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or book-like structure (see page 8). In short, the further the plane of the obstructive floor or other impediment is from the " pull" of gravity, the more nuggety will be the gold deposit, and vice versa.
The O'Keefes followed their "indicator " channel down to about 50 feet; and they obtained from several flat veins of quartz met with, in nuggets, about 1,000 ozs. of gold. Then a company gave the O'Keefe party £800 and 4,000 paid-up shares out of, I believe, 30,000 shares. The new company went to work energetically, and a first-class shaft was put down to a depth of 175 feet, at which depth the water proved to be too much for the hauling appliances in use. No attempt to open the country at this depth was made, beyond a short drive out east, which resulted in bringing to-light more nuggets ; and the shareholders not responding to the calls, the venture collapsed. Since then fossickers in the locality are reported to have washed a patch of nuggets from the slate in the mullock tip, and now another no-liability concern has acquired a title to the area. This indicator channel at O'Keefe's is really part of a group of lodes, which has other and large formations going down almost vertical, none of which have been sampled.
South from this locality, and to the east of Dereel, Mr. Hanlon, known from his connexion with Rokewood, is erecting a 10-head mill in the vicinity of old works formerly known as the German Confederation mine. The quartz formations opened exhibit the structure peculiar to this district, having wide formations of quartz, going down to the east and west, associated with veins similar to those at the Hansen mine, the whole being associated with gold-slate and dyke rock. The group of lodes to which it belongs appears to be responsible for the gold in the Pinchgut Creek, which latter hugs the line of the lode pretty well, on south to the plains east of Rokewood. About 40 years since the German party worked here ; after it came a Rokewood party. The order of gold deposition is in rich patches, distributed in large cloud-quartz "makes," and in the veins ; it is in all instances in association with the gold-slate. Past
efforts appear to have been run on the idea that the average richness should be equal to that of the rich patches, and the enthu­siasm of each party cooled on viewing gold-less faces of quartz. Mr. Hanlon is ready to persevere to success on a low average yield, and the advent of a 10-head mill here means much for the locality, in addition to its association with the German Confederation formations. The equipment provides power enough for another ten heads, and it is hoped that the necessity may arise for this addition at an early date.
About a quarter of a mile to the east of Hanlon's are the remains of the Oriental Company's works. Here a similar structure of lodes in a parallel group to the Hanlon's has been opened, and from a vein part of the structure, which has been followed to about 100 feet in depth, about 280 tons of quartz have been treated, with returns averaging, it is said, 10 dwts. to the ton. Here, also, a no-liability company took over the mine from Trende and party, but abandoned it. Some time later Trende and party again put their shoulders to the wheel, and have