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thick, and the ore from the reef, as well as that from the stopes north of the rise, has been of rather low grade; but recently the reef has widened out in the stopes, and is now 4 ft. thick, carrying a good hanging-wall, and altogether presenting a much more favourable appearance. The rising above intermediate on Scotty's hanging-wall has been extended 102 ft., for a greater portion of which distance the country has been first class. The reef, 7 in. thick, opening out recently to 2 ft., has carried gold for a considerable distance. We have commenced stoping north, and have obtained fair crushing-dirt. In the 300 ft. level the winze which was started and continued for about 40 ft. with such promise is at present suspended, pending the completion of repairs to main drive at this level. In the Corby section the engine-shaft has been sunk a further distance of 39 ft., making a total depth of 185 ft. At present this work is stopped, so that we may push on the cross-cut at the bottom of the shaft to intersect the Kapanga reef. The No. 1 drive on reef has been advanced 91 ft. The width of the reef has averaged 11 in., with good walls, and is really a fine body of quartz. We fully intended to continue this drive, but a strong volume of water issuing from the face compelled us to suspend the work. We shall resume as soon as water will allow to get under Cotter's winze, as gold has been carried along there. The rise above this drive has advanced 40 ft., where we intersected a reef 12 in. wide, running about north and south (a superior body of stone, which we have driven on for a distance of 79 ft., and it has maintained its character throughout), the indications of which are favourable in every way for producing gold. A cross-cut has been started in the No. 1 level, and has advanced 51 ft. The object of this is to intersect Scotty's below the Golden Point Tunnel, where rich gold was found in former years, but in the absence of machinery to cope with the water the workings were abandoned. We are expecting to strike the reef in about 40 ft. The drive south of Cotter's winze, on line of reef, is still being carried on, and the reef, though small, continues to show gold, which at times is rich. We feel sure the ground all round the Corby section would pay well to be thoroughly worked and developed, but we would not depend so much on the shallow or surface levels as we would in depth, for while in the former you here and there get small pieces of flaky gold, in the latter you are more likely to get it in greater abundance in the quartz, and more continuous. In drawing this report to a close, we would like to remark that, in connection with the boring operations about to be started, we have been comparing notes in relation to the last operation, and are both of opinion that, by commencing with a large bore— say, 7 in.—we are likely to make better progress than before, as we can more easily reduce to 2 in., if necessary, than we could increase from 4 in. to 7 in. Permit us further to say that we are in favour of further testing, not because we are discouraged or disappointed with the present results of the lower levels, but rather because these very results are indicative to us of a much better class of country for the production of rich metal. Scotty's Mine.— -This mine has been continuously worked during the year, and extensive developments carried out. Captain Hodge, the general manager of the company, gives the following report on the mine and workings : — This company's property is adjacent to the famous Kapanga Mine : the reefs traversing the same are the Scotty's and the Kapanga, as well as parallel ones. The company have conducted considerable developments since their initiation. A permanent shaft has been sunk to a depth of 325 ft. The principal workings now being conducted are at the 355 ft., on the line of the reef known as Breuer's reef, and the sinking of a winze below that level. Nearly five hundred pounds' worth of gold was broken out from the 355 ft. level on the 26th January last by a few shifts working. Seeing this, it is only reasonable to suppose that by deepening the shaft and following this line of reef considerable quantities would be won. Another very important development in relation to this property is the discovery of a reef near the battery. This is practically one of the well-known New Hero reefs, in the adjacent property. The Scotty's company is now engaged sinking a prospecting winze below the creek-level on this reef. The reef is running approximately north-westerly, and its dip is easterly. In the reef, which averaged lft. wide, we have seen strong dabs of gold. The company is now recommended to sink a trial shaft on the site of this winze, and this development will be one of great interest, the quartz being of the same character as that found in the Hauraki lode and in Scotty's ground, never having before been worked except at one point, say, a few feet below the clay or surface. The area of the company's property is 38 acres 1 rood 2 perches. The total expenditure locally up to the 31st December last has been £12,506 Is. Bd. The total quantity of quartz crushed since its initiation up to date has been 122 tons, which gave 256 oz. 17 dwt., realising £749 17s. A good winding-engine is erected on the property, poppet-heads, two patent cages, and a plunger-lift for pumping to the 300 ft. The company have nine heads of stamps and three berdans, worked by an overshot water-wheel. The average number of persons employed is thirty-six. This company, having in view the development of the mine from the main shaft in depth, as also the sinking of a prospecting shaft near the battery, is now ordering two 25 nominal horse-power Cornish boilers, and a pumping-engine with air-com-pressors and plant. The future of the company, when the developments mentioned have been carried out, should be a profitable one. Britannia Mine (Area, 40 acres). —This mine is owned by the Britannia (Hauraki) Goldmining Company (Limited), of London. During the year the shaft has been sunk a further depth of 100 ft., and is now 220 ft. from level of the creek. A chamber was opened at this level, and a cross-cut driven 140 ft. No reef has yet been cut in the shaft, but the Flying Cloud and Junction reefs were formerly worked in this ground. The present machinery is a 10-horse-power steamwinch for winding and also for baling water, and a Tangye vertical boiler. From four to sixteen men were employed. The manager has recommended the purchase of new machinery, to consist of a pair of winding-engines about 35-horse power, and horizontal pumping-engine of 80-horse power, capable of working a 12 in. set of Cornish pumps.
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