H.—9

21

the main tram. The future prospects of this mine are very good, and dividends amounting to £2,000 have already been paid. Colonist.—The reef opened in this mine has been driven on 227 ft. at the surface level, and 302 ft. at the present lower level. Two winzes have been sunk to connect the levels. There have been 113-£- fathoms of reef stoped out from the surface block, and thirty-two fathoms from the block over the low level. The quartz crushed amounts to 1,415 tons, which yielded 1,1410z. 4dwt. of gold. A cross-cut is being driven to cut the reef 70ft. deeper, and the show of gold on the floor of the present low level warrants the belief that the next block opened will pay handsomely. A dividend of 6d. per share has been paid, amounting to £500. Premier. —Driving and stoping on both reefs has been carried on, and a quantity of payable quartz stoped out over the smithey level on No. 1 reef, and towards the surface on No. 2 reef. Ninety-eight fathoms of reef have been broken out and 800 tons of quartz crushed, yielding 6720z. Bdwt. of gold. The mine is now well opened, and driving is being carried on towards the junction with the main reef. Vulcan.— The yield of gold from this mine did not come up to expectations, sixty-four tons of quartz producing only 28oz. 3dwt. 12gr. of gold. Hero.— A.trial crushing from this mine yielded 12|oz. of gold from 26 tons of quartz. A level is being driven to prove the value of the reef at a greater depth. Canadian. —This compaftry, although carrying on a considerable amount of prospecting, have not been successful in finding payable quartz. There is, however, a much better show since they commenced to drive on the Colonist surface level, and gold is frequently seen in the reef, which is from 4ft. to sft. thick. Diamond Gully. —No quartz has yet been crushed from this mine, and the manager is now engaged driving on the New-Find No. 2 reef. Eureka. —This mine is now well opened, and the company are engaged in the erection of a wiretramway to convey quartz from the low level to the main tramway. Upwards of 400 ft. of driving has been done in this claim, and 130 ft. of a winze connects the surface with the low level. The show of gold in the stone is quite as good at the low level as where it was first found, and payable returns are anticipated as soon as the wire-tramway is completed. Werahiko. —This mine is well opened up : 326 tons of quartz yielded 3070z. Bdwt. of gold. Waitoki. —A crushing of 123 tons of quartz yielded 360z. of gold. Welcome. —A crushing of two tons of quartz yielded 113oz. of gold. The quartz was broken out from the surface workings. A winze has been sunk on the leader to connect with tho low level, but no further crushing has yet been made. Inverness.- —A low level has been driven to cut the No. 1 reef, and a rise is being put up to drain the reef. Five tons of quartz yielded 21oz. 15dwt. of gold. Another reef with a fair show of gold in the quartz has been found, and there is no doubt that this will.prove a payable mine. Phoznix. —A drive has been put in on a leader about lOin. to 12in. in thickness, and gold is freely seen at each breaking down of quartz, but no trial crushing has yet taken place. A considerable amount of prospecting has been done on Moa No. 1, Moa No. 2, Army, Chance, Vermont, Waitoki Extended, Alphabet, May Queen, Lucky-hit, Virginia City, Leo, Wellington, Young Caledonian, Arizona, Coquette, Smile of Fortune, and Stanley Claims, and in all cases gold, more or less, has been discovered, sometimes in large reefs, and at other times in smaller veins. In the Provincial Extended some very rich pieces of stone were washed from the mullock near a reef about 18in. in thickness, and large blotches of gold are seen in several stones broken from the solid reef, but there has not been enough work done to prove the value of the find. _ The arrangements made by the Waiorongomai Company for the erection of a battery fell through, and, although several offers have since been made to erect another battery on the Waiorongomai Creek, no definite action has been taken in the matter. This is to be much regretted, as there is a good opening for another battery, the present crushing plant being inadequate to crush for all the mines. On account of the fineness of the gold a large percentage escapes in the tailings, in some cases as much as per load. The battery company have lately added a grinding plant to their battery. A large building capable of holding sixty-four berdans has been erected about ten chains from the main building. The water from the turbines is conveyed in a flume to the new building and, with a pressure of 37ft. sin., is made to drive one of Pelton's hurdy-gurdy wheels, which has sufficient power to work the thirty-four berdans already fixed. The tailings from each ten head of stamps are conveyed in separate flumes direct to pits in the grinding building, and the berdans will be fed by hand. The tailings, after being ground and the gold extracted, will be raised by hydraulic pressure and stacked. The tramway is in good working order, and is capable of conveying a hundred trucks of quartz to the mill daily. The trucks contain each IJ tons, and the cost of haulage is 4s. 6d. per truck from any part of the line. The prospects of the field generally look healthy, and public confidence is such that a population of from eighteen hundred to two thousand souls is located at Te Aroha and Waiorongomai Townships, and at the camps on the hill at Waiorongomai. There are a hundred houses erected in the Waiorongomai Township, and upwards of two hundred houses at Te Aroha. The return of gold from those claims that have been occupying the mill shows that no doubt need be entertained that the reefs here will pay for working, and take years to work them out. I have, &c, Geo. Wilson, The Warden, Te Aroha. Mining Inspector.