0.—3

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level course northward, and samples broken from the reef give promise of average values. Including development and general expenses in connection with the working and upkeep of mining property and plant, the working-cost was £7,153 13s. 10d., or a fraction over 10s. 9d. per ton. Battery worked full time, with the exception of a few hours' stoppage to effect minor repairs. Tonnage crushed, 13,300 tons ; yielded by amalgamation, 3,281 oz. 14 dwt. 18 gr., valued at £13,200 19s. 4d. ; and workingcost, £1,489 13s. sd. This amount includes all renewals to milling and concentrating plant, together with general repairs to head and tail races, absorbing about 2s. 3d. per ton treated. The values extracted by cyanide compare favourably with the preceding year, but in cost of treatment a reduction of 6d. per ton is shown, this reduction being attributed to the reduced percentage of cyanide used, by the introduction of caustic soda as a more economical and effective solvent in the treatment of highand low-grade antimonial ores. Bullion obtained from the gross tonnage crushed was 1,543 oz. 12 dwt. 12 gr., valued at £5,686 os. 7d., or an average value of Bs. 6Jd. per ton ; while working-cost, including salaries and goods, amounted to £1,819 19s. Bd., or nearly 2s. 9d. per ton on total output, showing a profit of £3,866 os. lid. The gross earnings by amalgamation and cyanide extraction show a total value of £18,886 19s. 1 Id., out of which a dividend of 9s. per share has been paid. Inkerman Mine. —Prospecting was carried on for the first three months of the year, but the value of the quartz operated on was too low to warrant further expenditure, so the rails, pipes, &c:., were withdrawn and stacked on the surface, and distributed round the other mines as required. Victoria and Inglewood (owner, P. N. Kingswcll).—Since the stone became exhausted on the inclined shaft section below No. 5 level, work has been chiefly confined to prospecting and development, whilst the stone mined for milling purposes was chiefly taken from prospecting-work on Nos. 2 and 5 levels, Inglewood, and No. 4, Victoria. Working-conditions were maintained satisfactorily throughout the whole operative areas, care being taken to make special features of ventilation and timbering. The reduction-works comprise a ten-stamp mill actuated by steam-power, together with a complete cyanide plant, the tailings having a natural flow to the vats. Stone milled —645 tons —yield 530 oz. 6 dwt., valued at £2,126 4s. ; and 625 tons of sands treated by cyanide yielded 398 oz. 18 dwt., valued at £1,295 13s. 9d. Big River (J. H. McMahon, mine-manager). —Mining operations have been well maintained throughout the year, whilst the stone for milling was stoped from No. 8 east reef, the western reef between Nos. 7 and 8 levels, and the two winzes sunk in No. 8 level on east and west reefs. Prospecting was also extended on these levels, but without success. To effect further development at depth the main shaft was sunk and completed in every detail to a further depth of 150 ft., making the total depth from the battery level 1,150 ft., and from the brace 1,350 ft. Contracts are-let to excavate the chamber and drive the main crosscut 450 ft., at which distance it is anticipated to cut the lode. Timbering and ventilation are strictly observed, and during sinking operations repairs were carried out in a general way throughout the mine. The stone milled was 2,037 tons, yielding 1,940 oz. 8 dwt. 12 gr., valued at £7,904 11s. 2d. Dividends paid for 1906, £2,332 10s., and since registration, £49,698 15s. Last Chance. —This claim continues to be abandoned. The five-stamp mill is still on the property. Golden Lead. —Work suspended on this property. Golden Point. —Prospecting is still continued by one man. The water-races, overshot waterwheel, and other works in connection with the battery plant have been recently overhauled preparatory to crushing. About 60 tons of ore in hand. Mine, Merrijigs. —This old property was recently reopened and work resumed on tribute. The reef formation is chiefly leaders of high value. Phoenix (late Ulster). —On reconstruction of the company, mining operations were resumed on the low level in view of picking up the north block. A five-stamp mill, purchased at Boatman's, will be removed and rebuilt directly on completion of necessary repairs to the road. Taffy. —The working is a loose open-face formation, intermixed with small leaders. The stone milled—ioo tons—yielded 30 oz. 6 dwt. 6 gr., valued at £123 Is. sd. Minerva. —Still standing. Garden Gulley. —All work suspended. Moonlight. —Since Mitchell and party commenced to further extend exploitation on this old mining privilege, their efforts have failed to attain the success anticipated, but they are sanguine that the line of reef is within a further distance of 200 ft. Blackwater Reefs. —Early in the year 1906 Mr. Kingswell, of Reefton, obtained an option over a recently discovered property in the Blackwater district, and accordingly proceeded to carry out prospecting. By the 9th May operations had been so far successful as to warrant an inspection of the property. By the end of May the Consolidated Goldfields of New Zealand had secured an option over the property for six months, with the object of carrying out a more detailed system of prospecting. A party of miners was sent down from Reefton, and the reef traced by means of vertical prospecting shafts for a horizontal distance of approximately 600 ft. An inclined winze was sunk 260 ft. on the stone, and driving was continued from the bottom to a distance of 70 ft. Arrangements were finally made for sinking a main shaft. A tramway two miles and a quarter long was constructed to connect with a sawmill tramway a mile and three-quarters in length. This work was done, and the tramway laid through from the sawmill to the shaft-site by the 12th December, and the engine and boiler were delivered on the ground for erection. The poppet head gear, 15 ft. in height, was erected, and ready to commence sinking in the beginning of 1907. Two tunnels were driven on contract—one from Greek's Creek towards Coorang Creek, 313 ft., and further south on the Joker lease another 563 ft., when work stopped for the year. These tunnels will both be extended, the former until it meets a winze from the Coorang Creek, and the latter until it reaches the shaft, when its total length will be, approximately, 1,500 ft. A contract has been let to sink the main shaft 500 ft. In connection with the general development, considerable work will be required to bring the property to the producing stage, which may be reached at an early date.