91

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here for some time. In the No. 2 or intermediate level, which connects with the shaft 100 ft. below the No. 1 level, the reef has been driven on a distance of about 400 ft., and varies" from 18 in. to 3 ft. 6 in. in width, and is of a kindly- description, showing sulphides and silver freely. At present this level is being timbered, and the necessary passes, &c, put in, preparatory to stoping operations being carried on. A rise is also being put upon the reef from this level to connect with the No. 1 level. The No. 3or main low adit-level is in a distance of 1,100 ft., and at a distance of 700 ft. from the mouth of the tunnel the Lee reef was intersected, and driven on east and west of the crosscut a distance of 900 ft., and varies from 1 ft. to 6 ft. in thickness. The level is connected with the No. 2 level by rises put up on the reef in different places, with double passes and travelling-ways put in so that all the ore coming from the different parts of the mine will be passed down and along this level, which is connected direct with the storage-hopper at the battery by a ground-tram 31 chains in length from the entrance of the tunnel. From the eastern drive on the Lee reef a connection was made by a crosscut to the bottom of the shaft, which was sank from the surface near the No. 1 level, and provides good ventilation throughout the workings, also dispensing with the pumping and winding machinery to this depth. A winze has also been sunk on the reef from the floor of the western drive a depth of 40 ft., and proves the reef to maintain its size and quality. Going down the reef gives an average width of 4 ft. Great difficulty was experienced in getting down this depth, through the large quantity of water which had to be contended with. It will require a substantial pumping and winding plant to develop the reef below the present low level. The battery which is in course of erection by this company is pushed on as rapidly as possible, the work being well in hand, and it is expected that crushing operations will be started in about three months' time. The mode of treatment to be adopted will be wet crushing, amalgamation, concentrating, and cyaniding. The plant will be a very complete one when finished,' everything working automatically throughout. It consists of a Hendy battery of twenty head of stamps of I,ooolb. each, fitted up with a Gates ore-crusher and automatic feeders, with the usual copper-plate tables, to which will be connected classifiers for separating the coarser sands from the slimes, which will be carried on to the concentrator, the slimes being carried direct to the slime-vats, where they will be further treated by agitation and cyanide. The concentrating plant consists of eight Union vanners, which will be erected immediately below the classifiers, and on the same floor as the engine and boiler. The cyanide plant, which is on a lower floor, consists of four large percolating-vats, 22ft. diameter and 7ft. deep; three concentrates-vats, 14 ft. diameter and 7 ft. in depth; two storage-vats, 14 ft. and 10 ft. diameter, 8 ft. deep; three sump-vats, two of which are 22 ft. and one 10 ft. in diameter, with 7 ft. sides. The whole of the vats, which are made of steel plates, are being riveted together on the foundation prepared for them. The motive-power for the battery is to be steam, which will be supplied by a Babcock and Wilcox boiler to a Tangye girder horizontal engine of 125-horse power. The vanners will be driven by a separate small Tangye engine fitted with Pickering governors, which will also work the solution-pumps. A small Tangye engine will also be erected for driving the electric-light installation. A very complete assay-house has also been erected, fitted up with all the necessary furnaces, &c. A water-race has been constructed a distance of 130 chains, which will be used for battery purposes only. This is at present used for driving the sawmill which is erected on the side of the creek below the battery for cutting the timber for the battery buildings, hoppers, &c. During the year the average of thirty men have been employed in the mine and surface-works, but during the last six months fully seventy men have been employed in the construction and erection of the battery. Great Barrier Mine. —This property, which adjoins the Barrier Reefs Mine, was worked under option by the Melville Corporation Company during the greater part of the year, who did a good deal of work in prospecting and developing the main reef, which varies from Ift. to 3 ft. in thickness. The operations were principally confined to opening the reef at the lower levels, from where 28 tons of ore was broken out as a trial crushing, and treated at the Moanataiari battery, Thames, for a return of 134 oz. 8 dwt. of bullion, valued at £127 17s. lOd. An average of eight men were employed, but at present the mine is under protection, only a caretaker being in charge. No work has been done on any of the other claims on this island. Remarks. The mines around the Township of Coromandel, with the exception of the Hauraki, have not been as prosperous as could be desired. Several mines have been stopped, the gold obtained from them being insufficient to pay expenses, and a number of men have been thrown out of employment. This has caused a slight depression in the township; still, it is pleasing to find that more gold has been obtained from the district than in the previous year, the increased value amounting to £5,026 14s. 2d. This is largely due to the Kauri Freehold and Four-in-hand returns; and there is every reason to believe a further increase will take place next year, as good returns are now obtained from the Four-in-hand, enabling the directors to pay dividends ; and there is every likelihood of the Kauri Freeholds producing more gold. The Waiatai is likely to crush more quartz next year, and the Mariposa and Kapai-Vermont no doubt will be working, and adding to the returns. In the Thames district there is an increase in the value of gold of £22,624 Bs. Bd. over that obtained last year; and as the Thames-Hauraki Company has now a considerable portion of their unproductive work done, and the opening-up of the No. 8 and No. 10 levels has been commenced with a view to working the reef from which so many handsome dividends were paid, the prospect of returns from this mine are good. With the addition of the Kapowai (New Find) Mines, the output of gold next year should exceed the year now ended. The prospects of the mines in the Ohinemuri district look exceedingly promising, and, although the value of the output of gold shows the large increase of £67,687 12s. 7d. over last year, still a larger increase may be expected next year, as the Waihi Company will soon have an additional