C.—2

Commissioner Claim, Thames. —The work of reconditioning the old level, as referred to in last year's report, was completed to where the reef entered faulted country. Driving was resumed and carried on northward for about 50 ft., when east and west crosscuts were constructed, but to no purpose. Tt is now proposed to drive north and south on some rich but narrow leaders which were intersected at approximately 500 ft. from the portal of the main crosscut. An average of four men was employed during the year. Progress Claim, Thames (H. W. Lloyd and Party, Owners). —Driving operations on the main reef were continued for a further 19 ft., total 145 ft., and a leading stope was advanced about 40 ft. The intermediate level from No. 2 winze was driven both north and south for a total of 112 ft. The production for the yoar amounted to 72 tons of ore, which yielded 38 oz. 18 dwt. of bullion, valued at £176. The total output since the commencement of operations is 420 oz. 15 dwt. of bullion, worth £2,119 15s. Bd. Hauraki Mines Consolidated, Ltd., Coromandel.—Tributers continued work on this claim during the year and produced 4 tons of quartz, which gave a return of 0 oz. 9 dwt. of bullion, valued at £39 10s. sd. making the total production since the commencement of operations 710 5 dwt. of bullion, worth £2,598 12s. sd. The main portion of the property was dormant. Coromandel Gold-mines, Ltd., Coromandel. —The drilling of No. 1 bore was continued to a depth of 484 ft., where work was suspended. The company has recently gone into liquidation. New Royal Oak Claim, Coromandel (H. W. Chipman and Party).—A total of 400 ft. of driving and 20 ft. of rising was carried out from the main and subsidiary levels. Some good specimen stone was obtained. The output for the year amounted to 2 tons 14 cwt., which yielded 278 oz. of bullion, valued at £1,362 4s. Bd. The total production since the commencement of operations is 611 oz. 13 dwt. of bullion, valued at £2,946 17s. 7d. Oem Claim, Coromandel (A. A. Lynne, Owner).—A limited amount of sinking and driving was done on this claim, and 12 tons 14 cwt. of ore was crushed for a return of 11 oz. 9 dwt. of bullion, worth £60 19s. 2d. The total production since the commencement of operations is 53 oz. 12 dwt. of bullion, valued at £293 Is. 2d. Speedmint Claim, Coromandel (G. T. Edwards, Owner).—-One hundred feet of driving and 25 ft. of rising were carried out oil a small reef, known as the Peep o' Day, and 15 ft. of rising was undertaken on the Swedish Crown leader. Five tons of quartz were treated for a return of 25 oz. 1 dwt. of bullion, valued at £139 13s. 7d., which is also the total output since the beginning of operations. Lone Hand Claim, Waikoromiko (W. J. Pearee, Owner). —Some 52 ft. of driving was carried out on the foatwall reef, and a rise was constructed to a height of 30 ft. in the low level. The output for the year amounted to 2J tons, which gave a return of 19 oz. 15 dwt., of bullion, value £107 9s. 9d. The total production since the commencement of operations is 150 oz. of bullion, value £785 7s. 7d. Opitonui Consolidated Gold-mining Co., Ltd., Opitonui.—Very little work was done in the company's mine (Rexman) during the year, and operations were confined almost wholly to altering the treatment plant by adding a cyanide unit to existing facilities. The quartz crushed during the yoar amounted to 200 tons, which yielded 33 oz. 12 dwt. of bullion, value £204. This is also the total production since the commencement of operations. Heather Bell Claim, Whenuakite. —Stoping operations in the low level on a reef averaging 7 ft. in width produced 305 tons of ore, which on treatment in the owner's battery yielded 112 oz. 9 dwt. of bullion, valued at £635 ss. 7d. The total output since the commencement of operations is 155 oz. 16 dwt. of bullion, value £878 Is. Id. Hardy's Mines, Waiorongomai (M. Y. Hardy, Owner). —Some sampling was done in this mine and a test crushing forwarded to America for treatment, but the results of same are not yet to hand. An average of two men was employed. Bobing Operations. Sylvia Gold, Silver, and Base Metal Mines (N.L.) commenced boring operations with the Government C.N. Sullivan diamond drill on 16th August, 1937. Location: Tararu Creek, Block I, Thames Survey District. Boring operations were completed in April, 1938, one hole being drilled to a depth of 634| ft. Drilling Prospectors, Ltd., using a Jumper and rotary drill with 3 in. casing, commenced boring operations on lltb June, 1938, on the New Shotover Special Quartz Claim at Thames. Up to 31st December, 1938, two holes had been bored, No. 1 to a depth of 310 ft. and No. 2to a depth of 303 ft. Operations are still in progress. Prospecting. As in previous years, the greater part of the prospecting work done was carried out at Thames and Coromandel under the Labour Department's schemes. The number of men so employed decreased to an average of forty at Thames and seventeen at Coromandel. The subsidized men in the former district won approximately 258 oz. 6 dwt. of bullion, valued at £1,282 9s. lid., while those in the Coromandel areas produced 3770z. of bullion, valued at £1,899 10s. 2d. Oil-wells. Moturoa Oilfields, Ltd. (K. E. Pederson, Manager).—Operations were confined to repairs and maintenance in connection with the production of Nos. 1, 2, and 4 wells. Three men were employed. The wells named produced 5,070 gallons, 84,147 gallons, and 27,368 gallons respectively, the total value of the oil being £2,185 19s. 4d. New Zealand Petroleum Co., Ltd. (H. L. La Mar, Manager). -This company holds several areas under petroleum-prospecting licenses in the Taranaki, Poverty Bay, and Wellington districts. The drilling of Totangi No. 1 well, which is located in Section 5, Block X, Gisborne Land District, commenced on 12th October and was carried on to the end of the year. The well was started with a diameter of 24 in. and a surface string of 18fin. casing was cemented at 171 ft., where the hole was reduced to 17 in. and carried down with that diameter to 2,443 ft. Prom there to 2,458 ft. (the total depth reached at the end of December) the hole has a diameter of 12J in. A gravimetric survey and geological investigations were undertaken in the Taranaki district, and a geological survey was made in the Poverty Bay region. An average of twenty men was employed. New Zealand Oil Exploration, Ltd. —This company holds petroleum-prospecting licenses in the Hawke's Bay, Gisborne, and Taranaki-Wellington districts, but work was confined to the geological investigation of the Hawke's Bay area only. The geology and topography of the northern portion of this district are now being studied abroad by means of aerial survey photographs. Northern Oilfields, Ltd. (P. Cumming, Manager). —The drilling of a prospect bore was commenced with a Sullivan N type (diamond) drill on the property of |Mr. R. Montgomery, Lot 33 and part 34, Block 11, Arapohue Parish, Mititai, near Dargaville. The hole is 2£ in. in diameter and had been sunk to a depth of 552 ft. by 22nd December. The average number of men employed was seven. Miscellaneous. Quicksilver. —A syndicate, which operated on the New Zealand Quicksilver Mine (held by Mercury Mines (N.Z.), Ltd.), at Puhipuhi, obtained 760 Ib. of mercury of an estimated value of £190, during the year. Two men were employed. Manganese.—lmpex Ltd, Battery-manufacturers, Melbourne, have an option and are operating on property held by Mirandite Products, Ltd., near Clevedon, South Auckland. During the year 90 tons of manganese of an estimated value of £450 were produced. A fair amount of work in the way of constructing an access tramway and bridges was done in connection with the opening up of another manganese deposit located on an area held by L. Piggott, which is situated about two miles south of the one being worked by Impex Ltd. The average number of men employed was six. No manganese was produced.

31