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1894.

NEW ZEALAND.

MINES STATEMENT.

BY THE HON. A. J. CADMAN, MINISTER OF MINES.

Mr. Speaker,— In preparing a Statement on the mining industry of the colony I find myself limited to localities and matter trodden over and dealt with by other Ministers during the past ten years, thus affording one very little latitude for original remarks. The industry may be said to be confined to gold and coal, for, although there are a variety of other metalliferous and mineral ores in the colony, very little attention has as yet been directed towards their development, and, in all probability, so long as gold and coal continue to be worked remuneratively, we need not look for rapid strides in other branches of mining. The reason for this is obvious. Gold is found in the ore in a metallic state, and, although it occurs in many instances in combination with other metals —making its extraction of a somewhat complex nature —yet those persons at present engaged in mining pursuits in the colony are better acquainted with the methods of extracting gold and silver from ores than they are with the mode of dealing with any other metals. Hence the difficulty in getting people to devote either their labour or capital to the opening-up of other mines. The improvements in machinery and appliances for the reduction and treatment of auriferous and argentiferous ores have done a great deal towards making lower-grade ores pay for working. The introduction of the Cassel process, by which the gold and silver in the pulverised ore is leached out, and a far larger percentage of the assay-value obtained than hitherto got by any other method, was last year the means of making some of the mining companies in the North Island remunerative ventures; whereas without this process the operatious would have been carried on at a loss. The Cassel process is, however, far from perfect, as it will give only an average result of about 85 per cent, of the assay-value of the gold in the ore, and .about 50 per cent, of the silver. The loss therefore of the precious metals is still very considerable. This loss varies in proportion to the character of the ore ; when it contains argillaceous material forming a great deal of slimes, no method has yet been adopted whereby the cyanide of gold and silver can be completely washed out. The slimes absorb the cyanide, but after being for some time in the vats it seems to set closely together and form impervious bands, through which the solution cannot be filtered. For the reason stated, the process has not as yet proved a success in treating the tailings in the Middle Island, but it is expected that the difficulty will soon be overcome. As showing the value of the Cassel process, I would mention that the Cassel Company purchased the tailings belonging to the Waihi Company, which had been stacked from the time that crushing operations were commenced up to November last, for .£5,000; and, from the beginning of the present year up to the 23rd of August, bullion to the value of £11,369 has been recovered. I may also be permitted to remark that the improvements in hydraulic and dredging appliances enable ground to be worked remuneratively that a few years ago could not be operated upon except at a loss. There is still plenty of scope for the extension of hydraulic sluicing ; but, in order that a much larger number of men could be employed in this branch of mining, it would require a conservation of the water in numerous available streams and rivers, which can readily be brought to command localities where auriferous drifts are known to exist. The whole of the water-rights, however—the streams which are easily brought to command the ground —are held by private parties, who in many instances do not utilise

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