0.—6

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works will give employment to many men, and will, I trust, to some extent, prevent the exodus of our miners, which I regret to say has been going on during the past year. The depression existing here, and the hope held out to them of profitable employment in the more prosperous gold- and silvermining districts of the Australian Colonies, has induced many of our best and most intelligent miners and artisans to leave these shores to seek their fortunes elsewhere. The Mining Inspector, Mr. Wilson, having reported to you fully as to the work done on the different mines on the Te Aroha, Thames, and Ohinemuri goldfields, I have not thought it necessary to give a detailed report on these, but, as I am not aware that he has had opportunity to report on the mines of the Cormandel portion of the district (having only lately been appointed), I subjoin an account of the year's work : — Kauri Block. —On this block is situated the property of the Coromandel Gold Company, one of the English companies mentioned above, who finding the old company's (Union Beach) pumpingmachinery inadequate, have erected a 40in. cylinder Cornish-beam pumping-engine, with 10-ton boiler, 12in. column and fittings complete. An engine-house has been built, the foundations being laid in concrete and masonry from the bed-rock below high-water mark. Upwards of 50,000 ft. of heart of kauri bed-logs have been used in this work, and the machinery in all weighs over 80 tons. This engine-house, together with boiler and coal-sheds, being erected below high-water mark, are docked by means of a 2ft. masonry wall, faced outside with clay. It is expected that this machinery will be started in three weeks from date. The length of the stroke in shaft will be 9ft. From the shaft, known as Union Beach, it is proposed to work flat rods to the old Palmerston shaft, which is to be sunk 100 ft. below the 180 ft. level in the old Union Beach, at which depth it is calculated the reef will be cut; the whole of this 100 ft. will be virgin ground, which, with the present appliances, can be rapidly opened up, and should the new ground pay half as well as that already worked by the former owners the venture will prove a great success. Adjoining this property is the Just in Time claim, to work which a company, called the Colville Gold-mining Company, has been floated in London, but upon what terms the local promoters have not been yet informed, as letters containing particulars have not yet had time to reach here since the formation of the company. To seaward of the Coromandel Company's mine is situated a claim known as the Coromandel Mint. The owners make fair wages by stripping the surface and crushing about lft. of wash-dirt taken from that distance above'the bed-rock. They have also discovered two gold-bearing leaders, which seem likely to be valuable. In the Euby claim, also in this block, a little work has been done, and the prospects are considered by the owners sufficiently good to warrant them in applying for a license to be known as the Neptune. A piece of private property adjoining this block has been lately purchased by a Sydney syndicate for a large sum, the former owner having reserved to himself the right to the surface for grazing purposes. Miners are already at work on this property, intending to cut the New Just in Time, old Union Beach, and Kapanga reefs. Kapanga Block. —The principal mine in this block is Kapanga Gold-mining Company's property, now so energetically and successfully worked by the English company of that name. During the year the main shaft, now known as Larnarch's, has been sunk 57ft., and over 1,500 ft of driving has been done on the various reefs and branches. The machinery is kept in good order, the shafts and other workings are constantly dry, and since the adjustment of the old and the addition of new appliances no hitch has occurred to hinder operations. Ten heads of stampers are crushing about 220 tons of quartz per four weeks, and when the developments now in progress are completed this output will be largely increased. Prom the runs of gold above the 420 ft. level on the Kapanga reef, and from the 300 ft. level on Scotty's reef, 1,507 tons of quartz has been raised, and crushed with good results. The sinking of the main shaft is at present suspended to admit of opening-out north and south on the Kapanga reef at the 500 ft. level, at which depth the reef is as well defined, as large, and as assuring for large deposits of gold as at any part of the mine. So soon as the opening-out mentioned above, together with the necessary pit work is done, sinking below the 500 ft. level will be carried on with vigour. The outlook and actual results in this mine are really first-class, and must be very encouraging to the English owners of this property. Three new holdings of thirty acres each, all adjoining the Kapanga Mine, have lately been marked out, and licenses applied for in all three cases. One is for the company, the other two are local enterprises. No work has been done as yet by the present owners, but the surface has been worked with excellent results in times gone by in all three of the properties, notably the Corby (now Scotty's,) which adjoins the Kapanga Mine on its north-east boundary. The South Kapanga claim, situated in the neighbourhood, was vigorously worked for some months during the year, but the flow of water proving to great for their machinery to cope with, operations ceased pending the erection of a more powerful pumping-plant. Adjoining the Kapanga Mine, on its eastern boundary, is situated the Conquering Hero claim, a mine which has been worked off and on with varying results since the opening of the field. This property is to be worked by the Colville Company, mentioned in the former portion of this report, which refers to the Just in Time claim. Tokatea Block. —In the Tokatea Mine, from which claim this block takes its name, very little work has been done by the company proper, most of the operations being carried on by parties of tributers, but with excellent results, 26 tons of quartz being crushed, yielding 1,0270z. of gold, thus averaging nearly 40oz. to the ton. It may be mentioned here that low-grade quartz is never saved by tributers in this portion of the district. The Waipawa (formerly Harbour View) claim has also been worked by tributers with good results ; and the same may be said of the Rob Boy and adjoining claim. Situated at the Tokatea Saddle is a claim called the Bachelors', so named, after its owners. This mine has been worked continuously for some years, and has paid its proprietors fairly well during the whole time. Last year 7 tons of ore were crushed for a return of 2530z. of gold. Eoyal Oak : This company has been continuing their low-level, while most of the surface has been in the hands of tributers, who have obtained good returns : 14 tons of quartz from this mine yielded 7170z. of retorted gold. Gem (formerly Bismarck ) : This claim has been worked by its owners and appears likely to again come to the front as a gold-producer. The old Masonic