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low-grade ore. Empire Section. —Work in this section has been restricted to prospecting on the surface. It is now intended to commence operations from the Empire crosscut, on what is known as the Empire reef, by driving north and south. The Realm crosscut which was driven some years ago a total distance of 720 ft. eastward, is being reopened for the purpose of further exploring the ore-bodies then revealed. Old Waitekauri Section.—Prospecting is still being continued in this property. During the period under review, 947 tons of ore were produced from the Queen level for a return of bullion worth £3,245 Is. 9d. Further stoping on this block is now proceeding, eight men being employed. There were 5,024 tons of tailings treated, and 947 tons of quartz put through the mill for 3,9590z. of bullion of a value of £4,521 14s. Bd. the mode of treatment being wet crushing and cyaniding. £83,393 has been paid in dividends since commencing work. An average of forty-four men were employed during the year. New Zealand Jubilee Mine. —This mine was under protection for six months, and during the remainder of the year the work was directed to extending the low level a distance of 630 ft., and driving the Horn level 310 ft. The low level is now in over 4,000 ft., but for the last 300 ft. the country driven through has been very broken, and not of a favourable description for the existence of goldbearing lodes. An average of fifteen men have been employed. A limited amount of prospecting-work has been carried on in the Hunuia, May Bell, Eclipse, and Starlight Claims, but up to the present nothing of importance has been discovered, and no returns of gold have been made. OWHAROA. Ohinemuri Syndicate.—There has been no work done on this property during the year. At present the plant and buildings are being dismantled for removal. Rising Sun. —Prospecting and development-work have been carried on with a limited number of men, the principal operations being confined to making a connection between No. 2 and No. 3 levels. Kaeangahake. Talisman Consolidated (Limited). —This company has vigorously carried on the work of opening up the mine, which has consisted in driving, sinking, rising, and stoping above the Nos. 8, 9, and 10 levels, and with a great amount of success. The quartz was mostly obtained from a rich shoot of ore that was followed down from No. 7 level, which produced 47,267 tons of quartz, and gave a return of 183,333 oz. of bullion, worth £94,134 7s. lid., which no doubt left a good profit on the year's operations, but no dividends were paid in consequence of the company being in debt at the beginning of the year. Driving south on the reef at No. 8 level has been carried on almost continuously without developing any new ore-shoots. The country in this section of the mine is considerably disturbed, and the values are low. This drive is now getting under what is known as the Bonanza section, and higher values are expected. At No. 9 level sufficient driving has been done to prove that the payable ore-shoots met with on No. 8 level go down. These are now being stoped. On No. 10 level driving south was stopped early in the year, awaiting the completion of incline shaft from No. Bto this level. Since the shaft was finished, the reef north of same has been stripped, and the leading stope driven. Stripping of reef south of shaft is in progress, and the values met with are higher than those found in driving. From the face of Woodstock No. 5 level driving south along reef was commenced and continued to a point where incline shaft will come down. This will be known as No. 11 level. Between the Woodstock boundary and present face good values were found ; further driving is suspended, awaiting the completion of incline shaft to this level. The incline shaft from No. 8 level has been finished to No. 10 level, and is in good working-order. From No. 11 level a rise is being put up to No. 10 level to connect with shaft. 170 men were employed. New Zealand Crown Mines (Limited). —Operations in this mine during the year have again been carried on with satisfactory results, the value of bullion obtained during the period under review being £78,279 12s. Id. (an increase of £3,515 7s. lid. on the previous year) which has enabled the company to pay the usual dividend amounting to £15,000 for the year. In the mine the main incline shaft has been sunk from No. 4 level a depth of 120 ft. on the underlie, making the total depth 506 ft., and at present, preparations are being made to open out No. 5 level from the bottom of the shaft. Here it is intended to instal the second plunger lift, which it is considered will be sufficient to cope with any water met with when the lode is intersected at this level. The No. 2 level south was extended a distance of 30 ft. on a small leader but without satisfactory results ; the course of the drive was then altered to a southeasterly direction, where the main part of the lode was again picked up after driving 27 ft. When the level was extended 48 ft. from the point of intersection, 15 tons of quartz was broken out, worth about £2 per ton ; after a further extension of 170 ft., the drive was stopped and operations directed to driving north of the crosscut on the lode. In this direction it was driven on for a distance of 176 ft., the average thickness of the lode being about 2 ft; 153 tons of quartz was broken out here for a value of £255. About 480 ft. from the shaft a crosscut was driven in a south-easterly direction 54 ft. without intersecting anything of value. In No. 3 level north very little mining has been done north of the shaft below the Waitawheta tunnel during the year. The total length of this level is 409 ft. The No. 3 level south was extended and from this extension 401 tons of quartz was obtained, worth £1,352. The average width of the reef was 4 ft. 8 in., and the total distance driven from the shaft is 1,945 ft. 9 in. A winze was sunk from No. 3 level, a distance of 91 ft. (the required depth for opening out No. 5 level), making its total depth 242 ft. A very large amount of driving has been done on the different levels during the year, and stoping operations carried on from No. 4 level below the Waitewheta main level to No. 3 level above that level. Owing to the gold not being evenly distributed through the quartz, the lode has been stoped out on the shoots of what was considered the payable ore, and the places where the lode is thin and poor were left in as pillars. This is a great support to the hanging-wall, but no doubt some of the pillars will be extracted, when the rich shoots of ore are worked out, in fact, some are being taken out now. An average of 242 men have been employed by this company during the year.

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