C.-2

16

between the years 1895 and 1899 yielded bullion to the value of £240,000. A step-fault system has been recently penetrated to the 300 ft. level, and the lode, although showing blotches of gold in places, is thin and as yet not payable. The prospecting operations are very interesting. At the Waihi Mine sinking operations in No. 4 shaft attained a depth of 1,600 ft. The deepest mining was carried on at No. 12 (1,447 ft.) level, east, of No. 4 shaft on I he Dreadnought lode, for a distance of 391 ft:. The ore-values were payable. East of the Dreadnought lode the Empire lode was intersected by a crosscut; the lode was split up and variable in value, although generally low. In the west crosscut to No. 2 shaft the Edward lode was intersected, having very low value. In the annual report of the Waihi Gold-mining Company it is estimated that at the end of J920 the ore reserve amounted to 523,830 tons (short), of an average value of .£1 lis., which ore could be worked in the ordinary course of mining. There was also a further reserve of 251.710 lons of ore in pillars and arches, of an average value of £1 18s. per ton. The average value of ore treated declined from £1 17s. 9d. during 1919 to £1 12s. lOd. (luring 1920. At the Waihi Grand Junction Mine the pumping compartment of the main shaft has attained a depth of 1,473 ft., the water-temperature at the bottom being 95° F. The deepest mining was carried on at No. 8 (1,320 ft.) level on the Empire lode, the values being moderate. The average value of ore treated declined from £1 15s. 3d. during 1919 to £1 13s. lid. during 1920. At Muir's Gold Reefs, Te Puke, development in levels and by winze above tin 1 water-level has proved encouraging. Early in the year the mill was destroyed by fire, but a 20-head mill was forthwith purchased, which it is proposed to operate by electric power. At the lllackwater Mine the main shaft was continued to a depth of 1,690 ft., the deepest mining operations being at No. 9 level, both north and south. The most favourable development occurred in the southern section. At the New Dig River Mini' development was practically confined to winzing below the liotlom No. 11 (1,775 ft.) level. The results were satisfactory. In Otago only one small gold-quartz mine was productive, but a small quantity of gold was obtained from a gold-scheelite mine at Macrae's. During the early part of the current year .lames Hurley, a Government subsidized prospector. found an outcrop of a quartz lode mi a ridge near the Alexander Stream, a tributary of the Big Grey River. Considerable attention was drawn to this discovery by grossly exaggerated reports in the local Press. Subsequent examination by Mr. I. G. Morgan, Director of Geological Survey. proved that the lode, as exposed in trenches for a length of less than 100 ft., averaged 5 ft. 1J in. in width, and contained an average assay value of £1 7s. 2d. per ton. No other prospect ingwork than the trenching referred to had been done, and the lode remains a mere prospect. The following is a statement showing the tons of ore treated, the value of bullion produced, and the amount of dividends paid by quartz-mining companies in each of the inspection districts during the years 1920 and 1919 : —

The average value per ton of ore treated during 1920 amounted to .£1 15s. lOd. The following is a statement of the production, dividends declared, and the number of persons employed by the principal gold-quartz mining companies during 1920: —

Inspection District. Statute Tons of Ore Value of treated. 1920. 1919. 1920. Bullion. Dividends pi tered (lomi iid (by Regisanies only). 1919. 1920. 1919. Northern Vest Coast .. Southern £ £ £ 194,316 226,611 325,854 37,592 58,937 89,333 145 506 681 £ 475.!)!)!) 97.712 310 £ 99,181 1,800 £ 116,431 2,400 Totals . . 232,053 286,057 415,868 415,868 574,021 100,981 118,831

During 1920. Dividends paid. Total to Und of 19*0. Deoember, ! 19211. | • "8 » g-s HH S^ 3 Name of i:oui|iany. Quantity , value Average n ot , ,n Value tjiiarM Hull ion. per Ton. treated. Northern Distriet — Waihi Gold-mining Company (Limited) Waihi Grand Junction Gold-mining Company (Limited) West ('oast. District— Blackwatcr Mines (Limited) New Big River Gold-mining Company (Limited) Progress Minos ot New Zealand (Limited) Other quartz-mines throughout New Zealand Statute Tons. £ £ s. d. 112,239 233,400 1 12 10 .11,29-1 86,960 1 13 II £ £ 99,181 5,437,238 207,004 531 296 24,408 58,887 2 8 1 2,970 11,333 4 16 6 8,102 L3,671 I 13 6 2,980 ; 8,051 2 18 0 174,994 1,800 105,000 326,502 I 108 31 43 373 Totals 232,053 415,868 1 15 10 100,981 1,382