NORTH-WESTERN DISTRICT (No. 1).

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solid rock-work to shoot away the reef at the end of the Adsit lease. This work was about
completed at the season’s close and it is expected that this property will be brought into
production during 1930. During 1929 a small amount of coarse gold has been picked up from
bed-rock indiscriminately during the course of the preparatory work. A 5 by 5% portable
Ingersoll-Rand, 120-cubic-foot compressor, operating an Ingersoll plugger hammer-drill, has been
installed for the rock-work. A 1,200-foot capacity sawmill run by a 10-horse-power water-wheel
is also in operation. Sixty-five 12-foot 2-inch boxes had been installed up to the end of the
season. Block riffles are being used with Hungarian (grill) lips. About 240,000 cubie yards are
roughly estimated in the Adsit lease which will be worked on a lay.

A maximum of 1,000 inches of water is estimated as available during the season. This falls
to about 300 inches during the latter part of the season. For future operations it is intended
to augment the water-supply by drawing from Adsit lake and damming the upper Mosquito creek.
It is estimated that this will give a constant seasonal supply of about 1,200 inches. Operations
are in charge of J. R. Gibson.

Seyeral holes have been drilled on the Adsit lease. These are reported to have given very
encouraging results. This lease occupies a small natural and protected collecting-basin from
the Adsit and Porcupine Lake areas. This conformation of drainage-channels into a restricted
and protected area promises a good prospect of a profitable operation.

Gold Pan.—In this area the individual operations on the Vickery, Cameron, and Drapich
leases have been active during the season, with an estimated recovery of slightly over 200 oz.
of gold.

Unfortunate results attended the operations of the Dease Creek Mines,

Dease Creek. Limited (head office, Seattle), which ceased operations on August 27th after

two very disappointing clean-ups. The failure of this operation is an example

of the results that attend the hazardous policy of embarking on extensive production-work

without first thoroughly testing the ground by systematic drilling for values and yardage, and

the failure to employ the advice and guidance of accredited and capable mining engineers with
placer-mining experience.

Unfortunately placer-mining in the Liard Mining Division has suffered from the failure of
several such ill-conducted operations in recent years. There is little doubt that the territory
holds good promise of profitable placer-gold operations. Success, however, can only be achieved
by strict attention to sound mining principles.

This company, with office at 609 Nova Scotia Building, Vancouver, conducted

The Cassiar extensive preparatory work on two hydraulic leases. This company is a

Hydraulic Mines, reorganization of the Joy Mines, Limited. Excellent camps have been erected

Ltd. and a telephone system installed from the lake to the camp. At the time

of examination (October 19th) 14,005 feet of 7- by 2-foot ditching and 1,080

feet of flume had been completed, and 14,500 feet of ditch and 2,000 feet of flume from Lyon

gulch to Buck gulch was under construction. With the exception of some panning, no drilling
or test-pitting had been carried out to ascertain the value of the ground to be worked,

ATLIN MINING DIVISION.

The promising developments on the Tulsequah Chief group, the discovery of the exceptional
surface showing on the Manville group, and the several other interesting discoveries in the Taku
River area during 1929 have-brought the Atlin Mining Division into prominence as a very
important potential lode-mining area, with good promise of appreciable base-metal and associated
gold and silver production in the not-distant future.

The attention of important operating companies is being directed to this Division in no
uncertain manner. The future for a rapid and sound development of its resources, both in lode-
mineral and placer gold, holds very bright promise. Besides the new Taku River area, it is
understood that engineers representing strong Eastern interests have bonded a promising
property on Tutshi lake, about 81% miles from Log Cabin, on the White Pass & Yukon Railway.

Unfortunately the development of the promising interior of the Atlin Mining Division has
been retarded by a roundabout and inconvenient means of access attended by high transportation
costs. This route is via Skagway and the White Pass & Yukon Railway to Carcross, thence
down Tagish lake to Taku Landing at the head of Graham inlet, where transfer is made to a
railway 214 miles long to Scotia Bay, and then across Atlin lake by boat to Atlin. Ice conditions
do not permit boat traffic on the lakes until about the beginning of June. Freight rates on