71

C—3

was obtained. The lode lies very flat. It has been worked for a considerable distance from the mouth of the opening on the lode, and there is a large body of quartz, although of low grade. The battery returns from the operations of this mine last year show that 1,610 tons of stone has been crushed, which yielded 5060z. of gold. The company owning the mine, being in financial difficulties, have suspended operations for a time to get calls in to pay off their present liabilities, when mining operations will be again commenced, and prospecting works undertaken. Beefton Disteict. This district is looking better than it has done for some years. On my visit during the previous year things looked so bad, and every one was getting so disheartened, that the general impression was that the place was done. This, however, is an experience common to every quartz-mining district; and it is found, as a rule, that when the period of depression has passed a much healthier aspect prevails, as witnessed in the case of such mines as the Welcome, Keep It Dark, Wealth of Nations, Fiery Cross, Ac. Operations in these mines were for a time either wholly or partially suspended, the consequence being that many of those who were dependent on the mines were thrown out of employment, and, as no new mines were in the meantime being opened up, there was nothing to absorb the surplus labour. This state of affairs caused a temporary stagnation in mining matters in the districts affected; but the recent discoveries in the Keep It Dark, Hercules, Progress, Big River, &c, have caused a reaction in mining, and the new discoveries in the Keep it Dark Mine will tend to bring about a development of other mines at a greater depth than hitherto attained, and, judging by the present appearances of the field, the returns are likely to be considerably increased during next year. There has been very little foreign capital coming into this district for some years past, consequently the carrying-on of the mines has been almost solely dependent on the people of the locality; but the new developments which have taken place will, no doubt, be the means of the introduction of fresh capital into the district, and many other mines will be opened up. The full value of these discoveries have not yet been fully felt, as it takes a considerable time after new lodes are discovered to prove them of sufficient value to give confidence to investors residing at a distance from the scene of operations and induce them to embark their capital in mining shares. It may therefore take some time before all the surplus labour in the Eeefton district can be fully employed. The following gold returns for the year ending the 31st December last were supplied to me by Mr. Hindmarsh, the manager of several of the principal claims in the locality : —

Total value of gold yield since 1872, £2,301,296.

11—C. 3.

Company. Gold. Quartz. Dividends. 'rogress 3ig Eiver Yealth of Nations lumberland ... llobe Oz. 3,296 2,816 1,300 1,200 1,030 873 588 242 150 132 43 Tons. 6,533 2,236 4,806 1,421 3,835 1,647 2,177 370 609 392 50 £ 3,000 4,800 812 600 lercules Sir Francis Drake Sir Charles Eusseil xolden Lead ... [eep It Dark... To. 2 Dark ... "600 Mbutes — Al Golden Fleece Hercules ... Eoyal Victoria ... Inglewood Golden Treasure ... 'rivate Companies — Fiery Cross Energy ... Boatman's Tailings Caledonian 374 358 165 136 127 62 40 42 1,014 517 226 265 155 223 438 8 313 41 1,270 30 20 alluvial — Alexandra Dredging Buller Dredging (fortnight) Cocksparrow Dredging Bought by Banks )ther sources 13,732 145 44 586 4,309 1,000 27,838 9,812 Totals 19,816 27,838 9,812 Totals, 1872 to 1894 ... 587,501 643,930 553,163