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It is intended to extend this drive to a distance of 850 ft., to cut several teefs known to exist n that part of the company's property. Rock-drills are being used in the new drive, and at the end of the year 80 ft. had been driven. An average of nine men were employed. Komata District. Komata Reefs Mine. —No. 3 level : A considerable amount of driving was done on the No. 1 reef in a northerly direction, and this showed the reef to average 8 ft. in width, the average value being £2 10s. A winze was put down to the No. 4 level (420 ft.), but evidently in a poor place, as the average value of the ore was 16s. per ton. No. 2 reef was driven on 65 ft. in a northerly direction, and the present face shows the reef pinched to about 1 ft. in width. Some very good ore was met with in this drive. Two winzes were put down to the No. 4 level, and these both show that the ore carried down to that level. No. 4 level (420 ft.) : A large amount of driving was done on the No. 1 reef. The average width was 5 ft., and the value of the ore will average about £2 per ton. This drive has added very considerably to the ore-reserves. A winze was commenced, and has been put down about 70 ft., showing good ore all the way down. No. 2 reef was also driven on, but without encouraging results. A winze was put down to the No. 5 level (540 ft.), and this showed good ore all the way down. No. 5 level (540 ft.) : A distance of 245 ft. was driven on the No. 2 reef in a northerly direction, and the last 180 ft. has been in very good" ore, the average width being 5 ft. This drive is very encouraging, and is proving tha; the ore-body worked on in the upper levels is extending down. Stoping operations were carried on as usual on the two reefs. The battery has been kept steadily running during the year, and is now handling 110 tons of ore per day. The process consists of crushing in the battery of twenty stamps through screens with four holes to the linear inch ; grinding in'tube mills (two, each 16 ft. by 4 ft.), so that 60 per cent, of the pulp goes through 200-mesh sieve ; and then separation of the pulp into sand and slime. The sand (about 50 per cent, of the whole) is treated by percolation, and the slimeby agitation in eight B. and M. agitation-tanks, and subsequent filtering in Turn-over vacuum, filters. The p-ocess is very simple, and gives excellent results, the extraction of the gold being 93 per cent, and of the silver 83 per cent. The assay-value of the ore treated was £1 16s. 3d. Both the mine and the battery were always found to be worked efficiently, leaving no room for complaint. 28.4; 0 tons of ore were treated, for a value of £47.128. An average of 170 men were employed. Hikutaia District. New Maratoto Mine. —During the year operations were confined to stoping on the Maratoto and Payrock reefs, from which 954 tons of ore were obtained and treated, for a value of £864 12s. 6d. The return did not come up to expectations. An average of ten men were employed. Silver Stream Mine. —This claim is owned by a syndicate of four men, who are themselves working the property. When themine was visited, it was found that the ore above the adit level had been stoped out, and a winze had been sunk below the level. 14 tons of ore was treated, for a value of £934. Champion Mine. —Little or nothing has been done in the mine during the past year. Attention has been given to the erection of a battery and the construction of a water-race. On the completion of these works, active development-work will be undertaken in the mine. Kirikiri. Kirikiri Mine. —The company have started a low level, with the object of opening up another block of ground, which, when completed, will give 170 ft. of backs. Nine men were employed stoping, driving, and crosscutting, and 275 tons of ore was treated, for a value of £745. East Coast Mines. Auckland Mine. —Operations were confined to the working of a small block of ore on the outcrop of the reef, which was found to be of a payable character. Some of the old stopes were filled with earth and rubbly quartz from the cap of the reef, and it was thought that it would pay to run out the filling and have it put through the mill. However, expectations were not realised. The surface block of ore having been worked out, and the values at No. 4 level (adit) proved to be unpayable, the mine was closed down, as extra pumping and winding machinery would be necessary in order to s nk below the low level (No. 4). Two men were employed, and 350 tons of ore treated, for a return of 280 oz., valued at £512 lis. lOd. Waimangu Mine. —The prospecting carried on during the year has consisted chiefly of trenching and driving. Several reefs were discovered, but of an unpayable character, and the mine has consequently closed down. A parcel of ore of 11 tons was treated, for a value of £53. Taihoa Mine. —During the past year very little work has been done. A new company has been formed, and I believe they intend to test thoroughly the ore-bodies on the property. Golden Belt. —Driving and stoping on the reef in the upper level has been the only work of importance done. 3,000 tons of ore were treated, for a value of £4,753 18s. 10d., which covered the cost of milling and milling. The mine was inspected and found in good order. An average of forty live men were employed. Tairua Broken 11 ill. -Operations were confined to the new reef in the foot-wall of the Blucher reef. Some good ore was obtained from*this lode, which has a width of 3 ft. The mine was found in good order. 2,501 tons of ore were'treated, for a value of £11,321. Sixty men were employed. Coronation Claim. —This mine has been under protection lor the greater part of the year.

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