C,—2,

(1) Quartz-mining.

The average value per ton of ore treated during 1939 amounted to £3 Os. 6d., as compared with £2 lis. 9d. during 1938. At (the Martha Mine., Waihi, 175,665 tons of quartz was mined and treated, from which 49,.5*81 oz. of gold, valued ait £386,121, and 384,897 w. of silver, valued at £35,581, were recovered. The dividends paid during the past year, £61,988 Is., were £12,397 1,35. 6d. less than those paid in 1,938, The total dividends paid to date from the Martha Mine are £6,623,336 13s. Development work was done during 1939 oil the Nos. 2, 3, 5, and 8 levels, and stoping was continued in all levels from No. 3 level down to No. 14 level. In the Grand Junction section ©if the Martha Mine only maintenance work was done. At the .Crodden Dawn Mine a winze was sunk on the No. 5 reef and some driving was done from near the bottom of the winze, but the results waie .disappointing. The winze is to be extended another 100 ft. A crosscut off an intermediate level above No. 3 level was continued, but nothing payable was met. Only 44 tons of ore fraaaa the Golden Dawn Mine -was treated in 1939, yielding 8 oz. of .gold, waJiued at £78. At the Talisman-Dubbo Mine, near Kacangaha-ke, the No. 4 level was .cleaned up, driving was continued to the No. 2 •Cnwwn block, and rises were then put .up. Stoping was .continued in the No. 7 Bauraki lewel and in the ilM.btoo and Nos. 1 and, 2 Talisman levels. Two small sections .of the mimes were worked by tributes, and from all workings 2,013 tons of ore were treated at the new raiS, yielding 291 oz. of .go'ld, valued at £2,979, and 1,374 oz. of silver, valued at £136. From two other mines in the Kazramgahake .district 708 tons ,of quartz was mined, yielding 752 oz. of gold, vailued at £2,608, and 267 oz. .of silver, valued .at £27. Most of .this ore was (treated at -the Talisman-Bubbo battery. At Thames the Una Hill Mine was reopened early in 1939 and an incline sunk 140 ft. at a,steep angle below (the No,. 4 level. From the foot of this inclined shaft a3O ft. crosscut has been drivwa mod then another -steep incline put down. -In the upper incline a rich leader was cut, but it has not yet been followed. At 120 ft. down the lower incline a vertical leader, up to 12 in. in width and showing good gold, was cut. It is intended to continue sinking until the No. 2 reef is met and then dev.eJ.op the mine according to knowledge gained from the exploratory work. In the Blackwater Mine development was continued in Nos. 11, 12, and 14 levels to the north and in a branch drive west of the north end of No. 13 level north, also in Nos. 13 and 14 levels to the south. No. 11 level north was .extended for 209 ft. north-of the Prohibition Shaft, the 20 in. reef continuing to average over 11 dwt. In the No. 13 level south the values were a little higher, and those in Nos. 13 north and 14 north averaged 13-92 and 15-52 dwt. respectively, while in the No. 14 south the 29 in. reef averaged 17-60 dwt. Near the old battery, and using the water which drove it, an A.C. generator has been installed ; and the 1,000 cubic feet compressor, -which formerly was eteajn -driven, is now electrically driven. During 1939, 49,482 tons of ore from the Blackwater Mine was crushed and treated, from which 25,416 oz. 4 dwt. of gold was recovered. From a clean-up of the old mill, 1,026 oz. 4 dwt. were obtained, making a total, from the clean-up and the 'mine ore, of 26,442 oz. 8 dwt., -valued at £230,559. Dividends amounting to £18,749 Bs. were paid during 1939, making the total dividends -paid to date from the Blackwater Mine £399,986 6s. At the Alexander Mine the No. 5 intermediate and No. -6 levels were extended, but most of the ore was from the slopes above the No. 5 intermediate level. Much driving and crosscutting was done in the No. 6 level before the lode was located, and it is evident the country thereabouts is very much faulted. During 1939 the tonnage treated was 50 per cent, more than that of the previous year, being 3,259 tons, which yielded 2,192 oz. of gold, valued at £1'9,«21. At -the Big River Mine the shaft was sunk 74 ft, below the No. '6 level, and below the No. 5 level a winze was sunk 39 ft. on a narrow ore-body which cut out at the bottom of the winze. The No. 6 level was continued, but only a small lens of good ore was met. "Some crosscutting off this level .shows that the lode has been displaced between the No. 5 and the No. 6 levels. Below the No. '6 level a winze was sunk 74 ft. on rich stone which increased in width from 12 in. at the top of the winze to -60 .in. at the bottom. Then it was decided to sink the shaft to the No. 7 level. Most of the 1,522 tons which was treated in 1939, and from which 1,449 oz. of gold was recovered, valued at £14,080, was from the slopes above No. 5 level.

19

Statute Tous.oI CUe treated. Value of Bullion. Inspection District. ; — 1930. J t»88. -lOS'.l. | .1988. 1989. 1 198fi. " i " " i £ £ £ | f Northern .. .. 180,284 189,334 444,897 426.,.580 -61,988 81,292 West Coast .. ... 54,523 48,646 | 265,351 188,941 24,999 28,749 Southern 2,133 2,163 | 6,971 6,815 Totals .. .. 236,940 240,143 ! 7-17,219 622,336 «6,-987 (M».«41 I 1 | .