C.—2

1935. NEW ZEALAND.

MINES STATEMENT. BY THE HON. C. E. MACMILLAN, MINISTER OF MINES.

Mr. Speaker,— I have the honour to present to Parliament the annual statement on the mining industry of the Dominion lor the year ended 31st December, 1934. GOLD-MINING. During the year 542,863 oz.'of bullion, valued at £1,195,840, was produced, a decrease in quantity of 49,384 oz., but an increase in value of £96,261, as compared with the previous year. The gold-content of the bullion is estimated at 160,248 oz., valued at £1,158,607. The estimated gold-production for the past five years has been as follows : — Year Oz. Year. Oz. 1930 .. •• 120,931 1933 .. .. 161,755 1931 .. .. 129,861 1934 .. .. 160,248 1932 .. .. 166,354 Gold won from quartz-mining during 1934 shows a reduction of 11,714 oz. compared with the previous year, while increases of 8,160 oz. and 2,047 oz. respectively are recorded for alluvial mining and dredge mining. The large drop in production from quartz-mining was principally due to industrial troubles at the Blackwater and Alexander Mines, where the joint output was 8,741 oz. below the figure for 1933. The Blackwater Mine was idle for three months and the Alexander Mine for five months. If these mines had worked their normal time there is no doubt that the total gold-production for the Dominion would have been a record for the past eleven years. The gold-output from the Waihi and the Waihi Grand Junction Mines again showed a substantial drop, the reduction being 5,850 oz. There has been an enormous increase in the number of small alluvial claims operating in the country. In 1932 1,907 claims produced 27,214 oz., in 1933 2,410 claims produced 35,381 oz., while in 1934 4,357 claims produced 43,541 oz. The position is no doubt largely due to the encouragement and financial assistance forthcoming from the Unemployment Board. In regard to dredging the position is most interesting. In 1933 there were seven dredges operating in New Zealand. In 1934 the number increased to twelve. At the time of writing there are fifteen operating and two temporarily idle. Early in 1936 it is anticipated that twenty-three dredges will be at work, and within two years' time the information available to the Department indicates the likelihood that there will be over forty such plants producing gold. During the past year a great amount of boring has been carried out by syndicates and companies in search of dredging properties. It is estimated that there are about sixty alluvial and keystone drills in operation, and it is considered that more scientific prospecting of alluvial areas is being undertaken at the present time than ever before in the history of the industry. Dredging possibilities present an entirely new aspect not only on account of the price of gold, but also on account of the great depths to which modern machines c,n work and their low cost of operation per cubic yard.