C.—3.

quence has been stopped; but the management does not think this level was deep enough tp intersect the Empire or other reefs (in their trend from the Waihi Company's mine) they were driving for. The West C shaft, which is on the western side of the Waihi Company's mine, has been sunk a further distance of 306 ft., making it a total depth of 516 ft. At this depth a level has been driven in a northerly direction 335 ft., where it is expected the reef will shortly be met with, when it will be driven upon and developed. A south crosscut has also been driven at the same level for a distance of 176 ft., but nothing of any importance has yet been discovered, There has been an average of sixty-five men employed in this mine during the year. Waihi Extended Qold-mining Company. —In the early part of the year sinking operations were in hand, but, owing to the surface-drainage of the water being more than the buckets could contend with, it was found necessary to procure a 4 in. Tangye pump, driven by steam, to enable the work of sinking to be continued until a depth of 300 ft. from the surface was reached. At this depth two crosscuts were driven —one in a south-eastern direction for a distance of 128 ft., the other north-west, 276 ft. in a good channel of andesite country. These crosscuts were put in with a view of intersecting some of the reefs that traverse the Waihi Company's property, but, owing to the thickness of the rhyolite and pumice sunk through in the shaft before the andesite was reached, crosscutting to discover reefs at this depth was rather shallow ; therefore nothing of any importance was met with beyond small quartz stringers and indications of reef-formations. One of these formations was driven on for 30 ft., but as no improvement took place all work at this level was suspended, and sinking operations in the shaft again resumed, a contract being let for sinking 100 ft., 84 ft. of which was completed up to the end of the year. It is the company's intention to sink the shaft to a depth of 500 ft. before again opening out, and at this depth it is anticipated something of importance will be met with in the shape of compact payable reefs. An average of sixteen men has been employed during the year. Pride of Waihi Gold-mining Company. —This property comprises an area of 100 acres, and adjoins the Waihi Extended Mine. The mine was under protection the first half of the year. Since then four men were employed in driving a crosscut drive from the Waihi Extended Company's shaft. As driving here was not as satisfactory as could be desired, the sinking of the shaft was again commenced, but only a depth of 35 ft. was attained, when it was found the water was too much to contend with by hand-labour, and sinking has been suspended for a time pending arrangements being made by the company to erect machinery to cope with the water. Waihi Consols Qold-mining Company. —Six men were employed up to the 16th April in driving a surface-level near the Waihi Company's property on the Martha Hill. A distance of 300 ft. was driven, and a winze sunk on a fiat leader to a depth of 35 ft., but as the water was too much to contend with by hand-labour this work was discontinued. Since then boring operations have been carried on almost continuously, four holes having been put down a total depth of 670 ft. The present borehole is down 130 ft., and the intention is to extend this hole down to a depth of 1,000 ft. if possible. An average of five men has been employed. Waihi Gladstone Gold-mining Company. —Prospecting and developing work has been steadily carried on in this mine during the year. The No. 2 shaft, to the west of No. 1 workings, has been sunk to a depth of 148 ft., and a crosscut drive has been driven at this depth to intersect the main reef, which has been opened up and driven on to a considerable extent from the No. 1 shaft, at the No. 1 and No. 2 levels. The reef in those levels varies from 4 ft. to 6 ft. in width, and the greater portion is said to be payable ore. A trial parcel of 2 tons of general ore was lately treated at the Thames School of Mines, which gave a return of 7 oz. 3 dwt. of gold; value, £4 15s. 2d. An average of eight men has been employed. Waihi Consolidated Company. —This property has been held under option by Mr. Ziman, who did a good deal of boring with a diamond drill. Several holes were put down (varying from 200 ft. to 600 ft. in depth) for the purpose of locating the continuation of the reefs worked by the Waihi Company, but so far without success. On account of the broken nature of the country penetrated every hole was stopped, as they could proceed no further owing to the holes getting too small, &c, and in consequence the solid or gold-bearing country has not been met with in any of the holes. Three men were employed. Waihi South Gold-mining Company. —Very little work has been done in this mine during the year, pending arrangements being made by the directors for the erection of a more powerful plant to contend with the water. There has only been a very limited amount of prospecting done in the neighbourhood of Waihi outside of the claims already mentioned. Waitekauri Gold-mining Company (Limited). —In the Golden Cross section a depth of 710 ft. has been reached, 200 ft. having been sunk during the period under review. The main crosscut from the shaft is in 210 ft., and the intersection of -the reef is daily expected. When this level has been satisfactorily developed a block of ground on the reef 200 ft. in height will be available. At No. 5 level the reef has been explored for a distance of 343 ft., and the block opened up has produced a large tonnage of payable ore. Stoping operations at Nos. 3 and 4 levels continues with satisfactory results. The work at No. 2 level has been principally confined to prospecting large blocks of ore left at the sides of the level. As a result thereof, a considerable quantity of payable ore has been forthcoming. At No. 1 level ore has also been obtained along the side of the level, and at present there is every indication that the ore-reserves will be considerably increased. The main drive north on the reef has been extended 172 ft.; this was undertaken as a prospectingwork, and the value of the reef has been proved for the full distance driven. The grade of the ore is low, but improves in value as it is driven on north. The Golden Cross low-level tunnel—after having been extended a distance of 2,610 ft.—has been discontinued. The following is a summary of work done in this section : Shafts sunk during the year, 200 ft.; winzes sunk during the year, 162 ft.; rises put up, 581 ft.; driving on reef, 1,058 ft.; crosscutting done, 431 ft.; stoping done

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