I don't think you should listen to all that , go and find out for yourself!
I have never heard anything of the sort and found them to be nice people who depend on building a good reputation with their clients!
Most of the gold you get in the Maerewhenua river and general area is very fine flood gold.
You get colour almost anywhere you pan but that's about it, occasionally you might get lucky just up above the camp but it gets quite a lot of attention!
It's a fun safe place to teach kids to pan and mess about with primary gold catching gear but even in the good old days nobody ever got rich there.
It was known as a poor man's gold field but a few families hung on right up into the early 1960's and were working when I first came to North Otago.
They had to move a lot of wash to just break even and then the sludge channels in the river and creeks were closed.
Subsequently the the head water races closed down and fell into a state of disrepair and were abandoned.
My wife's Grandfather apparently lost a lot of money in there with a dredging folly but the history is patchy at best although there is still evidence of it to be seen if you know where to look.
I play there myself but I am the last of the summer wine just enjoying being there and waiting for God. (lol)
I try to learn from the mistakes of other's, I haven't got enough time left to make them all myself!