a—4a,

6

connection with this plant to roast (not smelt) the stone before treatment at the pans. If the success claimed for it in anticipation by the owners is realized, I shall have more favourable results to chronicle at the close of the year in respect of the older mines. The very valuable discovery at the Tui Creek is to the north of Te Aroha Town, between it and Karangahake. The discovery is valuable in itself; but still more, perhaps, from being in a new locality, going far to prove the existence of the auriferous belt from Te Aroha to Karangahake. On the surface there is a very large outcrop (extending over a considerable area) on a well-defined line or lead of carbonate of lead, containing a large percentage of silver. The assay-value of this is some £6 to £8 per ton. As it is followed down from the surface it appears to change its character, and becomes almost galena-ore. The reef itself contains a considerable percentage of silver in combination with other minerals. Small veins and pockets of cinnabar are found in the stone. Two parcels of five tons sent down to the Thames furnace were sold at their assay-value of £22 10s. per ton. I need scarcely say that nothing like this return could have been obtained at the battery. The stoppage of the furnace at the Thames has seriously affected the Tui and other mines, as the market for their particular class of stone is thus closed. A judicious subsidy from the public funds last October enabled a track to be made to these mines, without which, in fact, the district could not have been opened. I think there can be but little doubt that very valuable returns will come from this portion of the district in the near future. The completion of the railway from Auckland to the town of Te Aroha has brought the attractive and valuable mineral springs of the district within easy reach of all; as a consequence the town has made great strides during the last few months. The progress made will, there is no doubt, prove permanent. I enclose herewith the Mining Inspector's report upon the various mines, and add thereto the usual statistical returns. The yield of gold for the year has been 4,4890z., won from 6,552 tons : as against 9,5060z. from 11,041 tons of the previous year. Cases heard in Resident Magistrate's Court —Civil, 82; criminal, 62: Warden's Court, 43. Fees— Civil, £40 Bs.; criminal, £7 19s. : fines, £24 Is. General goldfields revenue for year, £1,488 6s. Claims marked out, 107; registered, 13; abandoned, 12. Licenses, 24; forfeited, 9. Residence-sites granted, 26; business sites, 3. Registrations, 119; applications, 81. Miners' rights issued, 62. Water-races granted, 1; forfeited, I. I have, &c, The Under-Secretary of Mines, Wellington. Harry Kenrick, Warden.

Mr. G. Wilson, Mining Inspector, to Mr. Warden Kenrick, Te Aroha. Sir,— Warden's Office, Te Aroha, 10th April, 1886. I beg to forward for your information particulars respecting mining matters in this district for the year ended 31st March, 1886. From various causes there was a considerable falling-off in the returns of gold from the mines during the year. Several of the mining companies entirely suspended operations, and portions of reef opened in the mines working did not turn out the amount of gold expected. The new battery erected by Messrs. Ferguson, Fraser, and party has not yet been used, as a much longer time than was anticipated was required to complete the construction of the tramway to connect the battery with the main tramway and the mines. Some time must yet elapse before quartz can be treated, as it is now found necessary to erect a furnace for the purpose of roasting the quartz prior to grinding. As this plant is expected to save 80 per cent, of the gold and silver contained in quartz, treated at a cost of from £1 10s. to £2 per ton, it is unfortunate that a trial has not been already made, as, if successful, many reefs containing fine gold, and silver in a non-metallic state, and which are at present untouched, may be successfully worked. The attention of miners has been attracted to prospecting for silver and other minerals, especially since Professor Black delivered his lectures at the various mining centres, and great interest is taken in the different methods of testing ores. The erection of a furnace for smelting ores at the Thames also caused miners to prospect for silver; and valuable discoveries of reefs containing silver and lead ores have been made at the Tui Creek, on the range between Te Aroha Mountain and Karangahake, at a distance of about two miles and a half to the northward of Te Aroha Township. Parcels of ore from the Champion Lode claim, at the Tui Creek, which were sent to the Thames furnace, yielded bullion valued at £22 to £28 per ton. On account of the inaccessible nature of this locality, which is from I,Booft. to 2,000 ft. above sealevel, there has not been much work done on the reef's as yet; but, so far, the prospects are very good, and carbonate of lead, which is a valuable flax, is found in apparently large deposits. Although the yield of gold has not come up to expectations, there is still ample room to calculate on increased prosperity in mining during the year 1886-87. The smelting-furnace at the Thames has caused a fresh departure in mining, and further experiments are being made for the reduction of ores and extracting a large percentage of all the valuable minerals in the quartz reefs; and, as we have now large quantities of quartz known to contain silver, lead, &c, as well as gold, no doubt some improved process will be found capable of treating ores at such a cost as will leave handsome profits.