0.—3

74

Tiki Disteict. Progress-Castle Bock Mine (Area, 60 acres). —Work in this mine has been steadily carried on during the year in developing and opening up the mine, and carrying on the necessary outside work in connection with a small battery which has been erected by the company at the mine. In the mine No. 1 reef has been opened up to a considerable extent from the No. 4 level upwards, and averages about 8 in. in width, and at times makes a little stone of good quality. The battery lately erected is driven by water-power, and consists of two stamps, 830 lb. each, two berdans, and one Dodge ore-crusher. Crushing operations were started in the month of February, and the mode of treatment is wet crushing and amalgamation. The ore previous to going through the stamps is subjected to a severe roasting, which makes it more friable for crushing, and frees the stone of some of the base minerals which it contains. The battery is connected with the low level and kilns by a ground-tramway 412 ft. in length. The water-pipes, which are connected with the Pelton, are 7 in. in diameter, and are carried back to the dam a distance of 670 ft., giving an effective fall of 120 ft., and the whole of the plant is working very satisfactorily. The mine is also well opened up, and connections are made between the different levels, so that ore coming from any part of the workings can be cheaply passed on to the battery. Although no clean-up had taken place at the company's battery previous to the end of the year, the management is sanguine of the mine proving a payable concern, and negotiations are now proceeding for an amalgamation with the Matawai Mine, which adjoins the property, and in which several reefs have been opened up. During the year a small parcel of 420 lb. of stone taken from the reef which is operated on at present was treated at the School of Mines, Thames, for a return of 69-J- oz. of gold, valued at £192 10s. On an average eight men have been employed during the year. Goromandel Freehold. —This mine has been shut down for the greater part of the year, but it is expected that operations will again be resumed in a short time on one of the sections of the property. Prospero Mine. —Operations in this mine at present are confined to extending a low level to intersect the main reef at a depth of about 100 ft. below the top workings, where it was opened up to a fair extent, with encouraging prospects, in the early part of the year. An option was taken over the ground, and it was decided to drive a low level, the option-holders providing £50 a month towards the cost, and it was carried on till the month of November, when the option was withdrawn. Since then only two men have been employed in driving this level, which is in a distance of about 185 ft. in very tight shooting country, and they expect to cut the reef in about another 40 ft. of driving. Prospecting is also carried on in the Butterfly, Eoyal Mint, Pukewau, and Pride of the Tiki Claims, with from one to two men on each, but nothing of importance has been discovered up to the present. Manaia District. Very little work has been done in this locality during the year. The Golden Hill Mine was worked for a time on tribute by Verry and party, who treated 6 tons of quartz for a return of 7 oz. 17 dwt. of gold, valued at £23 11s. 6d.; but this was not considered payable, and they stopped work. Since then the ground has been taken up by Holloway and party, who intend giving it a trial. A little prospecting has also been done on the British Fleet ground, but nothing payable has been discovered. Opitonui. Kauri Freehold Gold-mining Company. —The forty-head stamp-battery which was in course of erection last year has been completed. Crushing operations were started in the month of June, and have been continuously carried on since, the mode of treatment adopted being wet crushing, amalgamation, and cyaniding. The battery is a very complete one, fitted with all the necessary appliances for the above treatment. The motive-power is steam, whroh is supplied by two Babcock and Wilcox boilers to a horizontal compound Corliss engine of 130-horse power, with other small engines for driving the electric-instillation plant and solution-pumps, &c. Extensive operations have been carried on during the early part of the year in the Maiden, Lanigan, Carvill, and Hilda sections of the property in opening up and developing the various reefs, and it was expected highly payable returns would be obtained ; but the ore treated at the mill was not as good as anticipated. This was a great disappointment, the company having spent a large sum of money in opening up and equipping the mine. Funds becoming exhausted, it was found necessary to reduce the number of men and stop a considerable amount of development-works for a time, pending the general manager's (Mr. Montgomery) visit to England to consult with the directors as to ways and means to carry on the various works in progress at the deeper levels in the Lanigan, Maiden, and Carvill shafts. I am informed he has induced them to provide ample capital. During the past few months the work in the mine has been principally confined to stoping on the Maiden, Lanigan, and Hilda reefs, which were opened up to a considerable extent from both the adit- and shaft-levels. The bulk of the ore.was obtained from the Maiden reef, which varies from 2 ft. to 6 ft. in thickness. The Carvill shaft, on which a temporary sinking plant was erected, has been equipped by permanent winding and pumping machinery, with good substantial poppet-heads, safety-cages, &c, which will be capable of developing this section of the property to a considerable depth. Since crushing operations were started, and for the period up till the 31st March, 14,439 tons of ore was treated for a return of 7,466 oz. 10 dwt. of bullion, valued at £18,422 15s. 7d. An average of 238 men were employed during the year.