C—3.

level of these workings. No. 6 level is being extended north to intercept the block on which stoping is proceeding over No. 7 level. The stone opened up by the several works is not high grade, but it is expected it will pay working-costs, and also enable some development-work to be carried out. Total development-work for the year consists of 1,322 ft, of sinking, driving, and rising. To expedite this work a rock-drilling plant, together with engine and boiler, was installed. Stoping operations have been carried on generally from Nos. 5, 6, and 7 levels. The treatment of 11,163 tons of quartz won from all parts of the mine gave a return of 3,065 oz. 5 dwt. gold, valued at £11,312 19s. sd. An average of forty-five men was employed. Wealth of Nations. —Development-work carried out during the year oomprised driving south at Nos. 8 and 10 levels, sinking main shaft 125 ft., and cutting chamber and driving the new Xo. 11 level crosscut out to intersect the reef. The depth of the main shaft from brace to the lowest level (Xo. 11) is 1,861 ft. Total development-work for the year amounts to 1,525 ft. of driving, rising, and sinking. The extension of Nos. 8 and 10 levels resulted in opening up nice blocks of stone of fair value, which will be useful additions to ore-reserves. Stoping has been carried out at Nos. 7. 8, and 9 levels during the whole year on the main reef, and to a small extent on the foot-wall reef. The ore milled amounted to 15.577 tons, yielding 7,222 oz. 14 dwt. gold, valued at £28,358 16s. Bd. At the battery, the erection of a tube mill/five B and M tall tanks, settlers, and vacuum filter plant were completed. It was found necessary to instal a steamdriven air-compressor for the slimes plant, while arrangement was made whereby the extra steam-power from the plant can be utilised for the battery in case of shortage of water for power purposes. An average of 105 men was employed. /'royress. —During the year development-work consisted of 1,872 ft. of driving and crosscutting iind 581 ft. of rising and sinking. This work was carried out from Nos. 4, 5, 6, 9, and 11 levels, and resulted in opening up several large blocks of stone of fair grade. Stoping operations have been proceeding at all levels from No. 11 to No. 4. The ore won from the several works was treated at tin- company's battery for a return of 14,100 oz. 1 dwt. gold, valued at £52,030 7s. 2d. Mining operations were suspended in 11 shaft during September and October, to allow for retimbering of the shaft from No. 7to No. 9 levels. A considerable amount of repairs were carried out to the drive timbers at nearly all levels, while attention was also directed to filling and securing the stopes throughout the mine. A great deal of care is necessary in this direction, owing to the ore-bodies lying very flat, ami the heavy and broken nature of the hanging-wall country. At the surface the erection of the smelting-works was vigorously pushed, and the smelter, mechanical roasting furnace, and condensing-chambers for arsenic and antimony were completed in November, and smelting operations commenced. The process promises to be successful, and will enable the company to profitably treat their concentrates and pyritic slimes, as well as a large quantity of valuable residues which had accumulated while the chlorination plant was in use. Coal for smelting purposes is obtained from the company's coal-mine, situated within a mile of the works. Limestone for fluxing purposes is obtained from a quarry, also within a mile of the works. The only flux which has to be imported from a considerable distance is copper-ore, which has been procured from Nelson. An average of 335 men was employed. Bonanza. —This claim is situated in the Auld's Creek Watershed Reserve, and mining has been allowed thereon subject to special conditions approved of by the Inangahua County Council. The work carried out consists of surface-trenching, and has revealed a reef outcrop which gives good values by assay. New Big River. —The main shaft has been sunk 210 ft., the chamber of the new No. 10 level formed, and the crosscut driven therefrom a distance of 18 ft. The total depth from collar of shaft to No. 10 level is 1,575 ft. At No. 9 level No. lor branch winze was sunk to a total distance of 100 ft. The last 30 ft. of sinking did not disclose any stone. No. 2or eastern winze was sunk to a depth of 70 ft., the reef varying in width from 1 ft. to 6 ft. In the early part of the year a drive was put in from the eastern side of the south end of No. 9 level, and disclosed a body of stone from 1 ft. to 6 ft. in width. This stone was stoped for a height of 40ft., when it narrowed down to merely a boulder. The stopes on the old eastern block on the north end of the winze have been carried through to No. 8 level. On the branch.block there yet remains 18 ft. in height to be stoped to reach No. 8 level. Cosgrove's Block, below No. 1 level : A winze was sunk 40 ft. on the reef when it cut out. To prospect this part of Ehe mine, and to facilitate the handling of the stone from this block. No. 1 intermediate level (136 ft. below No. 1 level) was driven 160 ft,, and a rise put up and connection made with the winze. This work also gave good ventilation for the workings. The average width of the reef was 4ft. Engine level: A block of stone was located in this level, but has not been sufficiently developed to prove its value. A total of 5,434 tons of ore was mined and crushed, for a return of 5,886 oz. 4 dwt. gold, valued at £23,837 os. 6d. At the cyanide plant 3.650 tons of tailings was treated, for bullion valued at £2,133 Bs. lid., and concentrates to the amount of 72 tons 12icwt. was sold for £1.088 2s. 7d. An average of fifty-five men was employed. Big River South. —During the year this mine was taken over by a company, and operations directed to driving a tunnel from the surface to give 200 ft. of backs on a reef from which the former owners secured encouraging prospects in two winzes sunk. In driving the level a block of gold-bearing stone was cut at 330 ft. in from the surface, but no work has been done upon it to prove its extent and value. An average of four men was employed. St. George Syndicate. —Very little work was done by this syndicate during the year. Efforts were being made to raise capital to test the ground by means of a low-level tunnel from the Snowy River side of the property. W. Kirwan and Party. —This party has been conducting prospecting operations to the north of the New Rig River Mine, and were successful in locating a reef outcrop showing very favour

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