C.—2.

Most of the ore mined in 1938 at the Alexander Mine was from stopes above the No. 5 level. Development was continued in No. 6 level crosscut and in an intermediate levpl 77 ft. below No. 5 level. Production from this intermediate level will soon commence. During 1938, 2,163 tons of ore was crushed and treated, yielding 1,665 oz. of gold, valued at £13,593. At the Big River Mine the restoration of the main shaft was continued from No. 5 level to No. 6 level, and the chamber at No. 6 was restored also. A little driving was done at both the north and south ends of No. 5 level, and from the south end a winze was sunk 65 ft. The No. 6 level was extended to the south and a rise put up to connect with a winze below No. 5 level. Above No. 5 level stoping was continued from the central and north stopes, the former being exhausted by the end of the year. During 1938, 2,289 tons of ore was treated at the Big River battery and yielded 1,560 oz. of gold, valued at £13,020. The prospecting parties organized by the Labour and Mines Departments which were engaged in investigating mining areas in South Westland completed their task early in 1938, but nothing of much value was located. In the Reefton field the Oriental No. 1 level was extended another 12 ft., but, the lode proving unpayable, the drive was abandoned. The Oriental No. 2 level was extended 250 ft. on the wide reef and many samples were taken and assayed. The results proved unsatisfactory, and this drive was abandoned. The General Gordon level was driven 655 ft., crosscuts driven to east and west, and a winze sunk 64 ft. The results of many assays of this reef were disappointing, the ore going about 3 dwt. per ton, so work ceased there also. The crosscut from the Perseverance lower level to the Golden Treasure shaft was extended a further 957 ft., and at the end of 1938 was within 200 ft. of the shaft. From a spot 635 ft. in from the portal the lode channel was driven on for 245 ft. (2) Dredge Mining. The following is a statement showing the capacity and production of bucket gold dredges and dividends declared by dredging companies during 1938. (Note. —The dividends declared by privately owned dredges are not obtainable for publication.)

The fifteen dredges which were working in the West Coast district in 1937 were augmented bythree others in 1938, one at Ikamatua, one at Kanieri, and the third at Blackball Creek. The one at Ikamatua, called the " Grey River dredge," and the one at Kanieri have all-steel pontoons, the hull of the Grey River dredge weighing 550 tons and that of the Kanieri dredge 650 tons. The Blackball Creek dredge, like the other two new dredges, is electrically driven, but is of a much smaller type, being fitted with 5-cubic-feet buckets, compared with the other's 16-cubic-feet and 18-cubic-feet buckets.

22

»S II hi ■s'S gl •o o'l -I' Dividends declared. 5.2 (§ -g w § .••!§ Quantity and Name of Dredge. Locality. of *gj Jo |§f-| «•= obtained'during _ . . . S|| Ig S»WE |g 1938. Daring && Isi I a "II INI S£ m o fc K <1 fFesi Coast. Ft. Oz. £ £ £ Matttki .. .. Murohison .. 7 10 .120 S 17 1,745 13,191 1,406 8,436 Mataki Junction .. „ .. 6 21 370 I) E 19 2,756 23,138 2,500 5,000 Worksop .. .. Antonios .. 4 12 140 D 12 1,733 13,079 4,800 20,800 Mossy Creek .. Hukarere .. 4 26 225 E 12 1,300 10,724 1,250 15,000 Grey River .. .. Tkamatua .. 16 28 1,266 E 27 438 3,627 Argo .. .. Blackball .. 4| 18 210 E 20 3,502 27,884 10,000 31,200 Blackball Creek .. „ 5 20" 383 E 33 1,427 12,484 Maori Gully .. .. Maori Gully .. 4 20 225 E 20 1,330 9,888 .. 6,000 New River .. .. Dunganville .. 4 15 140 D 16 1,697 12,946 1,409 1,409 Nemona .. .. Marsden .. 4J 23 255 E 20 2,379 20,767 9,000 21,000 Bundi .. .. Camerons .. 10 18 500 S 24 957 7,309 White's Electric .. Barrytown .. 4 10 226 E 16 1,540 11,634 .. ' Barrytown .. .. „ 12 21 879 E 30 6,801 52,300 Stafford .. .. Stafford .. 8 12 320 E 32 177 1,431 .. 3,750 Rimu .. .. Rimu .. ..12 23 922 E 53 12,148 104,911 37,501 157,051 Kanieri .. .. .Kanieri .. 18 21 1,487 E 28 374 2,905 Eive Mile Beach .. Okarito .. 5 10 .. H 20 1,280 9,632 4,667 38,500 Gillespies Beach .. Gillespies Beach.. 5 13 225 E 28 1,951 16,023 2,917 21,000 Olago and Southland Molyneux .. .. Molyneux River. . 9 12 580 E 30 1,097 8,087 Nevis Crossing .. Nevis .. .. 3 J 10 12 S 10 247 1,833 Rainbow .. .. Maitland .. 2| 12 38 D 7 131 1,070 .. 173 Aitkens .. .. „ 6 10 32 S 14 994 7,651 Goldficlds .. .. Big Beach .. 8 18 305 E 23 494 3,325 Clutha River .. Clutlia River .. 12 12 570 E 65 7,626 66,293 23,438 23,438 Totals, 1938 .. .. *54,124 442,132 98,888 Unknown. Totals, 1937 .. .. .. .. .. .. .. 50,902 409,298 55,533 Unknown. * Includes 802 oz. of silver, valued at £76.