0.—2

24

8-6 dwt. over 9 in. No. 10 level intermediate, south of rise 360 ft. south, advanced 106 ft., all on reef averaging 15*5 dwt. over 18 in. No. 7 level rise, 1,800 ft. north, risen on reef averaging 15-67 dwt. over 40 in. No. 9 level rise, 1,370 ft. north, risen 82 ft . on reef averaging 11-86 dwt. over 18| in. No. 10 level rise, 880 ft. north, risen 83 ft. on reef averaging 16 dwt. over 24 in. No. 10 level rise. 465 ft. north, risen li ft, off reef. No. 6 level winze, 1,800 ft. north, sunk 60 ft., of which 40 ft. was on reef averaging 12*4 dwt. over 23-5 in.. No. 8 level winze, 1,180 ft. north, sunk 62 ft., of which 49 ft. was on reef averaging 5-97 dwt. over 16 in. No. 8 level winze, 1,370 ft. north, sunk 58|-ft., all on reef averaging 11-5 dwt. over 17 in. No. 9 level winze, 880 ft. north, sunk ■63J ft., all on reef. No. 8 level crosscut, 1,800 ft. north, advanced 4 ft. west of level, oft' reef. No. 10 level crosscut at 465 ft. north advanced IS ft. east of level in country. At the treatment plant 40,044 tons of quartz was crushed for a recovery of 18,031 oz. 19 dwt. gold, of which 13,732 oz. 4 dwt. was recovered by amalgamation, 2,979 oz. 13 dwt. by cyanidation, and 1,320 oz. 2 dwt. from concentrates. The total value of the gold was £70,232 10s. Bd. Although the quantity crushed exceeded that of the previous year by 2,105 tons, the gross value of the yield fell oft by £4,682. This was due mainly to an unexpected fall in values in some of the stopes over No. 10 level, from which a considerable portion of the tonnage for the year was drawn. The appearance of zones of poor value has been a common feature of the mines of this district, but this is the first time such an occurrence has been noted in this mine. Seeing that the values in No. 10 level itself were good, there seems every probability that the value of the stone in this particular part of the workings will improve when No. 11 level is opened. The shaft has been sunk for several years, and a chamber opened at No. 11, but no drives have yet been put out. It will be noted that practically all the development of the year has been carried out in the extreme north of the mine—that is, in the direction of the North Black water Mine, which has now been purchased by the Blackwater Mines, Ltd. This is accounted for by the steep northerly pitch of the known ore-shoots carrying them in this direction. North Blackwater Mine. —During the year the company that previously operated this mine found itself unable to further carry on, and disposed of its property to the Blackwater Mines, Ltd., holders of the adjacent ground to the south. The latter company has since extended its Nos. 6 and 7 levels, both of which by the end of the year had penetrated about 40 ft. into the North Blackwater ground. Accurate surveys have not yet been made, but it is considered that the former level will be about 50 ft. above the North Blackwater No. 7 level (the only one so far opened) and the latter 100 ft. below it. Both of the levels have been on fair-grade stone for some distance before and since crossing the boundary, and the faces were still in stone. The distance from the boundary to the North Blackwater shaft is approximately 500 ft. Murray Creek Mine. —The tribute party headed by G. Kremmer has, practically continuously during the year, carried on driving operations on the shoot of stone mentioned in last year's report as having been located below the old No. 1 surface level. A drive was put in on this shoot about 50 ft. under the level mentioned, and has been extended about 140 ft. The stone is in-and-out, and probably does not average more than about 18 in. in width. A little stoping was done over the back of the drive; and in all 161 tons of quartz was mined and treated for a return by amalgamation of 111 oz. 6 dwt. 4 gr. gold, valued at £425 2s. Bd., equal to a return of £2 12s. 9d. per ton. In the latter part of of the year a new company was formed to operate this and several other mines in the district, but its financial arrangements have not been sufficiently completed to permit of it yet making any definite move in this direction. New Big River Mine.—Comparatively little development work was carried out for the year, and this was confined to the north end of No. 12 level. A certain amount of driving, crosscut/ting, and rising was done in this part of the property, but the results were not satisfactory. A block of stone up to 8 ft. in width and of considerable length was developed in an intermediate about 80 ft. above No. 12 level, but it did not contain payable values. The appearance of the mine is therefore less promising than it has been since No. 6 level was opened. On this latter level the reef was badly shattered by faulting, and very little stone was located. Large bodies of quartz were, however, found again at greater depth, and between Nos. 8 and 11 levels its was more abundant than in any of the upper workings of the mine, a condition brought about, without doubt, by the serious faulting that had occurred. Between these levels the appearance of the mine was that of a lodechannel several hundred feet in width containing blocks of ore scattered throughout it, and dipping and striking at all angles and directions. Between Nos. 11 and 12 levels this wide ore-channel has disappeared, and the reef has been confined to what may be described as mere fissure in which stone only appears in occasional small boulders. It is possible that further extension of No. 12 level to the north may reveal more important bodies of quartz, so some little further prospecting in this direction seems justified. During the year twenty - four men on an average were employed, and 1,799 tons of stone mined and treated, for a return of 1,156 oz. 12 dwt. gold by amalgamation, 93 oz. 19 dwt. from cyanide treatment, and 476 oz. 6 dwt. from treatment of concentrates, or a total of 1,726 oz. 17 dwt., valued at £6,607 17s. 7d. New Keep-it-Darlc Mine.- —Work in this mine was limited to the old Golden Ledge section, and mainly to the extension of the Golden Ledge No. 2 adit. This adit was advanced a further 265 ft., making the total distance of 630 ft. from the crosscut; of this distance 390 ft. represented new work done since operations were resumed in this part of the mine. During the driving operations in 1926, scattered small boulders were met with practically all the way, and in three places short continuous makes of stone were met with. One of these was about 50 ft. long, another 20 ft., and the third 17 ft. All of these apparently carried fair gold-contents. From the first-mentioned several stopes were taken off, and in this short distance the shoot lengthened to 90 ft., with stone still making at both ends. The reef was about 3 ft. in width. In the stoping operations referred to some 245 tons of stone was mined, which on treatment by amalgamation yielded 108 oz. 6 dwt., and by cyanidation 24 oz. 14 dwt. gold, or a total of 133 oz., valued at £504 ss. 7d., equal to £2 Is. 2d. per ton. No work was done on the other shoots, but when provision is made for better ventilation of the workings, as is intened shortly, these will be further tested. I understand that a company has been formed to provide the necessary funds to enable the possibilities of this part of the mine to be fully investigated. It may be noted that in extending the Golden Ledge No. 2 adit the work met an old vertical shaft at about 630 ft. in from the crosscut. For a time the management was completely puzzled as to the identity of this working, but a search of the old plans showed that a shaft had been sunk for a few feet in this position from what is known as the " old dark tunnel." Evidently this shaft was subsequently carried on down to the old battery level (No. 4 surface adit), but the working was not posted on the plans. North Big River Mine.—At this property four men were employed throughout the year in prospecting operations. Some further crosscutting and driving was done in the north end of No. 3 adit, and in the same adit, from a point about 100 ft. from its mouth, a crosscut was run out to the east for 400 ft., where it met the dolerite. No evidence of the existence of reef was met with in any of the work done. New Millerton Mine.—Nothing was done during the year at this mine in the workings leading from the main shaft, but a certain amount of prospecting was carried out from surface on the southern end of the company's claim, south of Snowy Creek. Here an adit was put in for 208 ft., and a crosscut driven from it for 20 ft. in the hope of picking up the downward continuation of an outcrop of quartz located some years ago. Nothing but a track carrying fragments of quartz was, however, found. South Blackwater Mine.—The principal work carried on here was the continuation of the sinking of the main shaft, which had been started at a point between 6,000 and 7,000 ft. south of the Blackwater shaft, the idea of sinking it being to try and pick up the southern continuation of the Birthday reef worked so successfully by the Blackwater Mines, Ltd. For the year the shaft was sunk a further 217 ft., making a total from surface of 316 ft. The work was not continuous, there having been a long delay owing to difficulty in getting a party of men to take on the work at a suitable price. Apart from the shaft-sinking, some prospecting-work was done on several of the lines of reef that outcrop on the