C—3

130

stoping are carried on in conjunction, only sufficient ground being opened up ahead to enable stopes being opened up as present stopes are worked out. Payable stone runs from 1 ft. 6 in. to 3 in. in width, and depth of chute 30 ft. to 40 ft. The reef is looking more kindly in the stopes, but the dip face is hard. Air good throughout the mine, but the main return-airway through the old stoped ground is narrow and troublesome to keep open. The ventilation has been recently improved by the adoption of a new water-blast. Water under a pressure of about 50 ft. vertical is discharged through a jet having a drop of 23 ft. into the barrel in the intake level. The air is forced through 3,100 ft. length of 14 in. galvanised-iron piping. The explosives magazine is in good order. Eules posted. The main-dip timber is necessarily heavy, and averages 14 in. diameter. Lining-sets are being constantly used. Operations are now being carried on in the dip drive at a depth of 3,100 ft. measuring along the dip, or over 2,000 ft. vertical from the outcrop, and, considering that the quartz is making in body and quality, there are indications of permanency to still greater depths. Eighteen men are employed underground, and three men in the battery, which is worked eight hours per diem. The manager, Mr. William Patton, submits the following report of work accomplished in the mine during the twelve months ending the 31st December, 1902 : — Incline : The work here has been carried out almost continuously during the year, one shift of two men being employed. During the year 135 ft. has been driven at a cost per foot of £2 6s. 2d., including all expenses. The nature of the country driven through during the greater part of the year has been favourable as compared with that driven through during the previous twelve months. There is no appearance, however, of the reef making in the face, the formation between the walls being a mixture of slate and pug. The tunnel has been continued on the same grade — lin 4—throughout, which is well under the gold-bearing chute of stone. In addition to this 135 ft., a sump has been sunk to a depth of 12 ft., and secured with timber. During the time this work was being carried out the incline face was unavoidably stopped. The water in the mine continues to increase as a greater depth is reached. This tunnel requires constant attention to keep in working-order, as the timber does not appear to stand any time. Stoping has been carried on continuously during the year between passes Nos. 27 and 33. Three of these stopes are now almost completely worked out. The average width of the reef is about 2 ft., and varies very much in quality, but the average is fair. The country in places is much broken and expensive to work. We have carried out a considerable amount of prospecting-work during the year in the way of crosscutting into the hanging and foot walls in different places along the stopes, but were not successful in striking anything, although a distance of 20 ft. was reached in some crosscuts. The country in all cases became hard towards the end of the crosscut, so that, in my opinion, the chances of striking pay ore beyond that point is very remote. There are, however, other parts of the mine where prospecting could be carried on with a reasonable chance of success, and will be attended to as soon as possible. The general appearance of the reef from No. 28 pass down to pass No. 33 is, I think, more uniform in size than we have had it for some time, and the quality has been very fair. The ventilation passage has given us a great deal of trouble during the year to keep open. The country through which it passes is all of a swelling nature, and requires attention for a distance of 3,000 ft. A large amount of timber has been used, especially in the high level, which is part of the ventilation passage. This part of the mine will always be expensive to keep open. We found in the early part of last year that the return airway was not sufficient to ventilate the present workings properly. We were therefore compelled to construct a water-blast at the entrance of the main adit, the air being carried into the mine by iron pipes for a distance of 3,100 ft. When this work was completed there was a marked improvement in the ventilation. Ido not think that we could have reached a much greater depth without it. The work of disconnecting the hauling-power from the mill is now being proceeded with. Our reason for this disconnection is that during the summer, and also in the winter when the water-supply is small, we are unable to carry on the hauling and crushing at the same time. We therefore decided to erect a new electric-power house, a small building about 30 ft. by 10 ft., where we will place one of our dynamos. We are also constructing a pressure-pipe line from the power-house to a reservoir, which will soon be built. The pipe-line will be about 600 ft. in length, with a vertical pressure of 200 ft. This work will, no doubt, be delayed, owing to the cables and other appliances not being procurable in the colonies. Our agents were therefore compelled to cable to London for the necessary material for carrying out the work, which is expected to arrive in February. The mill has been kept going continuously during the year, one shift of eight hours per day being employed. The gold returns on the whole have been fully satisfactory, as the financial result for the year will show. 2,178 tons of ore was crushed for a yield of 1,752 oz. 1 dwt. 23 gr., valued at £6,744 approximately. The returns from the concentrates treated during the year were not quite so good as we expected, although a profitable return was obtained—namely, from 27 tons treated we obtained 88 oz. 1 dwt. 18 gr., valued at £281 4s. 9d. The mine has paid its way from start to finish, and remitted a sum of £1,200 to the head office. In addition to this we have spent £311 15s. 4d. on Mine-development Account, or the driving of the incline ; £246 4s. 3d. on New Plant Account, and £19 on Property and Plant Account, all of which works are chargeable to capital. On Mining Account—that is, rising, crosscutting ,and stoping—the sum of £2,339 11s. has been spent to obtain 2,288 tons of ore, or an average of £1 os. sd. per ton mined. 2,178 tons was milled at a cost of £534 4s. 4d., or an average of 4s. 10d. per ton milled. 27 tons of concentrates was treated by cyanide at a total cost of £28 15s. 2d., or an average of £1 Is. 3d. per ton. This 27 tons treated is somewhat misleading, as the concentrates collected since the April treatment— some 30 tons —were not treated before the end of the year. It has cost £309 4s. 4d. for mine maintenance —that is, keeping the ventilation passage open and in repair, and also the main low-level adit and incline. A great part of the high-level adit forms a portion of the ventilation passage. The total expenditure on revenue accounts for the year —all charges —amounts to £4,821 9s. 9d., or an average of £2 3s. 2d. per ton mined and milled.