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North-east Section. —Results from the North-west area proved disappointing, so attention was focused on the North-east. The trenching and surveying of the outcrop is virtually completed and the entire area has been traversed. Plane tabling and boring remain to be done. Development of this block will enable the present rate of underground production to be maintained from the Millerton Colliery. Opencast Surveying. —Surveys for coal tonnages, a close-boring programme, road surveys, dam sites, and diversion race have been done. The close-boring programme has consumed a fair amount of time, though with the completion of about eight more holes it is expected to have proved about 1,000,000 tons of coal, sufficient to occupy the opencast for several years. Denniston Plateau Lease. —The activities of the party have been in great part concentrated upon this area, some of the work having to be duplicated owing to loss of survey records in the Denniston office fire. Work on this area has now been completed, a topographical plan with surface contours at 25 ft. intervals and showing all creeks and watersheds having been prepared. All outcrops have been trenched and sampled and a geological map of the area completed. All boreholes have been located and a plan showing accurate structural contours prepared so that the mine may be opened up and developed to the best advantage. Escarpment Area. —Topographical and geological mapping was commenced on an area near the escarpment at the rear of Whareatea Extended and sites for boreholes located. It has been found that previous boreholes had been abandoned in this area before the coal-seam had been reached, and recent drilling has proved persistence of a seam of workable thickness in this area. Portion of this area can be worked by opencast mining methods, and survey work preparatory to the opening up of this area has been carried out. BirchalVs Area. —Surveys have been carried out over a block between the Birchall and Old Waterloo Sections" and boreholes located for the further prospecting of this area. Area Between Old Cascade and Ironbridgs Mines. —A preliminary reconnaissance has been carried out over this area, but results have been rather disappointing. CooFs Lease. —A commencement has been made with survey work preparatory to the systematic investigation of this area. Access-road surveys were carried out for the construction of access roads to the site of the entrance tunnel to the Plateau Mine and to the Escarpment opencast area. Drilling Activities Extensive drilling operations were again carried out during the year, with a considerable increase of footage drilled over the previous year. Including 1,520 ft. of drilling for blast-hole purposes, the total number of feet drilled for the year was 23,418. Not taking into account the number of bores for blast-holes, the total number of bores drilled for prospecting purposes during the year was 236. A new mobile Failing Holemaster drill was purchased during the year and was put into operation at Burke's Creek Colliery, Reefton, and had by the end of the year drilled 310 ft. of a bore which will be completed this year.

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