A RUSH FOR DREDGING CLAIMS. (From Our Own Correspondent.)

Otago Witness, Issue 2375, 7 September 1899, Page 22

A RUSH FOR DREDGING CLAIMS. ( From Our Own Correspondent.)

ARROWTOWN, September 4. : Miller's Flat, extending from Arrowtown to Arthur's Point, has been rushed, and most of

the likely land is under option for dredging purposes. The land is all private property, comprising the greatest extent of agricultural land in the district, and is the most valuable in quality. There are probably from 1000 to ! 1500 acres of dredgeable land in the flat. Hayes ■ Creek runs through the greater part of it, and contains an ample supply of water for dredg- . jng purposes. Of course there are riparian t rights to contend with. The 'flat is known to ; contain golc 1 , but so far as- the gold has been traced, the ground containing the precious metal is .not suitable for dredging, being shallow, the gold being found either on terraces or in steep crevices. However, the flat itself • contains a deep deposit of wash, which may be rich enough to pay for dredging. Prospecting, I hear, has been decided upon, and will be i taken in hand without much delay. At present nothing definite is known as to' the auriferous ' character of the flat. THE OPHIR DREDGE. The Ophir dredge resumed work on the 28th ult., after having • undergone a thorough overhaul, and, but for a few stoppages consequent after an overhaul, was working smoothly, until an accident to the pump occurred. The repairs and alterations effected, which were done in an exceedingly short space of time, considering the very severe Weather, consist of the engine and winch being thoroughly overhauled, buckets relipped, bucket^, and links bushed, ,'new rollers for ladder, ""and new steam and i feeding pipes to replace those which had burst through the frost while the dredge was idle. The apparently much-needed improvements com- j prise a. new screen 25ft long, fitted with angle ] irons inside to retard and thoroughly treat the -wash, etc. These angle iiona, which were lacking in the old screen, will be a great factor ' in separating the gold -from the wash and bottom -found on parts of the Blacks Flat. ' The old tables — a double sot running parallel ! on each side of the screen — have bean removed, ; and replaced with a new Eet of an entirely different description. The new table running ! on one side of the screen is divided with a partition to regulate the water into fiVe lengths, each length is divided into three tables. The tables have a fall of about 2in to the foot, with j a drop of 2in from each table. The tables arc ; j covered with hessian. cocoanut matting, and ex- , panded metal. This is the latest style of a table, and found to be the best for saving gold. When started the tables worked splendidly, as also did everything else nbout the dredge. There cannot be two opinions that the present table is an immense improvement on the old ones. The company were fortunate in securing the services of Mr James M'George, of Cromwell, who is well known throughout the colony as a practical and dredger, to report on the dredge, it being on his recommendation and under his personal supervision that i the alterations were carried out. In Mr A. Johnstone, late of the Electric Company, will be found a thoroughly competent and trustworthy manager. If the gold is in the claim J the shareholders may rest assured that everything necessary for the finding of it is now at work.

THE BELMONT DREDGE. Mr G. J. Richardson, manager of the Bel^ mont suction dredge, on the Waiau, in his report to the. directors after referring to ihe" 1 difficulties encountered in making a face owing to the river bed being interlaced with dead: trees, scrub, and snags, says he estimates tha dredge can lift 120 tons solid matter per hour. He then proceeds: — The matter so far dredge i has consisted of a heavy grey sand, silt, andfclay. The reef has been bared on the righir hand side of /the dredge, and consists of harct trajp rock, intersected with "bars of clayeyreef. Portions of both reefs I have broken off with the rotating gear of the nozzle from tha solid reefs. The cut is about 30ft wide, 20ft deep, and 15ft long, and wash about 12in deep is now showing on the left? hand side of the cue. I am of opinion that the present cut should be continued into the basin, great care being i taken to ascertain what alterations take place on the bottom by means of the rotating gear; and if (as the work so far tends to prove) solia wash is making on the left hand side ot the cut,f I am of opinion you will come upon the oIA i run of the river. Up to the present the gold is not payable; yet the existence of gold at all, in such a hungry silt as has so far beeu operated upon, is a good omen, and justifies your pushing energetically forward until tha I run of old washdirt, which certainly exists in the basin, is obtained. DREDGING ON THE WEST COAST. GREYMOUTH, August 30. There is every likelihood of a great dredgingf boom occurring on the West Coast. For the' past few months representatives from Dunedin, Christchurch, Auckland, and Wellington have j been inspecting and pegging out the rivers and i beaches. They speak in high terms of the ground for dredging purposes, and- predict a. bright future for the industry. .For the next court day at Ahaura already 40 applications • have been lodged for dredging claims. At I Grey mouth there are also a, large number ; filed. The Grey River has been pegged out ■ for miles, and several companies have been , floated to work the river. The prospects obtained are reassuring. / MOONLIGHT SLUICING COMPANY. The annual general meeting of the sharet holders of the Moonlight Sluicing Company was held in the board room of the Agricultural Hall on the 30th; present — Messrs P. Duncan (chairman), G. H. Oatway, J. Gore, E. Melland, J. Edgar, S. Brent. The following is the fifth annual report : — The directors beg to lay before shareholders the balance sheet for 12 months ended 31st July, 1899. Work on the claim has been carried on uninterruptedly, with the exception of tha usual close season during winter frost. There have been three washings-up, giving a total result of 1330z 9dwt 18gr gold. The manager of the claim reports that the future prospects are fair. The directors to retire are Messrs P. Duncan ami J. v. de Walde. It will be necessary to appoint a director to fill the vacancy caused by the retirement of Mr W. Gardiner. The Chairman, in moving the adoption of ■ the report and balance sheet, said that the reI suits for the year were not very good, especially.

in" view of the big results* now obtained from dredging projects. As they knew, however, the whole business of the company -was not very large, and it would have taken very little more gold to have provided a diyidoad. As it was., ihey.had ended the year with moneywin hand, ■which it was considered best to keep in hand in order to pay the expenses- till the work in the claim was proceeded with again when the frost broke up. The frost had- not lifted, and although the manager was back on the claim he did not expect any work to be carried out for a few weeks yet. He was in town recently, and reported to the directors that the prospects of claim were very fair, 'and he expected to get a fair amount of gold during the incoming sewon. He (the speaker) himself had visited the claim, and saw_ how things were going on. They had a, considerable disappointment at _ the 'beginning of the year, when the washing " up did net turn out so well as was expected. That was explained to him "when he was on the ground. * The manager of the claim expected to get results from the ground adjoining. What plant the company had was in good order. < The directors had decided to have some repairs I effected to the ra.ee, and it was hoped that next year would bring forth some better results. Mr .Melland seconded the motion for the adoption of the report and balance sheet, which was carried. „ Messrs P. Duncan and J. v. de Walde were elected to the directorate. Mr J. Davie was elected auditor. A vote of thanks to the directors and secretary was carried on the motion of Mr Edgar, seconded by Mr Oatway. MAGNETIC GOLD DREDGING COM- , 'I ' PANY: ' " A- meeting of shareholders in the Magnetic Gold Dredging Company (Limited) was held in -the Chamber of Commerce .on the 30th for the purpose of confirming resolutions amending the articles of association passed at an extraordinary general meeting of the company, held on tiie Bth inst. These resolutions were duly confirmed. The chairman intimated that dredging operations were going on steadily, and that .the dredge was working excellently, and -that the prospects at present still indicated a very uniform return. After the meeting the directors met and declared a dividend of 5s per share, payable on the 6th September proximo. DOME CREEK GOLD DREDGING COMPANY (LIMITED). Messrs Sievwright Bros, and Co. report the successful flotation of the Dome Creek G.D. Company (Limited), with a capital of JE5250. The claim is situated at Waikaia (Switzers), and is reported to be a rich one. The lists were . only opened on Thursday morning, and were largely over-subscribed at 3 o'clock on Fritlay. A large number of shares are held in [Wellington and Christchurch. THE BONANZA MINE, MACRAES. The managing partner (Mr L. O. Beal, jun.) supplies us with the following information: — " Development works in the first intermediate level are being pushed ahead, and a rise is being put up fo open a block of quartz for stoping. The reef in this rise is wide, and shows gold plainly by the light of the men's candles. There is also a good body of stone in the face going west. A rise has been put up in the top level, and good .gold found in the hanging wall reef further west 'than has ever -been worked-,pre-,yioxisly.- The mine is' developing" in a very satisfactory manner, and all works are being steadily pushed ahead. The workings are now being drained by^jneans of eight galvanised iron down pipes.;' 1 which will keep them much dryer. The battery, tram, and ull machinery is. tunning well, and there is every appearance of a good supply of -water for crushing. A large of reef is now opened up by the low level adit, and by the opening up of the intermediate levels a large and promising supply of quffrtz for milling is being revealed. The value of the quartz crushed during the last partial clean, up was a little over 16dwt per ton." SHEPHERD'S CREEK.GOLD DREDGING ' COMPANY- (LIMITED). f The statutory meeting.of the above company •was held on Friday at Mr R. T. Wheeler's jun. office. The following gentlemen were elected as directors : — Hon. T. Fergus, K. Ramsay, H. Guthrie, A. Kyle, and J. Horn (Bannpekburn). Mr W. T. Monkman was elected auditor. Mr Leslie H. Reynolds, the engineer, has the tenders out, returnable next week. SHOTOVER QUARTZ MINING COMPANY (NO LIABILITY). -Mr S. E. Brent supplies the following extract from the mine manager's report: — "Machine level driven lift for week. Total length 825 ft; ground getting better driving." CROMWELL GOLD DREDGING COMPANY. The Cromwell Gold Dredging"' Company are 5n the awkward position of having "to await the arrival of their motive power, shipped by the steamer Waikato, now long overdue. Tinder the circumstances it was deemed advisable to cable Home for a duplicate set ofmachinery, and this was done about two months since. Should the machinery by the Waikato come to hand first it will, of course, be brought 4nto use. In the meantime seven .^r .eigh|rni^n are" engSgecUan ereeUng.^fhe dredging* machinery proper, this work not having been 'hurried on in the certainty that the engine and boiler could not arrive for some iime. The pontoons of the dredge are 110 ft, and the ladder 74ft in length, dredging to a depth of 53ft with buckets of a capacity of over 5 cubic feet. The winches are of a greatly improved pattern by Messrs M'Gregor arid Co., of Dunedin, and the pump, specially designed by Mr L. H. Reynolds, is from the foundry of Messrs Cossens and Black. The screens are 30ft in length, and the engine IG-"horse power, and boiler 20-horse power; the latter being by Messrs Robey and Co. THE MOUNT LYELL MINING AND RAILWAY COMPANY. MELBOURNE, September 1. ■*The Mount Lyell Mining Company's returns to August 23 (inclusive) show that 21,314 tons of ore were treated, yielding the following: — Copper, 820 tons ; silver, 54,5200z ; gold, 23410z. Two thousand two hundred and thirty-seven tons of purchased ore were also treated. ' OUR SPECIAL COMMISSIONER RE ' DREDGING IN DEFENCE. TO THE EDITOR. Sib, — Mr John F. Kitto calls my statements made in my article appearing in your issue of the 18th inst., touching the Magnetic No. 2 and the Voltaic claim and option, upon the Xawarau River, into question, saying that my statement of the case " is utterly incorrect, and not founded on facts, as I will show." Mr Kitto then goes on /as- 'follows, speaking of the Magnetic No. 2: — " The claim is one mile in length, «id there is not a smoother piece of river, or declaim on the Kawarau more free from big stones. The whole of the claim is dredgeable, *nd will be dredged; and will prove io be one if the best claims on the river, so there is no jsroblem to solve." 'Argument of such a description as this reflects upon Mr Kitto assurance and confidence lather than upon his judgment and prudence, and there being nothing tangible in his argument there is nothing to refute. Because the Dlftun is one mile long, -and. there is not a

smoother piece of river, the claim is dredgeable, and will be -dredged,: so there is no problem to solve 1 So says Mr Kitto. The argument is a very pretty argument, as dredger's arguments go. But Mr Kitto states only half the case, quoting just enough to suit his purpose. I also wrote in the same paragraph, from which he quotes, as follows: — '' The position of this part of the Kawarau River and that of the two claims mentioned is that in the Magnetic No. 2 the company start upon and above a bed of big stones in , their, attempt to bottom, ground 30ft to 35ft deep. The Voltaic instead proposed to start upon the bare bed rock, showing in the j broad light of day which may or may not have proved workable. It does not require a very high degree of mining knowledge to say which company is the more favoured by circumstances." As Mr Kitto does not object to this statement of the case, he must be presumed to accept it as correct ;■ besides, it proves that I did not get my information from an unreliable source, nor did I get mixed up in the rocks and claims of the Voltaic and option. After all, Mr Kitto is only one of several other critics of my reports who have thought they perceived reflections in them affecting their claims and properties, and all of whom may be credited with being most sincerely anxious that the public should see the truth from their own peculiar point of view and from no other. All these, no doubt, otherwise very worthy people, make a serious oversight — namely, that the same dredging property presents a very different aspect according as it is viewed from the syndicators, - promoters, and shareholders, or from the reporter's point of view. In answer to several other of my fault-finding critics I may state that the latter is the point of view from which th.c series now under discussion was treated and compiled, and the series must therefore be judged from that point alone. I also claim that a long practical acquaintance with mining, added to much practice in setting down in words "to be understanded of the common people," such deductions therefrom as are likely to be of benefit to the general public have entitled me to depart from the strict lines laid down from the reporter, and to launch out into debatable subjects. Taking into consideration the great number of claims, properties, and localities treated in the series of articles referred to, and the almost exhaustive manner they were dealt with, the few, and often frivolous, fault-findings there were may be taken rather as a proof of the general correctness of the observations made than as damaging to the accuracy of the reports. Yottb Special Commissioner. THE RIVERBANK DREDGING COMPANY. TO THE EDITOR. Sib, — According to latest reports the contractors for building the Riverbank dredge have come in conflict with the fawners by placing their timber on the latter's property. Now, Sir, if the company has not enough ground to place their building material on, I would like to know where they are going to dredge for gold. If the promoters of this company have no title to the area they represented to have when they issued their prospectus they should be compelled to refund the shareholders' money, and at anyrate they should call a meeting of- those interested before they go any further with a " spec " that. appears to havp endless difficulties before" it.— J am, etc., ■Rivebbakk Shareholder. DART RIVER GOLD DREDGING AND • PROSPECTING . COMPANY, TO THE EDITOR. "• Sir, — In reading through the prospectus of the above company several points take my attention : — The vendors are to be allotted- 5000 shares fully paid up to £1. The vendors can realise on these whenever they chose. In several companies lately floated the vendors have bound themselves not to sell their promoters' shares until dredge is at work, thus anticipating one of the provisions in the Hon. A. Lee Smith's amendment to the Companies Act now before the Legislative Council, making promoters' shares not saleable till 12 months sifter registration of company. The vendors do not take up any contributing shares. If the claim proves good will the 5000 shares be the total consideration for it? There is no agreement upon the matter, or, if there is, it is not stated' upon the prospectus, as I understand is required by the Companies Act. — I km, etc., ' August 28. Dredging Investor. DREDGING AT BALD HILL FLAT. TO THE EDITOR. Sir, — A word of warning with regard to the above place may not come amiss to investors at a time when a stage of excitement has been reached which, so far as land claims are concerned, is not justified. Although various good things are being leadicd up for the market, it may not be generally known that the only run of gold on Bald Hill Flat worth mentioning as dredging ground is pretty well worked out, and, although one can obtain fair prospects along- the banks of the old workings, it does not follow that the terraces alongside are payable. Investors must be easily pleased when they swallow vcaclora' reports and accept large areas, of next to barren ground without ever having it tc«ted bj<nn independent -prospector employed by the underwriters. Were investors to adopt this method of combining, and having the ground properly prospected by reliable men before allotment, they would not be troubled with so many wild, cats, and the crop of rusting machinery would not be so heavy as it promises to be during the next few yearp. In wet and river claims, which are difficult to prospect, much has to be taken for granted, but on alleged dredgirq claims where you could not obtain a drink of water there is no excuse why they should not be properly prospected bcfcre the small investor is asked to put his money in. Every man who has a water race nowadays looks round for a piece of flat ground, calls it a dredging claim, and tacks the race on to it, and passes it on to the public, thus obtaining a big cash price for what under ordinary circumstances may have been an almost valueless property. I have the following on -the very best authority, and would ask investors to think over it:— That there is no dredging area of 100 acres which will return the necessary capital required to work it on Bald Hill Flat, and that the ground in many parts of it is undredgeable, being composed of a stiff, nasty clay. The gold outside of the worked-out run I have spoken of above is only an odd dab, very poor and scattered. — I am, etc., Alexandra, September 2. Miner. RE MANUHERIKIA GOLD DREDGING COMPANY. TO THE EDITOR. Sir, — Your own correspondent in his notes of 18th inst. attempts to underrate the claim of the Manuherikia Gold Dredging Company in the eyes of the public, and has so misrepresented matters that I deem it my duty to contradict his statements. In the first place, he states the claim is bounded by steep, rocky banks, and practically undredgeable, and further on in his notes he says : "No doubt tho claim is a good one." Good for what, if not for dredging? I afck. The claim is one mile in length, and contains 30 acres (not 1C), every yard of which is dredgeable. The upper portion of the claim consists

I of a basin over half a. mile long, and from three" |to five chains wide. The beaches on the claim I are too well known to rcauire particularising; I however, tho company am now contracting to build a dredge with an elevator, to enable the beaches to be worked during the cummer when the river is high. The capital is £12,000, consisting of £6000 paid-up shares and £6000 contributing — not SOOO and 4000 as stated by your correspondent. Did he peruse the prospectus or did he get his information re the formation of the claim from the same soiuce as he ,got his information re the'capital? The gold cbtained during the months of July, August, and September, 1897, was sufficient to enable the company to pay dividends during that period amounting to £4.24.6, which is sufficient evidence that the claim is a good one. Immediately before the current wheel dredge sank she obtained 250z of gold for 36 hours' dredging, and those who have a better knowledge of the claim than "your own " are prepared to take up the whole of the contributing share at from 17s 6d to 20s per share premium. — I am, etc., And. Hamilton, Secretary. August 30. We submitted Mr Hamilton's letter to our correspondent, who replies as follows: — TO THE EDITOR. Sib,— As the secretary of the Manuherikia Gold Dredging Company has taken exception to niy note relating to the claim belonging to the company he represents, I may state that I am not in the habit of departing from the truth, but, as your correspondent, take pains to verify my facts. Mr Hamilton says that I attempt to underrate the claim in the eyes of the public. This is not so, and had Mr Hamilton read my note with care he would have seen that I stated what I consider facts. Indeed he himself has taken special pains to uphold my contention that the claim is a good one. Mr Hamilton says that I state " the claim is bounded by steep, rockjj. banks and practically undredgeable." Now, 1 made no such statement. The sentence, as quoted by Mr Hamilton, with the insertion of the conjunction " and," gives a distorted -meaning to that which I intended the sentence to convey. What I did say and what I still say, is that " the claim is bounded by steep rocky banks practically undredgeable." The obvious meaning here is that the banks are undredgeable, and not the claim as a whole. Mr Hamilton also says that '' the claim contains 30 acres, every^yard of which is dredgeable." When dredges are made to cut into solid rock, I Lave no doubt every yard will be operated on, but not till then. The upper portion of the claim does not consist of a basin. For the first quarter of a mile the average width of the river at its present level is under, I estimate, two chains. It then opens out into a basin from three 'to five chains in width, gradually becoming narrower towards the lower end, where it will be, perhaps, about a chain and ahalf in width. In the basin Mr Hamilton speaks of there are two beaches, 'which were not showing when I first viewed the claim. I estimate these beaches to contain an area of two acres, and these are all the beaches that the claim can possibly have. Old miners tell me that these beaches were worked in the early days, and worked wellj too. I estimated the area of dredgeable ground at 16 acres, and after viewing the claim when the river is at its lowest,- I see no reason to change that opinion. With reference to the capital of the company,- 1 may tell Mi Hamilton that my information was derived from the company's published prospectus in the Otagp Daily Times; but the man in the street said the company asked only 6000 fully paid up shares for their claim, which they generously sold to themselves for this amount. Now, I have given facts from my pomt 1 of view; Mr Hamilton has given his from a vendors' point of view ; and if those who know more about the claim than I do " are prepared to take up the whole of the contributing shares at 17s 6d to 20s per share premium " I shall not object. — I am, etc., Upper Molyneux Co-respondent.