QUEST FOR GOLD

Gisborne Herald, Volume LXVI, Issue 20106, 28 November 1939, Page 6

QUEST FOR GOLD

DOMINION INCREASE AREA OF CLAIMS REVENUE TO STATE SURVEY BY MINISTER (Per Press Association.) AUCKLAND, this day. The increase in the investments and area of claims in the gold-mining industry was the subject of a statement by the Minister of Mines, the Hon. P. C. Webb, who referred to the great potentialities of areas when handled by modern dredges and their value as State assets.

The total area of claims being dredged on the (West Coast was 70,022 acres, the area in Otago being 1759 acres, said the Minister. Production from these dredges in 1938 totalled 53,3220 z. valued at £442,056.

“Since I took over office in 1935, a total of 8247 acres have been taken, up for dredging and the capital invested in the industry has amounted to £1,419,750,” continued Mr. Webb. “The areas investigated were estimated, after scientific testing, to contain gold to the value of £9,433,000.”

As an example of the size of- the dredges being built, Mr. Webb referred to the Kanieri dredge which, he said, was capable of digging 3,250,000 yards a year. If manual methods were used it would require 800 men four years to shift this quantity.

Up to £62,500 In Tax

The production from dredges was expected to exceed 100,000 oz. a year at an early date. This figure would yield £62,500 in gold tax.

Dealing with the Grey River Dredging Company’s area at Ikarnatua, the Minister said that the payable yardage available was up to 60,000,000 cubic yards and the area was expected to last 15 years, dredging at the rate of 4,500,000 to 5,000,000 cubic yards a year.

The wages bill during the whole life of the area would amount to approximately £IOO,OOO. In addition to the yearly rent for the territory of 1800 acres, more than £650, would go to a local body as goldfields revenue.

Three dredges were at present being supplied by the Government with electric power. They were the Kanieri, Grey River and Arahura dredges. The Ngahere dredge, which would shortly be completed would also be supplied. The estimated annual power revenue from the four, with the revenue from the Grey Power Board, was £61,150.

The total production of gold from the Barrytown, Kanieri, Arahura, and Grey River dredges was 34,0760 z. during the present year. The gold tax payable, based on the production from January to November, on a conservative basis would be £25,500. The rent on the four claims for the vear would be £1339 and the rates £3558.