a—3

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several reefs were expected to be intersected within the distance named. Two men were employed during the year. Te Aroha District. Hardy's Mines (Limited). —The operations in this company's mine in the early part of the year were directed to opening up the lode at the low level (something like 70 ft. below the main tram-line), the quartz being raised above'j'the tram-line by a Pelton wheel geared to winding appliances. After a considerable amount of work in the shape of prospecting had been done on the lode at this level, and the ore not proving as valuable as anticipated, all work here was discontinued, and a number of the miners discharged. The few men who were retained were put on to try the blocks of ground over the No. 2 level in the Premier section. No new discoveries have been made, and as the ore won from the mine has not proved payable, the results are very disappointing to the shareholders who were induced to take an'interest in the company. 1,727 tons of ore was treated for 2,416 oz. 14 dwt. of bullion, valued at £6,343 16s. 9d. An average of twenty men were employed during the year. Komata District. Komata Reefs Mine. —The various works in this company's mine have been carried out very successfully during the year, the ore being highly payable. The bullion obtained from the quartz treated was sufficient to pay all expenses and leave a margin of profit, enabling the directors to pay to the shareholders in dividends £13,333 6s. Bd. The following is a summary of the work carried out : Rising from No. 8 level to connect with the bottom of the main shaft, a distance of 190 ft, and the sinking of the shaft 15 ft. to meet the rise, which was satisfactorily accomplished ; opening out from the shaft at Nos. 5, 6, and 7 levels on the No. 2 reef ; driving north on No. 2 reef at No. 8 level (the reef in this drive is a fair size but the ore is of low grade) ; driving north on No. 2 reef at Nos. 3 and 4 levels. The reef at No. 3 level averages 14 ft. in width, and the value of the ore is £2 7s. per ton ; on No. 4 level the average width was 5 ft, and the value £3 per ton; in the drive north on the No. 1 reef at No. 3 level the reef averages 7 ft. in width and the value £4 per ton. The total development-work done was as follows : Driving on reef, 1,032 ft. ; rising on reef, 256 ft. ; crosscutting, 355 ft. ; sinking, 238 ft. : total, 1,881 ft. The total driving done on No. 1 reef was 334 fathoms ; on No. 2 reef, 504 fathoms : total, 838 fathoms. The development-work produced 5,011 tons ; stoping, 11,809 tons : total, 16,820 tons, worth £42,432 10s. 7d. Early in the year it was decided to increase the capacity of the plant by the addition of a 14 ft. by 4 ft. tube mill, filter-press plant, &c, also an additional steam-boiler to supply the extra power required ; this work is now pretty well completed. During the incoming year the installation of machine drills is contemplated, as the ground in the low levels is becoming too hard for hand-work. The prospects of the mine are very encouraging, and should the ore in sight yield as well as anticipated a good margin of profit over working-expenses is confidently expected. An average of 140 men were employed during the year. East Coast Mines. Auckland (Mananua). —There was little work done in this mine in the early part of the year, but eventually a company was formed who directed their first attention to the working-out of small blocks of ground above Nos. 1 and 2 levels which had been left in by the former company. This was rich ore, and has given the shareholders encouragement to open out the reefs and prove the value of them more thoroughly at Nos. 3 and 4 levels. The battery had been partly removed; but as ten stamps and a few cyanide-vats had been left the company were able to commence treating the ore without hindrance and at little expense, with results which gave renewed confidence in the property. 879 tons of ore was treated for a value of £4,387 14s, or practically an average value of £5 per ton. An average of eight men were employed during the year. Waimunga. —There was little work done in this mine, only one, and sometimes two, men being employed during the first six months of the year. Protection was then secured for six months. The reef is about 4 ft. in width and is reported to contain payable values. The company have now decided to erect a battery, and development-work is to be energetically proceeded with. Chelmsford Mine. —Although this mine had been standing idle for some time the directors received some encouraging reports and decided to resume work again. Their whole attention was directed to working out small blocks on the reef at the surface-levels, which were considered by the former minemanager not worth taking out. As this did not prove payable, and no development-work had been done to discover any new reefs and the funds having become exhausted it was decided to put their affairs into a liquidator's hands and wind up the company. 741 tons of ore was treated for a value of £1,167 18s. sd. An average of eight men were employed during the year. Tairua Broken Hills. —The operations in this company's mine have not been quite so successful as in the past; but a new reef has lately been discovered in the hanging-wall, which is stated to contain rich ore and will in all probability pay for the expenditure in opening it up. In the early part of the year the main shaft was sunk a further distance of 90 ft, making a total depth of 200 ft. below the main adit level. When this was accomplished it was found necessary to open out at the 80 ft. level, where payable ore was found; and there driving was proceeded with north and south of the shaft on the Blucher Reef for a total distance of 290 ft. Over this level 150 fathoms of ground was stoped out from the point where Night's Reef junctions with the Blucher Reef. A distance, of 333 ft. was driven on that reef and 210 fathoms of ground stoped out over the level. 100 ft. of sinking was done on the same reef from the battery level. On the Punon Reef 20 ft. of driving was done and 26 fathoms of the reef over the battery level stoped out. In the month of November a crosscut was started at the battery level and driven into the hanging-wall of Night's Reef for a distance of 89 ft, where a new reef was