MINING.

Otago Witness, Issue 4032, 23 June 1931, Page 30

MINING.

GOLD MINING COSTS WEST COAST OPERATIONS. During the hearing at Reefton of the application for a new award made by the various gold mining companies in the district interesting evidence was given in regard to mining costs. W. Gore Porter, local secretary, Blackwater Mines, Ltd., produced statements of costs of mining operations from 1914 to the present date showing that breaking costs had increased from 21s 8d per ton in 1914 to 29s 4d. The grade of ore had fallen by 5s per ton, development charges had risen from 46s 3d per foot for 1914 to 74s lid in 1930; milling costs had risen also. A certain amount of development was necessary, otherwise the mine would stop producing. The ore reserves were being gradually diminished. Including the gold premium, the profit shown last year was £4915, but without the premium the loss would have been £139. This did not include the office charges at Reefton or London. There had been no dividend since 1918.

To questions, the witness said that the etatement that Blackwater Mines made a profit of £BOOO last year was not true. The development costs were charged against rising, sinking, and driving. The Blackwater Mine had paid 2s 6d in dividends since 1918. Since 1926 the company had been working at a loss. There were fewer on the staff to-day than in 1914. The capital of the company in 1908 was £250,000 fully paid up, and was the same to-day. The labour cost per ton of ore to-day 21s 5.78 d, a proportion of superintendent’s salary was charged to this, the monthly salaries were £330, and the wages under £4OOO. The amount of dividends paid to date was 15s 6d. Thomas H. Lee, secretary, Alexander Mines and New Big River Gold Mining Company, stated: The Big River Company ceased all mining operations in July. 1927. . Up to 1924 it had been a prosperous concern, but from then on had been run at a loss. The last dividend was paid in December, 1924. The resumption of operations depends on the formation of a new company. The experience of the last 12 months showed a loss of £1922 per year at Alexander Mineg, and with the grade of over £2 16s lid per tern they made a loss. The mine could not carry on with values less than £4 to £4 10s per ton. Last month gave £845 worth of gold from 390 tons with a gold premium of about £7O. This was a record tonnage and was worth just over £2 per ton. The crushing done by the former owners previous to 1926 was £8 to £lO per ton. The present company was form.ed and registered in 1926. the present agreement was made in that year, and they made estimates on those values. The present values would not allow them to pay the higher wage. ' To questions, the witness said that the Big River Company had paid £4 14s on 2s paid-up shares. The Big River Company had paid a dividend in 1924, but in 1927, when operations ceased, the company was £5OO in debt. At present only a caretaker was employed. The working cost was about £3 per ton, and the yield per ton of ore from all sources was £4 10s pqr ton. For the amount invested the Big River ■ Company had been the best mine in New Zealand. At the Alexander Mines 22 men were employed at present. He was a big shareholder in the Alexander Mines. The Alexander Mines were looking better than they ever were before. The charges for the. new work last year were made on capital provided by the shareholders. To date the shareholders have had no return.

Joseph Bolitha, mine manager almost since the beginning, with the exception of a short break, in his evidence said that the wage of £1 per day is too much for a working miner. He had worked for 9s 6d and 10s per day. On the surfa.ee the men were now getting £1 per day when they were entitled to 18s 6d. The mine had no difficulty in obtaining labour.

OKARITO REPORT. The latest information from the Okarito Five Mile Beach Gold Dredging Company states that the dredge is running steadily, and everything is going well. The paddock is being extended seaward, and the handling of the dredge during the present week will be somewhat awkward owing to the confined space. The prospects are good, KING SOLOMON DEEP LEAD. The following is a report by the mine manager of King Solomon Deep Lead, Ltd., of the work done at the mine for the two weeks ended June 6:— “ Sixty-five feet of driving due nortn on wash averaging about 2ft 6in in height was done; the total distance of this drive on pay wash is 94 feet. Crossdriving due east from the above main drive at a point 59ft 4in from the main drive was started; 13 feet of driving being done, 2ft 6in of wash showing. Driving north was started parallel to the north drive. 54 feet of driving being completed. This drive is also rising in conformation to its companion drive, the wash averaging about two feet. The two weeks’ return of alluvial gold from the above drives is 102 oz 16dwt. Twelve men are now. being employed underground. The erection of the frame over the shaft for supporting the cage guides up the poppet head was done during the weekend.” NOKOMAI SLUICING COMPANY. The secretary of the Nokomai Sluicing Company reports a • partial washup of 1750 z sdwt from the No. 7 paddock. The remainder of the paddock will he completed at a later date. GOLDEN PROGRESS COMPANY.

The secretary of the Dunedin Stock Exchange has received word from the Golden Progress Quartz Mining Company that the last wash-up resulted in a return of 3260 z 18dwt of retorted gold from 211 tons of quartz. Stoping is now being proceeded with in both levels. It is intended to exhibit the gold in Dunedin on Saturday morning.

ELECTROLYTIC ZINC. The following is the production statement for the Electrolytic Zinc Company of Australasia, Ltd., for the font weeks ended May 27, the figures for the previous period being given in parentheses’—Zinc, 4183 tons (4175); amount used at works, 40 tons (40); lead, 450 tons (470); silver, 66,0000 z (65,000). COAL OIL (N.Z.), LTD. WELLINGTON, June 15. The Coal Oil (N.Z.), Ltd., Aniata No. 1 bore drilling report for the week ended June 13 is as follows:—“Drilled to 3082 feet in soft mudstone with sandstone bands.” MOLYNEUX RIVER. There is something in the nature of a small gold rush taking place on the beaches of the Molyneux River in the vicinity of Gorge and Shingle Creeks. The river is said to be lower than it has been for a long time, and with the closing of the Kawarau dam it is anticipated that a fair amount of payable ground will be exposed. A fair stretch of the river on both sides has been pegged off and claims are being acquired by experienced miners and also by unemployed men who have been working on road repair work. The prospectors are very sanguine of making more than average wages out of their venture. BEACH MINING. An ex-West Coast man who was formerly manager of a bank at Hokitika, and who knows much about winning gold from river, beach, and mine, told a Christchurch Sun reporter that unemployed men should not be encouraged to go to the beaches of the West Coast in search of gold. “Itis a waste of time for those who do not know the business,” he said, “ and it is a hungry job for those who do know it. This applies to work on beaches. It is possible to win gold by machinery where the beaches have been thoroughly tested, but it is farcical for men to expect a livelihood by using a shovel and pan.” He said that several men had gone over to work on the beach near Greymouth. Personally, he had dissuaded several men from such a waste of time.

NEW PLYMOUTH OIL WELLS. WELLINGTON, June 18. The Stock Exchange Association has received the following weekly report from New Plymouth (N.Z.) Oil Wells, Ltd.:— Depth, 2240 ft; we were shut down for four days replacing stay tubes in boiler; we recommence drilling to-morrow. TARANAKI OIL REPORT. GISBORNE, June 16. Taranaki Oil reports: Waitangi No. 2 well, excellent progress. Waitangi No. 2 well; Since drilling was resumed the 16in casing was cemented at 340 ft -on May 21. This cementing job was tested on June 1, and found quite satisfactory. Since that date the well has been drilled to 1505 ft through hard grey shale. In the last few feet some thin beds of limestone were reported. It is particularly satisfactory to note that the ground is standing up well, there being, so far, no signs of the caving conditions which gave trouble in both Gisborne No. 2 and Waitangi No. 1 wells. DUNEDIN STOCK EXCHANGE Friday Afternoon. The following is the list of business recorded on the Dunedin Stock Exchange during the week:— Bank of New Zealand, 48s 3d (three parcels), 48s 4d. Commercial Bank (pref.), £5 10s 3d. E.S. and A. Bank, £3 18s. Union Bank. £7 9s 3d. New Zealand Refrigerating (cont.), 3s lOd. 3s 9d. New Zealand Paper Mills, 18s (two parcels). Otago Daily Times, 50s (four parcels). New Zealand Breweries, 33s 3d. Waihi, 15s 3d. Mount Lyell, 17s. Mahakipawa, Bd. Okarito. 8s 3d (two parcels). Cornish Point (paid), Bd. King Solomon, 2s lid, 2s 7d (three parcels). Golden Progress, 28s (four parcels). 44 per cent. Inscribed Stock (1938), £9B 2s 6d. The amount of business transacted on the Dunedin Stock Exchange during the past week has been much greater than that of any other week for some considerable time past. There has been considerable activity in the mining section, and banking shares have also attracted a fair amount of business.

Business has been done in Bank of New Zealands at 48s 3d and 48s 4d. These shares are being quoted cum dividend at present, and the final selling quotation was 48s 3d, no buyer coming forward. Inquiries for preferred Commercial Banks led up to a sale which took place at £5 10s 3d. There was still some demand for these shares at £5 7s 6d when the market closed, but there was no seller forward.

E.S. and A. Banks remain at around the same figure, as in the past week or two, a sale having been recorded at £3 18s. These shares are now being offered at £4 Is without attracting a buying quotation. National Insurances now stand at 12s 9d (buyers) and 13s 6d (sellers), the position of the shares being, if anything, a trifle firmer than last week. Buyers of preferred Huddart, Parkers are offering up to 17s 9d for the shares, but sellers have been unwilling to do business at less than 20s. There is little activity in the coal section. Westports have been easing somewhat, the sellers’ quotation at the commencement of the week of 24s 6d having eased off to 23s 9d when the market closed. There has also been an easing in the demand for Goldsbrough, Morts, which are being quoted cum dividend at present. About the middle of the week there was a buyer of these shares at 18s 9d and -a seller at 19s 9d, but the offer has now dropped to 18s with no seller forward. Ordinary New Zealand Refrigeratings have been steadily in demand at Ils, with sellers asking about 8d more. There has been business in the contrubuting issue at 3s lOd and 3s 9d, the market closing with a buyer forward at 3s 8d and a seller at 3s lid. An offer of 20s has been received for Crystal Ices, but no seller has come into the market. Milburn Limes continue in good demand at 30s, but sellers are still firm at 31s. Two parcels of New Zealand Paper Mills have been turned over at 18s, but, though the shares were being offered at that figure at the end of the week, buyers would not go above 17s 6d. Otago Daily Times shares have been fairly active, four parcels having been dealt in at 50s. Sellers were offering the shares at 51s when the market closed, no buyer coming forward. The earl y offer for New Zealand Breweries shares was 33s 3d, at which price a sale was reported at the end of the week. Further inquiries at 33s found sellers asking Is more. As usual, the mining section has been the chief centre of interest, and there has been a large amount of business recorded. Waihis were dealt in at 15s 3d, further offers of 15s Id failed to attract a seller under 15s 6d.

Mount Lyells, which are cum dividend, have seen business at 17b. The closing offer for these shares was 16s 6d, but sellers would not accept less than 17s. Mahakipawas have been fairly steady throughout the week, with buyers at 7d. There was a sale at Bd, but the offer at the close of the market was again 7d with no seller forward. Okaritos had a quiet week until just before the close of the market, when two sales took place at 8s 3d. The closing quotations were 8s 2d (buyers) and 8s 4d (sellers). Paid-up Cornish Points were dealt in at Bd. When the shares were later offered at lOd buyers failed to come forward. King Solomons, which were very firm at the end of the previous week, have tended to ease. There was a sale at the commencement of the period at 2s lid, and no further business was done until the end of the week, when three parcels were turned over at 2s 7d. This figure was being offered when the market closed, sellers then demanding 2s 9d. Four parcels of Golden Progress shares were sold during the week at 28s each. These shares are now being offered at 30s, but no buyer has come into the market. There was a sale of 44 per cent. Inscribed Stock (1938) at £9B 2s 6d. The offer now is £9B, a seller quoting £9B 10s.

Saturday Morning. There was a sale of contributing New Zealand Refrigerating shares on the Dunedin Stock Exchange on Saturday, the figure realised being 3s 9d. Later offers of 3s 8d for the shares failed to attract a seller at less than 3s lid. A late sale of Okaritos on Friday was reported at 8s 44d. There was some inquiry for these shares at 8s 2d, the best selling quotation being 8s 6d. King Solomons firmed again to 3s, at which price a sale was reported. The shares were being offered at that figure when the market closed, but buyers were unwilling to deal further at more than 2s lid. There was a reported sale of 44 per cent. Inscribed Stock (1939) at £9B ss. Offers of £9B later found sellers reticent. June 20. —Sales: New Zealand Refrigerating (cont.), 3s 9d. Sales Reported.—Okarito, 8s 44d (late sale Friday) ; King Solomon, 3s; 41 per cent. Inscribed (1939), £9B ss. The following are Saturday’s buying and selling quotations, which are subject to the usual brokerage:— BANKING. Bank of New South Wales —Buy £24, sei £25. Bank of New Zealand—Buy 46s 6d (ex div.) Bank of New Zealand (long “D”) — Buy 255, ex div. Commercial Bank—Sei 14s 6d. E. S. and A. Bank—Sei £4. National Bank of New Zealand—Sei £5. Union Bank—Sei £7 12s. INSURANCE. National Insurance Co.—Buy 12s 9d, sei 13s 3d. New Zealand Insurance Co.—Sei 425. Standard Insurance Co.—Sei 47s 6d. A. P. A. Insurance —Buy 4s. SHIPPING. Huddart, Parker (pref.)—Buy 17s 6d, sei 20s. Union Steam Ship Co. (pref.)—Buy 19s 6d. COAL. Westport Coal—Sei 245. LOAN AND AGENCY. National Mortgage—Sei 50s. National Mortgage (“B issue) —Sei 29s MEAT PRESERVING. New Zealand Refrigerating (paid) — Buy Ils, sei Ils Bd. New Zealand Refrigerating (cont.) — Buy 3s Bd, sei 3s lid. MISCELLANEOUS. British Tobacco —Buy 235. Brown, Ewing (pref.)—Sei 20s. Bruce Woollen Co. (pref.)—Sei 19s.

D.I.C. (ord.) —Buy 15s 6d. D.I.C. (pref.)—Buy 19s 6d. Dominion Rubber—Sei 12s 6d. Kaiapoi Woollen (ord.) —Buy 7s. Milburn Lime and Cement—Sei 31s. M'Leod Bros.—Buy £l9 10s. National Electric —Sei 10s 3d. New Zealand Drug Co.—Buy 495, sei 51s. New Zealand Milk Products (debentures) —Buy 20s. New Zealand Paper Mills (ord.) —Sei 18s 3d. Otago Daily Times—Sei 51s 3d. Smith and Smith (pref.)—Sei 17s 9d. Wilson (N.Z.) Cement—Sei 38s 3d. Woolworth’s (pref.)—Buy 21s. BREWERIES. New Zealand Breweries, Ltd—Buy 33s 6d, sei 345. New Zealand Breweries Debentures — Buy 21s. Dunedin Brewery—Buy 13s 6d. MINING. Waihi—Buy 15s. Waihi Grand Junction—Buy 3s 2d. Mount Lyell—Buy 16s 9d, sei 17s 3d. Mahakipawa—Buy 7d, sei 9d. Kildare—Buy lOd, sei Is Id Okarito—Buy 8 S 2d, sei 8s 6d. Paddy's Point—Buy 2s 3d, sei 3s. Cornish Point (paid)—Sei lOd. King Solomon—Buy 2s lid, sei 3s. Golden Point—Sei 18s. WAR BONDS. 44 per cent. Bonds, 1938—Buy £9B. 44 per cent. Bonds, 1939—8uy £9B. 44 per cent. Bonds, 1941—Buy £9B. 4J per cent. Inscribed, 1938—Buy £9B. 44 per cent. Inscribed, 1939—8uy £9B. 5j per cent. Soldiers’ Bonds, i 933— Bu v £99 ss. 5J per cent. Bonds, 1936 —Buy £99. NORTHERN EXCHANGES The following business was done on ’Changes during the week:— , ~ , „ , _ Tuesday. Auckland.—Sales: Inscribed Stock (1936), 54 per cent., £99 ss; Gisborne Sheep Farmers (1941), 6J per cent., £75; Commercial Bank (pref.), £5 10s; Bank of New South Wales, £24 17s 6d; Bank of New Zealand, £2 8s 3d; King Solomon, 2 S lOd.

Wellington.—Sales reported: Bank of Australasia, £9 8s; New Zealand Guarantee Corporation (ord.), 5s 3d; New Zealand Government 44 per cent, stock (1938), £9B; South British Insurance, £2 10s 6d (two sales); Wilsons Cement, £1 17s 3d (ex div.). Christchurch.—Sales: Bank of New Zealand (cum div.), 48s 3d; New Zealand Breweries, 33s 6d (three parcels); Mount Lyell (cum div.), 17s; Mahakipawa Goldfields, 7d; Waihi Grand Junction (cum div.), 3s 2<l. Sales reported: E.S. and A. Bank, £3 18s. Wednesday. Auckland. —Sales: Commercial Bank of Australia (pref.), £5 10s (two parcels); National Bank of New Zealand, £4 Zb 6d; South British Insurance. 50s vd; Union Steam (pref.), 20s; Milne and Choyce (B pref.), 20s; Waihi Mining, 15s 2d, 15s 3d; Waihi Junction, 3s 4d. Wellington.—Sales reported: New Zealand Government 44 per cent. Stock (1938), £9B; Bank of New South Wales, £24 17s 6d. Christchurch. —Sales: New Zealand Government 5£ percent. Inscribed (1932) £99 15s; Commercial Bank of Australia, 14s Id, 14s; E.S. and A. Bank, £3 18s 6d; Bank of New South Wales, £24 12s 6d; New Zealand Guarantee Corporation, 5s 2d (three parcels); New Zealand Refrigerating (10s paid), 3s 9d (two jarcels) ; New Zealand Breweries, 33s 6d, 33s sd; King Solomon, 2s lOd; Golden Point (10s paid), 16s; Golden Point (losd paid), Is 9d. Sales reported: Commercial Bank of Australia (late sale 16th), £5 lOe; E.S. and A. Bank, £3 18s 6d; Goldsbrough, Mort, (cum div.), 19s; Commercial Bank, 14s Id. Thursday. Auckland.—Sales: War Bonds (1939), 4J per cent., £9B 10s; Commercial Bank of Australia, 14s Id; South British Insurance, 50s (two parcels); King Solomon (late sales Wednesday), 2s lid, 2s lOAd; to-day, 2s 9d; Waihi, 15s 3d (two parcels); Grand Junction, 3s 3d; Mount Lyell, 16s lOd; Gisborne Sheepfarmers. £75.

Wellington.—Sales reported: New Zealand Government 54 per cent. Stock (1933), £99 2s 6d; Bank of New Zealand (cum div.). £2 8s 3d (three parcels); Colonial Sugar Company, £34. Christchurch.—Sales: New Zealand Government 5 J per cent. Inscribed (1932), £99 12s 6d (two parcels); Christchurch Drainage 5| per cent. (1973), £99 (two parcels) ; Commercial Bank of Australia, 13s lid; Bank of New Zealand (cum div.), 48s 3d (two parcels); Goldsbrough, Mort, (cum div.), 19s Id (two parcels), 19s 2d; New Zealand Refrigerating (10s paid), 3s Bd, 3s 9d; Australian Glass (cum div.), 22s 9d; Cornish Point, SAd; King Solomon, 2s lOd; Mahakipawa, 7d (seven parcels). Sale reported: Christchurch Drainage, 54 per cent. (1973), £96. Friday.

Auckland. —Sale.;: War Bonds (1938). 4J -per cent., £9B ss; City of Auckland (1944), 54 per cent., £97 10s; Bank of Australasia. £9 ss; Commercial Bank, 14s Id, 14s; Bank of New South Wales, £24 15s; Bank of New Zealand (three parcels), 48s 3d; South British Insurance, 50s; Milne and Choyce (deb. stock), 18s 6d; King Solomon, 2s 7d. Wellington.—Sales reported: Bank of New South Wales, £24 15s (two sales); Bank of New Zealand, • r 2 8s 3d (cum div.); New Zealand Government 44 per cent, stock (1939), £9B; New Zealand Breweries, £1 13s 3d. Christchurch. —Sales: E.S. and A. Bank, £3 17s; New Zealand Refrigerating (10s gaid), 3s 8d (two parcels); New Zealand breweries, 33s 6d, 33s sd; Mount Lyell (cum div.), 16s lOd (two parcels), 16s lid; Cornish Point, 8d; King Solomon, 2s 7d (two parcels), 2s 64d (two parcels), 2s 7d (three parcels), 2s 7d; Golden Point (10s paid), 16s 7d, 16s 6d; Golden Point (104 d paid), Is Bd, Is 7d (three parcels). Sales reported: E.S. and A. Bank, £3 17s 6d.

Saturday. Auckland.—Sales: Bank of New South Wales, £24 15s; Auckland Gas, 22s 9d. Wellington.—Sales reported: New Zealand Government 5J per cent. Stock (1933), £99 ss; Commercial Bank of Australia (ord.), 13s lid; British Tobacco

Co. (ord.), £1 3s lid (cum div,); New Zealand Drug Co., £2 }os. Christchurch. — Sales: Goldsbrough, Mort (cum div.), 19s 2d; Mount Lyell (cum div.), 16s lid; King Solomon, 2a II i Parcels), 2s lljd (two parcels); Mahakipawa, (three parcels). Sales reported: of Australasia, £9 7s 6d; Union Bank of Australia, £7 Us; Goldshrough, Mort (cum div.), 19s 4d; Christtei. ?9™ in l r B °" <lsi