GOLD PRODUCTION

Hokitika Guardian, 27 May 1931, Page 8

GOLD PRODUCTION

DEPOSITS IN OTAGO. IMPORTANT TESTS. WELLINGTON, May 24. Close attention is being paid by the Government to tests to be carried out at, Melling to-day ' upon the crushing of V ton of conglomerated gravel from the Golden Crescent Company's goldmining claim at Wetherstones, near Lawrence, Otago. The object wul bo to ascertain the gold-bearing capacity of the material, the cost of crushing, and! the time required to put through die ton of gravel which has been sent to Wellington specially lor tlie purpose.

It is unusual for Wellington to he the scene of the actual .testing /oi gold hearing material but the Mi..es Depart ment considers that the tests to be carried out to-day will be likely to lead to most important results if the outcome of the tests is satisfactory. There is every possibility that there will he a marked revival of gold-mining activity in certain parts of Otago should it lie found that the cost oi winning the gold from the material sent to Wellington is not excessive. . Great areas are known to contain gold anu preliminary investigations which have been carried out for a long time, under subsidy from tlie department have assured it that economic working alone is required to produce large quantities, of gold.

V ALU ABL E DRUGS ITS. Vast deposits of auriferous gravel known geologically as conglomerate, are to be found in the Blue Spur, Wetherstones, Forsyth, Waitahuna, Adam’s Flat and Glenore localities of the Ttiapeka district of Otago. These deposits are regarded by geologists as being the remaining sections, somewhat solidified, of the gravel that originally formed some ancient river tied, the continuity of the bed having been broken and sectionised by some mow* ment of the earth’s crust .

Some Of these beds of conglomerate contain enormous quantities, notably the Wetherstones bed!, which is estimated to contain about 413,000,000 cubic yards. Adjacent .to these areas is ti famous Gabriel’.s Gully, in which Gabriel Reade made his original gold discovery in 18(51. Since that time many millions of pounds worth of gold have been won from .these conglomerate

masses. The Blue Spur deposit lias already been almost wholly disposed of. However, although mining operations have been in progress in one corn r of the Wetherstones deposit for about 45 years, not. 1,000,000 yards of the mat-

,-rial has been touched. The Golden Crescent Company has been working this area for'many years on thelhass or open face .principle As the greater part ot the gold is contained in the lower strata, and as the deposit extends to a depth of about 600 feet, an exploratory tunnel lias been driven on the rock bottom across the longtiudlal run of the conglomerate,, Tlie. opinion was held that the boring of such a tunnel would provide the most reliable data on which to base an estimate of the gold content of the millions of yards that constitute the lower strata.

STATE GRANTS MADE. The sinking of this tunnel has been in progress since 1928, and so impressed' lias been the Mines Department that substantial monetary grants have been made toward the cost. The results have been fully up to expectations, but as future operations will require the use of a crushing plant it was decided on the suggestion of the Undersecretary of Mines, that a sample ton of material should be brought to W'ellington for the purpose of carrying out crushing, tests.

There • will be a representative gathering of Government experts at tlie experiment to-day, the trials being carried out at the works of the Wellington Cement Pipe Company’s works, "hieh have been placed at the-disposal of the department for the occasion.