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eastern side of the hill the Blueher reef is being driven on from a level about 100 ft. below No. 3 level, and when this is far enough advanced a connection is to be made between the two levels. 2,218 tons of ore was treated for 673 oz. recovered by amalgamation, and 668 oz. was recovered by the cyanide process, for a value of £1,457 Bs. Twenty men were employed. Chelmsford.— The property has been steadily worked, and with very encouraging prospects. The operations in the mine have been mostly confined to opening up the No. 1 or main reef at the low level, preparatory to stoping operations being proceeded with on the completion of the tenstamp battery, together with the amalgamation and cyanide-process appliances in connection therewith. The No. 1 reef will average 3 ft. in thickness, and has been driven on at No. 1 level for a distance of 60ft., from which 65 tons of ore have been saved; and at No. 2 level it has been driven on for 80 ft., 20 tons of quartz from here having been broken out and saved. From the information received it may reasonably be expected that a considerable amount of payable ore will be obtained from this part of the mine. The No. 2 reef is about 2 ft. in width, but only a limited amount of work has been done on it. On the outcrop it has been exposed for a length of 20 ft., gold being freely seen in the stone. The No. 3 reef is about Ift. in width, and prospects obtained by pestle-and-mortar test would favour the opinion as to the ore being of a payable nature. It is expected the battery will be completed about the month of March, when crushing will be commenced. An average of eight men have been employed. Wharekawa. Whangamata Gold Corporation (Limited).— The operations in this mine were principally confined to stoping out blocks of ore that were opened up over the back of Nos. 1, 2, and 3 levels, the payable portion of which became exhausted in the month of October, and necessitated closing the battery down pending further developments in the mine. These are at present being pushed on as speedily as possible. It having been decided by the company to sink from No. 3 low level, with a view to proving the value of the reef at a depth, the temporary sinking plant which was used in sinking the shaft from the surface was removed down to this level. It consists of a small Tan"-ye pump and steam-hoist, which will enable sinking to be carried on for a time; but the company contemplate erecting a permanent winding plant and pumping machinery of the Cornish type, which will be capable of unwatering the mine to a considerable depth. Fair progress is being made with the shaft, which is to be sunk 100 ft. below the No. 3 level before opening out. This will make a total depth of 400 ft. below the crown of the hill. A good deal of prospecting-work has been done on various parts of the property in anticipation of discovering other reefs of a payable quality, but without success. The reef where operated on in the upper levels will average 5 ft. in width, and is what might be termed a true fissure-vein, the filling being of thermal origin. The ore consists of very finely divided gold, together with sulphides of silver, in veins disseminated through the stone Previous to the battery closing down, 5,120 tons of ore was crushed and treated by the cyanide process for 4,3160z. 5 dwt. of gold; value, £6,832 3s. sd. At present thirty men are employed (a large number having been paid off when the battery was stopped), but it is expected the number wilf shortly be increased to carry out the scheme of development contemplated by the company. Ohui. Minino is still very quiet in this locality. A little prospecting is being carried on in the Maori Dream and in two other claims, but with only two men in each. No returns of gold have been received. Whangamata. Mananu (late Wentworth Mine).— Operations in this mine have been steadily carried on, with satisfactory results. The ten-head stamp-battery that was being erected in the beginning of the year was completed in the month of July, when crushing operations werecommenced, the mode of treatment adopted being wet crushing, amalgamation, and cyanidmg. in the mine the work has been chiefly confined to driving, rising, and stoping on the Studholme reef at the Nos. 1, 2, and intermediate levels, where good-sized blocks of ore are opened up. The reef is very irregular in size varying from 4 ft. to 12 ft in thickness, but I am informed it is payable throughout. The Rua'nui reef is also operated on at the No. 4or low level. This reef varies from 1 ft. to 2 ft. thick and is also considered to be of a highly payable character. lam informed that through the satisfactory results obtained from the ore put through the mill, and the reefs in the mine opening up even better than anticipated, the company contemplate erecting an additional ten heads of stamps to further increase the output of gold. Since the battery commenced working 1,002 tons of ore was crushed for a return of 466 oz. 16 dwt. of gold recovered by amalgamation, and 902 oz. 2 dwt. recovered by cyanide, of a total value of £2,605 12s. 4d. Fifty-two men are employed. Maratoto. Hikutaia Gold Syndicate.— There has been very little work done on this property for some time past The mine is under protection pending instructions from the directors as to the future developments It is proposed to erect a large crushing plant to deal extensively with the ore opened up to a considerable extent at the different levels from the side of the hill, but which is of very low grade At present only a caretaker is on the ground looking after the property. Maratoto —From April to September a good deal of work was done in opening up and developthe ore-bodies in the Maratoto and Pay Rock sections of the property. The Maratoto reef— which is a large body of stone—was opened up to a fair extent at the Nos. 1 and 2 levels, and is said to be carrying a good percentage of bullion. The fifteen-head stamp-battery, and also the cyanide plant which was in the course of construction at the time of my last report, was completed in May when crushing was commenced, and carried on up to the month of September. 080 tons

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