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Section : A good deal of development-work has been done during the year on both No. 1 and No. 2 reefs in Nos. 2, 3, 4 levels, as well as the extension of No. 4 level (Komata Reefs Section) to a point underneath the main shaft, where a rise is in progress to connect with bottom of shaft. The various workings have opened up a large amount of payable ore. Stoping has been carried on from the hopper, smithy, and Nos. 2, 3, and 4 levels. The total number of fathoms broken out was 816 T ' 2 which produced 13,004 tons of ore. Development-work produced 2,796 tons, making a total tonnage of 15,800 tons worth £36,140 Bs. 7d. Battery : During the past year several minor additions have been made to the battery, the chief being a small tube mill used for regrinding the coarse sands from the stampers. Steampower has been used for about six months* in the year. The tonnage treated for the year was 15,800 tons from which bullion to the value of £32,559 17s. 3d. was extracted, which enabled the directors to pay £6,666 13s. 4d. in dividends. The average number of men employed during the year was one hundred. A little prospecting has been carried on in the district, but up to the present no payable discoveries are reported. Hikutaia District. New Maratoto Mine. —This mining property was unworked for some considerable time, but was purchased about six months ago, and a company formed to carry on operations. The new proprietary lost no time in trying to find out the value of the quartz broken out and the tailings at the battery. The first work undertaken was the treatment of 100 tons of tailings through the cyanide-vats, which gave a return of 383 oz. of bullion, valued at £90 os. 2d. This, lam informed, is highly satisfactory, and it has now been decided to put in agitators, which will enable a larger extraction of the precious metal to be obtained than by the ordinary vat-treatment alone. Six men have been employed. Waimunga Claim. —This claim is situated on the side of the Hikutaia-Whangamata Track, on the fall of the hill towards the east coast. Very rich ore was obtained on the outcrop of the reef. A trial lot of 4,222 lb. of quartz was taken from here and treated at the Thames School of Mines plant for a return of 133 oz. 3 dwt. of gold, valued at £82 13s. 3d. A company was then formed and capital raised to work the ground. A drive is now being put in to intersect the reef about 50 ft. above the outcrop. Omahu District. Klondyke. —The company did some work in the early part of the year, and crushed 120 tons of ore for 13 oz. 5 dwt. of gold, valued at £40 9s. 2d.; but as the gold obtained was not sufficient to pay the expenses of mining the ore the mine was stopped and protection again applied for. An average of two men employed. Puriri District. Puriri Gold Estates. —A little work has been done here during the year, but as operations were not successful the mine has been closed down. Miners' Right Claim. —Two men have been engaged here during the year, but have met with very little success. East Coast District. Tairua Broken Hills. —The company's attention for the first six months of the year was directed to operating on the blocks of ground opened up over the main adit level, the quartz obtained from here yielding good payable returns of gold; but as these blocks became exhausted it was found necessary to open up new or undeveloped portions of the reefs, and a winze was at once started and sunk on the Blucher Reef to a depth of 80 ft. from the bottom of the main adit level. Here a small engine is erected for pumping water and raising and lowering material as required ; and near the bottom of the winze a drive was extended on the Blucher Reef a distance of 100 ft. to the westward of the winze and 15 ft. eastward. A few feet to the westward of the winze 50 ft. has been driven on the Night Reef, from where it junctions with the Blucher Reef. During the year 3,700 tons of ore was treated at the company's mill for 6,728 oz. 4 dwt. of bullion, valued at £10,287 Is. lOd. An average of fifty men employed. Chelmsford Mine. —This mine was under protection for the first six months of the year, but latterly the company raised sufficient funds to give the ground another trial. The development-work is at present being directed in extending the upper levels on the reef, where encouraging prospects are being met with, and the manager is sanguine that payable blocks of ground will be opened up here. Eighty tons of ore was lately treated at the company's mill for 44 oz. 7 dwt. of gold, and 109 tons of tailings for 117 oz. 8 dwt., the total value of which was £249 7s. sd. An average of six men employed. Coronation Mine. —An adit level has been driven into the hill for about 200 ft. This, lam informed, passed through some 50 ft. of rock carrying gold, and to prove the value of it a five-stamp battery is in course of erection and will be completed in a few weeks' time. I carefully examined the rock which is to be treated, but could see no indication of its being a definite lode, and it is the hardest material I have seen that is supposed to carry payable gold. An average of two men have been employed in the mine. Neavesville District. Golden Belt Mine. —This company's attention to the work in the mine has been chiefly directed to extending the low level, which is now in a distance of 1,000 ft., and there is still a little over 300 ft. to be driven to reach the point under the payable ore met with in what may be termed the road level. When this driving is accomplished, a rise is to be put up a height of 120 ft. to connect with the level above, and will serve a double purpose —in affording the means of ventilating this part of the mine, and as a pass for the quartz to be put down to the low level, along which it will be trucked out to the bin.

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