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gold. It is on these small veins where most of the gold from this range has been obtained for many years past. If a low-level adit were constructed along the course of this lode, with uprises at certain distances apart, there is every probability of a considerable area of payable ground being opened up ; and, if such proved to be the case, it would require a large crushing-battery erected on the flat to treat the ore. In addition to this main lode, there are many parts of this range that would pay by quarrying out and putting the whole of the material through a crushing-battery, on the same principle as that adopted by Messrs. Hansen and Comer at the Thames in working the material from the Kuranui Hill. Several hundred tons of headings and quartz from the old mullock tips on this range would pay handsomely to send to a crushing-plant of this description, by a cheap means of transit to the battery. Scotty's Company. —This company took up the ground which was worked successfully by the Corby Company for several years. It adjoins the northern boundary of the Kapanga Company, and has three lodes running through it—namely, Scotty's, Kapanga, and the Corby. The company is formed almost entirely with capital from Sydney. The ground has been prospected for the last three years, from an adit constructed at as low a level as can be got, but nothing payable has been found above the level of the adit, although small patches of specimen-stone have been obtained at different times. Since this company commenced operations they have constructed over 2,000 ft. of drives, besides stopes and uprises, and have spent a considerable amount of money. The best stone found by them is in the floor of their adit on Scotty's Lode; and they now contemplate either sinking a shaft, or making arrangements with the Kapanga Company to work the ground at a deeper level from the old Coromandel shaft. A statement was shown me by Mr. Witheford, which set forth that between the years 1864 and 1868, 41,5180z. of gold was taken out of the Kapanga and Scotty's Lode, above the 300 ft. level, the richest portion of these lodes being found some distance below the surface ; and, as all the ground in the licensed holding held by Scotty's Company is intact under 100 ft. below the surface, there appears to be a fair probability of rich shots of gold being found in the lodes at a greater depth than they hitherto have worked. During last year they had an average of eleven men at work prospecting the unworked portions of the upper levels, and they crushed 40 tons of stone, which yielded 84oz. of gold. Kapanga Company. —This company and the Coromandel Company have now amalgamated their properties with Blagrove's Freehold ; but they have not been so successful as in former years in carrying on mining operations. During last year forty-eight men were employed in and about the Kapanga Mine. They crushed 792 tons of quartz, which yielded about 1,6380z. of gold; and five tributers were employed in the Coromandel Mine, who got 10-| tons of quartz, yielding about 620z. of gold. Previous to the amalgamation of these companies, the Coromandel Company expended £22,951, and all the gold they obtained was 248-Joz., representing a value of £740 lis. This expenditure was exclusive of any moneys in connection with the London office. The workings in the Kapanga Mine have been carried on from the 300 ft. level, and between this and 400 ft., principally on the Kapanga Lode. The 300 ft. level has been driven on for a considerable distance to the southward, and stoping operations have been carried on above and below this level, but with the exception of a small patch of gold-ore encountered in sinking a winze nothing of importance has been struck. The reef in the 300 ft. drive has been disturbed and heaved by a slide trending about east and west and dipping to the north. After driving about 50ft. in an easterly direction four small veins of quartz were intersected, all of them bearing north-east and south-west and underlying to the west. The country at this point is terribly broken, containing a large quantity of water. The branches cut may belong to the main portion of the reef, but split up owing to the influence of the slide, or very probably they may simply be hanging w-all-stringers; if this is so the main part may yet be ahead of the present workings. To give better ventilation to this section of the mine, a cross-cut from Scotty's Eeef at the intermediate level (between the 300 ft. and 420 ft. level) was constructed, giving backs about 70ft. vertical, and an uprise was constructed to make the connection with the winze alluded to above. Some driving and rising was also done on Scotty's Eeef at the 300 ft. and intermediate levels, but no payable quartz was struck. The two reefs (Kapanga and Scotty's) have a general bearing of north and south, underlying to the west at various angles. Generally speaking, when the angle is about 6in. from the horizontal, with a good hard hanging wall, gold is most likely to be met with. The manager states that the precious metal is mostly found on the footwall of Scotty's Eeef, and on the hanging wall of the Kapanga Eeef. Scotty's Eeef is composed of pug or clay, quartz, calcite, and iron and arsenical pyrites. The composition of the Kapanga Eeef consists of pug or clay, quartz, calcite, iron and arsenical pyrites, antimony at times, occasionally stains of green carbonate of copper. The sinking of the engine-shaft was suspended some time since owing to insufficient enginepower, but a 40in. cylinder direct-acting Cornish beam pumping-engine with 9ft. stroke, formerly erected at the Coromandel Mine, is in course of erection at the Kapanga Mine, which will be capable of contending with the water to a depth of 2,000 ft. if necessary. The present depth of shaft is 572 ft. Sinking will be resumed as soon as the erection of the engine is finished and the pitwork completed. Blagrove's Freehold. —ln this property there are a number of quartz reefs and leaders generally running about north and south, underlying to the west. The engine-shaft which has just been commenced is sunk 50ft., and will intersect at first a cross lode bearing east and west, and dipping to the north. The other reefs will be cut in the shaft at various depths. Where seen on the surface the reefs will average in width from 2in. to 2ft. The company have a spare steam-engine with a cylinder 18in. in diameter, and 3ft. lOin. stroke, which they intend to erect on this portion