appliances contemplated the returns of goM and nilver will in future, it may reasonably bo anticipated, bo not only maintained, but considerably increased. Due regard for security of tenure has been

shown in affording protection and concessions to claimholders and companies who have given proof of their intention to carry on systematic operations, but the owners who have failed to do so have only themselves to blame if the land is thrown back into the goldficlds for others to occupy. [ 'liiG quantity of gold entered for exporta- ; tion through the customs for the year ending ! 31st March last was 251,4920z, representing a value of £976,198 ; Avhile the quantity exr ported for the same period of the preceding year was 256,9130z, valued at £1,015,742. This shows a decrease of 54210z, which has arisen in the mining districts of the Middle Island, the returns for the Auckland district showing an increase of the quantity exported. Auckland contributed 108,490oz ; Marlborough, 6190z ; Nelson and West Coast, 66,8790z; and Otago, 75,5040z. QUARTZ WORKINGS. The yield of gold from this source compares favourably with last year's returns, although there has been in the north a falling off from tire mines at Coromandel and the Thames, made up, however, by a large increaso from the Ohinemuri district. The Reef ton returns are only slightly less, whilst the returns from the Morning Star at Preservation Inlet and from the Glenrock show a decided increase in the yield for the Ola«jo mining district. The adaptation of cyanide on improved principles will in a marked degree reduce^ the cost of extraction, and per- . mifc of an increase in the quantities of ore , treated and the ultimate addition to the yield of gold. During last year 139,644 tons ef | quartz and tailings were treated in the Auckj land district, yielding 321,6640z bullion, rej presenting an estimated value of £405,745, ;as against bullion to the value of £354,2-56 for the former year, being an increase of £51,459. In the Nelson and West Coast dti- • tncts 19,742 tons of quartz were crushed for •a return of 74120z of gold, valued approximately at £27,031.

GENERAL. , Tn evidence of the continuance of rich yields of gold from quartz mines, the returns from 16 mines in the North Island show that 36,463 tons of quartz and 742 tons of tailings yielded 92,6650z of gold and bullion of the value of £103,317, and the seven quartz mine.in the Middle Island crushed 8187 tons ol quartz, for a yield of 39100z of gold, valued at £14*723. During- the months of April and May last the returns received from 12 of the dredgef at work in Otago show that. 15140z of gold was obtained, valued at £5900. It may be interesting to state that about three-fourths of the total value of the gold yield in the North Island for the year ended the 31st March last has resulted from the. use of the cyanide process, and for the montlu of April and May last 87 per cent, of the value was from this process. Alluvial Mining. — The Middle Island is the chief seat of this branch of the industry, although there are also evidences of auriferous drifts and sands in Stewart Island, but these up to the present time have not proved of much importance. In the North Island the gravel drifts have, so far as is known, proved barren of any precious melal, while in tho Auckland quartz-mining district the free gold found in some of the creeks beinc, shod from the hill directly into the lowei ground differs from typical alluvial deposits. Roads and Tracks. — The expenditure on roads and tracks has greatly increased. The total expenditure by the department during the last six years on roads and tracks for the development of the mining industry amount* to £242,963 19s 8d in direct grants, and £88,075 0s 4d in subsidies to local bodies, out of which £37,410 14s 3d and £12,158 6s 7d respectively was expended during the year. Prospecting. — The following amounts were paid as subsidies towards prospecting in the different counties: — Manukau, £55; Bay of Inlands, £212 ; Coromandel, £515 (including £503 paid to the Kapanga Gold Mininsy Company towards the cost of sinking its shaft to lOOOfc and continuing to bore to a further depth); Tauranga, /JJO; Piako, £5; Marl borough, £34 ; Grey, £7 ; Inangahua, £11 ; Wostland, £1240; Vincent, £42; Wallace, £79; .Southland, £13; Tuapeka, £118; Sol wyn, £2 ; Lake, £10. The subsidy of £25,00 C for ninking a shaft and erecting pumping machinery at the Queen of Beauty mine, at the Thames, lias now been all paid, but owing to tho unforeseen delays in receiving the re quiuitei machinery it is not expected that pumping will be commenced for homo time. To further aid. tho prospector and afford fa-

cilities for crushing and testing parcels of quart* in new districts the Government have decided on the erection of small plants foi that purpose, and regulations have been mack for their use by prospecting associations. Schools of Mines.— During the year 34^. students attended tho various schools of mines —namely, 139 at the Thames, 63 at Coromandel 60 at Waihi, 50 at Duuedin, and oO at, Roefton. Notwithstanding that the average attendance since scholarships were established in December, 1894, is 56, it is somewhat disappointing to find that only two candidates have succeeded in qualifying tnemselves for scholarships— namely, Mr W. H. Baker, of the Thames, who is attending the classes at the Auckland University, and Mr M'LeMi, who has pawed the university course, having held a scholarship for the specified period of three years. The expenditure on schools of mines during the year was £1780. exclusive of teachers' salaries.

Cyanide Process.— Licenses to use the process to the number of 12 have boon issued, and royalty to the amount of £676 has been collected for the period from the 20th August, 1897, to the 31st March last. CONCLUSION. In conclusion the Minister says : '"The state of tho mining industry is now on a more stable basis than last year. A large number of claims that wore taken up for purely speculative purposes have been abandoned, and it may now be assumed that the areas held will be developed by steady prospecting ond intelligent conduct of operations, which should prove remunei alive. The prosperity of the industry has received a check from the undue speculation which prevailed during the recent boom in the north; but the amount of capital already invested and still being invested in the development of the more prominent mines will, it is anticipated, secure fair returns." The Minister strongly impresses upon all the advisability of developing their mines before proceeding with ths erection of expensive machinery for treatment of the ores. In the southern districts capital i? being invested in the dredging industry, and there is little doubt that an increased yield of gold will result in the employment, of a large number of men. Renewed attention it being paid to hydraulic sluicing in the West Coa&t, Otago, and Southland districts, where prospects appear favourable. The construction of roads and track? for opening up new fields and also for improving the means of communication in the older di&tricts is still of urgent necessity, and ample provision must again be made for the vigorous continuance of necessary works. In order to aid in the further development of the industry substantial grants will also be required for prospecting, water conservation, and deep-level mining. MINING IN OTAGO AND SOUTHLAND.

Mr Oadman in his annual leport says: — " The mines in which operations have been most successfully carried on are the Premier mine in Macetown, the Achilles at Skippers, tlie Cromwell at New Bendigo, and those mines situated at the Carrick Ranges, Old Man Range, and Macraes Flat. In the northern and central parts of Otago prospecting is carried on, and mines are again being opened at Barewood, Waipori, and Table Hill. In the central and southern parts of Otago there is every reason to <-xpect success will attend future developments. The Morning Star mine at Preservation Inlet, in the extreme south-west of the island, has again yielded rich returns, and as a considerable number of claims have been taken up, prospecting operations may reveal fresh discoveries in the (Southland district. The quantity of quartz crushed during tho year was 19,820 tons, for a yield of 17,3020z of gold, and a parcel of 268 tons of tailings was treated for a yield valued at £1610, making a total value ol £69,510.

The Dredging Industry. — There have been bo many accidents on dredges that the C4o■urnm'.flnt intend to bring in legislation this Bi'ssion lo ensure all requisite piecuutions in safeguarding the lives of employees. Mr Cadman in liis report says this method of working the be;ls of rivers has been adopted so as to deal with like deposits in thoso valleys ihw, were no doubt ancient river beds. The sue cess Jiliciidanl, on the opprations cf dfedqe3 in districts where %cry little surface water is to be found has already demonstrated the fsct that moderately deep and wet ground can be profitably worked in places that hitherto were untried owing to the absence of a plentiful water supply. There is, therefore, very little doubt that extensive areas of land of the above description, and which contain a modicum of gold in the gravel, will ultimately be dealt wilh. The excellent yields obtained from dredging operations in the Cromwell, Clyde, Alexandra, Roxburgh, Miller's Flat, and island block districts along the Clutlia or Molyneux llivers, as well as in the "Waipori, Waikalta, Tuapeka, and Milton districts, has led to the construction of many new dredges. Throughout Otago upwards of 70 dredges aro at work, and as at least seven is tho average number of men employed on each, work will be provided for an increased number of men when tho now dredges commence work. Tho number of claims taken up for dredging is about 130, and although this industry promises to be attended with success it will bo wise on the part of those who intend to embark in it to ascerlain first what certain prospect of success exists iv particular localities before incurring the cost of building dredges. It is frequently the case in the operations cf quartz mining that expensive machinery is erected for the treatment of products beforo sufficient work has been done to ascertain what the probable value of the material lo be operated on may be. II is to be hoped that similar errors will not be made in the dredging industi y.