GOLD DREDGING.

Greymouth Evening Star, Volume XXXI, 21 October 1901, Page 2

GOLD DREDGING.

The past week was not a good one for gold dredging, and a good number of claims worked short time, and during that time were hampered by extra depth of water and boisterous weather. The results for number of hours worked are nevertheless wonderfully good, and further emphasise the soundness of the industry if only given a fair’chance. The sharemarket which for some months past has been almost nominal is hardening with an upward tendency, but there is no chance of another boon and reckless trading as of yore for many months or possible for years (if ever) to come. It would indeed be matter for regret it it did return to again almost strand a number of speculative person possessed of a too sanguine tempremont.

The gr.ss yield for the past week will be much under the two previous periods, although the average per hour of working will be better, Given frvorablo weather this weeks returns should be over 500 ounces, for Nelson Creek, Buller Junction Paetolus and Greenstone Junction should all show a considerable improvement, while Hokitik*, Hau Hau, and Bed Jacks should appear in the list. A.l. again maintained her record witsi 46ozs 3Jw s, the ground still, con tinning a trifle tight.

Grey River, owing to flood, only got in a very limited time, and there will be no wash up till Saturday, Nelson Creek’s return of 63 ounces is two less than the previous week. The rain and flood are, however, entirely accountable fortius. Tub Buller Jdncton, though hampered with a high river and working short, gave a handsome return of 4tozs odvvts, with every appearance of an increase. Hokitika River dredge gave her first return of 26 ounces on Saturday. The period is not stated, but for a first return the result is very satisfactory. Red Jacks, being engaged in clearing the paddock, had no wash up, but is expected to give a good account of herself on Saturday, having a good face of wash. The Ahauea did not come up to what was anticipated prior to the rise in the river, but taking the flood into account 32ozs 6dwts was very satisfactory indeed.

North Beach with 15 ounces is decidedly disappointing, but the silt and boisterous weather has a good deal to do with the reduced yield. A better return is expected this week. Greenstone Creek yield of 12 ounces for 105 hours is a record for this dredge, and it is hoped she may be getting into some unworked ground, in which case we may look for a jump. Grey Consolidated only got 5 ounces 3 dwts for 53 hours work, but then the machine was almost completely blocked with huge boulders. She is, however, now clear, and should give a good return this weik. Ruby Ceeek, having at length reached her destination, will commence work at once. She has a good deal of dead work before her, but her dredgemaster, who is a most capable and‘experienced man, can be relied on to make the best of the position. The Pactolus which was expected to give 70ozs only worked 63 hours (when she broke her tumbler. Her return of 2620 ZS is equal to about 60 ozs for what could be termed full time. We look to this claim for a good yield this week provided no mishap occurs. The Leviathan dredge is working fairly satisfactory, but her return of 13 ounces is the reverse. The difficulty appears to be the doubt that exists as to what ground has actually been worked.

and what untouched. When the latter is come upon there will be returns.

Greenstone Three-Mile.— There was no return from the Greenstone ThreeMile owing to the dredge becoming silted up. It has been found necessary to build a dam to refloat the vessel, 'this will take three or four days, and will materially affect any return this week. The dredgemaster expects to start dredging to-night or to-morrow morning. No Town— The Secretary of the No Town Creek informs us that good progress is being made at present by the contractor towards completion of the dredge. It is to be regretted that he is now considerably beyond the contract time. It is confidently expected th*t the dredge will be ready the first week of next month, Greenstone Junction return for last week was 40ozs for 128 hours and considering all things is* very satisfactory. Alth .ugh it shows a falling off of 4ozs Sdwts on the previous week this is accounted for by the fact that no bottom was touched for three shifts owing to the flood and the further fact of a breakdown that caused a few hours delay. This week it is intended to work towards Mr White’s homestead as the Company have an option over the property and if work’s proceeded with much further up tho creik it will not be jossible to come back on this ground, Amalgamation —The Duke of Welling ton, the Major Robin, and the Lord Ko’son Companies, whose claims adjoin each other on the Grey river, propose to combine tor the purpose of completing tho dredge now being built for tho first named company, which is to prospect each claim for a suggested period of three months. A meeting of tho Major Robin Company has been called for tho 25th instant, to consider tho conditions under which tho above proposal is to bo given effect to. Tho suggestion is for tho Duke of Wellington Company to contribute £SOOO, the Major Robin Compony £1750, and the Lord Nelson Colnpany £750. basing the total cost of tho dredge at £7500. The Duke of Wellington Company find tbcmselves unable to complete their dredge without assistance, and, if tho scheme comes to a head, the dredge, when finished, will prospect all three claims in rotation

Maori Queen —In the annual report to be submittted by the directors to the shareholders of the Maori Queen Company, regret is expressed that the dredge has not proved a dividend-paying concern, hho has undoubtedly proved the claim to bo rich enough to pay well, and the direc tors feel confident that the will do so when the alterations now being made are completed. A sufficient number of debentures have been applied for, and the

work is at present in hand. As it is necessary to have an active representative on the West Coast, the directors have nominated Mr Gardiner D. Wilson to fill one of the vacancies on the directorate. The amount of gold won during the period ending Sepiember 30th was valued at £992; and the working expenses amounted to £5Ol 4s 9d. The Credit b Canoe of the profit and loss account is £925 Os lid. Em- ksox’s Eevvabd has not been doing satisfactory work lately, and the financial position is none too good. The report to be presented to the annual meeting on the 81st instant says:—“The dredge started operations on the 6th Apiil la,t, and was engaged in opening out operations until the 9th JtinC, when dredging on bottom was started; and the dredge has been continually at work until 81st August, with the exception of one week’s stoppage for repairs. The gold won to the 31st August was lOloz 2dwts 13grs.—an average of about lOjz per week while dredging on bottom—on which the Bank advanced £389 2s lid. The returns are not so large as they should be, owing to our dredge being hampered with an engine not strong enough for the work required of it. There was also some delay caused at first by surface timber, but there is no trouble in this respect at present, The amount of wash treated has been very small in proportion to the amount that should have been treated had the dredge sufficient power.” The capital of the Company was increased by the' issue of 2,000 ordinary shares, which, your Directors are sorry to say, were not taken up as readily as they should have been, only 1,182 being subscribed, leaving a balance of 818 unissued. As you will see by the Balance Sheet, our liabilities are £1,746 fls 9d.; and to meet these, which were incurred previous to the starting of the dredge, it will be necessary for those shares to be subscribed to allow the Company to continue operations. Your Directors feel quite satisfied that if funds were forthcoming to tide them over their present financial position, the dredge would soon be in a position to get larger returns, as it is now approaching the point where the prospecting shafts, which gave such excellent returns, were sunk.” From the balance-sheet we gather roughly that working expenses will when in full swing be about £45 per week. The most serious point is the debt and insufficient engine. If the former could be arranged for and the latter procured, there would be no fear as to the future, for the ground i* good enough for 30 ounces per week at the least, which would leave a weekly profit of £6O, or £BI2O per annum. Certainly on paper the concern looks good enough.

Pbbhy Reward is not doing well and prospects are far from bright. Mr. McGregor the dredgemaster resigned, and Mr Cox was appointed. The latter does not appear to be able to make a success. In his report he says lam sorry to inform you that after a month’s trial lam unable to do justice to your claim, which I consider a payable one, providing the quantity of material could be treated that your dredge is capable of lifting. The face stands straight, the material is not heavy, but is of a oementy nature, and requires breaking down, which is impossible with a light dredge, I have endeavoured to push ahead with a shallow cut in the expectation of finding more suitable dredging ground, but, so far, the ground remains the same. I have not bean able to treat more than fifteen yards per hour although treating surface material to a depth of ten feet only, which is a very small percentage of the dredge’s lifting capacity, viz, 100 yards per hour. I might also state that I have the dredge tightened up to her limit; to ask more would pull her to pieces. In the face of . these difficulties I consider it my duty to ask your directors to consider the position before going any further.” Dealing with the report the Chairman of directors says it has caused much anxi.tyand, while reluctant - r to advise the permanent closing down ot the dredge they cannot help feeling that the time has arrived when the shareholders should be consulted. The financial position (roughly) is that the last call of 2s,' or £B4O is not spent, while the dredge, water rights and other property is unencumbered. It is thought that it may be possible to let the property on tribute for, say, throe or six months: and if this were done the weekly expenses would be very small and it might result in easier worked ground being reached when the Company could again resume more active operations. The question your Directors wish to consider is:—Do they favour letting the dredge on tribute or do you recommend liquidation before the balance of the capital is expended. The chairman requests skate* holders to send a reply by return mail. The Wabeatea dredge bottomed at 14 feet on Saturday afternoon. The wash is a splendid sample. There should be a wash up about next Wednesday.