GOLD MINING

Hokitika Guardian, 16 September 1931, Page 3

GOLD MINING

-ACUITIES' IN NORTH ‘OTAGO. extensive Mechanical equipment. DUNEDIN, September 14. The biggest development which has taken place in the gokli&iitiig iudustiy in the Otago district.ToF many years is likely to eventuate .rom tlie investigations ot powerful interests which a aye lately been operating m tlie Lawrence district. Their proposal is to deal with the enormous deposits of blue conglomerate which exist in the district, the amount in the Weatherstones area alone being estimated at the huge figure of 413,000,000 toils. -These deposits were the subject of investigation by Dr. P. Marshall, Government Geologist, in 1918, and a special bulletin recording Ins (.pinions , w r as then issued. In furtherance ot his work he has now been detailed to give to the new mining group his advice and assistance, and his services are exclusively at the disposal of that organisation. He is at present in Lawrence, and development work is being carried out under his supervision. Heavy Expenditure. The project will involve the expenditure of a very large sum of money, and in addition will absorb practically tlie whole of the surplus power which is at present available from tlie Otago Power Board. Definite overtures in this respect have already been made. The fullest investigations are being made by the party ■ before finally concluding any contracts, hut it is expected that contracts will he let in the near future for a considerable portion of the work, involved in the mill buildings. The main part of the project, however, will he involved in tliq extensive mechanical equipment which will he necessary, to deal economically with the cement. So tar as can lie gathered, the equipment will be sufficiently large to deal with 400 tons of conglomerate per working day, and the capital cost of the machinery will reach at least £150,000.

Convinced of Success. It is stated on good authority that the Mjines Department is convinced that tlie present project is the only reasonable solution of the difficulty of treating the cement. So far it is. convinced of - the ‘Success/of' the; - projected operiijiiohs < that the ; whole io-e the mtlu-. once .bf the . Department is understood! j to be at the command of the' new company. ft is also stated that the Depertinent intends to discourage the flotation of companies, unless renson:hhlbprovision' 1 ' is• made for the large capital cost which will necessarily he involved in comprehensive schemes. 1 The location of the deposit which the new company proposes to work is estimated to contain sufficient tonnage to | maintain the mine at its full capacity j qf 4000; tons per. day for >a period' of at j least one hundred years. The area, it may he added, is virgin country. It has been possible to work the conglomerate in the past only because this j extremely hard material crumbles when j exposed to oxidisation by the air.’ Gold has been obtained by sluicing it at tremendous pressure, but this method does not enable the whole of the gold content to be obtained. Methods of treating the substance successfully have been sought for some time. The conglomerate has also been treated with stamps, but this method, like i sluicing, has not been sufficiently economical to secure the best results. The plant to he installed by tlie new organisation will represent the most up-to-date -goldmining methods, and the interested parties are confident of obtaining very handsome results.