C.—2.

East and Hogson blocks. During the year a total of 23,894 tons was won from north branches of the Martha lode west of No. 2 shaft, at Nos. 3, 4, 5, 6, and 7 levels. No. 2 level, Edward lode : Shrinkage stoping of Cod'block was completed and the broken ore is being drawn off. Eel rise, above top stope, was put up 81ft. and connected to the bottom of Eel pass, which was sunk 109 ft. from the surface. A good current of air now goes up this rise to the surface. Edward lode, east part : At 100 ft. south of No. 2 shaft a crosscut was driven for 66 ft. on good-grade ore. At 55 ft. south the lode is 5 ft. wide, and worth £3 3s. lOd. per ton. A connection was made to Edward south-west crosscut, where the east part was first met. Shrinkage stoping of the new Trout block is in operation. This block is calculated to contain 2,114 tons, which have been added to the ore reserves. On the Bell reef a drive was started, at 129 ft. west of Hooper crosscut? and extended to akaThe reef varied between Ift. and s|ft. in width and values ranged from 2s. 9d. to £2 7s. 6d. per ton. At 434 ft. a crosscut was put out south for 45$ ft. At 36 ft. the main part of the Bell reef was worth £1 12s 2d. per ton. A drive, west of the 434 ft. south crosscut, was advanced on the main part of the Bell reef to IXI ft The lode varied from lsft. to 5 ft. in width, and values ranged from Bs. lOd. to £3 4s. lid. per ton Surface above Edward lode: Eel pass was sunk 45ft. to 109 ft. from a surface cutting, and connected to a rise from the top of Cod block above No. 2 level. The Edward lode pinches out in soft blue country at 190 ft. from surface. Open cut: Rill stoping is in operation in Dix block, on the Martha lode. East of Bell pass crosscut School drive was advanced to 26 ft. on the same lode, which is here 7 ft. wide and worth 17s. Id. per ton The broken ore is now being drawn from Pershing and Oats blocks. Haigson south crosscut was advanced total of 45 ft from the Martha footwall gangway. At 39$ ft. the south branch of the Martha lode was intersected and proved to be 5$ ft. wide, worth £1 10s. 7d. per ton. West of Edward filling pass north crosscut, a drive was advanced to 335 ft. on this lode in payable ore. Ulster lode (Grand Junction No. 7 level) : Driving west of the boundary in the Martha area was continued a further 359 ft., making a total of 485£ it. west of the 875 ft west crosscut. Values were rather low. At the 305 ft. point a connection was made to Ulster winze at 95ft 'below the Martha Co.'s No. 10 level. All values stated have been estimated on the basis of gold at £4 4s and silver at 2s. per ounce. During the year the company put down two boreholes by diamond drill, "A "to a depth of 252 ft. and "B" to 262$ ft., on the old Silverton claim, which is now held by the Martha Co under prospecting license. A conversion from steam and/or air to electric power was made on the No. 2 shaft winding-engine during the holiday period 1935-36, and this incorporated the installation of a 50-cyele AC 400 hp motor, together with "Lilly" control overspeed and overwinding gear. The altered conditions had an effect on the hand and foot brakes of the engine, for these became largely ineffective, and the engineer lat Waihi) designed and had constructed at the company's workshops, and installed, a gravity brake, which is held off bv the application of air. This is arranged to come into operation on the failure of the electric or Bir nower and gives complete satisfaction. The steam cylinders previously had a braking effect in themselves, and this was naturally lost when the engine was converted, hence the necessity of the gravity brake. Output: A total of 172 622 long tons of quartz was mined and treated, from which gold and silver to the value ot £406 508 was obtained. The gold recovered amounted to 53,108 oz„ valued at £371,762, and the silver to 382 399 oz. 15 dwt., valued at £34,746. Dividends were paid during the year to the amount of £99,181 8s ihe . ' ™ number of men employed during the period was 597. The total yield of bullion (gold and silver) since the beginning of operations (including that won by the Waihi Gold-mining Co., Ltd.) is 26,905,893 oz. 18 dwt. 11 or valued at £18,954,862 13s. lOd. . . Waihi Grand Junction Gold-mining Co., Ltd. (W. Morrison, Manager). The Martha Gold-mining Co. (Waihi), Ltd continued the working of this mine. No. 10 level: For the purpose of drawing the broken ore from Fah'v and Ellis blocks on the Empire lode a short rise was put up to the Martha Co. sNo 13 level at 450 ft. test of No 1 shaft south-east crosscut. The ore will be drawn through this pass at No. 10 evel and trucked to the Junction shaft. No. 9 level: A total of 5,155 tons was drawn from No. 10 Pass block on the Empire lode No 8 level, Royal lode: Stoping was commenced in the No. 4 Pass block. Drawing fiom Lowrie block was' continuous until August, when work was suspended owing to the great difficulty experienced m drawing off the ore due to the flatness of the reef. The sinking of No. 4 winze, situated at 425 ft. west of No B 1 shaft south-east crosscut, was commenced in May and carried to a aepth of 90 ft. An intermediate level was then opened out at 61 ft. down the winze (this being the limit m depth of the pay-ore) and driven a total of 67 ft. west and 76 ft. east. Although crosscutting proved the reef to be of considerable width, the nav-ore was confined to a width of 5 ft., extending east and west of the winze for a distance of 83 ft., the calculated average assay value being £1 lis. sd. per ton. Ore breaking has been commenced m this block. 1 miction No 7 level, Empire lode, No. 11 Pass stoping block: The trucking of ore from this block was com_ nZced in June, and by the end of the year 2,218 tons had been obtained The stoping and drawmg-off of ore in Wells south block was completed. An investigation of the Empire ode, above No. 7 level east of ,i r' u wa „ ma( j e by driving an intermediate level east and west of No. 18 Pass at 63 ft. up. A total of 72$ ft. was driven west, where the lode was cut off by a fault, and eastward 71ft. were driven, when work was stopped owing to the values falling. The net result of this work was to open a stoning block 118 ft. in length, in which the breaking of ore is now almost completed George lode: The intermediate level, at 80 ft. up George rise, was continued westward to 86 ft. At 60 ft. a winze was commenced and sunk 50 ft., a connection being made with this by rising from the mam level at 100 ft. west of™ 1 shaft south-east crosscut, In the course of this work it was found that the pay-ore continued downward to within 59 ft. of the main level, and an intermediate level was therefore opened out at this height Tbove No 7 level. A distance of 99$ ft. west and 43 ft. east was driven. The result of the work has been to open up a stoping block estimated to contain 2,634 tons of a calculated value of £1 5s lid. per ton. Tunction No 6 level, Royal lode: Drawing from No. 10 Pass block continued steadily and a total of 3,550-tons was recovered Exploratory work on the south part of this lode opened up Cartman and Dye blocks. Ore breaking in these was completed. Some ore is being recovered from the No. 3 Pass block Martha Co. s No 10 level: A total of 543 tons was recovered from Ulster block on the Ulster lode. Martha Co. s N0.,9 1 êl TTlq+or and Roval lodes : During the previous year an intermediate level was driven, on the Ulster lode, at 28 ftabovetheTve from Marthf Co.'s ground into the Junction area, and a connection made to an old at -8 It. aDOve tne f 2g2 tQng of d miilmg grade was recovered during The year and, " additTon, 141 tons were obtained from work done on the Ulster lode. Martha Co'sNo 8 level: The extension of the Royal footwall gangway east of No 5 shaft new south crosscut was nut in hand with the object of opening up and recovering the ore from arches and pillars on portion of the RovaT lode both in the Martha and Graird Junction areas. In the Junction ground the lode was followed along the -outh side for a length of 211 ft., where the face stood at the ena of the year. Between Nos. 1 and 7 passesft was estimated there were 3,043 tons of recoverable ore, of which total 559 tons were won durnig the year All values quoted have been estimated on a basis of gold at £4 4s. and silver at 2s. pel ounce. Two boreholes were put down on the Waihi North prospecting area, held by the Grand Junction Co., by means of rliimond drill The first hole, " C," was completed at a depth of 552 ft., while the second was down to 485 ft at the end of the year, with drilling still in progress. Output: The ore won torn the mine amounted to 27004 long tons which yielded gold and silver to the value of £55,892. The gold amounted to 7,619 oz to w7,004 long: tons, w y the silver to 28 117oz. 4 dwt., valued at £2,554. Dividends to the amount of £6,9o 6 ts'"ldln t of forty men was employed. The total value of bullion won from the mine since commencing work may be set down as £2,702,525 3s. , or (Mden DaZ Gold-mines, Ltd., Owharoa (J. H. Benney, Manager —No. 3 level: The crosscut west, off drive north on No. I reef, has been extended to 650 ft, The country here has been of a farr class for cairyi g reefs! being heavily mineralized. A drive north, on a west wall branch of No. 1 reef, has been advanced

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