NEW GOLD REEF

Timaru Herald, Volume CXXXVII, Issue 19373, 23 December 1932, Page 3

NEW GOLD REEF

ADDITION TO RAND FIELD. Potential ore reserves estimated, at roughly, 278,000,000 tons are said to lie in the extension of the Witwatersrand Main Reef, the discovery of which is reported in a newspaper. The discovery of this extension, stated to be about forty miles in lengtn is the result of elaborate investigations which have been proceeding for over two years, and is likely, of course, to prove of incalculable importance to South Africa. Like so many other remarkable South African discoveries, the finding of the extension was due to chance. One Sunday about three years ago Doctor Krahman, a German economic geologist of considerable reputation, was picnicking on Mulders Drift Hill. While roaming on the hillside he noticel that the rocks contained an amount of iron oxide, which enabled him to undertake researches for the main reef by means of the “magnetic field balance.” These researches put him on the track which the investigators definitely assert led to the discovery. An extension of options has been procured on a line of farms occupying the entire belt.

According to the journal reporting the discovery, experts are of the opinion that the main reef does not end at Randfontein, but is nearly twice as large as hitherto estimated. The discovery is confirmed by an official statement issued which says:— “It is claimed, as aresult of geophysical survey, that the main reef series continues beyond its present known western limit approximately forty miles. The New Consolidated Goldfields has for some time held options over the mineral rights on farms ex-,, tending in a line westwards beyoud the Welverdiend Station. The formation of an initial company to undertake the proving and opening up of the area is now under contemplation, and shortly after its formation drilling work will commence.” It is, however, considered advisable, adds the statement, that a conservative view be taken concerning the importance of the discovery until the new company has proved the value. That the reef series continues is certain, but whether it contains gold in profitable quantities has yet to be ascertained. The venture is at present a gamble holding out a promise of big developments. The report led to considerable activity in the shares of Consolidated Goldfields of South Africa, a rise of 1/3 to 43/9 being recorded in the opening dealings on the Stock Exchange. The company has an authorised capital of £6,500,000 in ordinary and preference shares, all of which except £248,690 is issued. No ordinary dividends have been paid since 1930.