MINING

Hokitika Guardian, 24 January 1933, Page 4

MINING

INCREASED EXCHANGE RATE. EFFECT ON GOLD VALUES. One industry that will benefit by the new exchange rate is that of goldmining. The price of fine gold in London has ranged for some days about £3 3s an ounce. Very little New Zealand gold is refined to the purity of 1000 fine, so that estimating the enhanced value on a basis of 25 per cent on the London price would giv'e an inflated idea cf the return. Mining companies, under the 10 per cent, exchange previously operating, receive ed a few shillings an ounce more than. London valu’e of fine gold, so that another 15 per cent, should approximately an addition on the present price. of 18s a ounce. The return according to the fineness of the gold should range over £7 an ounce. In Arelbourne last week, with fine gold quoted in London at £6 3s, the price was fixed under the arrangement with the Commonwealth Bank at £7 12s 7d -a- fine ounce. New Zealand gold should now be on a parity with Alelbourne, less minor exchange charg s, and possibly much of the gold now sent to America or England will be diverted to Alelbourne on account of the speedier return. -In the past, however, the Alelbourne outlet has not reurned so satisfactory a price as the other two. The enhanced value should he of marked benefit to mining companies, particularly those that have only been able to meet costs. It should also stimulate the devvlopment to low grade propositions now considered on the borderline. Naturally it should increase the value of .sharp now on the dividend paying list. OKARITO RETURN. DUNEDIN, January 23. Okarito return for the week, 60oz 2dwt for 115 hours.