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Steventon, Mine— The original main haulage dip, which was on a grade of 1 in 2, has been abandoned, and a new crosscut dip has been driven in an easterly direction, 9 chains in length. This has reduced the grade of the main dip haulage to 1 in 3J. Levels are being developed from the bottom of this dip. The level to the south-west struck a fault which it is proposed to prove at a later date, as it is anticipated to be only a small displacement. Sunnydale Mine.-—Only a small amount of clay has been won from this mine. No coal-mining lias been carried out. Blackburn Mine.—Most of the output from this mine has been won from pillar-extraotion, which has been carried out in a workmanlike manner. Tho remaining coal on this block is very limited. A prospecting-drivo was put through the fault in the old mine near the end of the year, and coal of good quality was located. Mount Somers Coal-mine.—There has been a little development done east and west of the main level. A small area, which had been sealed to prevent heating, was opened up and a small amount of pillar coal has been taken out. Natural ventilation has proved adequate. Woodbank Mine.—Mining operations have been resumed and a new mine is being opened up. A dip drive, on a grade of 1 in 3, has picked up the coal 1 chain from the surface. Tho coal-seam is 20 ft. thick, and it is at a grade of lin 3. Electric power is being used for hauling and pumping. North Otago Mines. Airedale Mine.—Tho major portion of the output from this mine has been won from pillar-extraction, there being only a little development done at the beginning of the year. The development places encountered soft coal and pillarextraction was then commenced. St. Andrews Mine.- —In the north-east dip area a little development was done, when the coal-seam became split with stone-bands and was somewhat faulted. Development was then stopped on this area and pillar-extraction started. A little development is being done in the rise section in a westerly direction. Ngapara Mine.—No development work has been done during the year, the output having been won from pillaroxtraction in the north-west area. Shag Point Mine (McLean's). —The extraction of the pillars left by tho old company has been completed and tho mine olosed down. A small area of coal, 3 ft. in thickness to the rise of the old mine, has been developed. The main level in the wost has been driven 0 chains, the coal maintaining its original thickness. The working-places are being driven 12 ft. wide and partly stowed with the roof stone, which is being taken down to make the necessary height for the trucking roads. Shag Point Mine (McLaren's). —The main dip, which is driven in a westerly direction and on tho full dip of the seam, has been continued to a distance of 18 chains from tho mine-entrance and is still in good-quality coal, 7 ft. in thickness. Levels are being developed to the north and south. Willett's Mine. —All the coal from this mine has been obtained from pillar-extraction. llockvale Mine. —No development work has been done at this mine, the whole of the output having been won from pillar-extraction. Tho manager estimates that there remains only approximately 1,000 tons of coal to completely exhaust this mine's workings. Otago Central Mines. Shepherds Creek Mine ( Bannockburn ). -Development to tho north was stopped. The floor is heaving very badly. The low. 1 !' level of a pair of levels being driven in a southerly direction proved the coal to be of good quality and 8 ft. thick to the parting. During July the roof broke in the upper of the two levels, causing an inrush of water of about 1,000 gallons per minuto, which filled the lower workings with water and sand. A pump was installed at 200 ft. from the dip face and pillar-extraction started inbye from this level. Cairnmuir Mine. —This mine has been closed for the greater part of the year. The coal-seam is only 5 ft. thick, the upper 2 ft. being inferior and unsaleable. It is not likely that any further mining will be carried on at this mine. Nevis Crossing Pit. —A small amount of coal was won opencast during tho first half of the year. Nevis Mine (Fache's). —Opencast operations have been continued during the year. This mine supplies a nearby dredge, which is steam-operated. The coal at presont is of very poor quality and contains numerous clay-bands. Oturehua Pit.—This pit is worked intermittently. The coal is being worked only from 6 ft. to 7 ft. high, stripping averaging 4 ft. Blackstone Hill Pit. - No coal has boon mined during the year. Idaburn Pit. —This pit has been worked fairly well during the year and is being developed in a southerly direction. Tho coal is 20 ft. in thickness. The stripping, which is 9 ft. thick, is being kept well back from the coal-face. Parfit's Pit. —No coal has been mined during the year. Cambrian Pit.—No coal has been mined this year, and the plant has been dismantled. Coal Creek Mine.---Work has been continued in this opencast pit, the stripping being sluiced off the coal-seam and kept well back from the face. South Otago Mines. Freeman's Mine. The few remaining pillars have been extracted and the mine was closed down on 30th April, 1938. New Fernhill Mine. —Some coal is being won from the splitting of pillars in the north-east side of the main dip. The pillars cannot be extracted, being directly beneath a surface swamp. A little development is being done in a small area to the dip of the splitting and on the east side of the Abbotsford-Wingatui Road. Jubilee Mine. —Tho main dip section is stopped and the pillars have been worked back to a point 3 chains from the dip bottom. A crosscut dip is being driven in a north-east direction and is still in good-quality coal. At present the available coal is only about 10 chains in width, but should become wider as the dip workings are advanced. Development in this direction should open up a good area of coal. During the year " Polar Samsonite " has been introduced for shooting coal, and has proved quite successful. Hodson's Mine.—Pillar splitting and robbing have now been completed to within f> chains of tho mine-entrance. A very small area is being developed to the south from the present dip bottom. The life of this mine appears to be very limited. Brightglow Mine. - -This mine was not working during the year. McColl's Mine. —The small output from this mine is won from pillar-extraction. Saddle Hill Mine.—No coal-winning has been done during the year. Fairfield Colliery.—The greater portion of the output of this mine has been won from pillar splitting and extraction in the top seam. The bottom seam has not yet been opened. Towards the latter part of the year a little development has been done in the area which had been stopped previously, the quality of the seam showing an improvement. This work is being continued.

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