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fully maintain their size and quality as they are being opened upon at a depth. The No. 2 shaft, on which the powerful pumping-machinery is erected, has now been sunk to a depth of 450 ft., and is substantially timbered throughout. There are five levels opened out from this shaft, including the adit-level, which is connected with the shaft at a depth of 50 ft., and the No. 1, 2, 3, and 4 levels are connected with those driven from the No. 1 shaft, and also connections are made with No. 3 shaft. The Welcome, Victoria, Martha, and Surprise reefs have now been opened upon to a considerable extent, and vary in width from 1 ft. to 56 ft., and from which abundance of quartz is produced to keep the Waihi battery of ninety stamps and Waikino of 100 stamps constantly crushing. Operations are still being carried on as usual from the No. 1 shaft, which has now attained a depth of 373 ft., and No. 3 shaft on the western side of the Martha Hill is down a depth of 280 ft. At this shaft a winding-engine has lately been erected, and a branch-line is being laid down from the company's main railway to hoppers near the top of the shaft, and when everything is completed a large tonnage of quartz will be hoisted up this shaft and forwarded direct to Waikino Mill. For some time past the company has been experimenting on the extraction of the gold from the ore, as to the best methods, and which will give the best results with wet or dry crushing, and as some of the other companies have now adopted the wet crushing, and it has been proven to be an advantage over the dry, it is to be hoped this company will also do the same; that is to say, if the company's interest will not suffer thereby, as it would be a great boon to the men employed in the crushing-plants if they were converted from the dry to wet crushing. In comparing the gold-returns it will be seen the great progress that has been made during the past year. In 1898, 37,164 tons were crushed, for 126,801 oz. gold, value, £134,553 Bs. 9d.; in 1899, 86,809 tons, for 273,817 oz., value, £272,688 9s. 10d. Increase—49,64s tons, for 147,016 oz., value, £138,135 Is. Id. The company has now 710 men employed. Waihi Consolidated Mine.- —This mine was not continuously worked during the year, a period of protection having been granted, as all the available capital had been spent in the erection of the pumping- and winding-machinery, and the development of the mine, and a reconstruction of the company was necessary to raise capital to carry on further operations to prove the value of the various reefs that have been intersected. The shaft has been sunk to a depth of 300 ft., and No. 1 level opened out at a depth of 80 ft., No. 2at 200 ft., and No. 3at 300 ft. The principal work has been done on the Favona reefs at No. 3 level, and there has also been a good deal of work done on the reefs at No. 2 level, which varied from 4 ft. to 7 ft. in width, and from which payable assay tests are said to have been obtained. Twenty-two men are employed. No returns. Waihi Union Mine. —This mine has been steadily worked during the year. The No. 1 shaft has been sunk a further distance of 100 ft. below No. 3 level, and No. 4 level opened out at a depth of 382 ft. Development work is proceeding on the Union reef at the No. 2 and No. 3 levels, which vary in width from 3 ft. to 6 ft. A great portion of the reef is considered to be low-grade, but there is a fair chance of a payable chute of ore being met with as the work proceeds. The Amaranth reef, which is a large body of quartz, from 10 ft. to 30 ft. in width, has been driven on at No. 1 level for a distance of 1,650 ft., and portions of this are considered payable in the Winner section. The No. 2 shaft is is down a depth of 240 ft., and the Winner and Union reefs operated on from here to a considerable extent. A powerful air-compressor engine has been erected at No. 1 shaft for the purpose of working the pumps and machinery at No. 2 shaft, also for working Tangye pumps and rock-drills in the workings in the No. 1 shaft when required. Forty-five men are employed in and about the mine, exclusive of management, clerical, or firewood-cutters. No returns. Waihi Silverton Mine. —Operations in this company's mine have been steadily carried on during the year. The shaft has been sunk a further distance of 70 ft., and No. 4 level opened out at a depth of 300 ft., from which a crosscut has been driven, and the reef intersected. This is being opened up on north and south of the crosscut preparatory to commencing stoping. The reef is about 10 ft. in width, and there is a slight improvement in the quality of the quartz. There has also been a large amount of driving and stoping done on the reef at No. 3 level. It was found to be absolutely necessary to overhaul the battery as it had been run until it was in a very bad state of repair, and in consequence of the stoppage the yearly return is not as large as if the battery had been running full time. The prospects of this mine are said to be improving, and it may reasonably be expected that the returns of gold will be larger next year. 8,350 tons of ore was treated for 6,736 oz. of gold ; value, £11,501 4s. sd. There are 105 men employed. Grand Junction Mine. —A very large amount of work has been done during the year, both in the eastern and western sections of the property, and it is to be regretted that the company did not meet with the success they deserved for their perseverance in developing the mine; and lately it was found necessary to stop all work with a view to give time to consider ways and means as to the further development of the property. In the eastern section the manager repaired the main shaft, also bottom level, and commenced a drive (outside the dam that was put in to keep the water back at the bottom level), with the intention of intersecting the reef at another place between the crosscut and Waihi Company's boundary ; but unfortunately, when the drive was nearly up to the reef, a large quantity of water was tapped, more than the pump could raise, and in consequence operations had to be stopped, and little more can be done until larger pumps are put in. A prospecting shaft was put down to a depth of 250 ft. near the northeastern boundary, and on the supposed line of reef from which crosscuts were driven, with the object of intersecting the reef, but unfortunately the reef could not be picked up, and this work was suspended. In the western section the No. 2 shaft was enlarged and sunk to a depth of 260 ft., and a large body of quartz was discovered, supposed to be the Martha Beef, and on this a considerable amount of work has been done, and some of the assay tests taken from this reef are saidto be of a payable character. An average of thirty-eight men employed.