0.—3

36

number of small eaders, varying from lin. to 6in. in thickness, were met with. They occurred at 620 ft., 635 ft., 643 ft., 647 ft., 657 ft., 667 ft., 672 ft., 674 ft., 681 ft., and at 683 ft. a large lode was cut, about sft. in thickness, full of quartz, mullock, and calcite, containing a large percentage of iron-pyrites ; but there did not appear to be as much arsenical pyrites in the lode as was found in the Kapanga at the upper levels. Small leaders were also cut at 701 ft., 707 ft., 726 ft., 742 ft., and 775 ft. In some of the leaders there was a deal of calcite colouring, due to silicate of iron. A drive has been put in at the 800 ft. level to cut the lode, but at the time of my visit this was only in for about 240 ft. It was expected that 640 ft. would have to be driven. The work was being carried on by means of a rock-drill purchased from the May Queen Company, which enabled the driving to be done at the rate of 25ft. per week. The drive was going through rock of an andesitic character, having alternating bands of soft and hard rock. Still, none of the rock could be termed extremely hard. It has a greenish-blue and black appearance, the latter colour when the rock is hard in character. On the whole, the country-rock looks very promising for the occurrence of rich auriferous lodes. At the 600 ft. level a cross-cut or drive was put in to cut the Kapanga lode, and at present a winze is being sunk from this level to connect with the 800 ft. level when it is completed, so as to give the necessary ventilation, and it will also prove the character of the lode in going down. Scotty's lode was also opened out at the 600 ft. level, and gold was visible in some of the quartz got near the bottom of the drive. At the 420 ft. level this lode has been opened up for a distance of 600 ft., where the lode shows about 4in. of puggy mullock and 6in. of stone. A good deal of gold was formerly obtained in the foot-wall portion of the lode at higher levels, and, as there are about 40ft. of backs between this and the level above, it is intended to rise into the next level and crosscut into the hanging-wall branch, the lode here being split in two divisions, with a "horse" of mullock between them, forming, as it were, a loop in the lode. Blagrove's Freehold. —lt is understood that this property has recently been purchased from the Coromandel Company, and that active mining operations will soon be commenced. The property comprises 130 acres of freehold, and forms portion of the band of the auriferous belt between the Kapanga and the Hauraki Companies' properties. A good deal of prospecting work has been done on this property from time to time on the surface, with the result that several leaders and lodes have been cut containing a little gold. The prospects obtained on and near the surface were so encouraging, that the manager of the Kapanga Company sunk an engine-shaft to a depth of 100 ft., the shaft being 10ft. 6in. in the clear inside the timber. It is divided into three compartments—namely, two for winding with cages and one for a pump-column. The water became too heavy to sink to a greater depth without proper pumping appliances, consequently the sinking was discontinued. To all appearances this is likely to prove a valuable mining property; at the same time, it may require a considerable amount of money to properly prospect the ground. It is a mere delusion to think that if no gold is obtained on or near the surface it will not be obtained at a greater depth. The character of the country and the nature of the rock -in this locality is such that a highly-auriferous lode may be cut at a great depth. So far as is known of the character of the rock in the sinking of the Kapanga shaft it leads to this conclusion. Scotty's, Hauraki. —During the past year there has been no quartz crushed from this mine. Lately a company has been floated in the London market, and Captain Hodge has been instructed to take charge. Only three men were employed in prospecting last year. The new company propose to sink a shaft to a depth of 300 ft. The shaft is to be 12ft. by 4ft. The timbering is completed for the first 30ft., which takes it to Mayne's battery level; another 85ft. will take it to the Golden Point level, and at a depth of 209 ft. the Cody level will be reached, and 300 ft. will take it to the level on which very rich ore was obtained in the Kapanga Mine. This level has always been, in my opinion, the place where prospecting operations should have been carried on, and I many times told Mr. Witheford, the late proprietor, that endeavours should be made to follow the Scotty lode at this level. It may be broken up in places, but there is a great probability that rich ore will be found in this lode in the present company's ground. A commencement is made to sink the shaft below Mayne's battery level; the machinery for the work is delivered as far as possible, but in order that it can be taken on to the site for erection the road requires to be completed by the County Council. The Golden Point adit is cleared and timbered for 500 ft., and a level cross-cut is also in progress towards the new shaft, where sinking for that level is now going on. A level is also being constructed to intercept the hill water from getting around the brace of the shaft, which will soon be completed, when prospecting operations northwards on the course of the Kapanga Reef will be proceeded with. This reef has been discovered in virgin ground, and, judging from the highly congenial character of the rock, and the appearance of the quartz at so shallow a depth, the manager has great hopes of making rich discoveries of gold at an early date. The other points of development will be concentrated to the shaft as fast as communication can be effected. There are twenty-eight men employed on the work. Tohatea. This section of the field comprises the Tokatea, Great Tokatea, Eoyal Oak, Bismarck, Harbour View, Try Again, J. JBoswell's, Golden Spark, &c, Mines, in which there has been thirteen men employed on wages and seventeen men employed on tribute. There has been about 30 tons of quartz obtained by the wages-men, which yielded 2450z. ldwt. gold, and 16-| tons were obtained by the tributers for a return of 5050z. 19dwt. gold, making a total of 46J tons crushed for a yield of 7510z. gold, as against about 38 tons of quartz crushed for the previous year, which yielded 5570z, gold ; thus showing an increase in the yield of gold in this part of the field last year of 1940z. Eecently some of these mines have been purchased by English companies—as, for instance, the Eoyal Oak, which has been taken charge of by Captain Hodge on behalf of the new company,