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enable the miners to get supplies when prospecting the country, and a subsidy has also been authorized for metalling Kaueranga Valley Eoad to Otanui Creek, and a road from Tapu battery to the mines. The former is to enable heavy machinery to be taken up to the mines, and the latter to connect the mines with the present crushing battery erected at Tapu Creek. Coeomandel. —This field at present is not in a flourishing condition. A great many of the principal mines are merely prospecting. The Kapanga Company, which is entirely held by English capitalists, have expended a large sum of money in trying to develop their mine, without so far being successful. Occasionally they get a small reef containing payable gold, but the amount of the proceeds is not sufficient to pay working expenses. This in some measure is due to the class of machinery they employ, especially the pumping engine, which is one of the very old type of beam engines, and requires a large amount of fuel to work it: and there is no improved mining machinery used in the mine. Where so large an amount of prospecting and cross-cutting is being carried on, the rock and underground diamond drills could be employed to good advantage. Not only could the tunnels be driven at a cheaper rate per foot, but they would likewise be constructed at least twice as fast as by ordinary hand labour; and therefore a considerable saving would be made on the surface expenditure, as it has to be the same whether carried on slowly or quickly. The gold is likewise very patchy, as it is in the whole of this district, and may be termed more as a specimen reef. The manager, Captain Thomas, showed me a specimen that he obtained from the mine that would average 2oz. of gold to every pound of quartz; but, unfortunately, these are not got in large quantities. There is a deal of metallic arsenic in this mine, which has gold regularly diffused through it. They are now collecting it, and intend sending it to England to be treated, as they have hitherto failed at the mine to extract the gold from this substance. Some good specimen stone was being obtained in the Just-in-Time Mine, at the time of my visit, but the reef here is likewise very narrow. The most prosperous part of the district seemed to be at Matawai, where Vaughan's Claim is situate : the reef in this mine was from 2ft. to 3ft. thick, and very rich specimens were obtained from it, and, after picking out all the specimen stone, the balance was expected to average 2oz. to the ton. However, this reef was only lately opened out, and the stone is near the surface; whether it will continue to go down is a question which has yet to be solved. The County Council, with subsidy from Government, has constructed during the year several roads and tracks to assist in developing the mines in the district. These are as follow: — Dray-road to Kapanga Mine. —The upper portion of this was formerly a very narrow drayroad, and the amount of traffic between tho township and the mine cut the road up to such an extent that in winter-time it became almost impassable, and the Kapanga Company had great difficulty in conveying a sufficient quantity of coal to keep their pumping and winding engines at work, together with other supplies, which amounted in all to about 150 tons per month. This road is now widened into a. 14ft. dray-road, and metalled, at a cost of £132. Extension of Vaughan and Vizard's Track. —This track is in course of construction : it is parried on almost a contour line along tho side of the range, and when completed will enable the different claim-holdors to get the quartz from their mines in this locality taken to the crushing battery at Matawai Creek. £150 has now been spent on this work in progress payments : the total cost when completed is estimated to be £300. Dray-road to lona and Just-in-Time Mines. —This road was previously formed, but not metalled, and the soft nature of the material that was used in the formation would not allow drays to be used'except in very dry weather. The road is now improved and metalled, and with ordinary maintenance can be kept in good repair. The cost of doing the work was £200. Making and Improving Track from Tokatea towards Kennedy Bay .—This was formerly a narrow horse-track, which was not fit to work sledges on satisfactorily, to convey the quartz from Tokatea Saddle to the Tokatea Company's battery. This track has now been widened, and the grades reduced, so that a dray with narrow-gauge wheels can be used. During the construction of this road a very heavy flood occurred in the district, which caused numerous slips from the side of the range, making the construction of the track more costly than was first estimated. It has now cost £320, and will require a further sum of £50 to complete it. Continuation of Track from Success Company's Mine to Top of Banga. —This work is now completed, and has cost £80. It gives a direct line of communication from the upper township to the opposite side of the range, and enables supplies to be more readily taken to the mines. Improving Track from Tokatea Saddle to Waikoromiko. —This is a track which was formerly made on a contour line along the side of the range, but numerous slips had taken place from time to time aud rendered the track impassable for horse-traffic. Claims are being worked here and there along the side of the range, and this track is the only means of communication with them. It is now repaired, and widened in places, and will be a great benefit to the community residing in this neighbourhood. The cost of the work has been £50. Bing's Bridge to Kapanga Road. —This is a work which had to be taken in hand owing to the heavy floods that occurred in the district in July last. The quantity of debris that the floodwater brought down the creek filled its bed up to near a level with the ordinary surface of the ground, and the creek, where it came close to the Kapanga Eoad, formed a horseshoe bend, so that in time of floods the water flowed over and cut away the bank at this level, and was rapidly washing away the road. A new channel for the creek has been constructed, cutting off the horseshoe bend, and the road repaired at a cost of £150. Subsidies on several other works have likewise been authorized during the year, but there is no work done on them yet. They will appear in the schedule of works appended hereto. When the whole of the works authorized are completed a fair line of communication will be established for opening up and developing the field, which no doubt has hitherto been greatly retarded by having no means of getting supplies brought into the country to prospect it. Teeawhiti.—This field is almost at a standstill at present. The Success and Golden Crown Companies are driving a low-level tunnel to try and cut the reef, but they have not succeeded yet