Mr. Webster to Dr. Hector.

I beg to advise you that Mr. Marshall reports having found ironstone both above and below the first coal seam cut in the new drive; he states that the bands vary from 6 to 12 inches; and as it appears to me better than anything got out before, I take the liberty of sending a sample herewith, trusting that, when opportunity offers, you may be able to analyze it and let me know the result.

The contractors are still pushing forward with the drive, but the water increases every foot they proceed, so much so that they cannot work more than six-hour shifts. Up to the 8th instant they had driven 101 feet, and under that date they addressed a letter to me, asking for an advance of 3s. per foot on account of the difficulties they had to contend with; but the Directors decline to entertain such an advance, as it is quite possible they may get into easier ground at any time.

I may add that the water blast is acting admirably, carrying abundance of air for the safe and proper working of the drive.