C—3

6

The following statement shows the number of dredges, the gold produced by them, and the dividends paid during 1905 and 1906 : —

During 1906 the average yield per working dredge was £3,013, and the expenditure thereon £2,200 ; the average time worked per year was forty weeks, with working-costs at £55 per week ; therefore the net profit per dredge was £813, less depreciation. The future prospects of this branch of mining depend upon the further reduction of working-costs to enable the low-grade drift to be rendered payable. How this reduction is to be effected is in many cases a difficult question to solve ; but in cases where water-power is available it may by its direct application, or by its use in the application of electricity, materially assist in reducing costs. At the Earnscleugh No. 3 dredge the application of electricity has proved a saving in the cost of power of 50 per cent. The disadvantage of hydro-electricity is its initial cost, which would bear heavily on one dredge. This might be avoided by the formation of power companies, but such undertakings would be subject to similar treatment and labour under similar disadvantages as water-race companies have experienced in the past. In the Southern District eight dredges are now operated by hydraulic power, and this number will probably be increased. The following is a statement regarding the most productive dredges the property of registered companies during 1906 : —

Of the 136 dredges at work in the Southern District, fifty-two are owned by working shareholders or small syndicates, many of which are highly successful. (3.) Alluvial Mining. During 1906 the production of gold by alluvial mining amounted to £275,618, the greater proportion of which, was obtained in the Southern District, from the Provinces of Otago and Southland. The method adopted in working the alluvial deposits depends on the depth of the superincumbent strata, the elevation at which they occur, and the water-supply available. If all these conditions are favourable, the systems mostly employed on account of their economical application are those known as " hydraulic sluicing" or " hydraulic sluicing'and elevating." By these methods a yield of 1 grain of gold (value 2d.) per cubic yard will often pay working-expenses. Sluicing and elevating is being substituted for dredging on flats in several places for reasons already stated. In connection with this system of mining, some interesting statistics have been supplied by the Round Hill Gold-mining Com-

Inspection District. Nnm cr of Dredge». 1905. 1906. Idle. At work. Idle. At work. Yield during 1906. Average Yiald per Dredge, 1906. Dividends paid. 1906. 1905. Vest Coast Southern 5 40 145 7 23 31 136 £ 86,082 415,117 I 2,777 3,052 £ 24,086 79,636 & Totals ... 32 185 30 167 501,199 3,013 103,722 123,648

Dividends paid Name of Dredgp. Production during 1906. n .■ „ ion« To ;:ilst December, During l'JOb. 1906 West Coast District — Pactolus (2 dredges) No Town Creek Southern District — Masterton Mystery Flat Otago Sandy Point ... Waikaka Syndicate Waikaka United Argyle 158 other dredges £ 24,305 7,153 £ 16,875 3,000 & 37,813 16,775 11,515 5,888 9,835 6,030 13,739 14,240 6,364 422,130 8,500 2,480 3,125 2,000 4,200' 8,120 2,892 52,530 15,000 8,268 13,500 7,200 7,000 19,040 6,492 Unknown Totals 501,199 103,722