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Stockton-Millerton Area Work on this area was concentrated upon three sections : the North-east area, Millerton ; Block 2, Stockton, which has been further subdivided into Blocks F and G ; and Baynes Block. Particulars of the work done in each of these sections is as follows North-east Area.—The trenching, surveying, plane tabling and sampling of this area have been completed and the drill is now in the area ready to bore ten scout holes. The seam here has medium-ash - high-sulphur content and runs from 4 ft. to 15 ft. thick. The relatively thin coal and presence of a structural dome in the western end of this block will introduce unusual mining problems. Block 2. —The surveying, close drilling, and sampling of F Block has now been •completed. Maps showing surface topography at a 5 ft. contour interval, structural contours at a 10 ft. interval, quantities of coal and overburden, and cross-sections 200 ft. apart have been prepared. This block has been computed to contain 1,189,000 tons of proved recoverable, low-ash, medium-sulphur coal overlain by 2,588,000 cubic yards of overburden. During the year the greater portion of Gr Block was close bored, and this boring has disclosed 2,672,000 tons of proved coal and a further 790,000 tons of probable coal. It is expected that about 300,000 tons of the total will be high in ash as the south-west of the block extends into a probable high-ash zone. The close boring on these two blocks for the year has entailed the setting-out on the grid and shooting in of seventy-two holes, and the collection, recording, and despatch of 187 samples from thirty-eight of these holes. Further face samples have been taken on F Block to determine whether low-sulphur coal suitable for gasmaking might be produced by selective mining methods. Baynes Block.—Continued trenching in heavy bush-clad gullys, plane-table .surveying, traversing, shooting in coal-trenches, and setting out and fixing thirteen ;SCOut bores on an extended grid pattern constitutes the work done on this block. The trenching and boring of the eastern half of the block has shown that this portion contains 2,907,000 tons of probable coal whose quality will be ascertained from the analyses of the 240 samples collected from the drill-holes. This work proves that the edge, of the barren belt lies about 500 ft. farther east of the position defined by Bayne in his report. Scout holes to determine the coal in the western half of the block have been sited in the field, and the drilling of these holes has commenced. Denniston Prospecting work has been confined to three sections, the Escarpment area, Birchall s area, and Cook's lease. Escarpment Area. —This area is situated at the rear of Whareatea Extended and near the escarpment. The area has been topographically and geologically mapped, and systematically drilled and has now been estimated to contain, including the opencast area and Birchall's area, 2,408,400 tons of clean coal and 417,600 tons of dirty coal the ash content of which could be reduced to marketable limits by means of a cleaning plant. In addition, 873,700 tons of coal are indicated in this area. It has now been found, that previous boreholes had been abandoned in this area before the coal-seam had been reached, and the recent prospecting programme has accordingly increased the coal reserves of the Denniston field. A detailed survey was made of portion of this area and it was proved that it could be worked by opencast methods. Work on an access road to this area has been started. Birchall's Area. —Detailed topographical and geological surveys were carried out on an area which lies to the west of Birchall's south heading in the Whareatea Mine. This area had been abandoned when the coal thinned down to 4 ft. in the workings. After a geological survey of the area, a drilling programme was commenced which proved

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