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Kuaotunu District. Waitaia Mine. —The work has been confined chiefly to opening up the No. 3 reef at No. 4 level for the purpose of commencing stoping operations. 504 ft. of driving.and 25ft. of rising have been done on the reefs during the year, also crosscut drives have been extended 208 ft. The No. 3 reef has been driven on at the low level a total distance of 850 ft., and there are 250 ft. of backs over this drive on the reef (which is connected by rises with the upper levels) now available for stoping operations. A parcel of 300 tons of quartz is now being put through the Great Mercury battery, from which a payable return is expected. The treatment is wet crushing, amalgamation, and cyaniding. Kapai- Vermont. —This property changed hands from the Kapai-Vermont Gold-mining Company to the New Zealand Mines Trust (Limited) for the sum of £6,100, and operations in the mine were resumed. The first work was the repairing of three main passes leading to the surface-levels, and two chambers were cut out at the westward side of the crosscut at the low level, preparatory to sinking two winzes on the lode. An attempt was made to sink, but after getting down 12 ft. water was met with, and the work had to be discontinued until the water was drained by the Mariposa Company, which was pumping to a depth of 138 ft. below the level named. The water eventually drained off, and No. 1 winze was sunk to a depth of 59 ft., the reef averaging 5 ft. in thickness, the ore being payable throughout. The No. 2 winze was sunk 55 ft., the reef being 7 ft. thick, and tests of the quartz from here gave excellent results. The low-level tunnel has also been extended on the reef, and, although the country is of a hard nature, the prospects of the reef look very encouraging. As the Mariposa Company decided to stop all work in their mine, including the pumps, the sinking of the winzes had to be discontinued, as the w 7 ater rose rapidly. For the last five months the claim has been partially protected, and they were allowed to work with two men, pending arrangements with the Mariposa Company as to pumping, or an amalgamation with the two companies. Mariposa Mine. —This claim has been protected for nearly six months, and prior to this stoping operations were carried on on the reef above the main adit-level, from which 1,292 tons of ore was broken down, and treated at the company's mill for 719 oz. 9 dwt. of gold, valued at £1,620 4s. 6d. As the value of the ore was not sufficient to pay the cost of breaking and treatment work was stopped. A level was opened out at a depth of 100 ft. in the pumping-shaft, and the Try Fluke reef driven on for a distance of 450 ft., and the eastern branch of the reef driven on 37 ft. The reefs at this level, as far as they were driven on, were not of a payable character, and all work had to be stopped for a time for the want of funds. Great Mercury. —This property is owned by a syndicate, who in the early part of the year worked it for a time by wages-men, but as it did not prove payable the men were discharged and the mine let on tribute. Although the tributers have not discovered anything rich yet, they have been successful m getting quartz which contains a fair percentage of the precious metal, and they are in hopes it will lead on to a chute of ore of payable quality. 85 tons of ore and 206 tons of tailings were treated at the company's mill for 169 oz. 16 dwt. of gold, valued at £381 2s. If d. An average of seven men have been employed. Irene. —This mine has been opened up by four adit-levels from the side of the hill, termed the Nos. 1, 2, 3, and 4 levels, the No 4 level being 260 ft. below the surface. There are several reefs traversing the ground, but the Try Fluke is the only one developed to any extent. This reef is 2 ft. to 6 ft. in width, and carries narrow chutes of ore, usually a considerable distance apart. The company spent a fairly large sum of money on development-work, which proved the ore opened up at the present levels to be too small in quantity, taking the value into consideration, to be worked on a sufficiently large scale to return payable results, and the ground was therefore let on tribute to a party of six men, who have worked it for the last twelve months. There is a ten-head stampbattery in connection with the mine, and this has been used by the tributers for crushing their quartz. The tributers have stoped out portion of the reef from the No. 3 level upwards, and crushed 795 tons of ore for 446 oz. of gold, valued at £1,167 13s. An average of seven men have been employed. Juno. —This mine is worked by a party of four tributers, who have extended the low level on the reef a distance of 40 ft., making the total distance driven on the reef 550 ft. Stoping operations have also been carried on on the leader above this level, which has varied from fin. to If in. in thickness. The leader is very patchy, but rich specimens have been obtained. 12 tons of ore and 2001b. of specimens was treated during the year for 271 oz. 14 dwt. of gold, valued at £611 16s. lOd. Four men have been employed. Handsworth. —This claim has been continuously worked during the year by two men. There is one reef 4 ft. thick which has been driven on for some distance at the low level, but work has been more confined to the small leaders for some time past. A small crushing plant is being erected by Mr. Woodcock, the owner of the mine, which will consist of a three-stamp battery and a berdan, and the treatment will be the ordinary wet crushing and amalgamation. 2201b. of specimens was treated for 60 oz. 2 dwt. of gold, valued at £149 7s. 6d. There are a few men prospecting in this district—viz., James Hosie, Diamond, and Whelan— but so far they have not met with much success. Mercury Bay District. As there were no means of testing quartz that was broken out of the different reefs and leaders in this district without sending it to Auckland or some other batteries at a distance, and at considerable expense, the Minister of Mines decided to have a small three-stamp mill, berdan, &c, complete, erected at the junction of Mclsaac's Creek and the Mahakirau Stream for the purpose of giving every facility to prospectors in this district to test quartz, and it was fully expected when

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