C—3c

5

—one at the end of the drive for a distance of 60ft., and another one at a point 50ft. nearer the shaft for 138 ft. A cross-cut was also put in from the end of the drive in an easterly direction for a distance of 56ft., but in none of these was any stone found. The western cross-cuts would be something like 215 ft. below the lowest working in the Welcome ground. The whole of the prospecting-works carried on from the monkey-shaft referred to was in a barren country, and shows that a break or dislocation has taken place. But at deeper levels another block of stone is likely to be found. The lodes occur in this district in shoots and ledges, the same as in many other countries, having blanks between them; and prospecting would be more likely to meet with success in the Homeward Bound ground, near the southern boundary, by continuing on the line of the lode worked on No. 9 level in the Welcome ground. To strike another block of stone below the block already taken out, the character of the country-rock at the bottom of the monkey-shaft shows that a greater depth will have to be reached before stone is likely to be found, but by following on the same line of the lode in a northerly direction there is a likelihood of good stone being found running through the Homeward Bound into the Cadman Special Claim. To open out this ground and carry on systematic operations will require a considerable capital; but the fact that there is scarcely any water to contend with will permit works being proceeded with expeditiously, and where stone of such richness has been worked on the upper levels, that is sufficient inducement to carry on operations at a greater depth. Many cases can be cited to bear out this in other countries besides New Zealand; and it may be well to mention that at Sandhurst, in Victoria, in Mr. George Landsell's 180 ft. shaft, the lode cut out at 750 ft., and another 750 ft. of barren ground had to be gone through before another lode was struck. There is no doubt but that good stone will be again found in the Welcome if mining operations are carried on in an intelligent manner. From the Homeward Bound ground 62 tons of stone was crushed, which yielded 2130z. gold, representing a value of £860. This was taken from the continuation of the Welcome lode, and shows that the ground should be opened out so as to allow this line of lode to be followed. The present company, however, has not sufficient capital to undertake any extensive operations to open up the mine in a proper manner. Fiery Cross. This is a special claim of 61 acres, and includes ground formerly held by the Alexandra, Hopeful Extended, and Fiery Cross Extended Companies, who have taken out about 40,983 tons of stone, which yielded 51,773-Joz. gold, representing a value of £202,189, out of which £72,693 have been paid in dividends, thus showing the average value of the ore to be about £4 18s. 7d. per ton. The lode in this claim, as far as at present known, appears to be a continuation on the same line as that worked in the Welcome ground ; but, as there is a considerable distance between the workings of the two mines, it has not been proved whether this is the same lode or a parallel one. There are, however, doubts regarding this being the same lode, as the character of the country-rock is entirely different in the Fiery ground to that in the Welcome. Although a great deal of work has been done in the Fiery ground the operations have been chiefly confined to opening up the lode and stoping it out. Comparatively little cross-cutting has ever been done to ascertain whether there is another lode parallel with the one worked going through the ground or not. In the Just-in-Time ground, which adjoins the southern boundary of the Fiery, there are three distinct lodes, but sufficient cross-cutting has not been done in the Fiery ground to prove whether these lodes continue in a northerly direction. The workings have been on what is termed the north and south blocks of stone, which have about 800 ft. of blank ground between them. Both of the blocks strike at a high angle northwards, and have been worked down to a depth of about 800 ft. below the surface. The lode was first discovered on the surface, and the first workings were carried on from an adit-level. Afterwards a shaft was sunk to a depth of 450 ft., and the stone taken out from this down to that depth, but as the blocks were striking at a high angle to the northwards an incline shaft was constructed from the 450 ft. level and the lode partially taken out. This incline shaft is sunk to a depth of 350 ft., or to No. 6 level, where there is stone left underfoot, and also in the face of the level going northwards. There is comparatively no water in the ground at the deep levels; the only water in the workings comes from the surface, which can be dammed back with very little expense. There is a good deal of stone left in the blocks that have been partially stoped, which has been left from time to time as being of too low grade to give sufficient returns for working, and there is a probability of other blocks of stone being found on the upper levels if the ground were prospected. Seddon. This is a special claim of 100 acres, and includes ground formerly belonging to the Just-in-Time, Eldorado, Imperial, Beform, South Hopeful, Walhalla Extended, and Boatman's Creek Companies. These companies crushed 15,015 tons of stone, which yielded 17,5950z. of gold, representing a value of £68,398, out of which £15,666 was paid in dividends; the average value of the ore crushed is therefore £4 9s. 9d. per ton. There are three distinct lines of reef running through this ground. The Just-in-Time opened out from an adit-level near the surface on the western lode, and took out 308 tons of stone, which yielded gold to the value of £6,285, equal to about £20 Bs. per ton. After taking out this stone they laid out a low-level adit to work this lode, but before commencing its construction another lode was discovered about 300 ft. further to the eastward, and all the mining operations have been entirely confined to this eastern lode ever since. Two adit-levels were constructed and the stone from this lode stoped out from these levels.