KAWARAU GOLD

Hokitika Guardian, 25 March 1930, Page 3

KAWARAU GOLD

FORMATION''OF NEW COAIPANY

DUNEDIN, March 20

The I'arhotis'Kawarau mining ’seKfcme, a few years ago' was to he an epoch in t]jo history gold mining in New Zealand, but laded out as quickly i. j it was born, again presents some prospect of renewed activity. The disappointments''' following-the urst period of closing are- remembered all too well, and a -litunlier of dannuokling companies went out of existence. Others, however—quite a number promoted in the North Island and several local companies—did not lose hope in the faith that wealth lies hidden in the stream’, and they maintained an attitude of vigilance with a hope that the scheme might yet he lully developed. Negotiations to that end have been proceeding'for some two years. The • ]iicl aim in this was the amalgamation of all interests and the taking qver of control by the amalgamated claim-holders. The first attempt fail-

'd, but another has been taken up and . egotiatiohs have been proceeding actively for some Lime. These appear, to have made very satisfactory process. Proposal's have 'been' submitted to the parent- company which ’ are said t be acceptable, and the definite signing of tlie.se is expected at'-a-ny • tilve. Operations beyond that stage , have .been considered'. ; ■ ’ '

.The claimholders have been in touch with an eminent cir-mecr in nr. Mid once the preliminaries are suc•ossfully overcome lie will be engaged :,o ionic over and make a lull report on the scheme. On his report will derm ml the future proposals. It can at least he said that he is a man emin-

ently suited for the’ position. One of tue main points on which lie will be asked to report is the possibility of

die construction of a second dam at Ixawarau bridge. Tin's would control my seepage from the main dam at Lake Wakatipu and the water from die Shotover and Arrow llivers. ft is lelieved by those interested that this would place the venture on a reasonable way to success. That is where die scheme stands at present.

The question of finance will be deferred until a "full report is obtained, should the' amalgamation be completed as anticipated, the lie'.: company will take over tne liabilities of the old

mnnany. Apart from this calls are still due bv the subsidiary companies.

' lit many of these have run their burse and are out of existence. The proposals for amalgamation are regarded as fair and equitable to all concerned.

Tt is the intention of the new man-

agement, once it is granted control, to lose no time in having the engineer on the spot.