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Reduction-works.—The tonnage crushed at the three mills were respectively as follows : Waihi Mill (90 stamps), 70,806 tons ; Victoria Mill (200 stamps), 162,924 tons ; Union Mill (40 stamps), 26,248 tons : total, 330 stamps, 259,978 tons. The total average number of stamps running during the year, exclusive of Sundays and the period at Christmas during which the mills were stopped, was 320,285, out of a total of 330 stamps, an increase of 2,815 stamps compared with the average total running during 1903. The total average duty per stamp per diem was 2-657 tons, an increase of 0-251 tons compared with the previous year. Waihi Mill (90 stamps).—The total rainfall for the year amounted to 83-05 in., which is practically the same as during the preceding year. Substantial coal-hoppers have been erected alongside the boiler-house and connected with the main tram-line by a new branch line. It was decided to add three tube-mills to the crushing plant at this mill. The necessary excavation-work has been completed, concrete foundations put in, and the mills have been erected in position, the necessary building is in course of erection, and the pulleys have been ordered. An additional Babcock and Wilcox boiler with automatic chain-grate stoker attached has been added to the steam-power plant. Four wrought-iron vats 25 ft. diameter by 6 ft. in depth have been erected to provide additional sands-treatment vats which will be required when the tube-mills are at work. Two additional slime-settling vats, 32 ft. in diameter by 14 ft. in depth, were required. One of these has been erected and brought into use ; the necessary excavation for the second one has been made, and the vat should be received shortly. Two rectangular treatment-vats have been added to the treatment plant. Victoria Mill (200 stamps).—The work in connection with the foundry which was in hand at the end of 1903 was completed, and the foundry was brought into use early in the year. The fourth elevatorwheel has been brought into use for lifting the pulp from the mill to the treatment plant. Two additional sand-treatment vats, 33 ft. in diameter by 7 ft. in depth, have been added. A breaking-down saw and building have been added to the sawmill plant. Union Mill (40 stamps). —A Leffel wheel has been obtained for this mill. An average of 1,236 men were employed by the company. The large sum of £297,544 4s. was paid in dividends during the year ; making the total of £1,552,687 lis. 6d. since commencing work. Waihi Grand Junction Mine. —The company has during the year directed its full energy in developing the Grand Junction, or eastern portion of their property. The Junction shaft is now sunk to a depth of 775£ ft. and timbered throughout; the third plunger-set installed, and the rising column of pipes put into position and connected with the cisterns above, and may now be looked upon as a permanent pumping-shaft. The No. 2 level east of the crosscut has been extended on the lode for a distance of 644J ft. close up to the Waihi Extended Company's boundary ; that company then made a connection with the end of the drive, which as a natural consequence gave excellent ventilation to the mutual advantage of both companies. From the bottom of this level (along the distance the lode has been driven on) nine winzes have been sunk whose depth on the aggregate amount to 508 ft., and a winze is being sunk to the west of the crosscut, and is now down 10 ft. This is being done with a view to opening up more ore in this section. No. 3 level : A crosscut drive has been driven at this level for a distance of 449| ft., resulting in the intersection of what is termed the Martha and No. 2 Lode, the widths of which are 28 ft. and 7 ft. respectively. A contract has been let for rising and driving on the lode to connect with the bottom of the winzes sunk from No. 2 level. The quartz (so far as the lode has been driven and sunk upon) is said to be of a payable character. There has been added during the year to the plant an electrical-lighting plant for the effectual lighting of the several departments, working the stone-breaker, driving electrical drills, small pumps, and hoists. The forty-stamp mill purchased from the Kauri Freehold Estates Company has been delivered on the property, and rapid progress is being made with the earthwork-excavations on the battery-site. In addition to the above work, several buildings have been erected, including shed for dynamo plant, extension of carpenters' and blacksmiths' shops, &c. An average of forty-six men were employed on the property. Waihi Extended Mine. —The work carried out in this company's mine during the past twelve months was principally at the 500 ft. level; driving in a southerly direction was in progress at the end of the previous year. This drive was driven to the boundary, but as no ore-bodies were met with it was decided to drive in a north-north-westerly direction along the boundary, where it was anticipated that the reef being driven upon in the Grand Junction Mine would be intersected ; and when a distance of 240 ft. had been driven, a reef was cut which proved to be the one worked upon in the Grand Junction Mine. A connection was made with the drives of both mines, which has given good ventilation. This reef, when cut through, was 18 ft. wide, the last 6 ft. or footwall portion being very heavily mineralised. Samples of ore taken from different parts of the reef when assayed gave very encouraging results. A drive on the footwall portion of the reef was driven for a distance of 120 ft., the quartz gradually going underfoot, and only the formation of the reef continuing ahead. This leads the mine-manager to believe that the drive is virtually on the cap of the reef. A winze was also sunk upon the reef for a depth of 40 ft., the ore-body continuing strong downwards. Samples of ore taken from here when assayed gave very encouraging results, therefore there is every likelihood of its being of good value at a lower depth. Seeing that there was little or no quartz overhead, work was stopped for the time being at this level, and preparations for sinking the shaft were taken in hand. This work being completed, the sinking of the shaft was proceeded with and will be continued to an additional depth of 130 ft. before opening out for another level. During the past twelve months there has been 620 ft. of driving, 40 ft. of sinking, and other necessary work accomplished. Eight men were constantly employed. Waihi Gold Reefs Syndicate (Gladstone). —In May last it was decided to erect a cyanide plant, and when this was completed 300 tons of ore were mined and treated. The extraction not being satisfactory, it was decided to erect a Union vanner to concentrate the ore before treatment by cyanide. On completion of erection of vanner, mining and crushing will be proceeded with. The plant consists of a five-stamp battery (900 lb. stamps), ore-breaker, Challenge ore-feeder, a cyanide plant consisting of