C—2.

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1 chain wide is being made to the north of this panel, and another dip is being driven to commence another panel farther to the north. For some distance the lower levels to the north have been driven off the floor and into the upper portion of the seam. Another dip, called O'Fee's, and going to the south-east out of one of the upper south levels, is now down 11 chains. At the face of O'Fee's dip the seam is only 8 ft. thick but is of very good quality. The levels driven to the south off this dip have quickly veered to the west, so the bottom level will soon cut out two other levels above it. From near the inbye end of the main haulage-road a crosscut has been driven to the main drive leading into the No. 1 seam workings. This drive is being widened and graded, and eventually the endless-rope haulage will be extended into the No. 1 seam workings, but temporarily a compressed-air winch will be used to haul the output through the new crosscut. In the dip section of the No. 4 seam workings a few miners are still employed, but the coal in that section is of rather poor quality. The pillar-extraction in the rise section, No. 4 seam, has been completed, and that area is now effectively sealed off. As the ventilating-fan is being driven at its maximum speed it was decided to put clown another dip from the surface for a main return airway. This dip was commenced from near the top of the present return, and will connect to one of the upper north levels of the No. 1 seam workings at a point about 8 chains north of the main heading. The new return, now 600 ft. down, is being driven at a grade of lin I\, and will be 1,400 ft. in length. An elevator now conveys slack from the screening plant to the battery of boilers, and alterations were made to the " turbine " furnaces, one boiler having an extra tube put in and the tubes in the others being lengthened. Kaitangata No. 2 Mine. —The development during the year in this mine was very disappointing. In the No. 6 seam section work was recommenced about the middle of the year. A downthrow fault was met in the places being driven to the east, and another only 6 chains aw r ay cut off the west-side places. This section was again stopped in September. The main dip in the No. 2 seam section was extended a couple of chains to the south-west, but as the dip of the seam thereabouts varies considerably—it is now almost due west—it is found very difficult to lay out the development work. Three levels are being driven to the south, the seam being 8 ft. thick in the top one but only 4£ ft. thick in the bottom level. A couple of levels are also being driven on the north side, but they are within 3 chains of old workings. Castle Hill Mine. —In the Nos. 5 and 7 sections pillar-extraction was continued. In the top seam section the main heading was continued for about 2 chains into faulted country. A small shaft was sunk 20 ft. at the face and a hand borehole put down from the bottom of the shaft, but no workable seam was proven. In the north levels the coal became very dirty. A place going east and to the rise met a large downthrow fault when only 1 chain up. Owing to the disappointing results, and the excessive haulage and other costs for the small output, it was decided to remove all the plant out of the mine, and to close the mine by building stoppings near the mine-entrance and the top of the return airways. This was completed early in December. Benhar Mine. —ln the new mine the main dip is now down 10 chains, having passed through an 8 ft. upthrow fault. In order to form a good, barrier between the old and the new mines the north levels were stopped when 3 chains in from the main dip. On the south side one of the levels is now in over 5 chains. An incline about 2 chains south of the main dip has been driven to the outcrop, and the ventilation is much improved. In the old mine a dip was driven at a grade of lin3 to work a stratum of clay which was expected to be met about 70 ft. below the coal-seam. As the seam dipped at lin 8 the clay should have been met at 340 ft. down. After passing through 4 ft. of good clay and 9 ft. of dirty lignite the drive was stopped about 450 ft. down in a mixture of sand and clay. Brighton Mine. —An attempt to drive to the dip had to be abandoned as, after crossing an old bord, another one, in which a heavy fall had occurred, was met. Then a level to the north was driven, but this, being near a county road, was stopped. Then a narrow place, crossing under the road, was driven to the south-east. To the east of the road the owner expects to work a fair area of lignite. Green's Mine, Gore. —Awaiting the arrival of an electrically-driven centrifugal pump from England, the main haulage-road was not extended until near the end of the year, and production was solely from the south levels. The two lowest south levels were used for a sump. A borehole, 7 in. in diameter and 130 ft. deep, was made from the surface to the site for the new pump. In it are the 3 in. delivery column and a ljin. conduit for the cables. Otikerama Pit. —A 15 ft. seam of lignite is being worked at this pit. To the north the overburden quickly thickens, but there is only 3 ft. to 4 ft. of overburden to the west. A small multitubular boiler and pump are now used to unwater the pit. Ramsay's Pit, McNab. —This is a new pit a few chains south of the railway-line. The upper portion of the clay overburden is removed by horse and scoop. The lignite, of rather poor quality, was from 10 ft. to 12 ft. thick, but to the west the seam is rising and has thinned to 8 ft. Milne's Pit, Waimumu. —This pit, formerly worked by local residents, has been reopened by a Gore miner, who sells most of his ouput in that town, eleven miles from the pit. There is about 4 ft. of stripping over an 8 ft. seam of fairly good lignite. Glenlee Mine. —Driving has been continued to the east, and one place was driven back to the outcrop. A level has been started to the north and is 12 yards from the main north level, which is not being worked at present on account of much water draining in through the breaks in the coal. Ramsay's Mine (North Chatton). —The surface haulage has been diverted and is now direct from the opencast pit to the gantry near the traffic road. Only a small output has been produced during the past year. Argyle Pit. —Stripping has been continued with the hydraulic nozzle, and the overburden is now over 30 ft. thick, but, as the hard band of claystone immediately over the lignite has thinned, the water is more efficient in removing the overburden. In order to obtain more pressure a new water-race, 30 ft. higher than the old one, is being made, and water is being picked up from another creek farther south. It is expected to soon connect the pit to the Waikaia River by a shorter route. There is sufficient lignite stripped to cope with the demand for the next six months. Mclver's Pit. —A few tons of lignite are still being produced from the south end of the pit. tThe upper 3 ft. is weathered slack, and below that is about 4 ft. to 5 ft. of rather poor lignite. Northcoat's Pit. —Working has been continued parallel to the east bank of the Waikaia River and a new tail-race made at the north end of the pit. The overburden, which at one place was from 60 ft. to 70 ft. thick, has thinned considerably, and it is about 15 ft. thick where stripping is now being done. Wendon Mine. —In the old drive the tops are all out, and work has been transferred to a new section about 15 chains farther south. The drive is only in a couple of yards, and will soon go to the dip at a grade of lin 4. A small steam plant will be purchased for haulage purposes. Terrace Mine, Kingston Crossing. —The north-west heading is still being extended, and a place was broken away to the south-west, but it entered poor-quality lignite and is only being continued as a narrow drive. A place was driven to the north-east and holed into old workings. All places are being worked up to a good clean parting, 1\ ft. from the floor, which makes an excellent roof. Prinehester Creek Pit. —201 tons were produced from this small opencast pit during the past year, a fair proportion of which was carted for use at Te Anau. . Boghead Mine. —For another year, owing to slackness of trade, the main dip has not been extended, and only the three north-side bords have been worked. Mataura Lignite . Mine. —Development has been restricted to a few levels to the south-west and the connecting inclines. The lowest of these levels is now within 30 yards of the road reserve which forms the western boundary of the property. As the solid work on that side will soon be completed it will be necessary to extend the main dip and -work a virgin area of about 3 acres at the north-east corner of the property. ( ' ' Larking's Pit.—No further work has been done at the mine, but three men have been regularly employed at the opencast area to the south-east of the mine. The clay overburden is from 10 ft. to 12 ft. thick, but it is expected to thin to about 8 ft. half a chain from the present face.