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APPENDIX.

EXHIBIT A. Report from G. H. Allan, Manager Parapara Company, Sir, — Collingwood, 4th October, 1912. I have much pleasure in stating that the result of development-work carried on at Parapara recently in testing the nature and extent of the iron-deposits below the surface have been of a most gratifying character, having conclusively proved that a solid ore-body lives for several hundred feet from surface to lowest levels driven. Tunnels driven some 375 ft. on Washbourn's block at a vertical depth of 200 ft. from the surface carried the same class of solid ironore met with on the surface, and also in the series of tunnels put in on a 100 ft. higher level. This and the solid iron left underfoot in the lowest level affords the required evidence of a colossal iron-deposit at Parapara of almost an inexhaustible extent, fully justifying the Government's acceptance of the proposals to provide the capital required to establish iron and steel works in the Dominion. Supplies of raw material for future generations may evidently be provided from these immense latent resources, not likely to be exhausted for several hundred years to come. There are altogether nearly 2,000 ft. of underground levels, ranging from 100 ft. to 200 ft. (vertical) below the surface, practically all exposing solid ore-body, every foot of which had to be extracted by explosives. On the Cadman lease, in addition, to the tunnels, open faces of ore have been, exposed more than 250 ft, below the top surface indications, thus showing that here also the quantity of ore is most considerable. The removal of overburden between these two points— which are about half a mile apart —shows the continuity of the iron. It is therefore patent that the anticipations that a large body of ore existed below the surface have been more than realized by recent work. In the light of the basis of former calculations of experts (which were based chiefly on available or visible ore-deposits on the surface several years ago), and making ample allowances for waste portions of areas, it is safe to assert that development-work of the past two years has increased the ascertained extent of ore-body on the properties to very much greater proportions than hitherto known—equal probably to four tiroes the quantity formerly estimated. Thus, on the Washbourn Block, the estimate of iron-ore in sight is about 80,000,000 tons (eighty millions); and on the Cadman area (over 900 acres), judging by the knowledge gained by close inspection and the more extensive development-works carried out, an estimate of not less than 165,000,000 tons (one hundred and sixty-five millions) of ore would not be an unreasonable one, and I am prepared to substantially demonstrate that fact. I have had an intimate connection with the whole iron-areas of Parapara extending over nine years. In conclusion, I may say that in my opinion there is no possibility of the deposits of Parapara becoming exhausted in forty years, as erroneously stated by those who are ignorant of their extent. An annual consumption of 400,000 tons for two hundred years would not exhaust the supply already proved to exist within the area of the Cadman leases. Yours faithfully, G. H. Allan, Manager, Parapara Iron-ore Company (Limited). J. H. Witheford, Agent for Ethelburga Syndicate.

EXHIBIT B. Report by Harley E. Hooper, A.S.A.S.M., A.1.M.M., on the Property op the Parapara Iron Company (Limited). Dear, Sir,— Reefton, 10th May, 1910. At the invitation of one of your directors I visited your properties early' in April of this year. In forwarding you a few notes thereon I should like to classify the deposits under the three headings of—Ore, Flux, and Fuel. Iron-ore. In this immense deposit the three main requirements of quantity, quality, and ready accessibility are thoroughly well met. The enormity of the first beggars description, and 'can only be slightly comprehended after two or three days energetic traversing over the leases. Taking the deposit at only fifty feet (50 ft.) deep (an extremely conservative estimate), there are something like fifty millions (50,000,000) tons of ore in sight, available for opencut work or quarrying. Of the superior quality there can be no question after the great number of samples taken

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