THE REEFTON MINING INDUSTRY.

Otago Witness, Issue 3402, 28 May 1919, Page 26

THE REEFTON MINING INDUSTRY.

PROSPECTS REGARDED AS HIGHLY FAVOURABLE. By R. Wilson. The linking up of the West Coast of this island with the east, via the Otira tunnel, will give a big impetus to the development of a country which is admittedly the land of to-morrow. In natural resources it is a veritable Bonanza, comparatively untouched by the hand of enterprise. Like all isolated things, a good deal of mystery and prejudice is associated with "it: yet this land of the setting sun, in the near future. i 8 destined to be dotted over with innumerable dairying farms, grazing concerns, and timber mills, whilst its millions of tons of highly bituminous coal and its millions of gold compassing the Paparoas and Reefton will attract to its borders a tremendous population. In gold alone the West Coast has produced something like 30 millions. This result was produced largely from the surface by the methods of alluvial, sluicing, dredging, and quartz mining. By the lastmentioned method over seven millions have been won from the little-known town and district of Reefton. Twenty . years ago Reefton was practically as extinct as the moa. For 20 years prior to that it was the centre of a busy and bustlinjr life. _ The secret of its attraction was found, in Its phenomenal quartz reefing system, which in places resembled a jeweller's shop. Thriving companies paid out half-crown dividends fortnightly. The Welcome Company, on a called-up capital of £3OOO, gave to the fortunate shareholders the magnificent sum of £IOO,OOO. That record has been beaten by the Reefton New Big .River Company, which, on a called-up capital of only £6oo—or 6d per share on 24,000 shares, —has given to the shareholders since 19JJ8 the sum of £IOO,BOO in dividends. At the time referred to. however, the whole mining enterprise of Reefton collapsed. Scarcely any of the companies then operating the quartz belt were working to a greater depth than 500 ft, Running all through the areas was a "fault" zone varying in depth according to the contour of the country. It produced a cation, of the entire reefing system. . Expert mining opinion did not favour the view that the reefs would live below the depth mentioned. Efforts were made to overcome the oiificulty by haphazard prospecting, but without success," and the field collapsed. Ev . en ™- ally overseas capital in the form of the Consolidated Goldfields (Ltd.) picked up three of the "worked-out" mines, and in each case sank the shaft through the "fault" zone and picked up the reefing system as strong and as rich as ever. Since that period a steady development i> <l ua £ tz has taken place, producing some of the finest commercial enterprises the dominion has known. Notwithstanding the paralysing effect the war has had on all mining concerns, Reefton has more than survived. A large amount of New Zealand capital is now being diverted to the field. The industry has long since passed the experimental stage. The town has the honour of possessing the deepest mine m New —the Energetic, which is part of the Wealth of Nations group. This mine, which has been a conspicuous success, has reached a depth of 2000 ft, with over 20ft in width of reef containing values of loz per ton. Practically all the mines (seven) are being worked below a thousand feet and without a single failure. Unlike the North Island mines, there is no water to contend with. All the mines are dry, whilst Nature has provided an abundance of equipment m timber, coal, and water-power. The success of the Blackwater mine, which was opened up 10 years ago, has directed considerable attention to the held on the part of capital. This has paid back its working capital four times over. Its reefing system at a depth of 1200 ft is producing excellent results. Unfortunately its nominal capital is a quarter of a million, and is controlled from London. This also applies to two other mines controlled by overseas capital. The quartz belt extends from Blackwater on the south to Boatmans, on the north, a distance of 25 miles. It is quite within the bounds of reason that this belt will carry one mine per mile. Certainly it is inconceivable that the reefs end with the imaginary boundary lino of the various areas held by the different companies. With the asr-istanco of a Government subsidy of £IO,OOO a New Zealand company is developing the rich lode system of Boatmans. The company has siunk a shaft a thousand feet, and has successfully opened up true reefing country at that depth. The Blackwater North Syndicate has opened up four gold-bearing reefs at a depth of 1360 ft—a fact which demonstrates the success of the enterprise. The Reefton Gold Minos Company is about to open up the Millerton. Blackwater South, and New Discovery properties, where reefs which are regarded as highly payable have been worked to a depth sufficient, it is believed, to ensure future success. On these nropertics something like £4o,ooohas already been expended. The New Kep-It-Dark Companv is expending £IO,OOO in shaft srinkin? below 1450 ft (the present level). At that depth the reef is 5ft # wide, and it 3 value renches in the vicinity of loz per ton, whilst considerable, improvements are beintr made to the adioining proportv—the Wealth of Nations. The Keep-It-Dark, on a called-up of £9OOO. paid to its shareholders in dividends the sum of £158,000, whilst through the neglect of the old company to stack its tailinors the sum of £IOO.OOO of recoverable _ gold swept its way into the Inangahua River. Our modern methods of cyanidation and concentration make such los3 an impossibility. This auxiliary treatment to-day gives fully 30 per cent, of additional result, and enables even low-grade ore to be worked at a profit. In full focus of all the facts of this quartz centre, Mr David Ziman. who has furnished over £200.000 for this industry, stated before the Industries Commission in March last that in his opinion Rocfton was the

best mining field in the world. Britain controls practically two-thirds of the world'* gold output. This fact has been of tremendous value during the past four year*. It is really an Imperial necessity that our Empire shall continue this production, and, if possible, increase it. Reefton furnishes a field of legitimate enterprise where \ this can bo accomplished without serious risks. Its gold-bearing ores are akin to those of Bendigo (Australia), California, South Africa, and Kolar (in India), where quartz mining is successfully carried out at twice the depth of any mine on the Reefton field. In viow of this, let us, in the interests o! industrial progress and sound commercial enterprise, stimulate this development and materially augment the supply. This can bo accomplished by tho investment of New Zealand capital on the lines indicated. Part results present circumstances, and future indications warrant the expectation that far more gold will be won from this country than that which w© have already secured Deep sinking on quartz will prove this contention, which is neither a geological nor a metallurgical improbability.