C—3.

Oamabu Watch eace. Owing to sluicing operations on the Marewhenua Goldfield, and muddy water going into the river, this got into the Oamaru Town water-supply, and rendered it unfit for domestic use. The intake of the water-race had to be closed, and a long channel cut up the flat in order to procure a sufficient supply of water from percolation through the loose shingle through which the channel is being constructed. A subsidy of £1,250 was authorised towards this, and up to the end of March last £900 Bs. 7d. has been paid.

GOLD- AND SILVEE-MINING. The principal mining operations are carried on for gold alone, but in certain districts in the North Island, as, for instance, Karangahake, Waihi, and Waitekauri, there is a considerable percentage of silver in the bullion produced. Some of it has a value of under £1 per ounce. The returns from the mines have not come up to what they were for the year 1893-94. The Auckland District shows on the whole an increased yield of 5,6030z. of gold. This is calculated on the value of the bullion produced, and reducing the number of ounces so as to bring it to the quantity of gold that would be of equal value. All other mining districts with the exception of Auckland show a considerable decrease in the yield last year, as the following statement will show :—

The foregoing statement shows a decrease in the Marlborough District, 3510z.; in the Nelson District, 5460z.; on the West Coast, 13,9150z.; and in Otago, 8,512 oz.; making the total decrease in those districts of the yield of gold for the year of 23,3240z.; but there being an increase in the yield in the Auckland District of 5,6030z., this makes the actual decrease yield in the colony for the last year to be 17,7210z. The increase in the yield last year is from Coromandel County, 3,088oz.; Ohinemuri County, 8,9220z.; Marsden County, 6oz. ; Waimea, 340z.; Buller County, 2,8440z. ; Hokitika Borough, l,102oz.; Bruce County, 5160z.; Wallace, 183oz.; and Fiord County, 5440z. : while there has been a decrease in the yield in the Thames County of 6,1020z ; Thames Borough, 2290z.; and in the Piako County, 820z.; County of Marlborough, 3510z. ; Collingwood, 580oz. ; Inangahua County, 12,8030z.; Grey County, 2760z. ; Westland, 3,9490z.; Kumara Borough, 1360z.; Eoss Borough, 6970z.; Taieri County, 4630z.; Tuapeka County, 3,7200z.; Vincent County, l,048oz.; Maniototo County, 18oz.; Waihemo County, 4630z.; Waikouaiti County, 182oz.; Waitaki County, 5750z.; Lake County, 2,5490z.; Southland County, 4160z; CTutha County, 30z.; and Stewart's Island County, 18oz. The largest increase in the yield from any particular place is from the Ohinemuri County, of 8,9220z., and the greatest decrease is from the Inangahua district, of 12,8030z. The increase at the former place is due to the large output and production from the Waihi Company's mine, and the reduction at the latter is owing to the continued depression in mining in the Eeefton district during the greater part of the year. And although the mines in that district now have a healthier aspect, the increased yield from them does not come into last year's returns. The Coromandel district came well to the front last year, owing to the valuable discovery of extremely rich stone in the Hauraki Company's property, which will have the effect of more prospecting operations being carried on in the district than has been for years. The excitement about the silver-mines at Puhipuhi has died away. Very little prospecting is being carried on in that district, which is to be deplored, for, although the field did not turn out as was expected, the failure was in a great measure due to those who held the prospecting claim and introduced obsolete appliances for treating the class of ore there was to deal with. Their failure disheartened all those interested in the field, and caused all prospecting to come to a standstill. No one can with certainty say that good ore will be found here, but it is certainly a field worthy of being tested, and one where there is a fair chance of payable ore being discovered. The only other new field is in the Fiord County, where there has been an increase in the yield of gold last year of 5440z. From information supplied me from those who have been prospecting in this locality, there is a good probability of some good claims being found in this district. Very little is yet known respecting it, and it may be said there are many portions of it where the foot of man has never yet trod. Indeed, whatever gold that has been got on the mainland is owing to the construction of a track, which was commenced to be surveyed from Preservation Inlet towards Wilson's Eiver, in order that it might be continued along the coast-line to connect with the road leading from the Waiau Eiver to Orepuki. The miners following the surveyed track, at the time that the survey was proceeding, led to the discovery of gold at Wilson's Eiver and Sealer's Creek. Gold has also been got at Price's Inlet, which is a considerable distance from Wilson's Eiver, towards the Waiau Eiver, but as there is no track yet made along the coast to that place, men could only get there by boat, and be dependent entirely upon the large stock of supplies that they would have to take with them.

33

Name o( District. Year e; 31st Mar ided ih, 1895. Year 31st Mai inded !h, 1894. Increase for 1895. Decrease for 1895. Oz. 58,029 1,911 1,633 85,015 76,393 £ 228,059 7,626 6,059 339,731 308,070 Oz. 52,426 2,262 2,179 98,930 84,905 £ 215,012 9,037 8,141 395,728 342,302 Oz. 5,603 Oz. Luokland larlborough felson Vest Coast Itago .. 351 546 13,915 8,512 Totals 222,981 889,545 240,702 970,220 17,721