C.—2

The total value of the bullion produced in 1935 was greater by £104,206 than, that produced in 1934, but from alluvial mining the value of the bullion was less by £37,142. From quartz mining the value of the bullion produced increased by £79,244, and from dredging by £62,104.

(1) Quartz-mining.

The average value per ton of ore treated during 1935 amounted to £2 18s. Bd., as compared with. £2 15s. 2d. during 1934. At the Martha Mine 177,121 long tons of quartz was mined and treated, from which 52,54-1 oz. of gold, valued at £373,041, and 399,444 oz. of silver, valued at £51,595, were recovered. The dividends for the year amounted to £49,590 145., bringing the total dividends paid to date to £6,288,599 Bs. 6d. With the exception of about 600 ft. of driving to the South of Eel crosscut on the Edward lode, and a little on the Ulster lode in the No. 12 level, all the development work during the year was done above the No. 10 level. Driving was continued on the north branches of the Martha lode in Nos. 3, 4, 5, 6, and 7 levels and on the Ulster lode in No. 9 level. The stoping in No. 15 level was completed, and all rails, pipes, and other equipment removed from that level. Stoping was continued in most of the levels from No. 2 down to No. 14 and much of it was of rather low-grade. During the year the Waihi Gold-mining Co. transferred its mining interests at Waihi to the Martha Gold-mining Co. (Waihi), Ltd. From the Waihi Grand Junction Area—also worked by the Martha Gold-mining C 0.—20,314 long tons of ore was mined from which 5,897 oz. of gold, valued at £41,872, and 17,641 oz. of silver, valued at £2,279, were recovered. A considerable amount of prospecting was done during the year in Junction Nos. 6 and 7 levels, and some also in Junction No. 10 and No. 14 Martha levels. Payable ore was opened up in sub-levels below Junction, above Junction No. 7, and above Junction No. 6 levels. Work at the Golden Dawn Mine continued throughout the year, and 8,645 tons of ore was treated from that mine for a return of 5,411 oz. of gold, valued at £47,067, and 7,718 oz. of silver, valued at £623. From other mines in the district, including the Talisman-Dubbo, the Golden Dawn battery treated 3,203 tons of ore, from which 2,735 oz. of gold, valued at £22,883, and 12,172 oz. of silver, valued at £1,870, were recovered. Development was chiefly in the No. 3 level, while stone of good value was mined from the No. 1 reef in the bottom intermediate level, and a new reef of fair value was cut in the crosscut in the top intermediate level. From the Talisman-Dubbo Mine, at Karangahabe, 2,818 tons of quartz was mined and treated at the Golden Dawn Battery, yielding 2,504 oz. of gold, valued at £21,235, and 11,357 oz. of silver, valued at £1,767. Owing to the difficulty of transporting ore from this mine to the Golden Dawn Battery, picked stone only is sent for treatment and lower-grade quartz discarded. To treat that lower-grade ore the Talisman-Dubbo Gold Mines, Ltd., has decided to equip a small battery of its own nearer the mine. Five other small mines were worked in the Karangahake District from two of which no ore was treated during the year. The stone from two of those mines was treated at the Golden Dawn Battery, and that from the fifth at the Waiawa Battery. At Maratoto the Nos. 3 and 4 levels of the Ohinemuri Gold and Silver Mines, Ltd.'s Mine were reopened to test the value of the reef below those levels. At sites selected in No. 3 level and one in No. 4 level several diamond-drill holes were put down, the work being completed in March, 1936. The old St. Hippo Mine at Waitekauri was reopened, but the available finance was exhausted before the 35 ft. reef was reached. It is proposed to make another attempt by way of a short crosscut to reach the old south drive on the reef. Further prospecting has been done at Waiomo, Komata, and Neavesville, and in the Thames and Ooromandel districts many small parties of miners have been sinking and driving under the supervision of the Director of the Thames School of Mines,

23

Statute Tons of Ore treated. Value of Bullion. Dividends paid (by Registered Companies only). Inspection District. 1935. 1934. 1935. 1934. 1935. 1934. £ £ £ £ Northern .. .. 211,425 215,781 556,855 539,906 60,332 108,702 West Coast .. .. 52,233 35,824 215,960 154,162 28,749 46,397 Southern .. .. 1,606 1,743 5,702 5,205 Totals .. .. 265,264 253,348 778,517 699,273 89,081 J 155,099