to unearth something good before long. The principal work done under ground during the annual period just ended has been the opening up of Morty's lode on the western boundary. This has exposed some very valuable chutes of ore, an exceptionally rich body of lodestuff being found at 1,000 ft. Other rich prize packets have been found in the El O10 lode at 1,000 ft. and 600 ft. In fact, down to 1,200 ft. the mine for its size is well stocked with payable ore but so far nothing very important has been opened up in the bottom workings

perties on the field have had their share of them, and if the respective companies named had got the scared feeling and stopped sinking when they met with the first run of poor ore where would their mines, with their immense ore reserves and splendid prospects, be today? The London board, with the general manager, Mr. John Morgan, as their adviser, has now under consideration a comprehensive scheme of deep underground development, including the sinking of the main shaft. to 2,000 ft. In this it is expected, if surveys can be

relied on, to secure the underlay of some of the lodes in the adjoining properties. The company has at least three years' milling ore in sight and a declared cash reserve of about £85,000. Its financial position is therefore a very sound and solid one. The most important feature of recent improvements in the plant at this mine has been the construction of a sluicing way for the conveyance of mill residues at a reduced cost to a site about a mile distant on the eastern fringe of the belt.

Output, 1909: 108,490 tons for bullion valued at £150,212.

have shown the ore to be of good average value and when the last estimate of 1eserves was made up a few months ago the ore in sight was computed at 60,000 tons of a recoverable value of 60s. per ton. This is 5,000 tons more than were visible six months previously Reckoning the approximate mining and milling expenditure at £57,380 and the probable cost of winning the gold from the sands and slimes at £10,350, in all £67,730, this leaves a net working profit of £82,270. Then there are the accumulated mill products in the shape of 17,000 tons of slimes, 14,500 tons of sands, and 120 tons of concentrates to be taken into account. The aggregate value of these particular assets is set down at £20,212, and estimating the costs of treatment per ton at slime 4s. 6d., sand 3s., and concentrate 20s., or a total of £6,215, an additional profit of £14,087 is shown and top of this the company has or had when these figures were made up £7,664 cash in hand, £5,206 on bank deposit and £2,062 worth of stores, or to put in tabulated form to company stands behind the following row of assets-Profit on oie in sight £82,270, profit on accumulated slimes £8,925, profit on accumu

cut at the 850 ft. level, although before and since the estimate was made, a lot of ore of higher value than the average of the mill returns has been either extracted or subsequently developed. As the Chairman told shareholders at the annual meeting, there is every reason to believe that the ore that is now being opened up in the mine will turn out to be of higher grade than that now going through the mill. There is still a large section of the property east of the main shaft unprospected, and when the work of testing this part of the mine is put in hand it is quite on the cards that some important discoveries will be made. In the latter part of the last financial year the treatment of slimes was resumed on this property, and returns from this source have proved a welcome addition to the monthly gold output. Mr. A. L. Hay is the general manager of the mine.

Output, 1909: 64,986 tons for bullion valued at £85,830.

lated sands, £4,350, profit on accumulated concentrates £812, bank deposit £5.206 cash (including bullion. reserve) £7,664, stores £2,062, total £111,289. Deducting the cost of slimes plant, £3,000, sundry debtors, £1,761, dividend duty, £5,300, and administration £2,000, this leaves £99,288, an amount to pay over 21s. 6d. per share (including the one and sixpenny distribution just made) in dividends without taking the speculative value of the mine and plant into consideration at all. On this showing shareholders have not much to be afraid of.

Output 1909: 26,791 tons for bullion valued at £76,521

Chaffers buys the Main Reef.

About the middle of 1909 a suggestion was made for the amalgamation of the Boulder Main Reef and Chaffers properties, but the directors of the latter held out for better terms. Later, however, further negotiations were carried on and at the close of the year a fusion on the following basis was agreed to:-"The Chaffers Co. to increase its capital to 750,000 shares by the issue of an additional 250,000 shares at 4s. each, Boulder Main Reef to receive one Chaffers share for each share issued, amounting to 167,000 shares, leaving about 83,000 shares for

future issue; Chaffers Co. to take over the liabilities of the Boulder Main Reef Co., amounting to about £7,000. The advantages to be gained by the acquisition of the Boulder Main Reef by the Chaffers Co. are according to an official circular briefly as follow:-Ist. The additional area of 24 acres on the eastern side of the Chaffers lease should place beyond doubt the certainty of picking up the Golden Horseshoe and Gt. Boulder Proprietary lodes in depth if they extend beyond the southern boundaries of these properties. 2nd. The main shaft sunk to a depth of 2,370 ft. situated immediately opposite the centre of the Chaffers lease and within 43

talked of. Soon after that, however, the working stopes began to show a serious falling off in values, and this disappointing feature became accentuated as the year advanced, and in December, the average return from the mill fell to 7 dwt. per ton. This led to a revised estimate of ore reserves being made, and at December 31 the tonnage in sight was estimated at 465,525 short tons, containing 177,759 fine ounces, or 17,992 tons and 63,509 ounces less than were estimated to be in reserve at the end of the preceding March Since then-i.e. in January of this year, prospects have, however brightened a little and from ap

ft. of its eastern boundary from which both properties could be easily worked and prospecting carried on at any level, and from which, by arrangement with the manager of the Boulder Main Reef Company, payable ore is now being raised and crushed from your mine at a depth of 1,700 ft.. 3rd. The acquisition of a suitable treatment plant, for the use of which you have been paying at the rate of £3,600 per annum. It will be remembered that some four or five years ago extensive diamond drilling was carried out, and ore bodies were found at a depth of from 1,700 to 1,900 ft. on the eastern side of your lease. Results of crosscutting from the 1,700 ft. level of the Boulder Main Reef shaft into your property showed the existence of payable ore on that level. Meetings of shareholders of both companies were held in London on January 4th, when the amalgamation was confirmed. Since then development in both properties and treatment operations at the Main Reef mill have been actively carried on under the management of Mr. J. Boyd Aarons. It is certain that great possibilites of a speculative character lie before the work now being done in the amalgamated venture and the current year's operations should be fraught with importance.

Output, (Chaffers) 1909: 22,964 tons for bullion valued at £41,832.

· Development continues large bodies of ore in the Associated mine but on the whole the grade Gold Mines of leaves a dwt. or two to be desired. Twelve months ago the mine was estimated to have added £30,000 to its reserves and monthly profits of £7,000 to £8,000 were

W.A.

pearances in the deep levels there is every chance of large bodies of better ore being opened up in depth, and this belief is strengthened by recent results from development on the Australia East, or main lode at the No. 19 levels A further make of ore at the No. 14 level was also reported in a rise. As regards the future working of the property, it is an open secret that the mine authorities intend to make considerable additions to the mill. This, in view of the grade at the No. 19 level becomes necessary if a dividend is to be paid. In all probability these additions will take the form of two No. 8 Krupp ball mills which should have the effect of increasing the treatment ca

underwriters. The destruction involved the mill engine, compressor and Griffin mills, besides ruination to other parts of the structure. The whole of the debris resulting from the fire has since been cleared away and everything is now ready for the reception of the new plant. The latter will consist of eight No. 8 Krupp ball mills and two Walker's air compressors. A mill engine is to be dispensed with, as it will be replaced by motors driven by electricity from the Kalgoorlie Electric Power Corporation. Some improvements will also be made in the mode of conveying the ore to the ball mills, which is expected to effect a considerable saving. It is anticipated that the cost of treatment by the new plant-which, all going well, should be in operation by the beginning of August-will be a shilling or so less than was the case when the old mill was working. In the meantime development work is being pushed ahead, so that the ore reserves will gain on the mill in the interim. Briefly, the Gt. Boulder Perseverance is now in a position when plant altera

"R" lodes. These have added considerable value to the mine both have produced ore from stopes. The discovery of these two lodes, one being to east of Lake View lode, and one to west of Perseverance, maiks a distinct advance in potentialities of the mine. The ore extracted from the mine and treated totalled 192,178 tons, the highest monthly total being 19,692 tons. The "shrinkage" system of stoping is still in force, and is to be continued although modification of same is under consideration. The reduction section shows improvement in capacity of plant and results. Precipitation difficulties of past years have disappeared and actual extraction has been 98.73 per cent. Residues disposal has been provided for by securing a right-of-way across leases intervening between mine and company's tailing lease. Residues will be trammed right away from mining zone. Grade of ore to mill, 7,845 dwt. per ton, has been higher than last year's estimate of value of the mine due to satisfactory developments. Estimates of ore at December 31,

tions and enlargement could be made with advantage to shareholders. There are immense quantities of ore just below the present milling grade standing in the underground workings and a larger tonnage in milling capacity and more economical means of handling would bring these reserves within the profitable area of operations. The management gives the following official notes:-During 1909 a vigorous policy of development was inaugurated The main shaft and No 6 shaft were both deepened, the former to 1,989 feet, and the latter to 1,493 feet. At the No 6 shaft a new level, the 1,450 ft, was opened out. The main shaft next level will be 2,050 ft., expected to be started in April of current year to cut the Lake View lode. The development work totalled 11,395 ft. and has yielded very satisfactory results, opening up chutes of ore proved in higher levels. The Perseverance, Lake View, and El Oro lodes have been the chief lodes under attack, but the exploratory work revealed two new lodes, designated the "F" and

1909, although mailed to London, are not available, but they show a slightly improved position. On November 10, 1909, a disastrous fire occurred, destroying the power plant and mill. A new mill having eight No. 8 Krupp ball mills is being erected. Two Walker air compressors each 3,500 cubic feet free air per minute capacity are on order. The equipment will be completed during the third quarter of year. The capacity of the plant will probably be 20,000 tons per month."

Output, 1909: 209,187 tons for 70,734 oz. value £298,138.

Kalgurli and its Deep Levels.

The Kalgurli produced its first gold in 1897 and up to 1900 its output was very moderate. As the mine developed it became evident that a large

tonnage of ore would have to be dealt with and the treatment plant was therefore remodelled and increased to a capacity of 5,500 tons, which in 1905 was further increased to its present capacity