0.—3

18

was driving east and west from the cross-cut on the large reef for a distance of 200 ft., but as the quartz was low-grade ore, with no appearance of improvement, work here was discontinued. A start was then made to open out and drive on a leader 90 ft. west of the big reef, which was driven on 52 ft. north and 126 ft. south, also a rise was put up on it to a height of 73 ft., and for the first 50 ft. the prospects met with were most encouraging, as some rich assays were obtained from the stone broken out here from day to day ; but in stoping out the block from this rise the rich ore as met with in the rise could not be found. This proved very disappointing, and as the quartz broken out was not of a payable character the work here was suspended. The extension of crosscut towards the Nonpareil section was then started, and has now been driven a total distance of 289 ft., and nothing yet of importance has been discovered. During the year 230 tons of material was operated on, yielding 69 oz. 9 dwt., for a value of £203 12s. Fourteen men were employed. New Saxon. —The work in this company's mine has been chiefly directed to the Cardigan section of the mine, where two winzes were sunk on the No. 1 reef from No. 4 level to a depth of 40 ft., where drives were put in on the reef named'; then the reef was stoped out from those drives up to No. 4 level. The ore obtained from those blocks was high-grade ore, but the quantity was only very limited ; 295J tons was treated for 406 oz. 12 dwt. ; value, £1,185 9s. There is a block of ground on this reef over the back of No. 4 level which is said to be intact up to No. 2 level, and this is now being operated on with a fair amount of success. The company contemplates directing development operations to the deep levels with a view to proving and opening up the untried ground, which, in the event of payable gold being found, will considerably enhance the value of their property. An average of nine men were employed. New May Queen. —During the year work has been principally confined to opening up the No. 6 level on No. 4 lode, north-west lode, and a branch leader in the foot-wall of No. 4 lode, and stoping on the same. The No. 4 lode has been driven upon for a distance of about 356 ft., and has averaged a width of from 12 in. to 18 in., the quartz being of good grade, and frequently yielded picked stone. Stoping is proceeding in this block, and a height of about 65 ft. has now been worked out. The northwest lode has been driven upon for about 175 ft., and a block of about 25 ft. high has been stoped out upon it, the lode averaging in width from 3 ft. to 7 ft. It is a well-defined body of quartz, and frequently shows strong colours of gold. The branch leader striking into the foot-wall of No. 4 lode has been driven upon for about 150 ft. The leader varies in width from 4 in. to 8 in., and frequently yields some very good picked stone. The block on this leader is stoped out to a height of about 50 ft. As far as the company has gone the richest ore was obtained from the drive and leading stope. From the first crushing of 156 loads of general quartz and 200 lb. of picked stone from No. 4 lode a return of over £1,800 was obtained : this looks well for the bottom blocks. Prospecting has also been carried on at No. 5 level. A crosscut has been put in for a distance of about 330 ft. for the purpose of intersecting the St. Hippo lode and other lodes that are now being worked by the Southern Queen Company. The distance yet to drive to reach the St. Hippo lode will be about 220 ft., and the vertical height to the surface about 600 ft. The prospects of the gold continuing down are most encouraging, as the gold obtained at the present low level in the company's mine is the deepest payable gold that has yet been found in the mines in this part of the goldfield. This has given renewed confidence, which is to be hoped will encourage the various parties interested in and around the Grahamstown Flat to exert their utmost influence in promoting some scheme for the development of the deep levels, which in all likelihood may prove advantageous to all the companies concerned. During the year 3,333 tons 9 cwt. 6 lb. of material was treated for a return of 3,769 oz. 7 dwt.; value, £10,715 os. 2d. The average number of men employed was thirty-nine. Vanguard Gold-mining Company. —In taking over the Deep Sinker machinery, shaft, and drive a large expense was necessarily incurred in putting the machinery, shaft, &c, in a fit state of repair to enable the work of extending the drive at the low level to be carried out. When the water was baled out to the low level the north drive was cleaned out and repaired, and a tram-line laid in for a distance of 1,310 ft., and from the face of this drive a contract was let to extend the crosscut, which was driven a distance of 800 ft., or a total distance of 2,110 ft. from the shaft. Several leaders were cut through, varying from 6 in. to 10 ft., and some of.the quartz carried excellent mineral, but no gold was seen in breaking it out. The Moanataiari main slide was cut at the end of the 800 ft. in the drive mentioned, where a heavy flow of water burst in. After pumping and baling for a time it was found that the water was more than the engine could cope with, and all work had to be abandoned in this part of the mine for the time being. The company then decided to sink a shaft on the northern end of their property, alongside the Karaka Road, and when this shaft attained a depth of 40 ft. water was met with, and to cope with it the winding-engine, &c, of the Eclipse Company's mine was purchased, and is now being erected. An average of nine men were employed. Trafalgar Mine. —During the year all operations in this mine were confined to the development of the reefs discovered on the surface in the early part of the year. A level was put in to intersect the ore-body known as the Shamrock reef at a vertical depth of 90 ft. from the outcrop, and the reef where met with at a distance of 120 ft. from the mouth of the tunnel proved to be a well-defined body of quartz, varying from 3 ft. to 5 ft. in width, the stone being well mineralised, and showed nice blotches of coarse gold occasionally. After driving about 50 ft. on the eastern trend of the reef some very fair ore was met with, and, as it appeared to improve towards the floor of the level, it was decided to test its value downwards by sinking a winze on its underlie. This work was carried on till a depth of 30 ft. was attained, when a heavy influx of water was met with, and operations had to be suspended. Since ceasing operations in the above-mentioned winze, a low level has been put in at a further depth of 132 ft. vertical from the named level, and a reef about 2 ft. in width followed along its course for a distance of 200 ft., when a deviation from the mouth of the level was made to the eastward with the object of inter-