GOLD DREDGING REVIVAL

Taranaki Daily News, 13 January 1932, Page 3

GOLD DREDGING REVIVAL

DISTINCT POSSIBILITY REASONS FOR EARLY FAILURES. VIEWS OF BRITISH ENGINEER, That gold dredging still has distinct possibilities in New Zealand, but that the old methods of guesswork as to values must be replaced by scientific and careful prospecting, was an opinion expressed to a Press reporter by Mr. F. W. Payne, a mining engineer from London, who is at present staying in Christchurch. Mr. Payne explained that he was visiting the Dominion ostensibly as a tourist, but as a mining engineer much interested in the possibilities of a revival of gold dredging, engineer specialising in dredging he was Mr. Payne was a prominent figure in the dredging business in Otago about 30 years ago. ‘‘The assured and steady value of the metal obtained by dredging is of great moment,” said Mr. Payne, “and the existence of an unlimited and safe .market for gold makes it particularly attractive at the present time, when so many securities usually considered giltedged are being discounted. Gold dredging in Central Otago and on the West Coast in the latter years of the last century unfortunately developed rapidly into a boom which, as is usually the case with booms, duly burst, leaving devastation behind it, and some exaggerated feeling of resentment against dredging generally. Nevertheless, in spite of many failures, there were conspicuous successes, and gold dredging may fairly claim to have been born and nurtured through its earlier stages of development in New Zealand.” RISE AND DECLINE OF DREDGING. The reasons for the rapid rise and decline of gold dredging in the Dominion w'ere fairly obvious, now that the position could be viewed from a distance' in proper perspective, he continued. Firstly, the Government regulations as to the holding of dredging areas, particularly on the Clutha river, were not suited to a policy of slow and sure development. Again, early successes induced a feeling of confidence in further ventures, which quickly gave way to almost reckless speculation. Systematic prospecting, by boring or pitting, was not considered necessary, and ■thus the great majority of the dredging concerns at that time could be described as purely ventures of faith. Another general cause of failure was that the old dredges, evolving rapidly from the most primitive affairs, were still primitive themselves when compared with modern machines.

"Later on,” said Mr. Payne, “further improvements in dredging machinery in New Zealand were rendered almost impossible. This was due to the existence of dozens of unsuccessful dredges, which could be purchased for fewer hundreds than they cost thousands. Thus, any new dredging venture formed, instead of ordering a new and more up-to-date plant, merely purchased one of the existing dredges, and moved it to its fi-esh claim. In the meantime some engineers and dredging men left New Zealand for California, where, not being hampered, by the existence of old plant to be worked off, improved methods rapidly developed. For some time, no doubt, the United States were distinctly in the lead as regards dredging. EXPERIMENTS IN MINING. "About 1912 a new dredge was placed on the market by an English firm; it was the first dredge designed for the mining in the Malay States. At the time this was looked upon as a risky experiment, due mainly to the hard limestone bedrock which, in many places, was of a pinnacle formation. But, despite all drawbacks and pessimistic prophecies, this pioneer dredge proved a success, and demonstrated the possibilities of tin dredging in the Malay States. This form of mining rapidly displaced, other and more expensive methods. Improvements and development in size proceeded apace, until in 1929 two dredges commenced working in ground 130 feet below the water-line, proving very successful even at this depth/so much so that a still larger dredge on similar lines was ordered. This°maehine, which is now being erected in the Malay States, has a total displacement of something over 4000 tons. In the matter of capacity 300,000 yards per month, and more, is the output of some of the larger dredges.” ENGLAND IN THE LEAD. England could now fairly claim to be in the lead with regard to dredge mining and. the supply of dredging maehin ; ery, he continued. At the present trme, the Malay States were suffering from a severe slump in the price of the metal, and with a view to presenting a further decline in price the dredges were now operating under a restriction sclieme which cut down normal output by about half. Tin dredging had had an extraordinary prosperous career during the last ten or twelve years, but under the adverse conditions now obtaining, gold dredging as a coinmei • cial proposition was being ceaselessly discussed in financial circles in London. Thus the question arose as to the application of modern methods to the goldfields of New Zealand and a possible revival of dredging in the country. TIN DREDGING MORE' COSTLY’. The working costs of a tin diedgo were somewhat in excess of the costs of gold dredging, due chiefly to the more copiplicated appliances required for tin saving, but these expenses had been steadily and consistently reduced by improvements in machinery and methods and were now, on an efficient dredge of fair capacity, from 2id to 3d per yard. The price of tin at the time Mr. Payne left London was about £l3O per ton. It was still possible to secure areas in Siam and Burma with a value of one pound weight per yard (or Is 2d in cash) even under present low prices. "To make gold-dredging propositions more attractive to financiers than tin ventures, it will be seen that values must be quite good,” concluded Mr. Payne. “It seems a question to what areas can be secured in New Zealand, which will compete with, tin, even under present economic conditions. Promoters must also be willing to accept reasonable rewards and to grant reasonably long options to permit of careful investigation, and of check boring by those interested in financing the ventures."