60

C—3.

Since writing the above the following notes have been forwarded me, showing the intended operations of the new company : "The Waitekauri Gold-mining Company (Limited), has recently been formed in London with a capital of 150,000 shares of £1 each. Of these shares, 15,000 are held in reserve by the company, and, as the shares since issue have gone to a premium of £3, the company have in their reserve shares alone a valuable asset. In addition, the company start operations with a working capital in hand of £35,000. With these resources at its command the company should be able to do full justice to the fine properties they have acquired in the Waitekauri district. These properties comprise those formerly owned by the Komata Gold-mining Company (Limited) and the Golden Cross Gold-mining Company (No Liability). The places in which these two latter companies have up to the present confined their operations are distant about one mile apart, and there is reason to believe that the Komata and Golden Cross Eeefs are the same, or at all events that the Komata will junction with the Cross in the latter property. Both mines are to have their ore treated at a central mill situated on the ground now occupied by the old Waitekauri Company's battery. This battery will form the nucleus of a new modern dry-crushing mill fitted with the latest appliances, and actuated by water-power obtained from the surrounding hills. The battery will be provided with forty head of the heaviest dry-crushing stamps. It is proposed to supplement the present rock-breaker by the addition of a Gates ore-crusher, which will reduce the stones from the breaker to a size smaller than walnuts, and so materially increase the output of the stamps. There is at present on trial at the Waihi Gold-mining Company's battery a separator which is intended to withdraw the ore from the stamps in a partly pulverised state, and, after extracting that portion of it which is sufficiently fine for leaching purposes, to return the residue to the stampers. In this way it is hoped that the undue pounding which at present occurs in dry-crushing batteries fitted with fort y -mesh sieves will be to a great extent avoided. If this separator proves a success, this class of machine will be utilised by the Waitekauri Gold-mining Company, so that the efficiency of the forty-stamp mill will be increased to equal to fifty stamps by the addition of the Gates ore-crusher, and possibly to equal to sixty stamps by the use of the separators. . "The Komata Mine is distant about two miles from the battery, and to avoid the transit of ore over the mountain ridge a tunnel of some 3,500 ft. in length will be driven in from the battery side of the range to pierce the hill, and come under the present run of gold some 500 ft. below the lowest level at present in use. The Golden Cross Mine is distant four miles from the battery. A tunnel of 7,000 ft. in length is in contemplation, which will give 300 ft. of backs below the present low level, and be connected at its mouth with the battery by a permanent horse-tram. In this mine two valuable shoots of gold are being worked. These shoots are some 700 ft. apart, and it is believed that in the lower levels they will be connected. The most northern of the two shoots has been driven on for over 400 ft., with a continuous run of gold, averaging quite £5 a ton, and a reef averaging 20ft. in width. Gold has again been found about 2,500 ft. more to the north on the company's property, so that the run of gold in this mine promises to be one of unusual magnitude. The neighbourhood offers every facility for mining in the supply of timber and water." The Jubilee. —This mine is the property of an English syndicate, represented in the colony by Mr. Kersey Cooper, who has taken up a large area of the southern end of the Waitekauri Eeef. The richest portion of the Waitekauri lodes on the upper levels, as far as my information goes, has been taken out, but good stone is said to be going down underfoot. Mr. Cooper was, at the time of my visit, working on the Golden Horn level. The old workings extend down to a depth of about 500 ft. below the crown of the hill, and it is said that gold to the value of about £100,000 has been obtained from these workings. Mr. Cooper intends to construct a low-level adit from Waitekauri Creek No. 2, where the lode cropping out at the edge of the creek is from Bft. to 10ft. in width, containing highly-mineralised stone. This adit-level is intended to be constructed for a distance of 3,000 ft., which will bring it under the place where rich ore was got on the upper levels, and will be, allowing for fall, about 350 ft. below the old workings. The richest auriferous stone on the upper levels was on a leader, sometimes on the foot-wall and sometimes on the hanging-wall; but when this leader came to cut into the main lode all the stone was good. Sometimes it is said that the good ore had a width of 28ft., and where rich ore in a large lode is found on or near the surface there is a great likelihood of rich ledges being found at a greater depth. The lode found at the surface may cut completely out, but the channel of country still exists where new lodes are likely to be again found underneath where the others break off. The venture is therefore one that will take a considerable amount of money to prospect, but nevertheless there is a reasonable chance of meeting with success. There was a ten-head stamp battery of the old type, with the ordinary tables erected, two McKay pans, two shaking-tables, two settlers, and five berdans. Mr. Cooper intends to resort to wet-crushing. There are two catch-pits for the tailings, two circular concrete vats, 20ft. in diameter and 4ft. deep, with sump 9ft. wide, 14ft. long, and 6ft. deep; a mixing-tank, Bft. in diameter and 4ft. deep ; and also a dissolving-tank, 4ft. square by 2ft. deep, with vacuum-pump and all appliances to use the cyanide process if it is found to be required. Grace Darling. —A considerable amount of work has been done in this mine, and prospecting carried on. During the past year sixteen men were employed in the mine. There are, however, no battery returns stating the number of tons crushed; but the returns show that 370z. 19dwt. of gold was obtained by amalgamation and 350z. by the cyanide process. So far, for the number of men employed, the venture has not proved a profitable one for the shareholders; but the reef on the intermediate level is said to have opened out to 18in. wide, and showing encouraging prospects; also, that a change for the better has taken place in the low level. This low level was driven in order to cut the lode under a winze which was put down on the upper level, but which had to be abandoned on account of the quantity of water there was to con-