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APPENDIX.

REPORTS OF INSPECTORS OF MINES. Mr. James CoUTTS, Inspector of Mines, Thames, to the Under-Seoretary, Mines Department, Wellington. Sir, — Inspector of Mines Office, Thames, 14th March, 1904. I have the honour to furnish herewith the following report on the gold-mining industry in the Hauraki district for the year ended the 31st December, 1903. Mining on the Thames and Coromandel has not improved much since my last report. The people at the Thames subscribed liberally to a fund to be used for carrying on boring operations to test the country at depth in the vicinity of some of the mines where rich gold was obtained in the early days of the goldfield, and were in good hopes that either gold-bearing lodes or country of a favourable description would be met with. An arrangement was entered into with the Goldfields Diamond Drilling Company (Limited) to put down a series of holes. In the month of August two sites for boreholes were selected, and in the early part of September, boring operations were commenced on the Kuranui Caledonian Company's ground, where a borehole was put down to a depth of 1,041 ft., and the Caledonian No. 1 Reef penetrated into for a few feet, when by some means the crown-head and diamonds with a portion of the rods got squeezed tight in the bottom of the hole. Up to the present time these have not been extricated, and instead of several holes having been put down by this time, it may be said the work has not been fairly commenced, a condition which has proved most disappointing to all concerned. Boring has also been carried out on the Thames foreshore, and also in the Ohinemuri District, at the Woodstock, Waitekauri, Grand Junction, Consols, and Consolidated Mines, but in nearly every case the results have not been so satisfactory as could be desired. The mines in the Ohinemuri district (as will be seen by the returns) have contributed a large share of the total bullion during the year. Waihi District. Waihi Gold-mining Company. —This company's works are increasing to considerable dimensions, and the most up-to-date machinery is being obtained to replace that which formerly was sufficient for the requirements. A large winding plant is in the course of erection at No. 1 shaft, which will be capable of hauling up two trucks at a time instead of one, thus enabling the company to increase the output from the mine should it be required, or in the event of any stoppage in the other winding-shafts through accidents or otherwise, a sufficient supply of quartz could be hauled up this shaft to keep the batteries running. A powerful pumping plant is in the course of erection at No. 5 shaft; this, together with the present engine now doing most of the pumping on the same shaft will, it is supposed, be capable of unwatering the mine to a depth of 3,000 ft. The work of development in the mine is being vigorously proceeded with, and as the lode-system is opened up from day to day, new discoveries are being made and the value of the mine becomes more apparent, proof of which is shown by the handsome returns obtained from the ore as it is broken out. At Waikino Mill great improvements and additions are being made. The most important in hand is the erection of a plant to treat the concentrates, which have for some time past been transmitted to New South Wales for treatmeat. From tests already made, this new plant will put through a large tonnage, and the extraction will be quite as good as that at the works in New South Wales. No. 6 level.—No. 6 shaft north-west crosscut was commenced at a point 665 ft. east of No. 1 shaft crosscut, and driven a total of 96 ft. Harris's north-west crosscut was started at Harris's pass on Empire lode, and run north-west for 550 ft. The following reefs were passed through :At 195 it., quartz 2 ft. wide ; at 200 ft., quartz 3 ft. wide ; at 208 ft., quartz 1 ft. 9 in. wide ; at 492 ft., Albert lode, 4 ft. wide. No. 4 shaft south-east crosscut was advanced from 71 ft. to 158 ft. from No. 4 shaft when north section of Royal lode was met with. No. 5 shaft north-east crosscut was driven from No. 5 shaft to north section of Royal lode, a distance of 119 ft. South-east crosscut from Empire lode near Rose Pass was driven a total of 59 ft. ; at 37 ft. in, a part of L lode 3J ft. wide was passed through ; at 55 ft. in, another section of L lode is seen—it is 2 ft. wide. Martha lode : North section east of No. 1 shaft has been driven on from 515 ft. to 944 ft., and also west of No. 2 shaft north-west crosscut from 138 ft. to 254 ft. The total length opened up on the north section of lode is 1,700 ft., crosscut at 516 ft. east, lode 48 ft. wide ; crosscut at 571 ft., lode 23 ft. wide ; crosscut at 705 ft., lode 32 ft. wide ; crosscut at 753 ft., lode 28 ft. wide. No. 2 reef west of No. 6 shaft crosscut has been driven on a total of 340 ft. : lode varies between 2 ft. and 6 ft. in width. Regina lode west of No. 1 shaft: North-west crosscut has been driven on from 204 ft. to 398 ft. : lode varies between 2 ft. and 20 ft. wide. Albert lode north of Empire lode junction : A total of 606 ft. has been opened up on its course. No. 5 level.—Martha lode : North section east of No. 1 shaft has been driven on from 743 ft. to 793 ft. : the total length of level on north section of Martha lode is 1,426 ft. Regina lode west of No. 1 shaft has been driven on from 199 ft. to 366 ft. : lode varies between 1 ft. and 8 ft. wide. No. 2 reef west of No. 6 shaft has been driven on from 52 ft. to 265 ft. west. Empire lode west of No. 2 shaft south-east crosscut has been driven on from 87 ft. to 243 ft., when a connection was made to Welcome lode : the lode varies between 1 ft. and 4 ft. wide. Albert lode north of Empire lode junction has been driven on from 48 ft. to 447 ft. north, Royal lode : Westward, the main section of lode was followed from 250 ft,

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