The link structure of the Web is generally viewed as a webgraph. One of the main objectives of web structure mining is to find hidden communities on the Web based on the webgraph, and one of its approaches tries to enumerate substructures, each of which corresponds to a set of web pages of a community or its core. Research has shown that certain substructures can find sets of pages that are inherently irrelevant to communities. In this paper, we propose a model, which we call contracted webgraphs, where such substructures are contracted into single nodes to hide useless information. We then try structure mining iteratively on those contracted webgraphs since we can expect to find further hidden information once irrelevant information is eliminated. We also explore the structural properties of contracted webgraphs from the viewpoint of scale-freeness, and we observe that they exhibit novel and extreme self-similarities.