H.—9

23

work at present in progress is the further sinking of the main shaft, for the purpose of opening up a new level on the rich run of gold. There will be 85ft. of backs by 600 ft. on the line of reef in this block. Should this block turn out anything like as valuable as the ones above, being at such a depth (500 ft.) below sea level, it should greatly assist in establishing the gold field. There is a large extent of payable ground opened out in other parts of this mine, that will give work for years to come to a large number of men. During the twelve months there have been 16,193 tons of quartz raised and crushed, from the stopes and drives in the various levels, for a return of 26,2300z. 4dwt. of melted gold, valued at £72,960 ss. 2d., of which £40,950 was received by the shareholders in dividends. Deep Level Cross. —This mine is under the management of Mr. James Coutts, and a very large amount of work has been done. The most important was the extending of the 640 ft. level from the Big Pump to the Prince Imperial reef: to effect this a distance of 400 ft. was driven, and a rise made 230 ft. to connect with the 430 ft. level. Other important works are now being carried out to open out the mine. There have been 4,176 tons of quartz crushed, for a yield of 5,0860z. of melted gold. Golden Crown. —The older portions of this ground are nearly exhausted, and, as the quartz now being crushed is low in quality, it has taken Mr. Thomas Dunlop, the manager, hard uphill work during the year to make it pay. He is therefore directing his attention to the Mary Ann portion of his ground, which adjoins that held by the Caledonian, Waiotahi, and Darwin Companies, which would likely be expensive to open out, but would, it is hoped, give profitable returns for years. The returns of work done during the year are—446ft. of cross-cut driving, 515 ft. driving on line of reef, 126 ft. winzes sunk, 350 fathoms reef stoped on various reefs and leaders, and 1,600 tons quartz crushed, valued at £3,240, being an average of f oz. to the ton. Waiotahi. —There are no new features in this mine, which still continues a dividend-paying one. The old levels are still being worked, but Mr-. Smith, the manager, is preparing to further sink the shaft to open out another block, and for this purpose has had a large new steam-boiler erected on the surface. Mariner, London, and Queen of England. —The operations of these companies to.get payable gold not having succeeded, they have ceased operations; but an effort is being made to get them to re-start and sink their shaft from 100 ft. to 150 ft. deeper. Moanataiari Mine. —The principal work has been done and gold obtained in Heldt's section of the mine by wages-men. Driving and stoping is also being carried on in the Morning Star section. A rise is at present being put up from the tunnel level on No. 1 reef, with very encouraging prospects. A cross-cut is also being driven towards the Waiotahi at the Nonpariel 215 ft. level, for the purpose of testing a large reef found there in a shaft in the earlier days of the field : about 200 ft. remains to be driven before this reef will be cut. During the year 1,244 tons of quartz have been crushed for 1,6240z. 14dwt. melted gold. Queen of Beauty. —Work has been steadily carried on in this mine during the year; but the gold returns have not been sufficient to make it payable. The work done has been—l,242ft. crosscutting,; 839 ft. driving on reef; 240 ft. winzes sunk; 643 fathoms reef stoped; 1,574 tons quartz crushed, for 1,7010z. melted gold. A long cross-cut is at present being driven at No. 8 or 500 ft. level, for the purpose of cutting the Vanguard reef, near the Karaka—a reef about 13ft. thick, which went about -|oz. to the ton where tested at other places. Waiotahi District. A new claim called the Darwin was taken up : in sinking their shaft a reef showing good gold was struck. In conjunction with a neighbouring claim machinery for winding, &c, has been erected, and the sinking of the shaft, and also a winze on the reef, is now in progress. Another claim, called the Moanataiari Extended, is also erecting machinery to test this reef, and have sunk their shaft to a depth of 138 ft. Other claims, such as the Bright Smile, West Coast, Pinafore, still continue working in this district, for payable returns. Karaka District. The Adelaide, City of Manchester, Little Lizzie, and Lonehand still continue working steadily, and have all paid well. The Eocky Point has completed the long tunnel it put in in conjunction with the Adelaide. As gold was seen whenever the reef was cut the owners of both claims should have good prospects before them. Hape District. Dart Mine. —The sinking of the shaft was completed to No. 3 or 252 ft. level, also the erection of new machinery. Operations have since been carried on from No. 3 level on No. 2 reef from which 1,149 tons of quartz has been crushed, for a return of 1.3780z. of melted gold. The shaft is now being further sunk for the purpose of opening another level. Otanui District. New Eureka Mine. —The owners of this mine have erected a battery at the junction of the Otanui and Mangakirikiri Creeks at considerable cost, but, owing to not having a suitable road, have only had one small crushing. The stone crushed was good, yielding from 1-Joz. to 2oz. to the ton. " The driving and stoping done is about 700 ft.: this includes 375 ft. of a low-level tunnel, driven through very hard ground: this tunnel has still to be driven a considerable distance before the reef is cut. About 100 tons of quartz is to grass waiting conveyance to the mill. Oriental Mine. —The lodes in this mine are more of a specimen class, and have yielded rich returns. A cross-cut has been driven for a distance of 180 ft., but the leaders cut here did not prove payable. The amount of driving done is about 600 ft. The gold return was £108 from 401b. of stone. About 25 tons of quartz are in the paddock awaiting crushing: this is expected to give about 60oz. of gold.