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respect to the workings of this company's mine, in which he states that, since taking charge on the 4th April last, "We have disused the old portable winding-engine, and erected a pair of 9in. cylinders, horizontal ones, 16in. stroke, with winding-drums all new and complete. A new steel boiler is attached, with suitable iron chimney-Stack, and various other repairs have been made. We have on the mine a new crucible-steel wire-rope, and a pair of patent windingcages. In compliance with the Mining Regulations a new shaft-tackle, some 15ft. higher than the present one, to admit of a higher brace, is being got ready. A tunnel level has been driven from the shaft's brace to the company's stamps, which have been renovated and improved. The ground tramway from the, mouth of the tunnel at the west side of the hill will be completed and the whole line of tramway available in about nine days. The distance of tunnelling was about 600 ft., and nearly the whole of that distance was excavated, timbered throughout, and permanent steel rails laid in thirty-three days by twelve men at a cost of 6s. per foot. The construction of this tunnel will serve for three purposes —namely, reduce the cost of carriage of quartz to a minimum; the freight of coals for pumping; and to have the water pumped through it for the use of the battery, &c. We started our stamps on the 12th instant, and have now fifteen heads running, with three berdans. The depth of the engine-shaft is now 160 ft. At this depth a cross-cut has been driven at 27ft., cutting No. 2 reef, a cross-fissure, some 25ft. westerly, and, more westerly 20ft., No. 3 reef. As soon as the cross-cut is advanced sufficiently developments on both will be commenced. The 160 ft. level has been driven north-westerly about 30ft., the reef varying in size from 6in. to 15in., carrying rich auriferous quartz. The crossfissure yielded some rich specimens where it came into the cross-cut. No. 3 reef, where cut through, showed strong blotches of gold. Below the 100 ft. level in No. 2, north of the main cross-cut, two winzes are being sunk down to communicate to the 160 ft. in time for that level advancing under them for the purpose of communicating and laying the ground available. One winze is also being sunk southerly from the cross-cut. On No. 3 reef a winze is also being sunk below the 100 ft. north of cross-cut. Above this level a rise is also being put up. We have still a small section of rich ground being stoped out above the 100 ft. level, and under the late tributers' workings. The winzes, so far as developed, have not yet been worked much on the reefs, being only just initiated by cutting winze-plots, &c, except No. 1 winze: this has yielded rich specimenstone. There is every reason to believe that below the 100 ft. and above the 160 ft. levels a rich mine will be opened up. Now that the company's stamps are available and a tunnel for transit of quartz completed the mines can be worked more extensively, and all payable quartz dealt with. The gold value to the company has been, up to the 6th April last, £30,494 sterling; tributers' amount, £7,997. Since then, for month ending the 4th May and the Ist June, the returns have been, respectively, 70 tons quartz and 6551b. picked stone for 1,4170z. of retorted gold, and 32-J tons quartz and 7711b. picked stone for 2,3620z. 19dwt. retorted gold. In this month we stacked several tons, waiting the company's battery. Pitwork has been ordered, and preliminaries are in progress to sink below the 160 ft. level as soon as the winter months are past. The mine has a good future before it, and we have ninety-two persons employed." Kapanga. Kapanga Company. —This company has been of late years working under great difficulties. Very rich ore was found in the mine on the upper levels, but on getting down to the 450 ft. level the yield of gold decreased, and the ore became of too low grade to pay for the expense of working it. A large amount of prospecting work has been done, and the present company, which is the third that has held this ground, has expended something like about £70,000, and up to the end of March last the value of the gold produced has been only about, in round numbers, £46,600, showing that so far there has been a loss of £23,400. This, however, will not prove a direct loss to the company, inasmuch as that it has had the Blagrove Freehold, on which prospecting operations have at times been carried on. This portion of the company's property has lately been sold to a company formed in London, termed the-Blagrove's Freehold Gold-mining Company (Limited), for the sum of £37,500, payable by £6,125 in cash and £31,375 in either cash or shares at the option of the Blagrove's Company. The workings at the Kapanga Mine have been on two parallel lodes—namely, Scotty's and Kapanga, which are expected to intersect each other at a greater depth, as the Kapanga lode underlies at a much higher angle than the underlie of Scotty's lode. Both lodes dip in a southwesterly direction, and have a peculiarity which is seldom met with, in that the lodes were distinct and had no connection with one another. On the foot-wall of Scotty's lode, also on the hangingwall of the Kapanga lode, the country rock is hard and compact, with the walls well defined, but on the hanging-wall of Scotty's, and the foot-wall of the Kapanga, the rock is of a much softer character, and the walls have not the same defined character as the former walls referred to. This really gives a great indication that the space between the two lodes is merely a large "horse" of mullock, and that the two lodes which have been worked on the upper levels will come together at a greater depth, and also they may unite at a higher level by driving either in a northerly or southerly direction. The whole character of Scotty's lode shows that it has been crushed and broken up, as it is composed of a soft, puggy, tenacious material, with a little quartz mixed. In no place does the lode assume a solid and compact character. The Kapanga lode, on the contrary, is a hard, compact, solid body, highly mineralised, but contains very little gold below the 320 ft. level. The shaft was sunk to a depth of 420 ft. many years ago, before the present company purchased the property, and since the present owners have had possession, the shaft has been carried down to a depth of 800 ft. When the sinking reached a depth of 600 ft. Seotty's lode was cut close to the shaft; at this point the lode was greatly broken up; but it nevertheless contained a little gold, though not sufficient to pay for working. In continuing the sinking from the 600 ft. level a great