A REVIEW OF THE YEAR.

Otago Witness, Issue 3016, 3 January 1912, Page 28

A REVIEW OF THE YEAR.

In reviewing tho mining industry through Otago and Southland during the past year, and having regard principally to dredging matters, one is struck by the steady decline in this onoe productive branch of our trade. Tho total gold yield from Otago dredges for the past 12 months shows a decrease of some 35000 z as compared with' the previous' year, but this retrogression is not nearly so marked as that for 1910, when the total gold yield ohowod a decline of nearly 7000 oz, as compared with tho previous year. Tho number of dredging companies listed oh the Dunedin Stock Exchange is also considerably fewer than last year owing- to several properties being turned over to private ownership, and others going into liquidation. The Rise and Shine Company experienced E, serious misfortune when on January 4 its Ko. 2 dredge sank in some 40ft of water, and all efforts to refloat her were consistently attended by ill-fortune. The ser-

vices of a diver named Mr George Todd T were engaged, but the company soon lost him through drowning. A contract for raising the sunken machine was then let to Messrs Miller Bros., but after exhausting ever available means in their power and involving the expenditure of some £SOO, they abandoned the effort in September last. In October the Central Charlton Company decided upon liquidation, as the returns were not large enough to justify a continuance of operations, and the dredge and claim were ottered for sale by tender. The price 'realised was £275, and this, with the cash in hand, enabled a dividend of 5s per share to be paid, thus absorbing almost .the whole of the capital, leaving only a small residue for contingent expenses. ' The Morgan Diving and Suction Company, a new departure in dredging methods, which was put in commission towards the end of 1910, also failed to justify its existence, and on June 9 it was decided, at a meeting of shareholders, to go into liquidation. The machinery was shortly after dismantled, brought to Dunedin, and sold. A pimilar fate also overtook the Golden Sun Company, a proprietary formed to work on the Clutha River, near Cromwell, about 14 months ago—it going under softie few weeks since. During the year the Otago No. 1 dredge, which had been doing only fairly well, was sold to Mr J. S. Thomson and a syndicate, and from that time onwards no returns have been made public. Early in September the Stanley Paraoale dredge, with the dredging rights over 140 acres of land in the Philippine Islands, was offered for sale by public auction, and disposed of at the remarkably low price of £SO. A few months ago the secretaryship of the Paraoale Company changed hands, and Mr J. B. Brugh now has charge of its business affairs. The annual meeting of this company will be held shortly, and in all likelihood a proposal from tne directors recommending liquidation will be submitted to shareholders for their approval. The river dredges have had a fairly favourable season all things considered, and the majority of them have had a steady run, though in some of the claims the drift at times was troublesome. _Up till a few weeks ago the river has remained low, and in consequence work has been pursued more steadily than is generally the case following on the winter months. Heavy rain about the end of the first week in December, however, caused a considerable rise, and this had the effect of forcing several of the dredges to stop before being compelled to do so by the intervention qf the Christmas holidays. Probably the most noteworthy event of the year in dredging circles was a return from the Electric No. 1 dredge of 3260 z 18dwt for 117 hours’ work during the week ended September 15. This is an exceptionally large return, and is considerably in excess of anything obtained in / Otago during recent years, recalling rather the days when the industry was in a far more flourishing condition than at present. Six years have elapsed since a return comparable to this was won by the Electric Company, the last occasion being on September 25, 1905, when a wash-up resulted in a yield of 3660 z 15dwt. This dredge has since obtained a number of returns in the neighbourhood of lOOoz, but latterly this average has not been maintained, though, with a favourable river atfer the holidays, a further improvement may again take place. During August and September the Sailor’s Bend dredge struck some rich ground, and for a few weeks her returns averaged 180 oz. Unfortunately, however, the river became unsuitable, and she was forced to close down on September 18, and has not yet resumed operatons. The Manuherikia dredge has been a very consistent gold producer, and in a steady run of returns has averaged between 50oz and 60oz per week. The other dredges which have done fairly well during the year have been the 909, the Rise and Shine, the Golden Bed, the Rising Sun, the Koputai, and the Karanui. The majority of the others have managed to pay expenses, after which only a small surplus remained. ■ A few weeks ago a decided improvement took place in the nature of the ground at the Sandy Point claim, and the returns increased in proportion. This dredge should now win some good returns, as should also the Walkaia, which recently. struck some richer wash than she has known for a considerable time. In May last the Waikaka Company placed under construction a new No. 3 dredge. This machine, when completed, will be of exceptionally large proportions, and is designed to work the lower levels of the Waikaka Valley, which cannot bo reached by the company’s present dredges. This ground has been proved by boring to be of a payable quality. The new machine, which is being built by Mr John Knewstubb, will be capable of operating to a depth of 55ffc. At the present time matters in connection with dredging are very quiet, as most of the machines have closed down for the Christmas and New Year holidays

The following table, giving the comparative returns from Otago and Southland dredges for the past 12 years illustrates the steady decrease in the output, commencing from 1904:

The total amount of the dividends distributed to investors during the past year by dredging companies listed on the Dunedin Stock Exchange has been £27,178 13s a decrease of over £7OOO as compared with last year’s figures. The various sluoing companies have returned to shareholders a total of £2400, or about £IOOO less than was the case last year. The dividends paid in the quartz section last year reached the handsome total of £615,525 16s, but in this department a marked decrease has also to be recorded, the total for the past year amounting to only £471,245. or a decrease from the previous period of, roughly, £144,000. Those figures are somewhat significant, and seem to point to the fact that in all its departments tho mining industry has not experienced so successful a year—from tho investors’ point of view, at anyrate—as in the preceding period. In addition, however, to the dredging companies listed on the local Exchange there are a large number of pnvately-owned dredges, some of very <jonsiderablo size, at work in various localities throughout the province. Those help in a very largo measure to swell the scope of tho industry in the matter of employment of men and gold output, but tho official figures in reference to either their returns or dividends arc not obtainable.

in the early part of tho season the sluicing claims throughout the province were very much hampered through lack of water

with which to carry on operations regularly. During the past few months, however, this state of things has been completely altered, and - with the copious rains that have fallen and the full supply of water thus provided all the companies have been getting in a steady run. After a considerable period of stripping, the Hamiltons Sluicing Company washed up in September and obtained the splendid return of some 200 oz for about a fortnight’s work. Since that time work has been steadily prosecuted with a good supply of water, and the returns have maintained a fair average. At the annual meeting of the Muddy Terrace Company, held on December 20, the chairman stated that the dircctoi'ate had now overcome the initial difficulties, and with favourable conditions the claim should shortly be giving shareholders some return for the capital they had invested in the concern. The Hydraulic Company at Nokomai has pursued the even tenor of its w’ay, the three plant® getting in a regular run and producing returns above the average. The Island Block Company, on the other hand, does not appear to have been as successful as could be desired, and it that, in all probability, its career will shortly be terminated. The Little Valley Sluicing Company has undertaken a stupendous proposition in the construction of a water race over about five miles of ve*-y rough country, and up to the nresont time some three miles, including the worst portion, have been completed. During the year the Quartz Reef Point Company went into liquidation owing to a shortage of capital with which to carry on. and the claim was purchased by a private syndicate in September, and Mr H. Heidcmann placed in charge of operations. One or two wash-up,, have taken place, and though nothing sensational has been struck, the results are considered very encouraging. As in the case of dredging, there are a large number of private sluicing concerns at work throughout the province, and many of these j are obtaining excellent returns, although the actual results are unobtainable fof publication. In his speech at the close of the year the chairman of the Dunedin* Stock Ex- | change (Mr Harman Reeves) stated that it was greatly to be regretted that more of I the quartz mines in Otago were not being worked to greater profit. The outlook for • this class of mining at Macraes, where the j discovery of a reef bearing rich scheelite j was made last year, are, however, distinctly ■ promising, and hopes are entertained of j that field turning out successfully in the near future. There are also a few private 1 concerns in various parts of the country, 1 and these, though of no great magnitude, .serve to keep a number of men employed and are no doubt productive to their ' owners. Work has been carried on with a fair measure of success by the various 1 proprietaries in Preservation Inlet, and i despite considerable difficulties some of ' the mines are doing passing well. In March ' last payable gold was struck in the reef in ‘ the Morning Star mine, but nothing exceptional has been recorded in the way of ! returns. | While, however, the dredging industry in Otago seems still to be on the wane, there i appears to be a steady regaining of confidence in the sluicing and reefing branches of the industry, arid there can be little doubt that, if carefully fostered and systematically developed, these two will be the source of considerable wealth to Otago. The mining of scheelite, too, where it ■ occurs in connection with gohh should also prove profitable, as it is a marketable commodity of considerable value. It is impossible, of course, to gauge the future, but from present indications there is every reason to regard the coming year in an optimistic light. The heavy rains that have prevailed for some time nast have ensured a full supply of water for many months at the sluicing claims, and with an advance in the development of the existing reefing properties there is distinct promise of an improvement in the mining industry during the coming year

COMPARATIVE DREDGING RETURNS.

The following table shows the number of Otago and Southland dredges at work weekly, with their returns, together with the figures for the corresponding periods of 1910, 3909, and 1908. Pennyweights and grains are omitted in each instance; 1911. 1910 1909. 1908.

The rain of Christmas Day was almost phenomenal at Oxford (Canterbury) for this time of the year. Nearly two inches fell in the 24 hours.

GOLD EXPORT,

THE YEAR’S RETURNS

Tho following table compiled from the Customs returns shows the amount of gold and tho value thereof exported from Dunedin during each of the twelve months of

Totals 78,257 £316,049 It will be noticed that during the months of April and June no gold was exported..

Comparative Returns. The following table show's the amount of gold exported over the past two years : Ozs. Value. 1910 78,883 ... £319,094 1911 78,257 ... 316,049 THE WAIHI MINE. DEMAND FOR AN EXPERT REPORT. (From Oub Own Correspondent.) LONDON, November 18. In an article on the Waihi mine, appearing in the Miring Magazine, the opinion is reiterated that a report by an expert geologist is desirable. It is maintained that tho inspection made by Mr Richard, of tho Mount Morgan, wholly failed to meet tho necessities of the case, and the writer proceeds:—“lt is well enough for the directors to say that they have confidence in the local management. That attitude may please those who are afraid that their shares may decline in value if intelligent curiosity be unduly sharpened. But it is not the attitude proper to men of business, who must face facts.” Reviewing tho geological facts, the article states: —“The limit of oxidation at Waihi ie accompanied by a significant change—an increase of calcite in the ore. Where rich in the zone of oxidation, the calcite is replaced by quartz. The lower limit of oxidation is passed on the Martha lode at about the eighth level. This fact should in itself have awkward intelligent curiosity, for, the world over, tho miner anticipates this change with anxiety. No petrographer or geologist should be needed to tell an experienced manager that when oxidation ceases to be apparent, and when tho composition of his lode undergoes a change in depth, tho future of his mine is at stake. Then he requires expert advice, and he should get it, if he can afford to pay for it.” In conclusion it is observed: —“It so happens that the Waihi is one of the relatively fpw cases in which the geologist can give practical aid to the miner. That aid iho management lino neglected to obtain, and when it is obtained it will be in the guioo of a delicately-worded obituary.”

KEEP-IT-DARK MINE.

iFboh Ovb Own Cohbespoh dent.) GREYMOUTH, December 28. The mine manager of the “ Keop-it-Dark ” mine reports as follows for the throe weeks ending December 23, 1911: “ Stoping has been carried on below No. 7 level new find, and the slopes above the same have been filled. We are rising from the slopes here to get through to No. 6 level, the rise being up 88ft from the top of No. 7 level. There is about 4ft of stone hero, but the strike is carrying it very fast towards Milne’s block, No. 6 level. No. 8 level has boon produced 58ft for three ivceks, the total distance from the main shaft being now 177 ft. The ground is very hard and short, which makes it bad to break, and it runs nearly parallel with the drive. Repairs have been earned on in different parts of the mine. Threehundred and forty-eight tons of quartz have been sent to the battery and 374 tons crushed for a return of incited gold of 113 oz 7dwt from the battery and 550 z 4dw’t from cyanide, the total being 168 oz lldwt. Mr H. M. Smyth has returned to Hokitika after having been absent in Auckland and Wellington on Ross goldfield? business. On being interviewed in regard the present position of the ooajpany’s

affairs he stated that he was satisfied with the results of his mission. He commenced by stating that he had been engaged by Mr Davis to place before shareholders the technical points of his (Mr Davis’s) schemq, There had been some difference of opinion as to whether it was advisable to use the present plant or instal a new steam one. Mr Davis held that the property should first bo prospccted_ and proved with the present plant before the large expenditure of £30,000 on the now plant was contera.plated. Mr Smyth pointed out that at the meeting recently held in Wellington shareholders holding a total of 50,000 shares supported Mr Davis’s proposition, while 700 supported the present directors. In order to discredit the scheme advanced by Mr Davis, the chairman made a personal attack upon that gentleman and Mr Smyth. The shareholders evidently realised that it was only abuse to bolster up a lost case, as a number of leading electrical engineers throughout Now Zealand had supported the scheme and had reported tp Mr Davis to that effect. Eventually a number of these shareholders wore converted and adopted the proposals in their entirety. Questioned as to the reported friction among the shareholders, Mr Smyth stated that there was absolutely no personal feeling between either Mr Davis or himselt and the present board. The whole question was one partly of policy, and the directors themselves acknowledged this at the last general meeting, when they apologised for the attitude previously adopted. In regard to the personnel of the new board of directors Mr Smyth stated that they were nominated by Auckland shareholders holding over 20,0(50 shares. The present board also hold largo interests in the company, totalling about a quarter of the whole, whereas the old board only held altogether some 1500 shares. The directors propose visiting the coast almost immediately for the purpose of making themselves personally acquainted with the requirements at the mine. In order that no time should be lost they are inviting tenders at once for a Diesel standby plant, which will require to bo imported from London. Mr Smyth expects that the proposed alterations to the plant and transmission lino will occupy about throe months to complete. The board is acting very carefully and has not yet decided whether it will commence operations underground before the Diesel plant arrives, but very probably if the engineer’s report is satisfactory after the plant has been overhauled pumping operations will be commenced. It does not intend, however, to run any risk of another close down. The shareholders can rest assured that before the wheels are again set in motion everything possible will be done to guard against any failure and ho ensure the ultimate success of future operations.”

Year. Oz. Year. Oz 1911 25,665 1905 ... .. 77,187 1910 29,114 1904 ... .. 89.017 1909 36,50? 1903 ... .. 87,130 1908 40.222 1902 ... .. 106,369 1907 47,713 1901 ... .. 65,505 1906 52,662 1900 ... ., 62.271

Oz. Oz. Oz. Oz. 5 90 3 69 3 131 7 197 n 267 14 242 8 266 21 700 29 797 28 955 14 351 23 621 28 715 26 787 16 470 24 615 26 642 24 683 17 478 22 589 26 663 31 930 20 515 19 589 25 637 25 698 15 364 20 513 27 733 32 961 20 676 21 625 33 822 30 973 20 568 20 554 31 806 28 885 20 645 19 422 24 574 29 973 20 604 21 549 31 948 26 993 19 602 16 <155 35 874 30 1000 17 497 20 574 32 715 29 947 18 434 22 671 22 632 22 846 18 429 24 687 23 634 25 863 11 394 23 656 29 751 29 858 17 387 23 713 25 673 24 693 18 452 21 568 25 840 27 893 17 398 23 479 24 742 28 782 21 558 22 461 30 785 23 683 20 555 23 646 27 650 28 794 19 459 23 791 25 603 28 704 20 506 22 530 26 589 27 845 20 443 21 571 27 706 31 791 22 449 25 716 23 533 27 714 19 542 19 496 27 616 29 781 22 584 17 429 25 656 26 724 23 705 19 567 26 704 31 820 20 730 16 602 28 662 28 830 20 615 18 596 27 641 31 834 20 683 18 629 29 709 30 698 22 762 22 823 27 672 30 718 24 745 25 876 31 .834 34 884 19 492 25 786 30 822 36 1046 20 461 22 613 22 625 34 947 19 426 22 549 23 682 55 768 18 739 24 697 29 857 30 648 16 382 18 505 31 957 27 699 17 514 18 513 30 964 29 704 21 491 20 563 28 724 27 682 17 478 22 613 24 645 28 634 18 432 19 491 25 760 32 797 17 520 18 457 22 677 27 707 18 461 18 422 25 716 26 578 17 462 18 435 24 667 26 6' 16 15 520 16 413 27 787 28 751 17 569 17 465 27 750 29 784 17 502 18 468 30 791 26 708 18 333 20 540 28 717 28 721 14 360 18 500 25 727 28 792 17 476 14 539 23 720 25 656 25,665 29,114 36,503 40,264

The i West Coast. — — — — 3 101 — — — — 2 47 3 101 2 208 2 40 1 24 3 102 3 182 4 157 5 /157 5 247 6 291 4 124 3 7 58 4 91 4 122 5 143 5 133 6 145 3 154 7 210 5 131 5 136 5 192 6 175 3 59 6 180 4 144 6 183 5 98 3 89 5 144 5 142 5 119 •7 174 7 300 7 212 5 135 — — 7 302 6 250 5 135 6 164 8 191 a 92 3 48 5 155 9 268 5 184 3 65 3 77 4 196 4 125 4 99 2 62 4 162 6 193 6 84 5 133 4 110 5 147 5 126 ' 3 101 5 131 5 144 5 110 5 162 5 192 3 126 5 91 2 85 4 103 4 169 6 122 5 148 4 1C4 5 157 5 104 4 180 8 254 4 175 3 70 6 155 5 125 4 142 4 96 6 137 5 104 4 124 3 93 3 90 7 191 4 198 4 95 5 143 7 192 4 149 4 80 6 152 6 164 157 5 121 4 116 5 180 4 156 4 111 2 40 7 210 4 128 4 114 4 131 6 164 5 249 4 114 6 158 7 212 5 195 5 148 3 104 7 303 5 269 3 87 5 132 7 301 4 154 3 77 3 78 7 298 4 218 5 163 5 118 9 287 4 181 6 200 2 53 7 265 3 182 4 140 4 106 9 302 4 212 5 142 4 82 8 237 4 196 4 118 3 73 6 148 4 180 6 179 5 157 7 211 5 207 5 120 3 110 6 194 5 251 5 137 4 125 6 228 5 184 4 ■ 95 5 150 7 228 5 224 4 130 4 115 3 81 4 240 6 204 4 131 8 293 5 174 2 74 1 30 7 216 5 ' 265 5 140 5 132 7 203 5 249 4 130 6 170 7 185 5 190 6 183 4 89 7 220 4 179 4 146 3 70 8 249 5 165 4 130 4 79 8 341 4 145 5 193 2 58 9 301 5 238 8951 4 176 5961 2 47 5964 9848

the past year: — Ozs. Value. January ... 15,679 ... £63,022 February 177 706 March ... 11,477 ... 46,480 May ... 8,479 ... 34,600 July ... 13,274 ... 53,743 August ... 4,378 ... 17,181 September ... 7,197 ... 29,328 October ... 3,024 ... 12,095 November ... 11,816 ... 47,772 December ... . 2,786 ... 11,122