16 
The Economic Value of the Deposit. 
The syndicate no doubt realizes that there will be no chance of working 
the deposit unless the amount of ore that can be cheaply won is very large, 
and there is little prospect of iron smelting being undertaken in Australia 
until the Federal Parliament has settled the conditions under which the 
industry is to work. Even if the proposed bonus of ios. a ton be 
granted, there is no chance of success unless the attempt be made under 
the most favorable conditions, with abundant, easilv-obtained ore, cheap 
fuel, and a convenient, accessible site, and expert management. An 
eminent English expert recently reported that to secure an annual output 
of 150,000 tons of iron, the capital that would be required would be 
well over ^£1,000,000. And Mr. Jenkins (late Government Metallurgist) 
estimated that a blast furnace, that would smelt 500 tons of ore a week, 
would cost about ^12,000. 
The ore at Funston’s is in a somewhat inaccessible position, and it is 
no use considering the heavy cost of iron smelting works until a much 
larger amount of ore is proved than there is anv evidence for at present. 
The ore is good, but the amount in sight is small, and its form suggests 
a “ patchy ” development. It is certainly worth while determining the 
extent of the deposit, although it mav be found advisable to postpone 
any attempt to work it until the difficulties in the establishment of an 
Australian iron industry have been overcome at some locality where the 
conditions are more favorable and the amount of ore is free from doubt. 
[.Report sent in 5th August , zpoj.] 
IRONSTONE NEAR MIRBOO NORTH. 
(no. IO on locality map.) 
By E. /. Dunn , F.G.S., Director , Geological Survey. 
This deposit is about 3 miles in a northerly direction from Mirboo 
North, and about 350 feet higher than the railway station, or 1,134 feet 
above sea level. Where the ironstone (limonite) occurs a series of landslips 
have taken place, and in this manner the iron ore is well exposed. At this 
locality the rocks consist of a highly ferruginous Cainozoic (Tertiary) grit 
below, with mottled clay above. 
Through the clay a great deal of ferruginous material is disseminated. 
The clay appears to be a decomposed volcanic ash. The limonite in part 
has segregated into solid masses, and the process can -be seen in all its 
stages from where the iron is disseminated and not in any way forming 
separate material, to where large masses of pure limonite have separated 
from the mass. In places the iron ore is partly separated, but the process 
has not proceeded far enough to form a compact hard ore; in other places 
the limonite is very hard and compact, and forms a rich ore. 
Although the whole of this clay for miles around is highly ferruginous, 
it appears that only over certain areas has the segregatory action taken 
place by which the iron ore has accreted, and over large areas none worth 
mentioning exists. Underneath the ferruginous clay, which varies widely 
in thickness, is a coarse Cainozoic grit, also highly ferruginous in places, 
and this iron oxide has doubtless been derived from the overlving clay. 
Both Professor Oregon 7 and Mr. Jenkins have written detailed reports 
on this occurrence, and dealt exhaustively with the subject. There is little 
to add to their reports. As iron ore deposits they could not be worked to 
advantage at the present time; but it appears that samples of these iron 
