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Kanieri. There is nothing particular to record in the progress of this district during the past year. Some increase of activity seems to have been displayed in the diggings near the brandies of the Kanieri River, above the junction; but there is nothing very definite to report. The coal-pro-specting association is pursuing its investigations at Mount Camelback, and there seems at present some reason for hoping that they may ere long succeed in striking a payable seam. The liimu diggings continue pretty steady, and I believe there is a good deal of ground there which is considered by the diggers to be capable of affording a living when there is nothing better to be done. Totara. In my last report I was obliged to give a very discouraging account of the state of gold-mining operations in this sub-district. The failure of the Ross United Gold-mining Company to discover the rich gold supposed to exist in the deeper strata, and the sudden stoppnge of the pumping and driving, looked almost like the collapse of Ross as a digging centre. The falling-off of business, of population, and of revenue arising from this cause was serious in amount, and the effects of it still continue ; but I am glad to be able to report that the causes of discouragement and depression have in great measure passed away, and that hopes of a better future than could have been indulged a year ago are now reasonably entertained upon tangible grounds. The Ross United Company, having in November last resumed pumping and driving on Guardian Flat, were, about the end of February, successful in finding highly-payable wash, workable from the seventh bottom of the deep workings. This wash turns out to be not only rich, but extensive, and is believed to be identical with the old Cassius layer. The directors estimate its quality as likely to average 3|oz. or 4oz. to the ordinary set of timber. This success, although late, is eminently satisfactory', and will, at all events, prevent that collapse of digging enterprise which a short time ago seemed imminent. The Elevator Claim, on Jones's Flat, has been the subject of litigation with the Borough Council in connection with the deposit of tailings, and work has been consequently hindered. It is contemplated to make arrangements for getting this claim worked on tribute. The Prince of Wales Claim is in working order, and seems to want nothing hut a good water-supply to insure its success. The Donnelly's Creek Company has ceased operations since an adverse decision was given in the Warden's Court in an action brought by the company against the Ross United Company on account of the deposit of tailings from the Elevator Claim in Donnelly's Creek. I am afraid this undertaking must be pronounced a failure. Of the claims or leases at the Cedar Creek reefs the only one on which any work is being done is the William Tell Company's lease, where, I believe, two men are engaged in prospecting. There are also four men employed in driving the drainage-tunnel for these reefs—a work subsidized jointly by the Government and the County Council. The mining industry in the neighbourhood of Ross still suffers from the want of an adequate water-supply, a difficulty which small parties of miners cannot very readily overcome. It is unfortunate that no effective remedy for this state of things has been devised except the heavy and expensive work of bringing in water from the Mikonui River. Schools of Mines. The interest in metallurgic chemistry excited by Professor Black's visit, which was mentioned in my last yearly report, has been kept alive to a much greater extent than cjuld have been expected in the absence of any skilled person whose business it was to guide the studies of learners. At Kumara a chemistry class has been kept steadily on foot, mainly by the efforts of Dr, Davy, who to his professional qualifications adds an unusual acquaintance with natural and physical science, and who has given much time and trouble to the work of not merely lecturing to, but practically teaching, those who have attended his lessons. Classes have also been formed at Hokitika, Rimu, and Ross. The Hokitika class has been mainly dependent on the efforts of amateurs, foremost amongst whom must be mentioned Mr. Puikiss, who has with great success given a course of elementary lectures, with experiments, under difficulties which nothing bat an unusual combination of zeal and ability would have enabled him to surmount. The visit of Mr. MacLymont, although short, has been of signal service and effectual help to those who were really interested in the subject; and I cannot lose this opportunity of congratulating the University of Otago on the credit it must derive from the attainments of a gentleman who has so well known how to avail himself of the science-teachings of that institution, and has so early acquired a mastery of the complex science of modern chemistry. It is to be hoped that the classes which he has started or assisted will now be able to make some progress in practical work, in which they will be much aided by the shares in the apparatus supplied by Government which have been respectively assigned to them. At the same time too much must not be expected in the absence of systematic teaching. If ono or two here and there learn to test ores for the most important metals, and if a few more gain some acquaintance with and some interest in the elementary laws and principles of chemical science, it will be as much as can fairly be looked for under the circumstances. I have, &c, The Under-Secretary of Mines, Wellington. J. Giles, Warden.

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