OTAGO.

Grey River Argus, Volume IX, Issue 686, 11 June 1870, Page 1 (Supplement)

OTAGO.

[CROMWELL ARGUS.] The miners at Kawarau Gorge continue steadily at work, and all of them are believed to be doing well. In Mulholland and party's claim a one-third share changed hands the other day for Ll5O. The news from Martin's Bay is not encouraging from a gold point of view. Fox's party are reported to have found gold between Lake M'Kerrow and the Wakatip. One person who has returned to Queenstown says the gold is payable, but until such time as stores can be obtained, it is almost impossible to work it. The country, despite its supplies of wood, is represented as very inhospitable at this period of the year. Fox has gone on to Martin's Bay for the winter, and few results of a favorable character can be expected before spring. A few days ago, while a gentleman was engaged cutting a water-race upon his property, situated about three miles from Milton, Tokomairiro, it occurred to Mm that the ground presented the appearance of being auriferous. He bent down, and with the naked eye examined the stuff thrown out of the race, when to his surprise, he found some gold. A tin dishful was then washed, and a good prospect found. In the opinion of an experienced digger, a considerable extent of ground in the locality will be found to contain gold in payable, quantities. The shaft in the Elizabeth Reef, Carrick Ranges, is now sunk to a depth of 90ft, following the reef from the surface. The reef at this level is 3ft 6in wide, and gold is visible in the stone. At a meeting of the shareholders on the 14th wit., it was resolved that the contract for sinking the additional 50ft should not be considered complete until the contractors had re-trimmed the shaft. The company have resolved to put up machinery as soon as possible. A NEW DISCOVERY. A mining work of considerable magnitude, and one which, if successfully carried out, will prove of immense benefit to this district, is, we believe, shortly to be undertaken by some gentlemen of large practical experience, who are confident of more than ordinary success in the proposed speculation. In the Bannockburn district there is a large extent of ground known to be highly auriferous, but which is at present utterly impossible to work, owing to the great scarcity of water. Much of this ground, dispersed over a considerable area, has been prospected in former years by miners, some of whom are even now residing in the district ; but, as we have before said, owing to the absence of the necessary watersupply, they were unable to find any means of profitably working it, and it has consequently remained in its primitive state. To supply this want several capitalists have for some time past been making enquiries as to the possibility of securing water that would command the ground, and with such success that they feel confident of being able to bring in a. race capable of delivering fifteen sluiceSheads. The source from which this water supply will be obtained is a never-failing stream, taking its rise in the Remarkabies, and known as Coal Creek. This stream rises at such a great altitude that it is confidently anticipated the water can be brought on to the top of the Carrick Range, and thus commanding ground at a height that will give an amply sufficient fall for the tailings, a desideratum the want of which so frequently makes the successful working of even payable auriferous ground an impossibility. It is calculated that the race in question will have to traverse a distance of over fifteen miles, and in one place, a gorge nearly 350 ft in depth has to be crossed. This gorge, owing to its depth, it would be impossible to flume, and some other scheme will therefore have to be. devised in order to overcome the difficulty. This important work, it is estimated, will cost about LSOOO. It will be the means of giving remunerative employment to a much larger population at the Bannockburn, and as a consequence will materially increase the prosperity of the whole district. The European population of the BaDnockburn district is at present about 150 ; with this increased water supply it is anticipated that it will be at the lowest computation 400. THE BENDIGO REEFS. May 23. The Cromwell and Bendigo Company are busily engaged erecting their second set of stampers. The wheel is being repaired, and crushing operations at this battery will be resumed with ten stampheads, in place of five .as heretofore. This will necessitate the employment of double the amount; of hands formerly engaged. The men at work are bringing stove to grass, and a large quantity will be ready for crushing when the .battery is again set in motion. The Aurora battery. is still crushing stone from the Golden Link, and the washing-up and the amalgamating will propably take place this week. From Messrs Loughnan and Co.'s (late Stewart Richmond's) claim, the trial crushing has yielded over au ounce and a half to the ton. The trial crushing from the Victoria Company, which was completed last week, gave a satisfactory return; but we have not been able to ascertain the result. The half of the quantity put through the mill from these two claims. was a mixture of gold-bearing mullock and quartz. 'The stone from No. 4 west on the Aurora line (Messrs Fendison and Duns') is the next to be crushed ; then the stone from the Alto reef (Sam Williams' line) ; and afterwards, a large quantity brought to grass by the Aurora Company will be put through the battery, should King Frost not withhold the water supply. DEEP SINKING AT THB BANNOCKBURN. All Nations Claim: This extensive claim is worked in a systematic manner, and may well be regarded as v a model for similar workings in any part of the Province. There 13 a drive or tunnel over 2000 ft iv length, at the far end of which is the pumping apparatus, whence the water is conveyed through a light flume attached to the side of the drive, having a gentle incline towards the entrance, and discharges the water from the workings into the race passing by the mouth of the tunnel. Thi3 race serves as a groundsluice, into which the washdirt is dropped from the trucks. One man is engaged in removing the stuff from three different lyctoss-drives, in each of which another man

either of these drives. The plan of having one man constantly engaged in removing the washdirt to the sluice enables the other three shareholders to work in their respective drives without any interruption, The washdirt is from four to six feet in depth, and the run thus blocked out is from 100 ft to 160 ft wide. The claim is, and has long been, paying handsomely, the only drawback being the frequent scarcity of water during the summer. There are two or three other claims on the same lead, in one of which only (Bruce and party's) has work been steadily prosecuted. To these we will return in a future issue.