1960
“On 18th November, 1954, the Commonwealth Parliament passed the Gold Mining Industry Assistance Act to assist the gold-mining industry in Australia, Papua and New Guinea, by the payment of a subsidy to gold producers. Small producers, whose annual output did not exceed 500 ounces, received a subsidy of £1 10s. per ounce, irrespective of cost of production; the subsidy payable to larger producers varied up to a maximum rate of £2 per ounce.
“On 23rd May, 1956, the operation of the Act was extended for three years to 30th June, 1959, and under an amendment enabled on 22nd October, 1957, the Commonwealth Government raised the subsidy to small producers to £2 per ounce; for larger producers the subsidy was raised a maximum of £2 15s. per ounce. The operation of the Act was extended for a further period of three years on 22nd May, 1959.
Left: Mines Department Annual Report 1960. Images and content presented here from this report reproduced courtesy of NSW Trade & Resources, Minerals & Energy
THE GOLD MARKET AND GOLD SUBSIDIES
A sharp rise in the price of gold on the London and other free markets in October, 1960, led to a revival of premium sales in that month. Sales on overseas premium markets in the last three months of 1960 were at higher prices than had been received in any year since 1953, and the monthly weighted average premium prices in the months of October, November and December, 1960, were respectively £A15.14s.1d., £A15. 16s. 7d., and £A15. 15s. 6d. per fine ounce.
THE GOLD MARKET AND GOLD SUBSIDIES
Prior to 1st May, 1954, the price of gold (£A15 9s. 10d.) was based on the prices for which gold could be sold abroad in official markets, less costs of movement. The current price (unchanged since 1st May, 1954, at £A1S 12s. 6d.) reflects the “parity” value of Australian currency established by the International Monetary Agreement Act, 1947.
The weighted average prices for gold sold on overseas premium markets by the Gold Producers’ Association for the years 1952 to 1959 were shown in the Annual Reports for those years. Between 1954 and September, 1960, the open market price of gold has shown no wide divergence from the official price.
However, a sharp rise in the price of gold on the London and other free markets in October, 1960, led to a revival of premium sales in that month. Sales on overseas premium markets in the last three months of 1960 were at higher prices than had been received in any year since 1953, and the monthly weighted average premium prices in the months of October, November and December, 1960, were respectively £A1S 145. 1d., £A15 165. 7d., and £A1S 15s. 6d. per fine ounce.
There were no sales on the overseas premium market during the first nine months of the year. The sudden advance of the free price of gold was attributed mainly to the feeling that the U.S.A. would be forced to devalue the dollar; the move by the Swiss banks to discourage deposits of foreign funds, thereby encouraging conversion into gold; uncertainty in the international situation; and instability in France.
The weighted average premium price for 1960 was £A1S 15s. Sd. per fine ounce, compared with £A1S 12s. 10d. in 1959.
On 18th November, 1954, the Commonwealth Parliament passed the Gold Mining Industry Assistance Act to assist the gold-mining industry in Australia, Papua and New Guinea, by the payment of a subsidy to gold producers in respect of gold won in the two years ended 30th June, 1956. Small producers, whose annual output did not exceed 500 ounces, received a subsidy of £1 lOs. per ounce, irrespective of cost of production; the subsidy payable to larger producers varied according to the formula t (cost per ounce minus £13 lOs.) up to a maximum rate of £2 per ounce. On 23rd May, 1956, the operation of the Act was extended for three years to 30th June, 1959, and under an amendment enabled on 22nd October, 1957, the Commonwealth Government raised the subsidy to small producers to £2 per ounce; for larger producers the subsidy was raised a maximum of £2 15s. per ounce, subject to the formula, and both rates became effective from 1st July, 1957. The operation of the Act was extended for a further period of three years on 22nd May, 1959, and the subsidy increased to £A2 8s. per ounce, irrespective of cost of production, for producers whose annual production is less than 500 ounces, and £A3 5s. per ounce, subject to certain provisions and the formula, for producers whose annual output exceeds 500 ounces. Both rates became effective from 1st July, 1959, and are to continue until 30th June, 1962. In previous years Australian gold producers have been permitted, through the Gold Producers’ Association, to sell gold overseas, with the stipulation that payment be made in U.S. dollars. The legislation was revised in early 1959 and it is now permissible to sell gold for external account sterling or for any convertible currency. Details of these currencies may be found in the Commonwealth of Australia Gazette No. 18 of 12th March, 1959. Payments under the subsidy scheme commenced in March, 1955, and the net payments to New South Wales and to other Australian gold producers in the years 1955 to 1960 are shown in the table below. Premiums received by producers from the sale of gold overseas by the Gold Producers’ Associa” tion (see above) are offset against subsidy payments.
GOLD SUMMARY FROM THE REPORT
“From various parts of the State prospectors and fossickers won the remaining production, namely 63.98 ounces fine, valued at £916. Average number of men employed in the gold mining industry has been assessed at 78, while, in addition, it is estimated that 75 fossickers operated on a part-time basis.”
GOLD SUMMARY FROM THE REPORT
The value of Gold-Other Forms was £15,209, which includes £14 subsidy and £498 premiums; the content was 939 ounces fine of gold and 120’74 ounces fine of silver.
At Port Kembla, Electrolytic Refining & Smelting Company of Australia Pty. Ltd. treats copper and gold, ores and concentrates for the recovery of gold concentrates. Gold-Other Forms (bullion, etc.) is purchased by the Mint, and Garrett, Davidson & Matthey Pty. Ltd.
Gold contained in lead concentrates from the Broken Hill mines is principally recovered by Broken HilI Associated Smelters Pty. Ltd. at Port Pirie, whilst similar concentrates from Lake George Mines Pty. Ltd. were exported to Japan and United States of America.
Zinc concentrates are either treated by the Electrolytic Zinc Company of Australasia Ltd. at Risdon, in Tasmania, or are exported overseas. Notes regarding premium sales of gold by the Gold Producers’ Association are to be found under the heading of “Metal Prices”.
Gold production from the major silver-lead-zinc mines at Broken Hill and Captain’s Flat was 12,461 ounces fine as compared with 12,814 ounces fine in 1959. To avoid undue repetition, the ensuing commentary regarding individual production is confined mainly to gold concentrates and gold-other forms.
The other materials set out in the above table are discussed further under the headings of “Copper” and “Silver-Lead-Zinc”.
Bathurst Mining Division.
-Information supplied by buyers reveals that four fossickers obtained 58.04 ounces fine of gold, valued at £825, in this Division, namely W. Forster, 27.98 ounces fine, valued at £393; B. S. Goodwin, 21.28 ounces fine, valued at £303; F. Kennedy, 7.48 ounces fine, valued at £110; and W. S. Gray, 1.38 ounces fine, valued at £19.
Bega Mining Division.
-The District Inspector of Mines (Mr. C. Harris) reports that “E. H. Holzhauser commenced to deepen a winze at an old gold mine situated about 16 miles in a southerly direction from Bermagui, Parish of Wapengo. The old workings consisted of an ad it driven into the mountain side from which at least one quartz reef had been stoped out to the surface. From the floor of the adit a winze had been sunk on a strong reef to a depth of 17 ft. on an underlay of 45 0 • Holhauzer has continued sinking to 40 ft. and the reef has become broken and distorted and values are negligible. Prospects do not appear encouraging.” Two men were employed, one above ground and one below.
Blayney Mining DiViision.
-The District Inspector of Mines (Mr. A. G. Reid) reports that A. L. Sutton prospected intermittently on an alluvial lead on or near portion 28, parish of Torrens.
Braidwood Mining Division.
– Fossicking operations accounted for the only production, 11.5 ounces fine of gold, valued at £146, in this Division, viz., E. and C. Hall, 8.8 ounces fine, valued at £121; C. W. Gourlay, 1.4 ounces fine, valued at £7; W. G. Tetley, 1.01 ounces fine, valued at £14; and S. C. Jarrett, 0.29 ounces fine, valued at £4. Broken H,ill Mining Division.-R. B. Johns was the largest producer in the State, obtaining 674.92 ounces fine of gold, valued at £8,367, and 1.9 tons of gold concentrates, valued at £3,610, from a prospecting area in a creek bed. Two men were employed.
Coramba Mining Division.
-”W. Wilson and S. Unwin sunk a shaft to a depth of 30 ft. in ironstone and quartz leaders on portion G.L. 74, parish of Woolgoolga, situated approximately 4 miles north-west of Woolgoolga” states the District Inspector of Mines (Mr. S. C. McDonald). A crushing of 2! tons of ore yielded 5.52 ounces fine of gold, valued at £71. F. G. Carr obtained the only other production in this Division, 4.36 ounces fine, valued at £53. Drake Mining Division.-The District Inspector of Mines (Mr. S. C. McDonald) reports that W. Creighton and H. Jaggers opened up an orebody at approximately 4 chains from the east of the old Lady Jersey Mine, near Drake. An open cut has been started off the creek in Long Gully on a narrow zinc lode in felsite. They claim to have received assay values up to 2t ounces gold per ton. The District Inspector of Mines also reports that “S. N. Dark sunk a shaft to a depth of 30 ft. in a prospecting area situated near the boundaries of the parishes of West Fairfield and Drake, approximately 3 miles from Drake Post Office, on the Long GulIy road. A quartz vein, 12 in. wide in felsite porphory, was sunk on, and at a depth of 25 ft. from the surface, two veins 9 in. x 4 in. wide have formed. On sampling and dollying, the values would average about 5 dwts. of gold per ton. The vein can be traced along the surface for a distance of 30 yards and is striking north with a dip of 80· to the west”.
Glen Innes Mining Division.
-”MitchelI River Minerals Syndicate (G. C. Garrett and J. H. Webb) secured leases over several miles of the Sara River a few miles from its junction with the Guy Fawkes River,” states the District Inspector of Mines (Mr. J. H. Burford), “and after several set backs succeeded in constructing an access road over difficult terrain for 8 miles from Paddy’s Land. A 6-in. sluicing plant was set up to mine old river terraces and 16.49 ounces fine of gold, valued at £209, were won from approximately 300 yards of cemented gravel, but lack of operating funds forced a temporary closure. Subsequently, the syndicate granted an option to Clutha Development Ltd. and at the end of the year the Company was setting up a camp preparatory to testing the area.” The balance of production in this Division was obtained by three fossickers, namely, G. E. M. Frazer, 10.99 ounces fine, valued at £154; C. A. Rixon, 4.31 ounces fine, valued at £61; and T. H. Evans, 3.43 ounces fine, valued at £47.
Gunning Mining Division.
-The District Inspector of Mines (Mr. C. Harris) reports that “on portion 258, parish of Dalton, W. C. Honeyfield, D. Shields and R. Eastey have been prospecting on a line of reef situated about 3 miles southeast of Dalton. A shaft was sunk for 25 ft. and a drive on the reef was extended 6 ft. south and 16 ft. north of the shaft. The country rock consists of slates and quartz. Two samples taken assayed 1 oz. 13 dwts. 17 grains and 1 dwt. 15 grains. “Honeyfield died towards the end of the year and Shields continued prospecting. He removed part of the overburden by bulIdozer and sent 1 ton of picked ore to Electrolytic Refining & Smelting Company of Australia Pty. Ltd. for a return of 12 oZS. of gold.”
Hill End Mining Divi51ion.-From the middle workings of the old Hawkins Hill Mine, H. Woolard won approximately 73 ounces fine of gold with an estimated value of £955. Four men were employed, two above ground and two below. Fifteen fossickers obtained 38 ounces fine, valued at £355. It was reported by the District Inspector of Mines (Mr. A. G. Reid) that W. J. Marshall was engaged throughout the year at the Enterprise Mine colIaring an air shaft approximately 120 ft. deep and reconditioning an adit level of 250 ft. in length from Oakey Creek to intersect the bottom of the shaft. Two men were employed, one above ground and one below. Mandurama Mining Division.-From residues in and around the old plant at Junction Reefs, R. G. Whalan obtained 53.65 ounces fine of gold, valued at £777.
Moonan Flat Mining DivisiJon.
-The District Inspector of Mines (Mr. R. J. Muir) reports that “a gold discovery was made by J. and S. Wright in the Hunter Springs-Tom alia area, which has been taken over by the Jabira Syndicate. Work has been confined to improving the access road and using a bulldozer to remove the surface soil to give an easier examination of the quartz gold-bearing seams.”
Mioruya Mining Division.
-Gold to the value of £423 (28.56 ounces fine) was won by fossicking by B. Schob. Working portion O.L. 77, parish of Gulph, L. W. Bollard removed 2,000 yards of overburden by bulldozing and sluicing of the exposed bottom yielded a return of 8.5 ounces fine, valued at £125. The District Inspector of Mines (Mr. C. Harris) states, “F. Lafon and P. Bonin commenced deepening an old shaft on portion 31, parish of Urobodalla, known as the Grass Tree Mine. The shaft was 52 ft. deep and they continued vertically downwards to a depth of 140 ft., where the reef below the old workings was intersected and driving commenced; however, the inflow of water was found too difficult to handle with the pumping equipment available and work was suspended.”
Mudgee Mining Division
.-H. J. Fitzsimmons, a fossicker, obtained the only production in this Division, viz., 36.34 ounces fine of gold, valued at £540. Nowra M,ining Division.-R. W. Eginton suspended sinking operations at the Homeward Bound Mine after striking hard quartzite at 5 ft. Three men were employed above ground. On the old Yalwal field, W. L. Chapman was engaged throughout the year erecting plant on portions G.LS. 20, 59, 19 and 17A, parish of St. Vincent, two men being employed above ground, and Myrtle Gully Gold Mining Syndicate (J. Fletcher) erected a stamp battery, two men being employed above ground. Orange Mining Div,ision.-”Resumption of operations at Lucknow resulted in some work being carried out by A. Marshall in Spicer’s Shaft, on portion P.G.L. 44, parish of Huntley,” states the District Inspector of Mines (Mr. A. G. Reid), “but no production resulted and operations ceased towards the end of the year.” One man was employed above ground and two below.
Tenterfield Mining D,ivision.
-Under application covering part of the bed and banks of Resurrection Creek, parish of Boonoo Boonoo, J. and G. Niklaus continued sluicing operations, using a 4-in. pump, and gold to the value of £53 (5.98 ounces fine) was won. “Coarse and fine gold occurs in a shallow deposit of gravel,” reports the District Inspector of Mines (Mr. S. C. McDonald).
Uralla Mining D,ivision
.-Although mining in the Division was confined mostly to fossicking operations, twelve fossickers having obtained a total of 28 ounces fine of gold, the value of which was £275, G. H. Woolridge won 7.35 ounces fine, valued at £103, from a small sluicing plant on Rocky River, employing two men above ground. Walcha Mining Division.-No production was recorded during the year under review. The District Inspector of Mines (Mr. 1. H. Burford) reports “J. T. Bailes and W. J. O’Neill formed New Niangala Mining Syndicate to prospect several reefs adjacent to Niangala. A bulldozer was used to strip overburden near the Jersey Lily Mine and a shaft sunk 10 ft. on a promising vein. A 5-head battery was erected on Jersey Creek, but no ore was crushed.” P. D. Lucas continued prospecting in the Division.
West Wyalong Mining Divi.!1ion
.-The Di~trict Inspector of Mines (Mr. C. Harris) states “on portion G.L. 41, parish of Brolga, A. H. Greene reopened an old shaft known as the Boomerang Mine, which was sunk to a depth of 168 ft. A drive was extended in a south-easterly direction for 90 ft. in quartz, quartzite and granite. A 5-head stamp battery was erected, but no ore was crushed.”
YOUnlr Mininlr Division.-Ten fossickers obtained the majority of production in the Division, viz., 11 ounces fine of gold, valued at £92. L. and A. Grattidge won 7.3 ounces fine, valued at £107, and J. Wilson and L. Ashton obtained 2.7 ounces fine, valued at £43.
From various parts of the State prospectors and fossickers won the remaining production, namely 63.98 ounces fine, valued at £916. Average number of men employed in the gold mining industry has been assessed at 78, while, in addition, it is estimated that 75 fossickers operated on a part-time basis.